EverGen Infrastructure (EVGN) Q1 2025 earnings summary

Executive summary

• Leadership transition completed with CEO and COO appointments, bringing operational turnaround expertise and renewed focus on growth.

• Achieved record quarterly renewable natural gas (RNG) production, with Fraser Valley Biogas (FVB) setting new monthly and daily records.

• Closed a transformative CAD 5 million equity investment from a large family office, significantly strengthening the balance sheet and aligning management, board, and shareholders.

• Board refresh with new directors and continued involvement of co-founder as board director.

• Entered into a $2.62 million purchase and sale agreement for the land on which FVB operates.

Financial highlights

• Q1 2025 revenue was $1.9 million, down 41% year-over-year due to reduced volumes and lower tip fee revenue.

• Net loss improved by 11% to $1.2 million compared to Q1 2024, mainly from lower operating costs and expenses.

• Adjusted EBITDA was $0.5 million, down $0.2 million year-over-year, impacted by lower revenues and insurance proceeds.

• Cash and equivalents rose 109% to $1.5 million, while working capital deficit increased 80% to $1.9 million.

• Total assets decreased 18% to $77.6 million from the prior year.

Outlook and guidance

• Optimism for continued record-breaking performance at Fraser Valley Biogas and strong operational results from R&G business for the remainder of the year.

• Continued growth expected in RNG production, supported by FVB expansion and stabilization.

• Focus on achieving nameplate capacity at Fraser Valley and Growtec, with preventative maintenance and critical spares now budgeted.

• Reviewing capital projects at Growtec and other facilities over the next 60-90 days, prioritizing high ROI and short payback periods.

• Management anticipates further revenue growth and improved financial performance, subject to market and operational risks.