SECURE ANNOUNCES 2025 SECOND QUARTER RESULTS
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Recorded Q2 2025 Adjusted EBITDA of
$110 million ($0.49 /basic share) -
Achieved a 12% year-over-year increase in Adjusted EBITDA per share for the six months ended
June 30, 2025 -
Maintaining our full-year 2025 Adjusted EBITDA guidance of
$510 -$540 million - Repurchased 7% of total common shares outstanding year to date
"Our second quarter results were in line with expectations and reflected the typical seasonal impacts of spring break-up," said
"Our core infrastructure network continues to benefit from steady industrial and production-related waste volumes. In the metals recycling segment, we are actively managing through a complex set of global pressures, including soft demand, foreign steel oversupply, and evolving trade dynamics—most notably
"We remain committed to disciplined capital allocation and returning capital to shareholders. Year to date, we have returned
SECOND QUARTER HIGHLIGHTS
- Generated revenue (excluding oil purchase and resale) of
$353 million , up 5% from Q2 2024, primarily driven by contributions from theEdmonton -based metals recycling business acquired onJanuary 31, 2025 . - Recorded net income of
$31 million ($0.14 per basic share), relatively flat from Q2 2024 on an absolute basis, and up 17% on a per share basis due to the share buybacks over the past year reducing the weighted average shares outstanding in the quarter by 15%. - Recorded Adjusted EBITDA1 of
$110 million ($0.49 per basic share1), representing a 4% year-over-year decrease (14% increase on a per share basis) primarily due to seasonal softness, active forest fires and near-term volatility in the metals recycling segment fromU.S. steel tariffs, partially offset by higher pricing and volume stability across our network. In addition, the prior year results benefited from storage opportunities in Energy Infrastructure relating to the opening of theTrans Mountain pipeline expansion. - Repurchased approximately 9.4 million common shares at
$14.50 per share for$136 million under the Corporation's Substantial Issuer Bid ("SIB"). Also repurchased approximately 1.7 million common shares under the Corporation's Normal Course Issuer Bid ("NCIB") for$25 million . Year-to-date share repurchases under the SIB and NCIB totaled approximately 16.3 million common shares for$241 million . In total, the Corporation has repurchased 7% of its issued and outstanding shares to date in 2025. - Declared and paid a quarterly dividend of
$0.10 per common share, consistent with our capital allocation strategy and representing a yield of 2.4% on our current share price. - Incurred
$14 million of growth capital expenditures ($43 million year to date) directed towards advancing construction of the produced water processing and disposal facility, including pipeline infrastructure, in the Alberta Montney region to accommodate growing producer volumes and progressing the upgrades required to reopen a suspended industrial waste processing facility located inAlberta's Industrial Heartland to meet local demand. - Increased and extended our Revolving Credit Facility to
$900 million with a maturity date inMay 2028 , enhancing our financial flexibility.
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(1) Non-GAAP financial measure or Non-GAAP ratio. Refer to the "Non-GAAP and other specified financial measures" section herein. |
OUTLOOK
Looking ahead to the remainder of 2025, our customers continue to approach the current environment with caution, emphasizing discipline, and operational efficiency. Ongoing macroeconomic volatility continues to persist, with the recent decline in commodity prices, recessionary concerns, and trade-related disruptions in our metals recycling business stemming from evolving
We continue to actively manage near-term volatility in the metals recycling segment, particularly within the ferrous market, which remains challenged in
- Adjusted EBITDA:
$510 million to$540 million ; - Discretionary Free Cash Flow:
$270 million to$300 million ; -
Organic Growth Capital : Approximately$125 million , over 70% of which is directed toward long-cycle, contracted infrastructure investments that deliver stable, recurring cash flows. The 2025 spend includes:- Phase 3 expansion of the
Clearwater heavy oil terminal and gathering infrastructure for incremental clean heavy oil delivery, including adding treating capabilities for trucked-in emulsion volumes backed by anchor tenants. The expansion was completed and operational in the first quarter of 2025, with the terminal now having total capacity of 75,000 barrels per day. - Two produced water processing and disposal facilities that include pipeline infrastructure in the Alberta Montney region to accommodate growing producer volumes. The new facilities are both backed by 10-year produced water contracts with large reputable counterparties. These facilities are expected to be operational in the fourth quarter of 2025, and the first quarter of 2026, respectively.
- Reopening a suspended industrial waste processing facility located in
Alberta's Industrial Heartland to meet local demand. - Purchasing incremental rail cars, bringing SECURE's fleet to approximately 200 rail cars, and increasing the efficiency of our metals recycling logistics and distribution operations.
- Optimizing our waste infrastructure network to debottleneck, increase throughput, achieve cost savings, and drive higher Adjusted EBITDA from same store sales.
- Phase 3 expansion of the
- Sustaining capital:
$85 million ; and - Asset retirement obligation spend:
$15 million
SECURE believes its strong balance sheet and robust projected cash flows provide the Corporation with the flexibility to execute on its capital allocation priorities, including:
- Advancing high-return organic projects;
- Maintaining our quarterly dividend of
$0.10 per share ($0.40 annualized), equal to approximately$88 million annualized based on current shares outstanding; - Opportunistic share repurchases through the NCIB, which provides a flexible way to return capital to shareholders at the discretion of management and the Board of Directors. Management and the Board of Directors continue to believe the intrinsic value of the Corporation is higher than where the shares currently trade and views buybacks as an attractive use of capital; and
- Maintaining a strong balance sheet. At
June 30, 2025 , the Corporation had a Total Debt to EBITDA covenant ratio2 of 2.1x, or 1.8x excluding leases.
Looking beyond 2025, we remain highly confident in the long-term fundamentals that underpin our business. Canadian oil and gas production continues to exhibit resilience and steady growth. The Trans Mountain Expansion has improved access to global markets, and future egress projects offer further flexibility and tighter differentials. LNG projects, including LNG Canada, are also unlocking natural gas takeaway and catalyzing upstream development. This production growth, coupled with enhanced egress, supports increased volumes of associated waste byproducts that require specialized infrastructure for processing, recovery, recycling, and disposal. With over 80 facilities across
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(2) Calculated in accordance with the Corporation's credit facility agreements. Refer to the Q2 2025 Management's Discussion and Analysis ("MD&A"). |
SECOND QUARTER 2025 CONFERENCE CALL
SECURE will host a conference call on
ABOUT SECURE
SECURE is a leading waste management and energy infrastructure business headquartered in
SECURE's shares trade under the symbol SES and are listed on the
NON-GAAP AND OTHER SPECIFIED FINANCIAL MEASURES
The Corporation uses accounting principles that are generally accepted in
However, these measures should not be used as an alternative to IFRS measures because they are not standardized financial measures under IFRS and therefore might not be comparable to similar financial measures disclosed by other companies. See the "Non-GAAP and other specified financial measures" section of the Corporation's MD&A for the three and six months ended
Adjusted EBITDA and Adjusted EBITDA per basic share
Adjusted EBITDA is calculated as noted in the table below and reflects items that the Corporation considers appropriate to adjust given the irregular nature and relevance to comparable operations. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by revenue (excluding oil purchase and resale). Adjusted EBITDA per basic share is defined as Adjusted EBITDA divided by basic weighted average common shares. For the three and six months ended
The following table reconciles the Corporation's net income, being the most directly comparable financial measure disclosed in the Corporation's financial statements, to Adjusted EBITDA for the three and six months ended
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Three months ended |
Six months ended |
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|
2025 |
2024 |
% Change |
2025 |
2024 |
% Change |
Net income |
31 |
32 |
(3) |
69 |
454 |
(85) |
Adjustments: |
|
|
|
|
|
|
Depreciation, depletion and amortization (1) |
46 |
41 |
12 |
91 |
86 |
6 |
Share-based compensation (2) |
6 |
6 |
— |
16 |
20 |
(20) |
Transaction and related costs |
1 |
2 |
(50) |
5 |
2 |
150 |
Interest, accretion and finance costs |
19 |
13 |
46 |
33 |
31 |
6 |
Gain on asset divestitures |
— |
— |
— |
— |
(520) |
(100) |
Other (income) expense |
(1) |
1 |
(200) |
(2) |
15 |
(113) |
Current tax expense |
13 |
15 |
(13) |
28 |
42 |
(33) |
Deferred tax (recovery) expense |
(2) |
(4) |
(50) |
(5) |
107 |
(105) |
Unrealized (gain) loss on mark to market transactions (3) |
(3) |
8 |
(138) |
(4) |
9 |
(144) |
Adjusted EBITDA |
110 |
114 |
(4) |
231 |
246 |
(6) |
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(1) Included in cost of sales and/or general and administrative ("G&A") expenses on the Consolidated Statements of Comprehensive Income. |
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(2) Included in G&A expenses on the Consolidated Statements of Comprehensive Income |
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(3) Includes amounts reported in revenue on the Consolidated Statements on Comprehensive Income. |
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Discretionary free cash flow
Discretionary free cash flow is defined as funds flow from operations adjusted for sustaining capital expenditures, and lease payments. The Corporation may deduct or include additional items in its calculation of discretionary free cash flow that are unusual, non-recurring, or non-operating in nature. For the three and six months ended
The following table reconciles the Corporation's funds flow from operations, being the most directly comparable financial measure disclosed in the Corporation's financial statements, to discretionary free cash flow.
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Three months ended |
Six months ended |
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|
2025 |
2024 |
% Change |
2025 |
2024 |
% Change |
Funds flow from operations |
83 |
91 |
(9) |
164 |
199 |
(18) |
Adjustments: |
|
|
|
|
|
|
Sustaining capital (1) |
(24) |
(32) |
(25) |
(35) |
(40) |
(13) |
Lease liability principal payments |
(6) |
(8) |
(25) |
(13) |
(15) |
(13) |
Transaction and related costs |
1 |
2 |
(50) |
5 |
2 |
150 |
Discretionary free cash flow |
54 |
53 |
2 |
121 |
146 |
(17) |
(1) The Corporation classifies capital expenditures as either growth, acquisition or sustaining capital. Refer to "Operational Definitions" in the MD&A for further information. |
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FINANCIAL STATEMENTS AND MD&A
The Corporation's consolidated financial statements and notes thereto and MD&A for the three and six months ended
FORWARD-LOOKING STATEMENTS
Certain statements contained or incorporated by reference in this press release constitute "forward-looking statements and/or "forward-looking information" within the meaning of applicable securities laws (collectively referred to as "forward-looking statements"). When used in this press release, the words "achieve", "advance", "anticipate", "believe", "can be", "capacity", "commit", "continue", "could", "deliver", "drive", "enhance", "ensure", "estimate", "execute", "expect", "focus", "forecast", "forward", "future", "goal", "grow", "integrate", "intend", "may", "maintain", "objective", "ongoing", "opportunity", "outlook", "plan", "position", "potential", "prioritize", "realize", "remain", "result", "seek", "should", "strategy", "target" "will", "would" and similar expressions, as they relate to SECURE, its management are intended to identify forward-looking statements. Such statements reflect the current views of SECURE and speak only as of the date of this press release.
In particular, this press release contains or implies forward-looking statements pertaining but not limited to: SECURE's 2025 guidance, including with respect to Adjusted EBITDA, planned capital expenditures and growth projects (including for organic growth capital, sustaining capital and asset retirement obligations), and projected discretionary free cash flow; anticipated timing with respect to SECURE's new produced water processing facilities; SECURE's expectations and priorities for 2025 and beyond and its ability and position to achieve such priorities; SECURE's business plans, objectives, goals, targets, priorities and strategies; SECURE's expectation to capture value as market conditions normalize; the impact of the steps being taken by SECURE to protect the business against the near-term volatility in the metals recycling segment; SECURE's expectations related to economic drivers and the corresponding demand for its services; expectations and uncertainty with respect to the economy, evolving economic conditions and the industrial landscape in
Forward-looking statements are based on certain assumptions that SECURE has made in respect thereof as at the date of this press release regarding, among other things: SECURE's 2025 expectations; economic and operating conditions, including commodity prices, crude oil and natural gas storage levels, interest rates, exchange rates, and inflation; ability to enter into signing agreements with customers to backstop the investments and acquisition opportunities present; continued demand for the Corporation's infrastructure services and activity linked to long-term and recurring projects; the expectation with respect to the commercial agreements entered into by SECURE for water disposal services in the
Forward-looking statements involve significant known and unknown risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether such results will be achieved. Readers are cautioned not to place undue reliance on these statements as a number of factors could cause actual results to differ materially from the results discussed in these forward-looking statements, including but not limited to: general global financial conditions, including general economic conditions in
The guidance in respect of the Corporation's expectations of Adjusted EBITDA, capital expenditures (including organic growth capital, sustaining capital and ARO expenditures), and discretionary free cash flow in 2025 in this press release may be considered to be a financial outlook for the purposes of applicable Canadian securities laws. Such information is based on assumptions about future events, including economic conditions and proposed courses of action, based on management's assessment of the relevant information currently available, and which may become available in the future. These projections constitute forward-looking statements and are based on several material factors and assumptions set out above. Actual results may differ significantly from such projections. See above for a discussion of certain risks that could cause actual results to vary. The financial outlook contained in this press release has been approved by management as of the date of this press release. Readers are cautioned that any such financial outlook contained herein should not be used for purposes other than those for which it is disclosed herein. SECURE and its management believe that the financial outlook contained in this press release has been prepared based on assumptions that are reasonable in the circumstances, reflecting management's best estimates and judgments, and represents, to the best of management's knowledge and opinion, expected and targeted financial results. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results.
Although forward-looking statements contained in this press release are based upon what the Corporation believes are reasonable assumptions, the Corporation cannot assure investors that actual results will be consistent with these forward-looking statements. The forward-looking statements in this press release are made as of the date hereof and are expressly qualified by this cautionary statement. Unless otherwise required by applicable securities laws, SECURE does not intend, or assume any obligation, to update these forward-looking statements.
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