CES ENERGY SOLUTIONS CORP. ANNOUNCES RECORD FOURTH QUARTER AND FULL YEAR 2025 RESULTS WITH RECORD ADJUSTED EBITDAC AND AN INCREASE TO ITS QUARTERLY DIVIDEND

Executive Summary

• CES Energy Solutions reported record Q4 2025 revenue of $664.5 M (up 10% YoY) and record annual revenue of $2.5 B (up 6% YoY).
• Adjusted EBITDAC reached a new quarterly high of $113.2 M and an annual record of $404.6 M, supporting a 29% increase in the quarterly dividend to $0.055 per share.
• The company completed a $75 M senior unsecured notes private placement (6.875% due 2029) and closed the acquisition of Fossil Fluids LLC for $14.2 M.

Key Details

• Revenue: Q4 2025 – $664.5 M; FY 2025 – $2.5 B. US revenue Q4 $434.9 M (up 11% YoY); Canada revenue Q4 $229.6 M (up 7% YoY).
• Adjusted EBITDAC: Q4 $113.2 M (17.0% of revenue); FY $404.6 M (16.2% of revenue).
• Net Income: Q4 $68.3 M (+63% YoY); FY $204.7 M (+7% YoY).
• Cash Flow: Funds flow from operations Q4 $84.2 M; FY $324.4 M. Free cash flow Q4 $78.4 M; FY $166.5 M.
• Dividend: Quarterly dividend increased 29% to $0.055 per share (implied annual payout ratio ≈ 19%). Payable April 15, 2026.
• Share Repurchases: $140.1 M repurchased FY 2025 (16.8 M shares at $8.20 avg.). Total shareholder returns FY 2025 – $174.9 M.
• Debt Financing: Private placement of $75 M 6.875% senior unsecured notes, issued at $1,031.25 per $1,000 principal (premium). Adds to existing $275 M Senior Notes due 2029; total long‑term debt ≈ $398 M.
• Acquisition: Closed June 1 2025 purchase of Fossil Fluids LLC assets for $14.2 M ($7.0 M cash upfront, $7.2 M deferred earn‑out).
• Leverage: Total Debt/Adjusted EBITDAC = 1.23× (conservative). Working capital surplus $693.4 M exceeds total debt by $196.8 M.
• Capital Expenditure Outlook 2026: Expected ≈ $90 M (≈50% maintenance, 50% expansion).
• Conference Call: Q4 results webcast on March 11 2026 at 9:00 am MT (11:00 am ET); replay available for ~90 days.

Notable Quotes

• Ken Zinger, President & CEO: “Our record fourth‑quarter performance underscores the strength of our unique, vertically integrated business model and positions us well to continue delivering surplus free cash flow and shareholder value.”
• Anthony Aulicino, EVP & CFO: “The additional senior notes financing further strengthens our balance sheet, reduces cost of capital, and provides ample liquidity to support growth initiatives.”