Tidewater Renewables (LCFS) investor relations material

Executive summary

• Record operational and financial performance in Q2 2026, driven by high utilization at key facilities, favorable market conditions, and regulatory incentives.

• Net income for Q2 2026 was $5.1 million, down from $13.0 million in Q2 2025, mainly due to non-cash derivative and warrant revaluation impacts and deferred tax expense, partially offset by higher throughput and margins at the HDRD Complex.

• Strategic focus on operational excellence, margin enhancement, prudent capital management, and debt reduction.

• Regulatory tailwinds and incentive programs contributed to improved margins and cash flow.

• A new initiative agreement with the Government of British Columbia was executed to provide additional BC LCFS Credits, advancing the SAF project.

Financial highlights

• Q2 2026 revenue was $160.6 million, up from $73.6 million in Q2 2025.

• Tidewater Renewables achieved record adjusted EBITDA of CAD 56 million in Q2 2026, including CAD 7.7 million from the Biofuel Production Incentive and CAD 7.7 million from an equity investment in a cattle company.

• Consolidated adjusted EBITDA reached a quarterly record of CAD 88.9 million, a CAD 39.2 million increase over Q1 2026.

• Distributable cash flow for Q2 2026 was $42.8 million, up from $0.8 million in Q2 2025.

• Net income per share (basic) was $0.14 in Q2 2026, down from $0.36 in Q2 2025.

Outlook and guidance

• Full-year 2026 consolidated adjusted EBITDA guidance raised to CAD 230–250 million, a 20% increase over prior midpoint.

• Renewables adjusted EBITDA guidance increased to CAD 130–140 million; Midstream to CAD 100–110 million.

• Sales volume and capital expenditure targets for 2026 remain unchanged.

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

• Management continues to prioritize debt reduction and operational optimization.