Tidewater Midstream and Infrastructure (TWM) Q4 2025 earnings summary

Executive summary

• Fourth quarter 2025 saw significant operational and regulatory developments, including new government incentives and strategic agreements supporting renewable and midstream operations.

• Reported a consolidated net loss of $30.0 million in Q4 2025, significantly higher than the $3.3 million loss in Q4 2024, mainly due to lower operating income and absence of impairment reversals.

• Both Tidewater Midstream and Renewables experienced operational disruptions but have since restored capacity and are positioned for improved performance in 2026.

• Completed several asset sales in 2025, including the Sylvan Lake Gas Processing Facility, with proceeds used to reduce outstanding debt.

• Achieved regulatory clarity with BC's Low Carbon Fuels Act amendments, supporting renewable fuel initiatives.

Financial highlights

• Q4 2025 consolidated adjusted EBITDA was $3.0 million, down from $20.0 million in Q4 2024; full-year 2025 adjusted EBITDA was $31.5 million, down from $134.3 million in 2024.

• Tidewater Renewables reported a net loss of CAD 13.8 million and adjusted EBITDA of CAD -3.8 million for Q4 2025, both down year-over-year due to extended turnaround and equipment repairs.

• Q4 2025 distributable cash flow attributable to shareholders was $(15.3) million; full-year 2025 was $(59.7) million.

• Net debt at year-end 2025 was $579.5 million, nearly flat year-over-year.

• Maintenance capital spending for 2025 was $18.9 million, within guidance.

Outlook and guidance

• 2026 consolidated adjusted EBITDA guidance is $150–$170 million, a 375%–440% increase over 2025, driven by improved utilization and operational efficiencies.

• Capital expenditures for 2026 are expected to be $20–$25 million, with most cash flow directed toward debt reduction.

• Renewables segment expects annual adjusted EBITDA of $80–$90 million and capex of $2–$3 million, with 150–170 million litres of renewable diesel production.

• Anticipates $24–$27.2 million in annual cash proceeds from the Canadian BioFuels Production Incentive for 2026 and 2027.

• Guidance does not include potential upside from the Ram gas plant restart.