Tidewater Renewables (LCFS) Q1 2026 earnings summary

Executive summary

• Regulatory tailwinds, favorable market conditions, and operational excellence at key facilities supported strong Q1 2026 performance, with net income rising to $10.0 million and Adjusted EBITDA surging 904% year-over-year to $24.1 million.

• Tidewater Renewables secured conditional approval for the Biofuel Production Incentive, ensuring quarterly cash inflows once finalized.

• U.S. EPA finalized record renewable volume obligations, boosting renewable diesel margins and supporting higher realized margins.

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

• The HDRD Complex operated at 95% utilization, producing 2,837 barrels/day, up from 75% utilization in Q1 2025.

Financial highlights

• Tidewater Renewables reported adjusted EBITDA of CAD 24.1 million for Q1 2026, aided by near nameplate HDRD Complex operations and incentive funding.

• Tidewater Midstream delivered consolidated adjusted EBITDA of CAD 49.7 million, a significant year-over-year increase.

• Revenue for Q1 2026 was $93.6 million, up from $57.7 million in Q1 2025.

• Distributable cash flow was $18.4 million, versus negative $4.8 million in Q1 2025.

• Net debt stood at $206.8 million as of March 31, 2026.

Outlook and guidance

• Full-year 2026 consolidated adjusted EBITDA guidance raised to CAD 190–210 million.

• Tidewater Renewables adjusted EBITDA guidance increased to CAD 100–110 million, including Biofuel Production Incentive proceeds.

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

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

• Management continues to prioritize debt reduction and operational optimization.