SECURE Announces 2024 Fourth Quarter and Year-end Results

Press Release

• Achieved Adjusted EBITDA¹ of $117 million ($0.50/basic share¹) in the fourth quarter and $490 million Adjusted EBITDA in 2024 ($1.92/basic share), the top end of the guidance provided
• Repurchased $657 million common shares at an average price of $11.47 in 2024, reducing shares outstanding by 19%
• Reiterating 2025 Adjusted EBITDA guidance of $510 – $540 million, with the mid-point reflecting a 10% increase over 2024 pro forma

CALGARY, AB, Feb. 21, 2025 – SECURE Waste Infrastructure Corp. (“SECURE” or the “Corporation”) (TSX: SES), a leading waste management and energy infrastructure company, reported today its operational and financial results for the three and twelve months ended December 31, 2024.

“2024 was an outstanding year for SECURE, driven by strong financial results, significant shareholder returns, and strategic investments in our business,” said Allen Gransch, President and CEO. “We achieved $490 million in Adjusted EBITDA and generated $316 million in discretionary free cash flow, highlighting the strength of our core infrastructure operations and our ability to reliably support growing production volumes and industrial activity across western Canada.”

“During the year, we returned $761 million to shareholders through dividends and share repurchases, while reinvesting $100 million in critical growth projects and strategic acquisitions. With a leverage ratio of 0.8x at year-end, SECURE has the financial flexibility to deliver on our 2025 objectives and drive future growth. Our pipeline of infrastructure projects, combined with our recent metals recycling acquisition, strengthens our network and enhances our ability to transform waste into value for customers and create sustainable returns for shareholders.”

FOURTH QUARTER RESULTS

• Adopted new name of SECURE Waste Infrastructure Corp. on January 1, 2025, aligning our identity with the critical role we play in waste and energy infrastructure.
• Closed the acquisition of a metals recycling business on January 31, 2025, establishing a new hub for our metal recycling network in the Edmonton market, and significantly increasing our scale and processing capabilities.
• Generated revenue (excluding oil purchase and resale) of $332 million and net income of $34 million ($0.14 per basic share).
• Achieved Adjusted EBITDA of $117 million ($0.50 per basic share) and an Adjusted EBITDA margin¹ of 35%.
• Generated funds flow from operations to $106 million ($0.45 per basic share), and discretionary free cash flow¹ of $80 million ($0.34 per basic share).
• Repurchased 2,817,857 common shares at a weighted average price per share of $15.97 for a total cost of $45 million, maximizing allowable purchases under the 2024 Normal Course Issuer Bid.
• Paid a quarterly dividend of $0.10 per common share, which currently represents an attractive yield of 2.7% on our common shares.
• Ended the year with a Total Debt to EBITDA covenant ratio² of 1.0x (0.8x excluding leases).

ANNUAL RESULTS

• Generated $1,403 million of revenue (excluding oil purchase and resale) and net income of $582 million ($2.28 per basic share).
• Achieved Adjusted EBITDA of $490 million, the top end of the Corporation’s guidance, and an Adjusted EBITDA margin of 35%.
• Generated funds flow from operations to $411 million ($1.61 per basic share), and discretionary free cash flow of $316 million ($1.24 per basic share).
• Repurchased 57,291,905 common shares at a weighted average price per share of $11.47 for a total cost of $657 million, reducing total shares outstanding in the year by 19%.

2025 OUTLOOK

Macroeconomic factors, including the potential imposition of tariffs (or other restrictive trade measures or countermeasures), continue to create economic uncertainty. Despite these challenges, SECURE’s business remains highly resilient. Our customers continue to exhibit stable growth, driven by strong market fundamentals, disciplined capital allocation, balance sheet strength, and a focus on cost management and operational efficiencies. As a result, SECURE sees continued opportunities for growth and expects to continue to deliver industry leading margins, and a stable cash flow profile underpinned by recurring volumes driven by industrial waste, metals, and energy markets. SECURE remains committed to being the leader in waste management and energy infrastructure, prioritizing value creation for our customers through reliable, safe, and environmentally responsible infrastructure.

Our low leverage and strong projected cash flows provide SECURE with meaningful capital allocation flexibility. In addition to funding growth initiatives, including the previously announced metals acquisitions and organic growth capital program, we remain committed to delivering enhanced shareholder returns through share buybacks and a quarterly dividend. We are confident that our business strategy is firmly in place, positioning us to navigate market uncertainties while continuing to provide reliable, safe, and cost-effective solutions to our customers. As economic conditions evolve, we remain well-prepared to adapt and capture opportunities that drive long-term value creation.

Based on the current economic environment and underlying economic trends, the Corporation expects the following for 2025:

• Adjusted EBITDA of $510 million to $540 million, reflecting growth of 10% from the mid-point over 2024 (proforma the sale of 29 facilities formerly owned by Tervita Corporation).
• Discretionary free cash flow of $270 million to $300 million.
• $85 million organic growth capital program, up from previously announced $75 million, due to a carryover from 2024 for the development of the Clearwater heavy oil terminal expansion. Additional key growth projects include increasing the processing and disposal capacity of our water infrastructure network in the Alberta Montney region; reopening a suspended industrial waste processing facility located in Alberta’s Industrial Heartland; and purchasing additional rail cars to increase the efficiency of our metals recycling operations.
• $175 million associated with two metals recycling acquisitions, including the Edmonton-based metals recycling business which was completed on January 31, 2025.
• $85 million sustaining capital and $15 million ARO spend.
• Share repurchases for up to 8% of the Corporation’s outstanding shares under the renewed Normal Course Issuer Bid.
• Quarterly dividend of $0.10 per share ($0.40 annualized), equal to approximately $93 million based on current shares outstanding.

(1)	Non-GAAP financial measure or Non-GAAP ratio. Refer to the “Non-GAAP and other specified financial measures” section herein.
(2)	Calculated in accordance with the Corporation’s credit facility agreements. Refer to the Q4 2024 Management’s Discussion and Analysis (“MD&A”).

FOURTH QUARTER AND YEAR-END 2024 CONFERENCE CALL

SECURE will host a conference call on Friday, February 21, 2025, at 9:00 a.m. MST to discuss the fourth quarter and year-end results. To participate in the conference call, dial 437-900-0527 or toll free 1-888-510-2154. To access the simultaneous webcast, please visit www.secure.ca. For those unable to listen to the live call, a taped broadcast will be available at www.secure.ca and, until midnight MST on Friday, February 28, 2025, by dialing 1-888-660-6345 and using the pass code 44803#.

ABOUT SECURE

SECURE is a leading waste management and energy infrastructure business headquartered in Calgary, Alberta. The Corporation’s extensive infrastructure network located throughout western Canada and North Dakota includes waste processing and transfer facilities, industrial landfills, metal recycling facilities, crude oil and water gathering pipelines, crude oil terminals and storage facilities. Through this infrastructure network, the Corporation carries out its principal business operations, including the collection, processing, recovery, recycling and disposal of waste streams generated by our energy and industrial customers and gathering, optimization, terminalling and storage of crude oil and natural gas liquids. The solutions the Corporation provides are designed not only to help reduce costs, but also lower emissions, increase safety, manage water, recycle by-products and protect the environment.

SECURE’s shares trade under the symbol SES and are listed on the Toronto Stock Exchange.

NON-GAAP AND OTHER SPECIFIED FINANCIAL MEASURES

The Corporation uses accounting principles that are generally accepted in Canada (the issuer’s “GAAP”), which includes International Financial Reporting Standards (“IFRS”). This news release contains certain measures that are considered “specified financial measures” (being either “non-GAAP financial measures”, “non-GAAP ratios”, “capital management measures” or “supplementary financial measures”, as applicable) as defined in National Instrument 52-112 – Non-GAAP and Other Financial Measures Disclosures, including: Adjusted EBITDA and Discretionary Free Cash Flow (non-GAAP financial measures); Adjusted EBITDA per basic and diluted share, and discretionary free cash flow per basic and diluted share (non-GAAP ratios); Total Debt (capital management measure); and funds flow from operations per basic and diluted share (supplementary financial measures) which do not have any standardized meaning as prescribed by IFRS. These measures are intended as a complement to results provided in accordance with IFRS. The Corporation believes these measures provide additional useful information to analysts, shareholders and other users to understand the Corporation’s financial results, profitability, cost management, liquidity and ability to generate funds to finance its operations.

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 twelve months ended December 31, 2024 and 2023 for further details, which is incorporated by reference herein and available on SECURE’s profile at www.sedarplus.ca and on our website at www.secure.ca.

Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EBITDA per basic and diluted 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 and diluted share is defined as Adjusted EBITDA divided by basic and diluted weighted average common shares. For the three and twelve months ended December 31, 2024 and 2023, transaction and related costs have been adjusted as they are costs outside the normal course of business.

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 twelve months ended December 31, 2024 and 2023.

	Three months ended December 31,			Twelve months ended December 31,
	2024	2023	% Change	2024	2023	% Change
Net income	34	59	(42)	582	195	198
Adjustments:
Depreciation, depletion and amortization (1)	42	52	(19)	173	203	(15)
Interest, accretion and finance costs	12	24	(50)	55	96	(43)
Current tax (recovery) expense	1	(4)	(125)	28	2	1,300
Deferred tax expense	11	23	(52)	103	60	72
Share-based compensation (2)	9	7	29	34	26	31
Gain on asset divestitures	—	—	—	(520)	—	100
Other expense	5	10	(50)	20	—	100
Unrealized loss on mark to market transactions (3)	1	(12)	(108)	11	(6)	(283)
Transaction and related costs	2	3	(33)	4	14	(71)
Adjusted EBITDA	117	162	(28)	490	590	(17)

(1) Included in cost of sales and/or G&A expenses on the Consolidated Statements of Comprehensive Income.

(2)  Included in G&A expenses on the Consolidated Statements of Comprehensive Income

(3) Includes amounts reported in revenue on the Consolidated Statements on Comprehensive Income.

Discretionary Free Cash Flow and Discretionary Free Cash Flow per basic and diluted share

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. Discretionary Free Cash Flow per basic and diluted share is defined as Discretionary Free Cash Flow divided by basic and diluted weighted average common shares. For the three and twelve months ended December 31, 2024 and 2023, transaction and related costs have been adjusted as they are costs outside the normal course of business.

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.

	Three months ended December 31,			Twelve months ended  December 31,
	2024	2023	% Change	2024	2023	% Change
Funds flow from operations	106	128	(17)	411	474	(13)
Adjustments:
Sustaining capital (1)	(22)	(19)	16	(72)	(89)	(19)
Lease liability principal payments	(6)	(16)	(63)	(27)	(36)	(25)
Transaction and related costs	2	3	(33)	4	14	(71)
Discretionary free cash flow	80	96	(17)	316	363	(13)

(1) The Corporation classifies capital expenditures as either growth, acquisition or sustaining capital. Refer to “Operational Definitions” in the MD&A for further information.

FINANCIAL STATEMENTS AND MD&A

The Corporation’s annual audited consolidated financial statements and notes thereto for the years ended December 31, 2024 and 2023 and MD&A for the three and twelve months ended December 31, 2024, are available on SECURE’s website at www.secure.ca and on SEDAR+ at www.sedarplus.ca.

For further information: Allen Gransch, President and Chief Executive Officer; Chad Magus, Chief Financial Officer, Phone: (403) 984-6100, Fax: (403) 984-6101, Email: ir@secure.ca, Website: www.secure.ca

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