Secure Energy Services Inc

Latest Results (27.02.2026):

Secure Energy Services Inc — Q3 2025: The company reported Q3 2025 revenue (excluding oil purchase and resale) of $365 million (‑2% YoY) and total revenue of $2,473 million (‑5% YoY). Adjusted EBITDA was $135 million, up 6% YoY (=$0.62 per basic share, +17% per share). Net income was $1 million versus $94 million in Q3 2024, driven largely by a one‑time non‑cash $55 million provision for an underutilized crude storage contract and the absence of a prior‑year $30 million tax recovery. Management revised 2025 Adjusted EBITDA guidance to approximately $500 million (from $510–$540M) and reiterated capital spending and dividend policies while continuing opportunistic share repurchases.

Revenue & Adjusted EBITDA

Q3 revenue excluding oil purchase/resale: $365M (‑2% YoY). Total revenue: $2,473M (‑5% YoY). Adjusted EBITDA: $135M (+6% YoY), driven by the Edmonton metals recycling acquisition, higher pricing in key service lines and cost optimizations.

Net Income — one‑time items

Reported net income was $1M in Q3 2025 vs. $94M in Q3 2024. The quarter included a $55M non‑cash onerous contract provision (underutilized crude storage). Q3 2024 benefited from a $30M tax recovery; excluding these non‑recurring items, underlying earnings were relatively stable year‑over‑year.

Cash Flow, Discretionary Free Cash Flow & CapEx

Funds flow from operations: $96M (‑9% YoY). Discretionary free cash flow: $68M (‑24% YoY). Q3 capital expenditures: $78M (growth capex $54M; YTD growth capex $97M). Full‑year 2025 capex unchanged: ~$125M growth and ~$85M sustaining.

Capital Allocation — Dividends & Buybacks

Quarterly dividend maintained at $0.10 per share (paid Oct 15). Q3 repurchases: 1,711,600 shares for $27M under NCIB. Year‑to‑date repurchases (NCIB + SIB): 18,057,090 shares for $268M (≈8% of issued shares in 2025). End‑period common shares: 218,296,077.

Metals Recycling — headwinds & mitigation

Metals recycling faced near‑term weakness from soft Canadian demand, U.S. tariffs on finished steel and global oversupply, causing inventory build‑up. Management actions: expand rail fleet (+50 owned cars +50 leased), prioritize non‑ferrous, disciplined purchasing, and redirect shipments to U.S. markets (tariff‑exempt). Recovery expected into 2026 as logistics and demand normalize.

Guidance & Outlook

Updated 2025 guidance: Adjusted EBITDA ≈ $500M (down from $510–$540M), discretionary free cash flow ≈ $260M. Management expects Q4 2025 Adjusted EBITDA broadly consistent with Q3 levels and expects stronger 2026 contributions from commissioned growth projects and metals recovery.

Balance Sheet & Liquidity

Leverage (Total Debt/EBITDA) ~2.1x at Sept 30, 2025. Revolving credit facility: $900M (renewed to May 31, 2028), $563M drawn at quarter end. 2029 unsecured notes: $300M principal outstanding. Letters of credit: $107M. Covenants: in compliance at Sept 30, 2025.

Segment notes — Waste Management & Energy Infrastructure

Waste Management: revenue $314M in Q3; volumes down in produced water, waste processing and landfills (seasonal, turnarounds, lower drilling), partially offset by metals recycling acquisition. Energy Infrastructure: revenue excluding oil purchase/resale $51M; crude terminalling/pipeline volumes increased, while oil purchase/resale revenue declined (fewer arbitrage opportunities as differentials narrowed).