SECURE Waste Infrastructure (SES) Q3 2025 earnings summary

Executive summary

• Core operations focus on collection, processing, recovery, recycling, and disposal of industrial waste in Western Canada and North Dakota, supported by a critical infrastructure network and stable, recurring cash flows.

• 80% of adjusted EBITDA and volumes are tied to recurring production and industrial activity, reflecting a decade-long transformation toward stable cash flows and expanded facilities.

• Q3 2025 delivered strong results, with infrastructure-backed business showing resilience despite lower oil prices and disciplined producer spending.

• Metals recycling business faced continued weakness due to tariffs, foreign oversupply, and soft Canadian demand, prompting a shift of 95% of shipments to U.S. markets.

• Major infrastructure projects in Alberta Montney region and strategic investments are progressing on schedule, expected to drive future growth.

Financial highlights

• Q3 2025 adjusted EBITDA was $135 million, up 6% year-over-year and 17% higher on a per share basis.

• Revenue excluding oil purchase and resale was $365 million, down 2% from Q3 2024, mainly due to lower specialty chemicals sales and drilling/completions volumes.

• Net income was $1 million, down from $94 million in Q3 2024, impacted by a non-cash $55 million provision and absence of a prior year tax recovery.

• Funds flow from operations was $96 million; discretionary free cash flow was $68 million.

• Repurchased 1.7 million shares in Q3 for $27 million; 18.1 million shares repurchased year-to-date for $268 million (8% of shares outstanding).

Outlook and guidance

• 2025 adjusted EBITDA guidance revised to $500 million, reflecting delayed ferrous metal sales, weaker macro environment, and a canceled acquisition.

• Q4 adjusted EBITDA expected to be consistent with Q3, with results subject to seasonal and market factors.

• 2025 discretionary free cash flow guidance: ~$260 million; capital expenditures unchanged at $210 million ($125 million growth, $85 million sustaining).

• Expect to enter 2026 with strong operational momentum as long-cycle projects come online.

• 2026 adjusted EBITDA and capital investment guidance to be provided in February 2026.