EverGen Infrastructure (EVGN) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue rose 57% year-over-year to $3.6M, driven by record RNG production at Fraser Valley Biogas and successful facility expansions.

• Adjusted EBITDA increased 157% year-over-year to $0.98M, supported by revenue growth and cost discipline.

• Net loss improved 57% year-over-year to $(0.47)M, reflecting higher revenues and reduced G&A expenses.

• RNG production reached 40,674 GJ, up 65% year-over-year, with Fraser Valley Biogas operating at 150% of designed capacity.

• Fully funded and built-out RNG capacity stands at 410,000 GJ, with a national portfolio of five revenue-generating operations.

Financial highlights

• Revenue: $3.6M in Q3 2024, up from $2.3M in Q3 2023, driven by record RNG production and higher tipping fees.

• Adjusted EBITDA: $0.98M in Q3 2024, up from $0.38M in Q3 2023.

• Net loss: $(0.47)M in Q3 2024, improved from $(1.09)M in Q3 2023.

• Cash and cash equivalents: $0.6M as of Q3 2024.

• Working capital surplus: $0.48M at quarter end, up from $0.33M year-over-year.

Outlook and guidance

• 2025 run-rate EBITDA expected at ~$13M from fully funded projects, with potential to exceed $100M EBITDA and 4M GJ RNG production through pipeline growth.

• Near-term catalysts include reaching nameplate capacity at Fraser Valley Biogas, FID and construction for Pacific Coast Renewables and GrowTEC Phase 2, and Project Radius milestones.

• Long-term offtake agreements underpin robust project economics, with up to 480,000 GJ contracted and ability to contract at premium prices in US markets.

• Ongoing cost reductions expected from lower insurance premiums and equipment optimizations.

• Continued growth expected across Canada and potentially into other North American regions.