SECURE Waste Infrastructure (SES) Q4 2024 earnings summary

Executive summary

• Achieved record financial and operational performance in 2024, including a major rebranding to SECURE Waste Infrastructure Corp. to reflect an expanded infrastructure focus.

• Completed transformative divestitures and a strategic metals recycling acquisition, generating CAD 1.15 billion in cash and expanding processing capabilities in Edmonton.

• Returned $761 million to shareholders via dividends and share repurchases, reducing shares outstanding by 19%.

• Core operations in Western Canada and North Dakota focus on processing, recovery, recycling, and disposal of industrial waste, supported by a critical infrastructure network.

• Business transformation over the past decade has shifted cash flows to 80% recurring and 90% infrastructure-focused, with significant growth in facilities and adjusted EBITDA.

Financial highlights

• Achieved Adjusted EBITDA of $490 million in 2024, at the top end of guidance, with a 35% margin; Adjusted EBITDA per share was $2.25.

• Discretionary Free Cash Flow was $316 million (64% conversion), supporting growth, buybacks, and dividends.

• 2024 revenue (excluding oil purchase/resale) was $1,403 million; net income reached $582 million ($2.28 per share).

• Return on Capital Employed reached 25% in 2024; Return on Invested Capital was 21.1%.

• Share price delivered >50% annualized 3-year TSR, with a 2.7% dividend yield.

Outlook and guidance

• 2025 Adjusted EBITDA guidance: $510–540 million, a 10% increase at midpoint from 2024 pro forma.

• Discretionary free cash flow expected at $270–300 million in 2025, with >50% DFCF conversion rate projected.

• $85 million organic growth capital program planned, plus $175 million for two metals recycling acquisitions.

• Quarterly dividend of $0.10 per share ($0.40 annualized), totaling ~$93–104 million based on current shares.

• Revenue expected to grow at a ~15% CAGR from 2020–2025e, driven by recurring volumes and sector growth.