The related audited consolidated financial statements, as well as the Management's Discussion and Analysis ("MD&A") for the fourth quarter and year ended December 31, 2025 and Annual Information Form for the year ended December 31, 2025, are available on SEDAR+ at www.sedarplus.ca and on Tidewater Renewables website at www.tidewater-renewables.com.
Q4 2025 Results
During the fourth quarter of 2025, the Corporation reported a net loss of $13.8 million, compared to a net loss of $3.4 million in the fourth quarter of 2024. The increase in the net loss in the fourth quarter of 2025 was primarily due to lower throughput resulting in lower sales volume and lower contributions from the Corporation's joint venture investment in Rimrock Cattle Company Ltd. (the "Equity Investment"), partially offset by favourable movements in derivative contracts and lower financing costs.
Adjusted EBITDA(1) was negative $3.8 million during the fourth quarter of 2025, a 163% decrease over the fourth quarter of 2024. The decrease was attributable to lower sales volume and lower contributions from the Equity Investment.
During the fourth quarter of 2025, the Corporation successfully completed its scheduled turnaround at the renewable diesel & renewable hydrogen complex (the "HDRD Complex"), including the identification and repair of an equipment failure. Following these repairs, the facility has demonstrated improved operational reliability, with utilization averaging near nameplate capacity to date in 2026.
Year End 2025 Results
During the year ended December 31, 2025, the Corporation reported net income of $3.5 million, compared to a net loss of $357.9 million for the year ended December 31, 2024. The increase over the prior year was primarily driven by the absence of the loss recognized on the sale in 2024 to Tidewater Midstream and Infrastructure Ltd. ("Tidewater Midstream") of certain co-processing assets, working interests in various Prince George Refinery units and a natural gas storage facility co-located at Tidewater Midstream's Brazeau River Complex (the "Tidewater Midstream Transaction"), lower financing costs, and favourable derivative contract performance. Partially offsetting these factors were lower throughput resulting in lower sales volumes from renewable diesel and emissions credits, the absence of deferred tax recoveries recognized in 2024 as part of the Tidewater Midstream Transaction, and the loss of earnings from income generating assets divested in the Tidewater Midstream Transaction.
In 2025, Tidewater Renewables generated Adjusted EBITDA(1) of $25.8 million, a decrease of 65% from 2024 Adjusted EBITDA(1) of $74.5 million. The decrease was due to lower throughput resulting in lower sales volumes from renewable diesel and environmental attributes, the sale of co-processing assets and the termination of take-or-pay contracts in connection with the Tidewater Midstream Transaction, and lower contributions from the Equity Investment, partially offset by lower realized losses on derivative contracts.
The 2025 year benefited from improved regulatory clarity following the Government of British Columbia's February 27, 2025, announcement regarding amendments to the Low Carbon Fuels Act. These updates, which increased renewable fuel requirements for diesel from 4% to 8% and requires such renewable fuel content to be produced in Canada, represents, in management's view, a significant step toward a fairer and more competitive trade environment for the Canadian renewable fuel industry.
The Corporation strengthened its financial position through the March 26, 2025 amendment of its senior and second lien credit facilities. This transaction provided more than $15.0 million in additional capacity and extended the maturity of the second lien tranche B and C facilities from February 28, 2026, to October 24, 2027. Furthermore, the amendments enhanced financial flexibility by extending the waiver of quarterly financial covenants under the senior and second lien credit facilities until March 31, 2026, at which point the Corporation will transition to maintaining specific financial covenants on an annualized basis.
Execution of the 6,500 bbl/d sustainable aviation fuel ("SAF") project reached significant milestones during the year, highlighted by the completion of front-end engineering design work in the second quarter of 2025 and the execution of an amended initiative agreement with the Government of British Columbia in September 2025 (the "Amended Initiative Agreement"). The Amended Initiative Agreement provides additional British Columbia low carbon fuel standard credits ("BC LCFS Credits") to support optimization efforts ahead of a targeted 2026 final investment decision.
2026 guidance
Tidewater Renewables is pleased to release its 2026 guidance, which is characterized by improved financial performance and an accelerated deleveraging strategy. The Corporation expects to deliver annual Adjusted EBITDA(1)of between $80.0 million to $90.0 million, driven by optimized operational utilization at the HDRD Complex. This robust cash flow generation is expected to be used for debt reduction, reflecting management's commitment to strengthening the balance sheet and enhancing long-term shareholder value.
Subsequent events
In January 2026, Tidewater Renewables formally submitted its application for the BioFuels Production Incentive (the "BPI"), a new $370 million program announced by the Government of Canada in 2025 aimed at strengthening domestic production of biodiesel and renewable diesel. With expected renewable diesel production of between 150 million to 170 million litres per year, the Corporation anticipates that 100% of its production will qualify for the incentive. Management believes the Corporation is well-positioned to benefit from the BPI, supporting improved cash flow and returns over the eligible period. Under the terms of the program, the Corporation expects to receive an incentive of $0.16 per litre. This is projected to generate between $24.0 million to $27.2 million in annual cash proceeds in each of 2026 and 2027.
Subsequent to year-end, the Corporation entered into derivative contracts to hedge approximately 50% of April through December 2026 renewable diesel (and attached emission credit) sales and associated feedstock purchases. This hedging strategy is intended to lock in a strong gross margin and significantly reduce exposure to commodity pricing volatility, providing greater certainty for 2026 cash flows.
1.
Non-GAAP financial measure. See the "Non-GAAP and Other Financial Measures" section of this press release and the Corporation's MD&A for information on each non-GAAP financial measure or ratio.
Selected financial and operating information are outlined below and should be read in conjunction with the Corporation's audited financial consolidated financial statements and related MD&A for the fourth quarter and year ended December 31, 2025, which are available under the Corporation's profile on SEDAR+ at www.sedarplus.ca and on its website at www.tidewater-renewables.com.
Financial Highlights
Three months ended December 31,
Year ended December 31,
(in millions of Canadian dollars except per share information)
2025
2024
2025
2024
Revenue
$
54.7
$
76.4
$
248.0
$
426.5
Net (loss) income
$
(13.8)
$
(3.4)
$
3.5
$
(357.9)
Net (loss) income per share - basic
$
(0.38)
$
(0.09)
$
0.10
$
(10.15)
Net (loss) income per share - diluted
$
(0.38)
$
(0.09)
$
0.09
$
(10.15)
Adjusted EBITDA (1)
$
(3.8)
$
6.1
$
25.8
$
74.5
Net cash (used in) provided by
operating activities
$
(0.4)
$
(21.5)
$
33.7
$
54.6
Distributable cash flow (1)
$
(10.7)
$
(7.7)
$
(16.5)
$
29.8
Distributable cash flow per share - basic (1)
$
(0.29)
$
(0.22)
$
(0.45)
$
0.84
Distributable cash flow per share - diluted (1)
$
(0.29)
$
(0.22)
$
(0.45)
$
0.82
Total common shares outstanding (millions)
36.4
36.4
36.4
36.4
Total assets
$
397.6
$
406.4
$
397.6
$
406.4
Net debt (2)
$
206.2
$
195.9
$
206.2
$
195.9
1.
Non-GAAP financial measure. Refer to the "Non-GAAP and Other Financial Measures" section of this press release.
2.
Capital management measure. Refer to the "Non-GAAP and Other Financial Measures" section of this press release.
OUTLOOK AND CORPORATE UPDATE
Regulatory developments
Following the Government of Canada's September 5, 2025, announcement of the BPI, Tidewater Renewables formally submitted its program application in January 2026. This time-limited program is, in management's view, a pivotal development for the Canadian renewable fuels sector, specifically designed to strengthen domestic production and competitiveness.
The BPI framework provides substantial, non-repayable financial support from January 2026 through December 2027, at the following, incentive rates:
$0.16 per litre for the first 170 million litres produced annually; and
$0.10 per litre for the next 130 million litres produced annually.
With the HDRD Complex anticipated to produce between 150 million and 170 million litres annually, the Corporation is ideally positioned to receive between $24.0 million and $27.2 million in both 2026 and 2027. These payments are expected to be received quarterly in arrears, providing a consistent and meaningful boost to the HDRD Complex's economics, liquidity, and overall profitability throughout the incentive window.
In addition to the BPI, on September 5, 2025, the Government of Canada announced its intent to make targeted amendments to the Clean Fuel Regulations (the "CFR") to strengthen the resiliency and support the development of Canada's low-carbon fuel sector. While the BPI offers immediate short-term financial support, the proposed amendments seek to establish a structural, long-term market mechanism to ensure the sustained ...
