CES ENERGY SOLUTIONS CORP. ANNOUNCES STRONG Q3 2025 RESULTS WITH RECORD ADJUSTED EBITDAC AND DECLARES CASH DIVIDEND

Executive Summary

• CES Energy Solutions reported record Q3 2025 revenue of $623.2 M (up 3% YoY) and a record Adjusted EBITDAC of $103.3 M, yielding a 16.6% margin.
• The Board declared a quarterly cash dividend of $0.0425 per share payable on Jan 15 2026.
• Completed a private placement of $75.0 M senior unsecured notes (6.875% due May 24 2029) at $1,031.25 per $1,000 principal, strengthening the capital structure.

Key Details

• Financial Highlights – Q3 2025 vs. Q3 2024
• Revenue: $623.2 M (↑ 3%) vs. $606.5 M.
• Adjusted EBITDAC: $103.3 M (↑ 1%) vs. $102.5 M; margin 16.6% (↓ 0.3 pts).
• Net income: $40.5 M (‑13%) vs. $46.6 M.
• Funds Flow from Operations: $85.8 M (‑3%).

• Free Cash Flow: $27.2 M (‑32%).

• Geographic Revenue Breakdown

• United States: $409.4 M (↑ 2% YoY).

• Canada: $213.8 M (↑ 5% YoY).

• Shareholder Returns – Q3 2025

• Dividend paid: $9.3 M ($0.0425 per share).
• Share repurchases: $36.1 M (4.4 M shares, ~2.0% of outstanding).

• Total returned to shareholders in quarter: $45.4 M.

• Capital Structure

• Total Debt as of Sep‑30‑2025: $510.3 M (up 4%).
• Working Capital Surplus: $713.9 M, exceeding total debt by $203.6 M.

• Senior Facility net draw: ≈$125 M; Senior Notes outstanding: $275 M.

• Financing Transaction – Private Placement (Oct 23‑2025)

• Issue: $75.0 M of 6.875% senior unsecured notes, due May 24 2029.
• Price: $1,031.25 per $1,000 principal (premium).

• Integration: Added to existing $200 M Senior Notes series under same indenture.

• Outlook & Capital Expenditure Guidance

• 2025 capex (net of disposals) expected ≈$80 M, primarily expansion capital.

• 2026 capex projected $85‑90 M.

• Conference Call – Friday, Nov 14 2025 at 9:00 am MT / 11:00 am ET; webcast link provided on company website.

Notable Quotes

• Ken Zinger, President & CEO: “Our record revenue and Adjusted EBITDAC underscore the strength of our integrated business model and growing market share in both the U.S. and Canada.”
• Anthony Aulicino, EVP & CFO: “The $75 M senior note financing further enhances liquidity, positioning us to capitalize on upcoming growth opportunities while maintaining a disciplined capital structure.”