SECURE ANNOUNCES 2025 SECOND QUARTER RESULTS

Recorded Q2 2025 Adjusted EBITDA of $110 million ($0.49/basic share)

Achieved a 12% year-over-year increase in Adjusted EBITDA per share for the six months ended June 30, 2025

Maintaining our full-year 2025 Adjusted EBITDA guidance of $510 - $540 million

Repurchased 7% of total common shares outstanding year to date

CALGARY, AB, July 29, 2025 /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 six months ended June 30, 2025.

"Our second quarter results were in line with expectations and reflected the typical seasonal impacts of spring break-up," said Allen Gransch, President and CEO. "Despite these seasonal effects, as well as macroeconomic challenges, including active forest fires, and ongoing pressure in the ferrous metals market linked to U.S. tariffs and broader recessionary concerns, our infrastructure-backed business model continues to demonstrate strength. We are maintaining our full-year 2025 Adjusted EBITDA guidance of $510 to $540 million, supported by higher volumes and pricing, contributions from organic growth projects, and long-term industry fundamentals."

"Our core infrastructure network continues to benefit from steady industrial and production-related waste volumes. In the metals recycling segment, we are actively managing through a complex set of global pressures, including soft demand, foreign steel oversupply, and evolving trade dynamics—most notably U.S. tariffs impacting Canadian steel mills. While metals recycling represents only approximately 10% of our total business, we are taking disciplined and proactive steps, including utilizing our rail fleet to redirect ferrous volumes to U.S. markets where scrap remains exempt from tariffs, pivoting toward non-ferrous volumes with stronger fundamentals, optimizing costs, and selectively holding ferrous inventory in anticipation of a recovery. Backed by a strong balance sheet, agile commercial strategies, and deep supplier relationships, we believe that we are well positioned to capture value as market conditions normalize.

"We remain committed to disciplined capital allocation and returning capital to shareholders. Year to date, we have returned $286 million through share repurchases and dividends—reflecting our confidence in the stability of our business and the strength of our financial position. These actions have contributed significantly to growth in our per-share metrics, including a 12% increase in Adjusted EBITDA per share in the first half of 2025 compared to 2024. At the same time, we are advancing our 2025 capital program, with key waste infrastructure projects expected to deliver meaningful EBITDA contributions in 2026. This balanced approach enables us to drive both near-term shareholder returns and long-term value creation."

SECOND QUARTER HIGHLIGHTS

Generated revenue (excluding oil purchase and resale) of $353 million, up 5% from Q2 2024, primarily driven by contributions from the Edmonton-based metals recycling business acquired on January 31, 2025.

Recorded net income of $31 million ($0.14 per basic share), relatively flat from Q2 2024 on an absolute basis, and up 17% on a per share basis due to the share buybacks over the past year reducing the weighted average shares outstanding in the quarter by 15%.

Recorded Adjusted EBITDA1 of $110 million ($0.49 per basic share1), representing a 4% year-over-year decrease (14% increase on a per share basis) primarily due to seasonal softness, active forest fires and near-term volatility in the metals recycling segment from U.S. steel tariffs, partially offset by higher pricing and volume stability across our network. In addition, the prior year results benefited from storage opportunities in Energy Infrastructure relating to the opening of the Trans Mountain pipeline expansion.

Repurchased approximately 9.4 million common shares at $14.50 per share for $136 million under the Corporation's Substantial Issuer Bid ("SIB"). Also repurchased approximately 1.7 million common shares under the Corporation's Normal Course Issuer Bid ("NCIB") for $25 million. Year-to-date share repurchases under the SIB and NCIB totaled approximately 16.3 million common shares for $241 million. In total, the Corporation has repurchased 7% of its issued and outstanding shares to date in 2025.

Declared and paid a quarterly dividend of $0.10 per common share, consistent with our capital allocation strategy and representing a yield of 2.4% on our current share price.

Incurred $14 million of growth capital expenditures ($43 million year to date) directed towards advancing construction of the produced water processing and disposal facility, including pipeline infrastructure, in the Alberta Montney region to accommodate growing producer volumes and progressing the upgrades required to reopen a suspended industrial waste processing facility located in Alberta's Industrial Heartland to meet local demand.

Increased and extended our Revolving Credit Facility to $900 million with a maturity date in May 2028, enhancing our financial flexibility.

(1) Non-GAAP financial measure or Non-GAAP ratio. Refer to the "Non-GAAP and other specified financial measures" section herein.

OUTLOOK

Looking ahead to the remainder of 2025, our customers continue to approach the current environment with caution, emphasizing discipline, and operational efficiency. Ongoing macroeconomic volatility continues to persist, with the recent decline in commodity prices, recessionary concerns, and trade-related disruptions in our metals recycling business stemming from evolving U.S. tariff dynamics with Canada and other countries. 

We continue to actively manage near-term volatility in the metals recycling segment, particularly within the ferrous market, which remains challenged in Canada with a 50% tariff on steel sold into the U.S. This is further complicated by soft global demand, foreign steel oversupply, and uncertainty around North American trade policy. While our metals recycling business represents approximately 10% of our total operations, we have implemented targeted strategies—including redirection of scrap volumes to the U.S. (to which tariffs do not currently apply), dynamic feedstock pricing, selective purchasing, and a shift toward non-ferrous volumes—to protect margin performance and position the business for recovery. These efforts are on-going and we anticipate any impacts in the short term will likely be recovered in future months as we redirect volumes into the U.S. Based on the above, we remain cautious but are maintaining the following for the remainder of 2025:

Adjusted EBITDA: $510 million to $540 million;

Discretionary Free Cash Flow: $270 million to $300 million;

Organic Growth Capital: Approximately $125 million, over 70% of which is directed toward long-cycle, contracted infrastructure investments that deliver stable, recurring cash flows. The 2025 spend includes:

Phase 3 expansion of the Clearwater heavy oil terminal and gathering infrastructure for incremental clean heavy oil delivery, including adding treating capabilities for trucked-in emulsion volumes backed by anchor tenants. The expansion was completed and operational in the first quarter of 2025, with the terminal now having total capacity of 75,000 barrels per day.

Two produced water processing and disposal facilities that include pipeline infrastructure in the Alberta Montney region to accommodate growing producer volumes. The new facilities are both backed by 10-year produced water contracts with large reputable counterparties.  These facilities are expected to be operational in the fourth quarter of 2025, and the first quarter of 2026, respectively.

Reopening a suspended industrial waste processing facility located in Alberta's Industrial Heartland to meet local demand.

Purchasing incremental rail cars, bringing SECURE's fleet to approximately 200 rail cars, and increasing the efficiency of our metals recycling logistics and distribution operations.

Optimizing our waste infrastructure network to debottleneck, increase throughput, achieve cost savings, and drive higher Adjusted EBITDA from same store sales.

Sustaining capital: $85 million; and

Asset retirement obligation spend: $15 million

SECURE believes its strong balance sheet and robust projected cash flows provide the Corporation with the flexibility to execute on its capital allocation priorities, including:

Advancing high-return organic projects;

Maintaining our quarterly dividend of $0.10 per share ($0.40 annualized), equal to approximately $88 million annualized based on current shares outstanding;

Opportunistic share repurchases through the NCIB, which provides a flexible way to return capital to shareholders at the discretion of management and the Board of Directors. Management and the Board of Directors continue to believe the intrinsic value of the Corporation is higher than where the shares currently trade and views buybacks as an attractive use of capital; and

Maintaining a strong balance sheet. At June 30, 2025, the Corporation had a Total Debt to EBITDA covenant ratio2 of 2.1x, or 1.8x excluding leases.

Looking beyond 2025, we remain highly confident in the long-term fundamentals that underpin our business. Canadian oil and gas production continues to exhibit resilience and steady growth. The Trans Mountain Expansion has improved access to global markets, and future egress projects offer further flexibility and tighter differentials. LNG projects, including LNG Canada, are also unlocking natural gas takeaway and catalyzing upstream development. This production growth, coupled with enhanced egress, supports increased volumes of associated waste byproducts that require specialized infrastructure for processing, recovery, recycling, and disposal. With over 80 facilities across Western Canada and North Dakota, SECURE is well positioned to handle this growth. Our high-barrier asset network offers expansion capacity and stability across cycles. Evolving regulations, including mandated remediation spending, further support recurring volumes. Supported by these structural drivers, we expect to deliver consistent volume growth and robust EBITDA contributions from our organic capital program well into 2026 and beyond.

(2)  Calculated in accordance with the Corporation's credit facility agreements. Refer to the Q2 2025 Management's Discussion and Analysis ("MD&A").

SECOND QUARTER 2025 CONFERENCE CALL

SECURE will host a conference call on Tuesday, July 29, 2025, at 9:00 a.m. MST to discuss the second quarter 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 Tuesday, August 5, 2025, by dialing 1-888-660-6345 and using the pass code 60485#.

ABOUT SECURE

SECURE is a leading waste management and energy infrastructure business headquartered in Calgary, Alberta. The Corporation's extensive infrastructure network located throughout western Canada and North Dakota includes waste processing and transfer facilities, industrial landfills, metal recycling facilities, crude oil and water gathering pipelines, crude oil terminals and ...