SECURE Announces First Quarter Results

Press Release

• Achieved Q1 2025 Adjusted EBITDA of $121 million ($0.52/basic share)
• Increasing our 2025 growth capital program to approximately $125 million (from $85 million previously announced) with an additional water disposal infrastructure project backed by commercial agreements entered into during Q1 2025
• Maintaining our 2025 Adjusted EBITDA guidance of $510 – $540 million

CALGARY, AB, May 2, 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 months ended March 31, 2025.

“Following a strong 2024, we remain on track with our 2025 objectives,” said Allen Gransch, President and CEO. “Our first-quarter performance demonstrates the consistency of our core infrastructure business and our ability to generate stable, high-quality earnings in a dynamic market environment. Our network continues to support recurring industrial and energy-related volumes across western Canada and North Dakota.”

“With a leverage ratio of 1.3x at March 31, 2025, SECURE has the financial strength and flexibility to advance our strategic priorities,” continued Gransch. “We are pleased to accelerate our share buybacks planned for 2025 through the launch of a Substantial Issuer Bid in April, offering to repurchase up to $200 million of our common shares. At the same time, we are integrating our recently acquired metals recycling business and funding our expanded capital program. This additional capital is being directed toward growth opportunities backed by strong commercial agreements that provide long-term, reliable cash flows.”

He added, “These investments expand our infrastructure footprint, enhance our ability to transform waste into value, and position us to deliver sustainable growth and long-term shareholder returns – all while continuing to maintain a solid financial position.”

FIRST 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, for $162 million, including certain working capital. The acquisition establishes a new hub for our metal recycling network in the Edmonton market and significantly increases our scale and processing capabilities.
• Determined not to proceed with the previously announced $18 million acquisition in our metals recycling business as final negotiations and due diligence did not meet management expectations.
• Entered into a 10-year commercial agreement with a senior exploration and production company for water disposal services in the Montney resource play. The agreement ensures the customer reliable access to cost-efficient produced water transportation and disposal, while providing SECURE with a stable return on invested capital through guaranteed commitments for the facility.
• Generated revenue (excluding oil purchase and resale) of $371 million and net income of $38 million ($0.16 per basic share).
• Achieved Adjusted EBITDA¹ of $121 million ($0.52 per basic share¹) and an Adjusted EBITDA margin¹ of 33%.
• Generated funds flow from operations to $81 million ($0.35 per basic share), and discretionary free cash flow¹ of $67 million ($0.29 per basic share).
• Incurred growth capital expenditures of $29 million, directed towards completing the Phase 3 expansion of our Clearwater heavy oil terminalling and gathering infrastructure and progressing other active development projects.
• Repurchased 5,282,000 common shares at a weighted average price per share of $14.96 for a total cost of $79 million pursuant to the Corporation’s normal course issuer bid (“NCIB”).
• Paid a quarterly dividend of $0.10 per common share, which currently represents an attractive yield of 3.1% on our common shares.
• Ended the quarter with a Total Debt to EBITDA covenant ratio² of 1.6x (1.3x excluding leases).

(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 Q1 2025 Management’s Discussion and Analysis (“MD&A”).

2025 OUTLOOK

Ongoing macroeconomic volatility, including uncertainty surrounding tariffs, recessionary concerns, and the recent decline in commodity prices, has contributed to a weakening economic outlook and increased uncertainty for our customers as they assess the potential impacts on their businesses. In response, our customers are approaching the current environment with caution, emphasizing discipline, operational efficiency, and prudent capital allocation.

Amid these conditions, we remain committed to delivering value to our customers while strengthening our position as a leader in waste management and energy infrastructure. Our infrastructure is designed to support recurring waste streams generated by both oil and gas production and industrial activities. However, lower commodity prices and a recessionary backdrop may reduce activity levels, which will have some impact to our business operations.

Based on the current economic environment and underlying economic trends, the Corporation is providing the following guidance for the remainder of 2025:

• We are maintaining our Adjusted EBITDA guidance of $510 million to $540 million. While our outlook reflects a more cautious stance in light of the potential slowdown in activity levels outlined above and the decision not to proceed with a previously announced $18 million acquisition in the metals recycling business, our core infrastructure supports recurring waste and energy streams and is built to perform across all cycles.
• We expect discretionary free cash flow of $270 million to $300 million.
• We are increasing our organic growth capital program by $40 million to $125 million for 2025. The increase relates to an executed contract with an anchor tenant to provide produced water infrastructure for a 10-year term in the Montney region of Alberta. This new produced water processing facility is expected to be in service in the first quarter of 2026. Total growth projects planned for 2025 include:
  • Completion of the 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. This project was completed and operational in the first quarter, 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. One facility is expected to be operational in the fourth quarter of 2025, with the second scheduled to be in service in the first quarter of 2026.
  • Reopening a suspended industrial waste processing facility located in Alberta’s Industrial Heartland to meet local demand. Capital expenditures are underway and include replacing and upgrading critical infrastructure to increase capacity and allow for broader waste acceptance and treatment, which is expected to occur in the third quarter of 2025.
  • 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 saving, and drive higher Adjusted EBITDA from same store sales.
• We are maintaining our $85 million sustaining capital and $15 million asset retirement obligation spend.
• We expect to complete up to $200 million of common share repurchases under the Substantial Issuer Bid in the second quarter of 2025. Further buybacks under the NCIB will remain at the discretion of management and the Board of Directors.
• We are maintaining our quarterly dividend of $0.10 per share ($0.40 annualized), equal to approximately $92 million annualized based on current shares outstanding.

We are confident in our ability to adapt to evolving economic conditions and remain committed to delivering long-term value through resilient operations, disciplined growth, and a sharp focus on sustainability and safety.

SECURE’s strong balance sheet and robust projected cash flows provide meaningful flexibility to execute on our capital allocation priorities. In 2025, this includes funding growth through our organic capital program and the acquisition of a metals recycling business completed on January 31, 2025, while also enhancing shareholder returns through share repurchases and a stable quarterly dividend.

FIRST QUARTER 2025 CONFERENCE CALL

SECURE will host a conference call on Friday, May 2, 2025, at 9:00 a.m. MST to discuss the first quarter 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, May 9, 2025, by dialing 1-888-660-6345 and using the pass code 80355#.

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 months ended March 31, 2025 and 2024 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 months ended March 31, 2025 and 2024.

	Three months ended March 31,
	2025	2024	% Change
Net income	38	422	(91)
Adjustments:
Depreciation, depletion and amortization (1)	45	45	—
Share-based compensation (2)	10	14	(29)
Transaction and related costs	4	—	100
Interest, accretion and finance costs	14	18	(22)
Gain on asset divestitures	—	(520)	(100)
Other expense	(1)	14	(107)
Current tax expense	15	27	(44)
Deferred tax (recovery) expense	(3)	111	(103)
Unrealized (gain) loss on mark to market transactions (3)	(1)	1	(200)
Adjusted EBITDA	121	132	(8)

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 months ended March 31, 2025 and 2024, 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 March 31,
	2025	2024	% Change
Funds flow from operations	81	108	(25)
Adjustments:
Sustaining capital (1)	(11)	(8)	38
Lease liability principal payments	(7)	(7)	—
Transaction and related costs	4	—	100
Discretionary free cash flow	67	93	(28)

FINANCIAL STATEMENTS AND MD&A

The Corporation’s consolidated financial statements and notes thereto and MD&A for the three months ended March 31, 2025 and 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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