Swiss Water Reports Year End and Fourth Quarter 2025 Results

Executive Summary

• Swiss Water reported FY 2025 revenue of C$258.7 M, a 49% increase year‑over‑year, driven by higher Arabica coffee prices and volume growth.
• Adjusted EBITDA fell to C$11.3 M (down 21% YoY) due to timing differences on market inversion cost recapture, but the company expanded its operating credit facility to C$80 M and repurchased outstanding warrants.
• Net income for FY 2025 was C$1.6 M (+23% YoY); Q4 net income declined to C$1.2 M (‑40% YoY) as volumes slipped 2% and risk‑management losses rose.

Key Details

• Q4 2025 Highlights
• Processed volumes: –2% vs. Q4 2024.
• Revenue: C$66.0 M (+34%).
• Net income: C$1.2 M (‑40%).

• Adjusted EBITDA: C$4.2 M (‑14%).

• FY 2025 Highlights

• Processed volumes: +2% vs. 2024.
• Revenue: C$258.7 M (+49%).
• Gross profit: C$27.0 M (+3%).
• Net income: C$1.6 M (+23%).

• Adjusted EBITDA: C$11.3 M (‑21%).

• Financial Position

• Operating credit facility renewed and expanded to C$80 M.
• Repayment of C$5.4 M construction debt in 2025.

• Repurchased and cancelled warrants held by Mill Road Capital.

• Market Conditions

• NY‑C Arabica futures averaged US$3.83/lb in Q4 2025 (up 35% from Q4 2024).
• Volatile coffee prices and an inverted futures curve impacted sales timing.

• U.S. customs classified the decaffeination process as “non‑transformational,” preserving origin status for tariffs.

• Operational Notes

• Tariff exposure managed after returning to a tariff‑free operating model on 20 Nov 2025.

• Early signs of improved purchasing activity observed as futures prices decline, though inventory prudence remains high among U.S. customers.

• Management Commentary

• CEO Frank Dennis highlighted disciplined execution, balance‑sheet strengthening, and continued customer demand despite price volatility.

• CFO Iain Carswell noted that the warrant repurchase and credit facility expansion materially increase financial flexibility for debt reduction and growth initiatives in 2026.

• Call Details

• Conference call: Mon 16 Mar 2026, 1:00 pm PT (4:00 pm ET). Access code 597453; replay available until 30 Mar 2026 (code 53539).

Notable Quotes

“Despite unprecedented volatility… 2025 was a year of meaningful progress for Swiss Water… we are pleased to report solid operational performance that reflects both the resilience and discipline of our organization.” – Frank Dennis, CEO

“Adjusted EBITDA declined year over year due to timing differences on the recapture of market inversion costs… the expansion of our operating credit facilities… significantly expand our financial flexibility going forward.” – Frank Dennis, CEO