Tidewater Renewables (LCFS) Q3 2025 earnings summary

Executive summary

• Advanced strategic initiatives, including the acquisition and integration of the Western Pipeline and the sale of the Sylvan Lake Gas Processing Facility for CAD 5.5 million.

• Maintained strong operational performance across midstream assets and renewables, despite planned and unplanned outages, including a scheduled turnaround and a minor fire at the HDRD Complex.

• Benefited from regulatory developments, including a CAD 370 million federal biofuels incentive and BC-LCFS credits, with the government announcing a major biofuels incentive program.

• Increased contracted offtakes to cover 100% of forecasted renewable diesel production for the remainder of 2025 and over 80% of 2026 production.

• Q3 2025 net loss was CAD 1 million, a significant improvement from a CAD 367.1 million loss in Q3 2024, but down from net income of CAD 13 million in Q2 2025.

Financial highlights

• Q3 2025 revenue was $62.0 million, down from $91.6 million in Q3 2024; nine months revenue was $193.3 million.

• Adjusted EBITDA for Q3 2025 was CAD 16.5 million, up 54% from Q2 2025 and 21% year-over-year, driven by higher equity investment and joint venture contributions.

• Tidewater Midstream posted a consolidated net loss attributable to shareholders of CAD 34.1 million, compared to a net loss of CAD 16.3 million in Q2 2025.

• Consolidated adjusted EBITDA for Tidewater Midstream was CAD 16.2 million, consistent with Q2 2025.

• Net cash from operating activities in Q3 2025 was $13.6 million, with net debt at $191.9 million as of September 30, 2025.

Outlook and guidance

• HDRE complex expected to return to full capacity in December 2025, with next turnaround planned for spring 2028, maximizing 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.

• Expects to benefit from the Canadian government's $370 million Biofuels Production Incentive starting January 2026.

• Maintenance capital guidance for 2025 remains $8–10 million.

• Anticipated annual cost savings of CAD 10–15 million from Western Pipeline integration.