Tidewater Renewables (LCFS) Q3 2025 earnings summary

Executive summary

• Closed acquisition of the North Segment of Pembina's Western Pipeline System on September 25, 2025, focusing on integration and operational synergies.

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

• Maintained consistent operational performance across midstream assets and renewables, despite planned and unplanned outages, including a scheduled turnaround and an unplanned outage at the HDRD Complex.

• Reported a net loss of $1.0 million in Q3 2025, a significant improvement from a $367.1 million loss in Q3 2024, but a decrease from $13.0 million net income in Q2 2025.

Financial highlights

• Q3 2025 net loss: $1.0 million (Q3 2024: $367.1 million loss); nine months: $17.3 million net income (2024: $354.5 million loss).

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

• Q3 2025 revenue: $62.0 million (Q3 2024: $91.6 million); nine months: $193.3 million (2024: $350.1 million).

• Net cash from operating activities Q3 2025: $13.6 million (Q3 2024: $3.1 million).

• Net debt as of September 30, 2025: $191.9 million (2024: $183.3 million).

Outlook and guidance

• Expects to benefit from the Canadian government's $370 million Biofuels Production Incentive starting January 2026, with 15–21 cents per liter support through December 2027.

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

• HDRD Complex throughput guidance for 2025 revised to 1,900–2,000 bbl/d, down from 2,200–2,400 bbl/d, due to operational disruptions.

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

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