SECURE ANNOUNCES 2025 SECOND QUARTER RESULTS

Executive Summary

• SECURE Waste Infrastructure Corp. reported Q2 2025 financial results, recording Adjusted EBITDA of $110 million ($0.49 per basic share), a 4% year-over-year decrease, though per-share metrics rose 14% due to share buybacks.
• The company maintained its full-year 2025 Adjusted EBITDA guidance of $510–$540 million and Discretionary Free Cash Flow guidance of $270–$300 million, despite headwinds from U.S. steel tariffs and seasonal factors.
• Year-to-date, the company returned $286 million to shareholders via $241 million in share repurchases (7% of outstanding shares) and dividends, while increasing its Revolving Credit Facility to $900 million.

Key Details

• Q2 2025 Financial Performance:
  • Revenue: $353 million (excluding oil purchase/resale), up 5% year-over-year, driven by the January 2025 acquisition of the Edmonton-based metals recycling business.
  • Net Income: $31 million ($0.14 per basic share), relatively flat year-over-year in absolute terms but up 17% on a per-share basis.
  • Adjusted EBITDA: $110 million ($0.49 per basic share), down 4% year-over-year. The decline was attributed to seasonal softness, active forest fires, and volatility in the metals recycling segment due to U.S. steel tariffs, partially offset by higher pricing and volume stability.
  • Six-Month Adjusted EBITDA: $231 million (down 6% year-over-year).
  • Discretionary Free Cash Flow (Q2): $54 million (up 2% year-over-year).
  • Discretionary Free Cash Flow (Six-Month): $121 million (down 17% year-over-year).
• Capital Allocation & Shareholder Returns:
  • Share Repurchases: Repurchased approximately 9.4 million shares at $14.50/share for $136 million under the Substantial Issuer Bid (SIB) and 1.7 million shares for $25 million under the Normal Course Issuer Bid (NCIB). Total YTD repurchases: 16.3 million shares for $241 million (7% of total common shares outstanding).
  • Dividends: Declared and paid a quarterly dividend of $0.10 per common share (2.4% yield).
  • Total Capital Returned: $286 million year-to-date (repurchases + dividends).
• Capital Expenditures & Projects:
  • Growth CapEx: $14 million in Q2 ($43 million YTD).
  • Key Projects: Construction of produced water processing/disposal facilities in the Alberta Montney region (backed by 10-year contracts, expected operational Q4 2025/Q1 2026) and upgrades to reopen a suspended industrial waste processing facility in Alberta’s Industrial Heartland.
  • Outlook CapEx: Organic growth capital of ~$125 million for 2025 (70%+ directed to long-cycle, contracted infrastructure). Includes Phase 3 expansion of Clearwater heavy oil terminal (completed Q1 2025, capacity 75,000 bpd) and incremental rail cars to bring fleet to ~200.
  • Sustaining Capital: $85 million budgeted for 2025.
  • Asset Retirement Obligation: $15 million budgeted for 2025.
• Balance Sheet & Debt:
  • Increased and extended Revolving Credit Facility to $900 million with a maturity date in May 2028.
  • Total Debt to EBITDA covenant ratio: 2.1x (or 1.8x excluding leases) as of June 30, 2025.
• Operational Context:
  • Metals recycling segment (approx. 10% of business) is facing challenges from U.S. tariffs (50% on steel sold to U.S.), soft global demand, and foreign steel oversupply.
  • Mitigation strategies include redirecting ferrous volumes to tariff-exempt U.S. markets, pivoting to non-ferrous volumes, and optimizing costs.

Notable Quotes

• "Our second quarter results were in line with expectations and reflected the typical seasonal impacts of spring break-up... our infrastructure-backed business model continues to demonstrate strength." — Allen Gransch, President and CEO
• "We remain committed to disciplined capital allocation and returning capital to shareholders. Year to date, we have returned $286 million through share repurchases and dividends—reflecting our confidence in the stability of our business and the strength of our financial position." — Allen Gransch, President and CEO