Tidewater Midstream and Infrastructure (TWM) Q1 2026 earnings summary

Executive summary

• Regulatory tailwinds, favorable market conditions, and operational excellence drove strong Q1 2026 performance, with both entities benefiting from high facility utilization and improved margins.

• Tidewater Renewables secured conditional approval for the Biofuel Production Incentive, ensuring quarterly cash incentives and supporting full annual production capacity at the HDRD Complex.

• U.S. EPA finalized record Renewable Volume Obligations and maintained a favorable RIN multiplier, boosting realized margins for renewable diesel.

• Over 90% of 2026 renewable diesel production is committed under offtake agreements, providing cash flow certainty, with over 40% committed for 2027 and 2028.

• Entered long-term gas handling and NGL supply agreements at the Brazeau River Complex (BRC), securing up to 75MMcf/d of natural gas processing for five years.

Financial highlights

• Consolidated adjusted EBITDA rose to CAD 49.7 million for Q1 2026, a significant year-over-year increase from negative $3.7 million, driven by higher gross margins and renewable diesel sales.

• Net loss attributable to shareholders improved to $27.1 million from $31.8 million year-over-year.

• Distributable cash flow attributable to shareholders was $27.3 million, up from negative $20.8 million in Q1 2025.

• CAD 6.1 million recognized from the Biofuel Production Incentive, strengthening gross margin.

• Net debt stood at $582.0 million as of March 31, 2026, compared to $585.4 million a year earlier.

Outlook and guidance

• Full-year 2026 consolidated adjusted EBITDA guidance raised to CAD 190–210 million, reflecting stronger market conditions and improved renewable diesel pricing.

• Tidewater Renewables adjusted EBITDA guidance increased to CAD 100–110 million, including Biofuel Production Incentive proceeds and sales volumes of 150–170 million liters.

• 2026 renewable diesel production forecasted at 150–170 million liters at CAD 0.16/liter incentive rate.

• Capital expenditures for 2026 remain unchanged: CAD 2–3 million for Renewables, CAD 20–25 million consolidated.

• Free cash flow will be directed primarily toward debt reduction.