SECURE ANNOUNCES 2025 FOURTH QUARTER AND YEAR-END RESULTS, 2026 GUIDANCE AND 5% DIVIDEND INCREASE
SECURE ANNOUNCES 2025 FOURTH QUARTER AND YEAR-END RESULTS, 2026 GUIDANCE AND 5% DIVIDEND INCREASE |
| [20-February-2026] |
CALGARY, AB, Feb. 20, 2026 /CNW/ - SECURE Waste Infrastructure Corp. ("SECURE" or the "Corporation") (TSX: SES), a leading waste management and energy infrastructure company, reported today its operational and financial results for the three and twelve months ended December 31, 2025, and provided financial guidance for 2026. "2025 demonstrated the resilience and quality of SECURE's infrastructure-backed business model. From a macro perspective, it was a challenging year across our markets, but our teams executed with discipline, controlled costs, and continued to deliver reliable service to our customers," said Allen Gransch, President and Chief Executive Officer. "Despite a volatile macro backdrop, softer commodity prices, and near-term headwinds in metals recycling, we grew Adjusted EBITDA to over $500 million, generated strong free cash flow, and continued to return significant capital to shareholders. Our 5% dividend increase underscores our confidence in the strength and sustainability of the business." "As we enter 2026, we are well positioned for growth as several long-cycle, contracted infrastructure projects come online, metals recycling performance improves, and our core waste network continues to benefit from recurring production and industrial activity. We will continue to invest in high-return, infrastructure-backed organic projects as we expand our network to meet the growing needs of our customers. Based on current visibility, we expect to generate Adjusted EBITDA of $520 to $550 million in 2026, while maintaining disciplined capital allocation, a strong balance sheet, and financial flexibility." FOURTH QUARTER RESULTS
ANNUAL RESULTS
SUBSEQUENT EVENTS
VOLUNTARY CHANGE IN ACCOUNTING POLICY In the fourth quarter, SECURE implemented a voluntary accounting policy change related to the presentation of our oil purchase and resale activities and certain commodity-related derivative instruments. As a result, we now present realized and unrealized gains and losses from physically settled commodity contracts and related derivatives on a net basis within revenue, rather than presenting gross proceeds and offsetting costs. SECURE's management and Board of Directors believes this provides a clearer view of SECURE's underlying, infrastructure-driven earnings and improves the transparency and comparability of our reported results for investors. OUTLOOK As of early 2026, SECURE is operating with strong momentum, supported by the commissioning of contracted organic growth projects, improving performance in the metals recycling business, and continued stability across our core waste management and energy infrastructure network. Global energy and industrial markets remain influenced by geopolitical and macroeconomic uncertainty, including evolving developments in major hydrocarbon-producing regions, continued trade tensions and tariff-related disruptions. While these factors continue to impact market sentiment and certain end markets, the direct exposure to SECURE's business remains limited. The Corporation's infrastructure-backed model, high proportion of ongoing production and industrial-linked volumes, and long-term contracted assets continue to provide stability through market cycles and support resilient, recurring cash flows. Customers across SECURE's network remain disciplined in their capital and operating decisions, prioritizing efficiency and free cash flow generation amid a cautious macro environment and lower commodity prices. Canadian oil and gas production continues to demonstrate resilience, supported by structurally low break-even economics, with the median Canadian production company requiring approximately US$50/bbl WTI to fund maintenance capital and base dividends. This capital discipline supports stable production levels even in a sub-US$60/bbl environment. Improved market access is further strengthening netbacks, with incremental export capacity on the Trans Mountain Pipeline Expansion and the commissioning of LNG Canada is supporting incremental natural gas production, particularly in the Montney. Together, these structural improvements underpin stable production levels and associated waste volumes across SECURE's network. Ongoing regulatory-driven environmental remediation programs further underpin stable, counter-cyclical demand, supporting long-term visibility and growth. In metals recycling, U.S.-Canada trade dynamics and tariffs on finished steel continue to dampen domestic demand for ferrous scrap. These impacts have been mitigated by SECURE's diversified end markets, expanded rail logistics capacity, and operational flexibility as volumes have been redirected to the U.S. Growth in 2026 is expected to be driven primarily by the commissioning of long-cycle, contracted water infrastructure projects advanced in 2025, incremental capacity expansions in constrained regions, and improving performance across the metals recycling business. Importantly, the Corporation's capital program is designed to support existing customer activity and long-term contracted volumes, rather than relying on a recovery in drilling activity or commodity prices. 2026 FINANCIAL GUIDANCE Given current visibility and the contracted nature of its growth projects, management remains confident in SECURE's ability to deliver year-over-year Adjusted EBITDA growth and strong free cash flow generation in 2026. Based on the current macroeconomic environment, the Corporation expects the following for 2026:
With a Total Debt to EBITDA ratio of 2.1x at December 31, 2025 (1.8x excluding leases) and substantial discretionary free cash flow generation expected, SECURE will continue to execute a disciplined capital allocation strategy to support long-term value creation, including:
With portfolio simplification and strategic repositioning largely complete, 2026 is expected to be a year focused on execution, consistency, and incremental growth. With more than 80 high barrier to entry facilities strategically located across Western Canada and North Dakota, SECURE is well positioned to manage growing waste and water volumes associated with industrial and upstream activity. A disciplined approach to capital allocation, a strong balance sheet, and a contract-backed investment strategy are expected to support sustainable growth and resilient shareholder returns through 2026 and beyond. FOURTH QUARTER AND YEAR-END 2025 CONFERENCE CALL SECURE will host a conference call on Friday, February 20, 2026, at 9:00 a.m. MST to discuss the fourth quarter and annual 2025 results. To participate in the conference call, dial 437-900-0527 or toll free 1-888-510-2154. To access the simultaneous webcast, please visit www.secure.ca/financial-statements-and-events. For those unable to listen to the live call, a taped broadcast will be available at www.secure.ca and, until midnight MST on Friday, February 27, 2026, by dialing 1-888-660-6345 and using the pass code 17852#. ABOUT SECURE SECURE is a leading waste management and energy infrastructure business headquartered in Calgary, Alberta. SECURE's Waste Management segment is centered on a network of long-life, permitted processing, recovery, and disposal infrastructure across Western Canada and North Dakota that plays an essential role in the safe, efficient, and environmentally responsible management of waste generated by energy and industrial activity. Processing activities optimize the handling of hazardous and non-hazardous liquids, solids, emulsions, and industrial by-products, while recovery activities enable the recycling of metals and recovered oil, and disposal assets provide compliant, long-term solutions for residual waste. SECURE's Energy Infrastructure segment consists of crude oil terminals and storage facilities, and pipeline-connected infrastructure that enable the optimization, terminalling, storage and movement of crude oil and natural gas liquids to market, including value-adding marketing and optimization activities. SECURE's shares trade under the symbol SES and are listed on the Toronto Stock Exchange. NON-GAAP AND OTHER SPECIFIED FINANCIAL MEASURES The Corporation uses accounting principles that are generally accepted in Canada (the issuer's "GAAP"), which includes International Financial Reporting Standards ("IFRS"). This news release contains certain measures that are considered "specified financial measures" (being either "non-GAAP financial measures", "non-GAAP ratios", "capital management measures" or "supplementary financial measures", as applicable) as defined in National Instrument 52-112 - Non-GAAP and Other Financial Measures Disclosures, including: Adjusted EBITDA and Discretionary Free Cash Flow (non-GAAP financial measures); Adjusted EBITDA per basic share (non-GAAP ratio); Discretionary Free Cash Flow per basic share (non-GAAP ratio);and Total Debt (capital management measure), which do not have any standardized meaning as prescribed by IFRS. These measures are intended as a complement to results provided in accordance with IFRS. The Corporation believes these measures provide additional useful information to analysts, shareholders and other users to understand the Corporation's financial results, profitability, cost management, liquidity and ability to generate funds to finance its operations. However, these measures should not be used as an alternative to IFRS measures because they are not standardized financial measures under IFRS and therefore might not be comparable to similar financial measures disclosed by other companies. See the "Non-GAAP and other specified financial measures" section of the Corporation's MD&A for the three and twelve months ended December 31, 2025 and 2024 for further details, which is incorporated by reference herein and available on SECURE's profile at www.sedarplus.ca and on our website at www.secure.ca. Adjusted EBITDA and Adjusted EBITDA per basic share Adjusted EBITDA is calculated as noted in the table below and reflects items that the Corporation considers appropriate to adjust given the irregular nature and relevance to comparable operations. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by revenue. Adjusted EBITDA per basic share is defined as Adjusted EBITDA divided by basic weighted average common shares. For the three and twelve months ended December 31, 2025 and 2024, transaction and related costs have been adjusted as they are costs outside the normal course of business. The following table reconciles the Corporation's net income, being the most directly comparable financial measure disclosed in the Corporation's financial statements, to Adjusted EBITDA for the three and twelve months ended December 31, 2025 and 2024.
Discretionary free cash flow and Discretionary free cash flow per basic share Discretionary free cash flow is defined as funds flow from operations adjusted for sustaining capital expenditures, and lease payments. The Corporation may deduct or include additional items in its calculation of discretionary free cash flow that are unusual, non-recurring, or non-operating in nature. Discretionary Free Cash Flow per basic share is defined as discretionary free cash flow divided by basic weighted average common shares. For the three and twelve months ended December 31, 2025 and 2024, transaction and related costs have been adjusted as they are costs outside the normal course of business. The following table reconciles the Corporation's funds flow from operations, being the most directly comparable financial measure disclosed in the Corporation's financial statements, to discretionary free cash flow.
FINANCIAL STATEMENTS AND MD&A The Corporation's consolidated financial statements and notes thereto and MD&A for the three and twelve months ended December 31, 2025 and 2024 are available on SECURE's website at www.secure.ca and on SEDAR+ at www.sedarplus.ca. FORWARD-LOOKING STATEMENTS Certain statements contained or incorporated by reference in this press release constitute "forward-looking statements and/or "forward-looking information" within the meaning of applicable securities laws (collectively referred to as "forward-looking statements"). When used in this press release, the words "achieve", "advance", "anticipate", "believe", "can be", "capacity", "commit", "continue", "could", "deliver", "drive", "enhance", "ensure", "estimate", "execute", "expect", "focus", "forecast", "forward", "future", "goal", "grow", "integrate", "intend", "may", "maintain", "objective", "ongoing", "opportunity", "outlook", "plan", "position", "potential", "prioritize", "realize", "remain", "result", "seek", "should", "strategy", "target" "will", "would" and similar expressions, as they relate to SECURE, its management are intended to identify forward-looking statements. Such statements reflect the current views of SECURE and speak only as of the date of this press release. In particular, this press release contains or implies forward-looking statements pertaining but not limited to: SECURE's 2026 guidance and outlook, including with respect to Adjusted EBITDA and planned capital expenditures and growth projects (including for organic growth capital, sustaining capital and asset retirement obligations); SECURE's expectations and priorities for 2026 and beyond and its ability and position to achieve such priorities; SECURE's business plans, objectives, goals, targets, priorities and strategies; that structural improvements in Western Canada will underpin stable production levels and associated waste volumes across SECURE's network; the strength of SECURE's recurring cash flow; factors enabling growth for SECURE and its customers; SECURE's expectations related to global energy demand and the corresponding demand for its services; expectations and uncertainty with respect to the economy, evolving economic conditions and the industrial landscape in North America; factors impacting Adjusted EBITDA guidance; expectations with respect to growth drivers and financial performance in 2026; the Corporation's expectation that its strong balance sheet and projected cash flows will provide SECURE with the flexibility to execute on its capital priorities; SECURE's dividend policy, and the declaration, timing and amount of dividends thereunder; statements concerning shareholder returns, share buybacks and the NCIB, including the duration of the NCIB, the number of common shares which may be purchased under the NCIB, the timing, amount and price of purchases of common shares under the NCIB; statements pertaining to the quantum of damages which may be determined to have been suffered by SECURE as a result of the infringement by CES, SECURE's infringement claim against CES and the potential outcomes of such claim, including the potential recovery of damages or profits of such infringement claim, the ability of SECURE to protect and enforce its intellectual property rights; and other statements. Forward-looking statements are based on certain assumptions that SECURE has made in respect thereof as at the date of this press release regarding, among other things: SECURE's expectations for the remainder of 2026; SECURE's 2026 outlook; economic and operating conditions, including commodity prices, crude oil and natural gas storage levels, interest rates, exchange rates, and inflation; ability to enter into signing agreements with customers to backstop the investments and acquisition opportunities present; continued demand for the Corporation's infrastructure services and activity linked to long-term and recurring projects; the expectation with respect to the commercial agreements entered into by SECURE for water disposal services in the Montney resource play and the benefits derived therefrom; the changes in market activity and growth will be consistent with industry activity in Canada and the U.S. and growth levels in similar phases of previous economic cycles; expectations and responses of SECURE's customers in response to economic concerns and instability; infrastructure developments in western Canada; increased capacity and stronger pricing with access to global markets through new infrastructure; the impact of any new pandemic or epidemic and other international or geopolitical events, including government responses related thereto and their impact on global energy pricing, oil and gas industry exploration and development activity levels and production volumes; anticipated sources of funding being available to SECURE on terms favourable to SECURE; the success of the Corporation's operations and growth projects; the impact of seasonal weather patterns; the Corporation's competitive position, operating, acquisition and sustaining costs remaining substantially unchanged; the Corporation's ability to attract and retain customers; that counterparties comply with contracts in a timely manner; current commodity prices, forecast taxable income, existing tax pools and planned capital expenditures; that there are no unforeseen events preventing the performance of contracts or the completion and operation of the relevant facilities; that there are no unforeseen material costs in relation to the Corporation's facilities and operations; that prevailing regulatory, tax and environmental laws and regulations apply or are introduced as expected, and the timing of such introduction; increases to the Corporation's share price and market capitalization over the long term; disparity between the Corporation's share price and the fundamental value of the business; the Corporation's ability to repay debt and return capital to shareholders; credit ratings; the Corporation's ability to obtain and retain qualified personnel (including those with specialized skills and knowledge), technology and equipment in a timely and cost-efficient manner; the Corporation's ability to access capital and insurance; operating and borrowing costs, including costs associated with the acquisition and maintenance of equipment and property; the ability of the Corporation and our subsidiaries to successfully market our services in western Canada and the U.S.; environmental, social and governance ("ESG"), sustainability and environmental considerations in the oil and gas industry; the impacts of climate-change on the Corporation's business; the current business environment remaining substantially unchanged; present and anticipated programs and expansion plans of other organizations operating in the energy service industry resulting in an increased demand for the Corporation's and our subsidiaries' services; future acquisition and maintenance costs; the Corporation's ability to achieve its ESG and sustainability targets and goals and the costs associated therewith; and other risks and uncertainties described in SECURE's Annual Information Form for the year ended December 31, 2025 ("AIF") and from time to time in filings made by SECURE with securities regulatory authorities. Forward-looking statements involve significant known and unknown risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether such results will be achieved. Readers are cautioned not to place undue reliance on these statements as a number of factors could cause actual results to differ materially from the results discussed in these forward-looking statements, including but not limited to: general global financial conditions, including general economic conditions in Canada and the U.S.; the effect of any tariffs currently imposed, including the delay or escalation of any such tariffs, or the implementation of any new or additional tariffs, surtaxes, export bans, or other restrictive trade measures or countermeasures affecting international trade, including between the U.S. and Canada; the effect of any pandemic or epidemic, inflation and international or geopolitical events and governmental responses thereto on economic conditions, commodity prices and the Corporation's business and operations; changes in the level of capital expenditures made by oil and natural gas producers and the resultant effect on demand for oilfield services during drilling and completion of oil and natural gas wells; volatility in market prices for oil and natural gas and the effect of this volatility on the demand for oilfield services generally; a transition to alternative energy sources; the Corporation's inability to retain customers; risks inherent in the energy industry, including physical climate-related impacts; the Corporation's ability to generate sufficient cash flow from operations to meet our current and future obligations; the seasonal nature of the oil and gas industry; increases in debt service charges including changes in the interest rates charged under the Corporation's current and future debt agreements; inflation and supply chain disruptions; the Corporation's ability to access external sources of debt and equity capital and insurance; disruptions to our operations resulting from events out of our control; the process, resources, cost, results, timing and impact of any litigation matters involving the Corporation, the Corporation's ability to successfully appeal adverse outcomes of such litigation, if any, and the timing, determination and recovery of amounts related to such litigation, including any appeals, as well as the Corporation's ability to collect any judgment ultimately awarded, if any, and the timing thereof; the timing and amount of stimulus packages and government grants relating to site rehabilitation programs; the cost of compliance with and changes in legislation and the regulatory and taxation environment, including uncertainties with respect to implementing binding targets for reductions of emissions and the regulation of hydraulic fracturing services and services relating to the transportation of dangerous goods; uncertainties in weather and temperature affecting the duration of the oilfield service periods and the activities that can be completed; ability to maintain and renew the Corporation's permits and licenses which are required for its operations; competition; impairment losses on physical assets; sourcing, pricing and availability of raw materials, consumables, component parts, equipment, suppliers, facilities, and skilled management, technical and field personnel; supply chain disruption; the Corporation's ability to effectively complete acquisition and divestiture transactions on acceptable terms or at all; failure to realize the benefits of acquisitions or dispositions and risks related to the associated business integration (including specifically with respect to the two strategic acquisitions in the metals recycling business); risks related to a new business mix and significant shareholder; liabilities and risks, including environmental liabilities and risks inherent in SECURE's operations; the Corporation's ability to invest in and integrate technological advances and match advances of our competition; the viability, economic or otherwise, of such technology; credit, commodity price and foreign currency risk to which the Corporation is exposed in the conduct of our business; compliance with the restrictive covenants in the Corporation's current and future debt agreements; the Corporation's or our customers' ability to perform their obligations under long-term contracts; misalignment with our partners and the operation of jointly owned assets; the Corporation's ability to source products and services on acceptable terms or at all; the Corporation's ability to retain key or qualified personnel, including those with specialized skills or knowledge; uncertainty relating to trade relations and associated supply disruptions; the effect of changes in government and actions taken by governments in jurisdictions in which the Corporation operates, including in the U.S.; the effect of climate change and related activism on our operations and ability to access capital and insurance; the effects of the introduction of greenwashing regulations in the jurisdictions in which we operate; cyber security and other related risks; the Corporation's ability to bid on new contracts and renew existing contracts; potential closure and post-closure costs associated with landfills operated by the Corporation; the Corporation's ability to protect our proprietary technology and our intellectual property rights; legal proceedings and regulatory actions to which the Corporation may become subject, including in connection with any claims for infringement of a third parties' intellectual property rights and the outcome of such proceedings and actions; third parties infringing on the intellectual property rights of the Corporation and the Corporation's ability to protect such rights, including the cost and outcome of such protection measures; the Corporation's ability to meet its ESG and sustainability targets or goals and the costs associated therewith; claims by, and consultation with, Indigenous Peoples in connection with project approval; disclosure controls and internal controls over financial reporting; and other risk factors identified in the AIF and from time to time in filings made by the Corporation with securities regulatory authorities. The guidance in respect of the Corporation's expectations of Adjusted EBITDA, capital expenditures (including organic growth capital and sustaining capital), and discretionary free cash flow in 2026 in this press release may be considered to be a financial outlook for the purposes of applicable Canadian securities laws. Such information is based on assumptions about future events, including economic conditions and proposed courses of action, based on management's assessment of the relevant information currently available, and which may become available in the future. These projections constitute forward-looking statements and are based on several material factors and assumptions set out above. Actual results may differ significantly from such projections. See above for a discussion of certain risks that could cause actual results to vary. The financial outlook contained in this press release has been approved by management as of the date of this press release. Readers are cautioned that any such financial outlook contained herein should not be used for purposes other than those for which it is disclosed herein. SECURE and its management believe that the financial outlook contained in this press release has been prepared based on assumptions that are reasonable in the circumstances, reflecting management's best estimates and judgments, and represents, to the best of management's knowledge and opinion, expected and targeted financial results. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results. Although forward-looking statements contained in this press release are based upon what the Corporation believes are reasonable assumptions, the Corporation cannot assure investors that actual results will be consistent with these forward-looking statements. The forward-looking statements in this press release are made as of the date hereof and are expressly qualified by this cautionary statement. Unless otherwise required by applicable securities laws, SECURE does not intend, or assume any obligation, to update these forward-looking statements. SOURCE SECURE Waste Infrastructure Corp. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company Codes: Toronto:SES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
