Tidewater Midstream and Infrastructure (TWM) Q3 2025 earnings summary

Executive summary

• Closed acquisition of the Western Pipeline, focusing on integration and operational synergies with anticipated annual cost savings of $10–15 million; acquisition of the north segment of Pembina's Western Pipeline System for $1.2 million plus $30 million in assumed liabilities, expected to yield cost improvements and enhance feedstock procurement.

• Advanced strategic initiatives, including non-core asset sales and increased contracted offtakes for renewable diesel.

• Maintained consistent operational performance across midstream assets and solid results at the renewables segment.

• Reported a consolidated net loss attributable to shareholders of $34.1 million for Q3 2025, up from a $7.3 million loss in Q3 2024, mainly due to lower refined product sales, emission credit pricing, and unfavorable derivative contract valuations, partially offset by lower depreciation and higher equity investment income.

• Executed an agreement with the Government of British Columbia to receive BC LCFS Credits, expected to fund about 50% of renewable feedstock costs for 2026-2027.

Financial highlights

• Q3 2025 net loss attributable to shareholders: $34.1 million (Q3 2024: $7.3 million); net loss for Renewables was CAD 1 million in Q3 2025, down from net income of CAD 13 million in Q2 2025, mainly due to non-cash items.

• Adjusted EBITDA: $16.2 million in Q3 2025 (Q3 2024: $29.2 million); Renewables adjusted EBITDA was CAD 16.5 million, up 54% sequentially.

• Distributable cash flow attributable to shareholders: $(14.8) million (Q3 2024: $(1.2) million).

• Net debt: $587.8 million as of September 30, 2025 (September 30, 2024: $566.5 million); deconsolidated net debt at $395.9 million.

• Maintenance capital expenditures for Q3 2025: $7.3 million, mainly for the HDRD Complex turnaround.

Outlook and guidance

• HDRD complex expected to return to full capacity in December 2025, with next turnaround planned for spring 2028 to maximize production during the biofuels incentive period.

• Over 80% of 2026 renewable diesel production expected to be sold as R100, benefiting from U.S. import parity pricing.

• Management expects to benefit from the Government of Canada’s $370 million Biofuels Production Incentive, supporting improved cash flow and returns for renewable diesel production from 2026-2027.

• Full-year 2025 capital program expected to range between $15 million and $20 million, including maintenance capital for the Western Pipeline.

• Anticipates revenue growth and margin expansion for the remainder of 2025 and beyond.