Q3 2025 SECURE Waste Infrastructure Corp Earnings Call

Operator: Good morning ladies and gentlemen and welcome to the Secure Energy Services Q3 2025 results conference call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, October 30, 2025, and I would now like to turn the conference over to Ms. Alison Prokop. Thank you. Please go ahead.

Good morning, ladies and gentlemen, and welcome to the secure ways. Infrastructure Corp, Q3 2025 results conference call at this time, all lines are in listen. Only mode following the presentation, we will conduct a question and answer session. If at any time during this, call, we require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday October 30th 2025 and I would now like to turn the conference over to Miss Allison. Pro cup. Thank you, please. Go ahead.

[Company Representative]: Thank you and good morning to everyone who is listening to the call. Welcome to Secure Energy Services' conference call for the third quarter of 2025. Joining me on the call today is Alan Gransch, our President and Chief Executive Officer, Chad Magus, our Chief Financial Officer, and Corey Higham, our Chief Operating Officer. We will be making forward-looking statements during this call. These statements reflect current expectations and are subject to a number of risks and uncertainties. Actual results could differ materially. We will also refer to certain non-GAAP financial measures which may not be directly comparable to similar measures disclosed by other companies. Please refer to our continuous disclosure documents on SEDAR+ for more information on risk factors and definitions. Today we will review our financial and operational results for the three and nine months ended September 30, 2025. I'll now turn the call over to Alan.

Thank you and good morning to everyone. Who is listening to the call. Welcome to secure conference call for the third quarter of 2025. Joining me on the call today is Alan Branch, our president and chief executive officer, Chad megas, our Chief Financial Officer and Corey him are Chief Operating Officer. We will be making 4 looking statements. During this call, these statements reflect for an expectations and our subject to a number of risks and uncertainties actual results. Could differ materially. We will also refer to certain non-gaap Financial measures which may not be directly comparable to similar measures.

Disposed by other companies.

Please refer to our continuous disclosure documents on Cedar, plus, for more information on risk factors and definitions.

Alan Gransch: Good morning and thank you for joining today's call. Secure delivered another strong quarter, demonstrating the resilience of our infrastructure-backed business. Our core waste and energy infrastructure network performed largely in line with expectations, and it continues to highlight the strength and the stability of our cash flows even amid lower oil prices and disciplined producer spending. Adjusted EBITDA for the third quarter was $135 million, up 6% year over year or 17% higher on a per share basis. Canadian producers continue to approach the current environment with caution, maintaining discipline in spending and stable production. Our business directly benefits from their ongoing need for reliable waste management and energy infrastructure solutions. Approximately 80% of our adjusted EBITDA is derived from recurring production and industrial activity, while only 20% is linked to drilling and completions, underscoring our ability to generate stable cash flows across lower market cycles.

Today, we will review our financial and operational results for 3 and 9 months end of September 30th 2025. I'll now turn the call over to Alan

Good morning and thank you for joining today's call.

Secure delivered. Another strong quarter demonstrating the resilience of our infrastructure backed business, our core waste and energy, infrastructure Network performed. Largely in line with expectations, and it continues to highlight the strength and the stability of our cash flows even amid lower oil prices and discipline producer spending

Adjusted iPad do for the third quarter was 135 million up 6% year-over-year or 17% higher on a per share basis.

Our business directly benefits from their ongoing need to Reliable, waste, management, and energy infrastructure Solutions.

Alan Gransch: This resiliency, combined with disciplined execution, gives us confidence in our ability to maintain strong free cash flow and balance sheet flexibility. We did, however, experience continued weakness in our metals recycling business, particularly with the ferrous market. Conditions remain challenging due to soft Canadian demand driven by tariffs on finished steel sold into the U.S., foreign oversupply, and broader macroeconomic caution that is limiting new steel production. These factors have reduced domestic sales and led to a buildup of ferrous inventory. We have now redirected 95% of our shipments to stronger U.S. markets where scrap metal remains exempt from tariffs, though the full financial benefit may be realized into 2026 as our inventory turns per month improve with our rail capacity expansion in Q4.

Approximately 80% of our adjusted EVAAS is derived from recurring production and industrial activity, while only 20% is linked to drilling and completions. This underscores our ability to generate stable cash flows across lower market cycles.

This resiliency combined with disciplined, execution gives us confidence in our ability to maintain strong, free cash, flow and balance sheet. Flexibility.

we did however, experienced continued weakness in our metal recycling business, particularly with the fairest Market,

Conditions remain challenging due to soft Canadian demand driven by tariffs on Finnish steel sold into the U.S.

For an over Supply and broader, macroeconomic caution. That is limiting new steel production, these factors have reduced domestic sales and led to a buildup of Ferris inventory.

We have now redirected 95% of our shipments to Stronger us markets. Where scrap metal remains exempt from terrorists?

Alan Gransch: As a result of lower drilling and completion activity stemming from weakening of the benchmark oil prices, together with the near-term headwinds in metals recycling, we are revising our 2025 adjusted EBITDA guidance to approximately $500 million. This reflects a 2% reduction from the low end of our prior range compared to the initial guidance provided last December. This decrease reflects the delayed ferrous metal sales as described, the weaker macro environment, as well as the decision not to proceed with a small acquisition originally anticipated to contribute roughly $6 million of EBITDA this year. Importantly, our revised 2025 adjusted EBITDA guidance represents approximately 5% growth over pro forma 2024 adjusted EBITDA. This demonstrates continued year-over-year improvement despite a softer macro environment, and it highlights the strength and resilience of the business looking ahead.

Though, the full Financial benefit may be realized, since the 2026 as our inventory turns per month, improved with our rail capacity, expansion in Q4.

As a result of lower and drilling, Drilling and completion activity, stemming from weakening of The Benchmark oil prices together, with the near-term, headwinds in meta recycling, we are revising our 2025 adjusted, Eva adjusted Eva dog guidance to approximately 500 million. This reflects a 2% reduction from the low end of our prior range.

Compared to the initial guidance provided last December. This decrease reflects the delayed fairs metal sales as described the weaker macro environment as well as the decision not to proceed with the small acquisition. Originally anticipated to contribute, roughly 6 million of ibadah this year.

Alan Gransch: We expect to enter 2026 with strong operational momentum and the benefit of several long-cycle projects nearing completion. Our infrastructure growth program remains on track with $97 million of our $125 million capital budget deployed in the first nine months of the year. The two major projects we've advanced this year, both pipeline-connected produced water disposal facilities in the Alberta Montney region, are progressing on schedule. Each project is backed by 10-year commercial agreements with strong counterparties. The first facility is expected to be operational before year-end and the second in early 2026. These developments will add meaningful capacity in one of the most active basins in North America and generate stable recurring cash flow for years to come. We've also increased the project scope associated with our Industrial Heartland Waste Processing Facility, which will expand our ability to manage industrial waste in an underserved region.

Importantly our revised 2025 adjusted Eva dog guidance represents approximately 5% growth over proforma 2024 adjusting Eva this demonstrates continued year-over-year Improvement, despite a softer macroeconomic environment and it highlights the strength and resilience of the business.

Looking ahead, we expect to enter 2026 with strong, operational momentum, and the benefit of several long cycle projects nearing completion.

Our infrastructure growth program remains on track with 97 million of our 125 million capital budget deployed in the first 9 months of the year.

The 2 major projects, we've Advanced this year, both pipeline connected, produce water disposal facilities in the Alberta Monty region are progressing on schedule. Each project is backed by 10 year commercial agreements with strong counterparts.

The first facility is expected to be operational before year end and the second in early 2026.

Alan Gransch: This facility is now expected to be operational later in Q2. In total, over 70% of our 2025 organic growth capital is directed towards long-cycle, contract-backed infrastructure projects that perform across commodity cycles. As these assets come online, together with an expected recovery in metals recycling and continued strength across our core network, we anticipate delivering solid adjusted EBITDA growth in 2026. Our balance sheet remains strong with total debt to EBITDA of 2.1 times or 1.8 times excluding leases, providing ample flexibility to support our capital priorities. Through the first nine months of the year, we've returned $335 million or nearly $1.50 per share to shareholders through dividends and share repurchases, reducing our outstanding shares by approximately 8%.

These developments will add meaningful capacity in one of the most active basins in North America and generate stable recurring cash flow for years to come. We've also increased the project scope associated with our industrial Heartland waste processing facility, which will expand our ability to manage industrial waste in an underserved region. This facility is now expected to be operational later in Q2.

In total over 70% of our 2025 organic growth. Capital is directed towards long cycle, contract back infrastructure, projects that perform across commodity Cycles. As these assets come online together with an expected recovery in Metals, Recycling and continued strength across our core Network. We anticipate delivering solid adjusted. Eva dog growth in 2026.

Alan Gransch: We remain committed to opportunistic buybacks under our normal course issuer bid and maintaining our quarterly dividend of $0.10 per share, supported by our strong free cash flow and balance sheet flexibility. Our strategy remains unchanged: to build long-life, high barriers to entry infrastructure backed by contracts and recurring volumes, to operate safely and efficiently, and to continue to return meaningful capital to shareholders. With that, I'll turn it over to Chad to walk through our Q3 financial results in more detail.

Our balance sheet remains strong with total debt to ibaa of 2.1 times or 1.8 times. Excluding leases providing ample flexibility to support our Capital priorities, through the first 9 months of the year. We return 335 million or nearly 1.50 per share to shareholders through dividends and share repurchases. Reducing our outstanding shares by approximately 8%

We remain committed to opportunistic, BuyBacks.

Under our normal course, issue or bid and maintaining our quarterly dividend of 10 cents per share, supported by our strong, free cash flow and balance sheet. Flexibility.

our strategy remains unchanged to build long life, High barriers, to entry a

Infrastructure, backed by contracts and recurring volumes, operates safely and continues to return meaningful capital to shareholders.

Chad Magus: Thanks Alan and good morning everyone. From a financial standpoint, the third quarter again demonstrated the strength and stability of our cash flow profile. Revenue excluding oil purchase and resale was $365 million, down 2% from Q3 2024 primarily due to lower specialty chemical sales and volumes tied to reduced drilling and completions. This decrease was partially offset by contributions from the Edmonton Metals Recycling acquisition completed earlier this year. Net income was $1 million compared to $94 million in the same period last year. The decline reflects a non-cash $55 million provision in the current quarter as well as the absence of a one-time tax recovery that benefited the prior year results. Excluding these non-recurring items, underlying profitability remains stable. The provision relates to an arrangement for crude oil storage capacity at a major oil hub in Western Canada.

With that, I'll turn it over to Chad to walk through our Q3 Financial results in more detail.

From a financial standpoint, the third quarter again, demonstrated the strength and stability of a cash flow profile.

Revenue, excluding all purchase and resale was 365 million down 2% from Q3 2024, per primarily due to lower specialty, chemical sales and volumes tied to reduced Drilling and completions.

This decrease was partially offset by contributions from the emitted Metals Recycling acquisition completed earlier this year.

Net income was 1 million compared to 94 million in the same period last year. The decline reflects in Long cash, 55 million provision in the current quarter as well as the absence of a 1-time tax recovery. That benefited the prior year results.

Excluding these non-recurring items underlying profitability remained stable?

Chad Magus: Following the startup of the Trans Mountain Pipeline expansion last year and the resulting increase in market egress, the near-term prospects for profitable use or subleasing of the storage tanks have decreased. In accordance with accounting standards, Secure recognized a provision for the present value of the remaining fixed monthly payments associated with the contract. Adjusted EBITDA was $135 million, up 6% from the prior year as contributions from the Edmonton Metals Recycling acquisition and proactive G&A cost reductions more than offset the impact of lower drilling and completion activity and continued weakness in the ferrous market. Funds flow from operations was $96 million and discretionary free cash flow was $68 million, providing ongoing capacity to support dividends, growth and share buybacks. We invested $54 million of gross capital in the quarter, bringing the year-to-date total to $97 million, primarily for the Montney water projects, incremental railcars and optimization projects.

The provision relates to an arrangement for crude oil, storage capacity at a major oil Hub. In western Canada, following the startup of the Trans Mountain pipeline expansion, last year and the resulting increase in Market egress the near-term. Prospects for profitable use or subleasing of the storage tanks have decreased.

In accordance with Accounting Standards. Secure recognized the provision, for the present value of the remaining fixed monthly payments associated with the contract.

Adjusted Eva was 135 million up 6% from the prior year as contributions from the Edmonton medals recycling acquisition.

And proactive, DNA cost reductions more than offset, the impact of lower Drilling and completion activity. And continued weakness in the fairest Metals Market.

Funds flow from operations was $96 million and discretionary free cash flow was $68 million. This provides ongoing capacity to support dividend growth and share buybacks.

We invested 504 million of growth capital in the quarter bringing the year to date, total to 97 million.

Chad Magus: Our sustaining capital spend was $24 million in the quarter and $59 million year-to-date. Consistent with our expectations, we continue to forecast we'll spend $85 million on sustaining CapEx this year. With respect to capital returns, we repurchased 1.7 million shares at an average price of $15.77 for a total of $27 million in Q3, bringing year-to-date repurchases to 18.1 million shares for $268 million, including the substantial issuer bid completed earlier this year. We maintained our quarterly dividend of $0.10 per share for an annualized yield of approximately 2%. Our leverage ratio of 2.1 times total debt to EBITDA and 1.8 times excluding leases reflects continued balance sheet strength and liquidity of over $300 million comprised of cash on hand and capacity on our credit facility.

Primarily for the Monty water, projects incremental, rail cars and optimization projects.

Our sustaining Capital spend was 24 million in the quarter and 59 million years date consistent with our expectations.

We continue to forecast, we'll spend 85 million on sustaining capex this year.

With respect to Capital returns. We were purchased 1.7 million shares at an average price of 1577 for a total of 27 million in Q3 bringing year-to-date repurchases to 18.1 million shares.

For 268 million, including the substantial issuer, bid completed earlier this year.

We maintain their quarterly dividend of $0.10 per share for an annualized yield of approximately 2%.

Our leverage ratio of 2.1 times, total debt, divida and 1.8 times, excluding leases reflects continued, balance sheet strength and liquidity of over 300 million.

Chad Magus: With a strong free cash flow outlook and disciplined spending, we have significant flexibility to continue returning capital while funding high return projects and potential bolt-on acquisitions for the fourth quarter. We expect adjusted EBITDA to remain broadly consistent with Q3 levels, supported by stable production and industrial activity as well as incremental contributions from new infrastructure as projects begin to come online. While our outlook assumes steady operating conditions, results could be influenced by several seasonal and market factors, including the severity of December weather, the extent of typical year-end holiday slowdowns, significant movements in commodity prices, and the timing of metals inventory drawdowns. I'll now pass it on to Corey for some operational detail.

Comprised of cash on hand and capacity on our credit facility.

With a strong free cash flow outlook and disciplined spending, we have significant flexibility to continue returning capital while funding high-return projects and potential acquisitions.

For the fourth quarter, we expect adjusted EBITDA to remain broadly consistent with Q3 levels, supported by stable production and industrial activity as well. This is as incremental contributions from new infrastructure projects begin to come online.

While our Outlook assumes steady operating conditions results, could be influenced by several seasonal and Market factors including the severity of December weather. The extent of typical year-end holiday slowdowns significant movements in quality prices and the timing of metals inventory draw Downs.

Alan Gransch: Thanks Chad.

Corey Higham: Operationally, our teams executed very well throughout the quarter, maintaining high reliability and safety performance across our network. At our waste processing facilities, we safely processed on average 91,000 barrels per day of produced water and 36,000 barrels per day of slurry and emulsion. We also recovered 220,000 barrels of oil from waste streams, reinforcing the value we create. 941,000 tons of solid waste were also safely contained across our landfill network. Overall volumes declined from the third quarter of 2024, driven by a combination of lower activity levels, maintenance program, and remediation project deferrals. Specifically, our produced water volumes were down 3% on a quarter-over-quarter basis, although up 1% on a trailing twelve-month basis. In addition to lower field activity, the scheduled maintenance and shutdown of a third-party gas plant temporarily impacted produced water volumes in the Montney Wapiti area. Those upstream volumes were fully restored by mid Q3.

I'll now pass down to Corey for some operational detail.

Thanks. John operationally. Our team's executed very well throughout the quarter maintaining High reliability and safety performance across our Network.

At our waste processing facilities. We safely processed on average 91,000 barrels per day at produced water and 36,000 barrels per day of slurry. And Emulsion we also recovered 220,000 barrels of oil from waste streams, reinforcing the value. We create

941,000 tons of solid waste. We're also safely contained across our landfill Network.

Overall volumes decline from the third quarter of 2024 driven by a combination of lower activity levels, maintenance program and Remediation project deferrals.

Specifically, our produced water volumes are down, 3% on a quarter over quarter basis, although up 1% on the trailing 12-month basis.

Corey Higham: Processing volumes were down 16% quarter-over-quarter as discretionary work related to customer integrity management programs, facility turnarounds, and some remediation program postponements. Additionally, as part of Secure's preventative maintenance programs and taking advantage of lower field activity levels during the quarter, we had a number of our facilities undergo one-time maintenance work, further impacting processing volumes. All of those facilities are back to 100% operational. As a result of the produced water and processing volumes, our recovered oil volumes decreased by 26%. Landfill volumes were down 23% quarter-over-quarter due to a combination of postponed remediation projects and field activities from our customers. Of note, the comparative Q3 2024 was a record quarter for Secure's landfill segment, magnifying the decrease in the current year period.

In addition, lower field activity and the scheduled maintenance and shutdown of a third-party gas plant temporarily impacted produced water volumes in the Monty Wity area. Those upstream volumes were fully restored by mid-Q3.

Processing volumes were down 16% quarter over quarter. As discretionary work related to customer Integrity Management, Programs facility turnarounds and some remediation program postponements

We had a number of our facilities, undergo, a 1-time maintenance, work, impacting further.

Further, impacting processing volumes.

All of those facilities are back to 100% operational.

As a result of the produced water and processing.

Volumes are recovered oil volumes decreased by 26%.

Corey Higham: While our volumes were lower compared to the third quarter of 2024, there was minimal impact to waste processing facility and landfill margin contributions due to price increases implemented at the beginning of 2025. Our metals recycling business continues to benefit from the scale and efficiencies of the Edmonton Metals Recycling acquisition. We are proactively managing through near-term challenges in the ferrous market by expanding our rail fleet with 50 new cars in 2025 and adding 50 cars on short-term lease to improve efficiency and access to U.S. markets. At present, we have approximately 220 railcars shipping ferrous scrap to the U.S. prior to the tariffs being enacted. We enacted, we were able to accept, process, and ship our inventory at a minimum of one inventory turn per month.

Land tail volumes were down 23% quarter over quarter due to a combination of postponed remediation projects and field activities from our customers. Of note, the comparative Q3 2024 was a record quarter for Secure, in the landfill segment, magnifying the decrease in the current year period.

while our volumes were lower compared to the third quarter of 2024, there was minimal impact to waste processing facility and landfill margin contributions due to pricing increases implemented at the beginning of 2025,

Our Metals Recycling business continues to benefit from the scale and efficiencies of the Edmonton acquisition.

We are proactively managing through near-term, challenges in the ferris Market by expanding our rail. Fleet with 50. New cars in 2025 and adding 50 cars on short-term lease to approve efficiency and access to us markets at present. We have approximately 220 rail cars, shipping Ferris, scrap to the US.

Corey Higham: Since the tariffs were put in place, our inventory turns have decreased, where it takes us on average 45 days to turn our inventory, causing our inventory to build. This is the result of shipping our product further into the U.S. versus our domestic mills with shorter railcar turnaround times as we move into the fourth quarter. The addition of the new railcars will allow us to catch up on our inventory shipments, though the full financial benefit may be realized into 2026 as we continue to manage logistics, our average turns per month, and expand our rail capacity, a key competitive advantage that provides greater flexibility and cost efficiency in serving multiple markets. We are also continuing to prioritize non-ferrous metals with stronger fundamentals and maintaining disciplined purchasing and feedstock pricing to protect margins.

Prior to the tariffs being enacted, we enacted we were able to accept process and ship our inventory. At a minimum of 1 inventory turn per month since the tariffs were put in place. Our inventory turns have decreased, where it takes us on average 45 days to turn our inventory, causing our inventory to build. This is the result of shipping our product further into the US versus our domestic Mills with shorter rail car turnaround times.

As we move into the fourth quarter, the addition of the new rail cars will allow us to catch up on our inventory shipments. Till the full Financial benefit may be realized into 2026. As we continue to manage Logistics, our average terms per month and expand our rail capacity, a key competitive advantage that provides greater flexibility and cost efficiency in serving multiple markets.

Corey Higham: We expect performance to improve as three key factors normalize: rail throughput increases and logistics efficiencies take effect, North American steel demand recovers supported by infrastructure and manufacturing investment, and import pressure eases as global steel production moderates. In our specialty chemicals business, reduced drilling and completions activity has affected our drilling fluids business. However, our production chemicals business continues to grow. We've invested in people, equipment, and product development to expand our product offerings to help customers address complex operational and production challenges. In our energy infrastructure segment, pipeline and terminaling volumes averaged approximately 135,000 barrels per day, up modestly from last year, driven by increased throughput at our Clearwater heavy oil terminal following the Phase Three expansion. These assets continue to operate under long-term commercial agreements, providing stable fee-based cash flows and a platform for future growth.

We are also continuing to PRI prioritize. Non-ferrous Metals with stronger fundamentals and maintaining discipline purchasing and feed stock pricing to protect margins.

We expect performance to improve as 3 key factors normalized, rail throughput increases in logistics efficiencies. Take effect North American Steel demand, recovers supported by infrastructure and Manufacturing investment, and import pressure eases as Global steel production moderates.

In our Specialty, Chemicals business reduced, Drilling and completions activity, has affected our Drilling Fluids business. However, our production chemicals businesses continues to grow. We've invested in people equipment and product development to expand our product offerings to help customers address complex, operational, and production challenges.

Corey Higham: Our talented staff continue to drive cost efficiencies and throughput optimization across our operations. Overall, our infrastructure continues to perform as designed, providing safe, reliable, and environmentally responsible solutions to our customers. With that, I'll turn the call back to Alan for closing remarks.

In our energy infrastructure, segment, Pipeline, and internal and volumes averaged approximately 135,000 barrels per day up modestly. From last year, driven by increased throughput at a Clearwater terminal. Following the phase 3 expansion. These assets continue to operate under long-term commercial agreements, providing stable fee-based, cash flows and a platform for future growth.

Our talented staff continue to drive cost efficiencies and throughput optimization across optimization across our operations overall. Our infrastructure continues to perform as design providing safe reliable and environmentally responsible solutions to our customers.

Alan Gransch: Thanks, Corey. To summarize, Secure Energy Services delivered another solid quarter in what remains a volatile environment. Our infrastructure-backed network continues to generate stable, high-quality cash flow supported by recurring production and industrial volumes, regulatory-driven demand, strong customer relationships, and operational excellence. Operationally, our teams continue to perform exceptionally well, executing projects that strengthened our network and lay the groundwork for higher EBITDA in 2026. In metals recycling, we've acted quickly to address market conditions through targeted strategies that protect margins and reposition sales to stronger markets. Looking ahead to 2026, we expect to build momentum as new infrastructure comes online and metals recycling synergies and U.S. transportation logistics are streamlined. These initiatives, combined with supportive long-term industrial fundamentals, provide a strong foundation for sustained growth.

With that, I'll turn the call back to Alan for closing remarks.

Thanks Corey to summarize, secure delivered, another solid quarter and what remains of volatile environment our infrastructure back Network continues to generate stable high-quality cash flow supported by reoccurring production and Industrial volumes regulatory driven demand. Strong customer relationships and operational excellence operationally our teams continue to perform exceptionally well, executing projects that strengthen our Network and lay the groundwork for.

Higher IBA, de in 2026 and Metals Recycling. We've acted quickly to address market conditions through targeted strategies that protect Market margins and repositioned sales to Stronger markets.

Alan Gransch: The startup of the Trans Mountain expansion and the commissioning of LNG Canada are improving market access and narrowing price differentials, supporting incremental production and associated waste volumes, additional LNG export capacity, data center developments, and ongoing government programs focused on liability reduction and are expected to reinforce these structural tailwinds in years ahead. With more than 80 strategically located, high-barrier-to-entry facilities across Western Canada and North Dakota, Secure Energy Services is well positioned to meet growing demand for waste and energy infrastructure. Our network offers both expansion capacity and stability across market cycles, underpinning consistent volume and earnings growth through 2026 and beyond. Thank you for joining us today and your continued support of Secure. We'd like to highlight that we expect to provide 2026 adjusted EBITDA guidance and capital investment guidance in February of 2026 along with the release of our fourth quarter and full year 2025 results.

Looking ahead to 2026. We expect to build momentum as new infrastructure, comes online and Metal Recycling. Synergies and US Transportation Logistics are streamlined. These initiatives combined with supportive long-term industrial fundamentals, provides a strong foundation for sustained growth.

With more than 80 strategically, located High barrier to entry facilities across western Canada and North Dakota secure as well. Positioned to meet growing demand for waste and energy. Infrastructure our Network offers both expansion capacity and stability across Market Cycles. Underpinning consistent, volume and earnings growth through 2026 and Beyond

Alan Gransch: This is a change from prior years, but aligns more closely with industry practice among our peers. Operator, we'd now like to open the line for questions.

Thank you for joining us today and your continued support of secure. We'd like to highlight that we expect to provide 2026, adjusted Eva, dog, guidance and capital investment guidance in February of 2026, along the release of our fourth quarter and full year 2025 results, this is a change from prior years but aligns more closely with industry practice amongst our peers

operator. We've now like to open the line for questions.

Operator: Thank you, ladies and gentlemen. We will now begin the question and answer session. Should you have a question, please press star followed by the one on your telephone keypad. You will hear a prompt that your hand has been raised. Should you wish to cancel your request, please press star followed by the. If you're using a speakerphone, please lift the handset before pressing any keys. One moment, please, for your first question. Thank you. Your first question comes from the line of Konark Gupta from Scotiabank. Please go ahead.

Thank you, ladies and gentlemen, we will now begin the question and answer session. Should you have a question? Please press star. 4 to 1 on your telephone keypad? You will hear a prompt that your hand has been raised. And should you wish to cancel your request? Please press star. Followed by the 2, if you're using a speaker phone, please lift the handset, before pressing any keys.

1 moment, please for your first question.

[Analyst 1]: Thanks, operator. Good morning everyone. Just to begin with, on the volume side of things, I think you guys pointed out obviously there's a bunch of issues in the quarter because of which the waste management segment's volumes declined. I'm just wondering, is it possible to kind of parse out how much of the volume decline was directly associated with drilling and completion as opposed to the turnaround and other issues with production?

Thank you. And your first question comes from the line of corner Gupta, from Scotia Bank. Please go ahead.

Thanks operator. Good morning, everyone. Um, just to let me begin with on the volume side of things. Uh, you know, I think you guys pointed out obviously this this bunch of issues in in the quarter, uh, because of which the waste management, segments volumes declined. Uh, I'm just wondering, is it, is it possible to kind of pass out how much of the volume decline was directly associated with Drilling and completion as opposed to the turnaround and other issues with production?

Corey Higham: Good morning, Cornock, it's Corey. Good question. You know, when you look at the rig count dropping 15% quarter over quarter, it certainly made up a big chunk of the decline. When producers, the knock-on effect, producers will tighten their budgets, they'll drill less wells, they'll complete less wells, and when they complete less wells, there's less waste to process, there's less drilling waste to dispose of. There's just this knock-on effect where you're getting lower volumes. When you look into the quarter, July was very similar to Q2 levels. As you move through July, August, September, there was a general incremental increase month over month and we're seeing that into October. It was a tougher quarter from a volume perspective. The assets operated the way they're supposed to and our teams are chasing and hunting every barrel and cubic meter waste that's out there.

Good morning Corona. It's Corey, uh, good, good question. And you know, when you, when you look at the recount, uh, dropping 15% quarter over quarter, it certainly made up a a big chunk of, of the decline. And, and when producers,

Uh, the knock-on effect. Producers will tighten their budgets? They'll drill less well, they'll complete less well than when they complete less Wells. There's less um, waste to process. Uh, there's less drilling waste to, uh, to dispose of. So, there's just this knock on effect, where, um, you're getting a lower volumes. But when you look into the quarter,

Alan Gransch: I think too, Connor, to add to what Corey's saying, I think with a softer commodity, and I think we've been hovering in the high $50s, low $60s here and we've said this in our outlook, it makes producers pause a little bit. They're thinking more on if they want to pause a turnaround or if they want to slow certain things down. As we're looking into this quarter here, this last quarter of the year, it seems like most of them are kind of driving towards spending their budgets for the year. You can understand with the softer commodity why activity levels in general would slow down a bit and relatively hung in there as well. It wasn't really a surprise to us. You kind of saw it come to fruition as we got through Q3.

You know, July was July was very slim similar to Q2 levels and as you move through uh, July August September, there was a just a general incremental increase month-over-month and uh, we're seeing that in into October. So, um, you know, it was a a tougher quarter from a volume perspective, but the assets, uh, operated the way they're supposed to and and our teams are chasing and hunting every every barrel and and cubic meter of waste, that's out there. I think, I think 2, Conner to add to uh, to what Corey is saying, I think, you know, with a software commodity and I think we've been hovering, you know, in the high 50s, low 60s here, it it just and and we've said this in our L book, it it makes producers pause a little bit, they're thinking more on, you know, if they want to pause and turn around or if they want to slow certain things down, you know, a as we're kind of looking into this quarter here, this last quarter of the year, it seems like most of them are kind of driving towards spending their, their budgets for the year, but you you can understand what the software.

[Analyst 1]: Okay, that makes sense. Fair comment there on the guidance then. I mean, you're expecting now, I think, $500 million-ish for full year on an EBITDA basis. I think it's not like down a lot from the low end of what you guys said before. Is that incrementally pointed out? Obviously, the M&A, that didn't happen. Is there an incremental pressure, you would say, from the metals recycling side or from the drilling and completion side versus where you guys were thinking three months ago, perhaps? I'm just trying to understand what drove this push down toward the $500 million. Is it more the metals or the drilling?

Commodity why why activity levels and generally, what would slow down a bit and and and relatively hung in there as well. So uh it it wasn't really a surprise to us. It's just, you know, you kind of saw it come to fruition as we go through Q3

Okay, that makes sense. Comment. Yeah. Um, on the guidance then. Um, so I mean you're expecting now. I think 500 is, uh, for full year on EV databases and uh, I think it's, it's not like down a lot from the low end of what you guys had before. But is is is that like incrementally you pointed out, obviously the m&a that didn't happen but is there an incremental pressure? You would say from the memory cycling side or or or from the drilling and completion side versus where you guys were thinking 3 months ago? Perhaps, you know, I mean I'm just trying to understand like you know what, drove this push down toward the 500, is more the metal. So the drawing

Alan Gransch: Good question. I would say there's a bit of balance on both. I think it's a bit of carryover on just in general activity levels with the softer commodity price. As I said, producers are kind of driving towards completing their budgets. December now becomes the period at which things slow down here in Western Canada. You used to have a bit of a breakup in the second quarter, but with all the pad drilling going on, they really just go hard all throughout the year. Giving their own guys a break is typically now the Christmas break. Depending on weather in December and how close they get to their budgets, we know that there's going to be some softer volumes coming through in that month. Part of it is associated with that, part of it is associated with metals.

Things slow down here in western Canada. You know, you used to have a bit of a breakup in the second quarter, but with all the pad drilling going on, they really just go hard all throughout the year and so giving their own, uh, guys. A break is, is typically now, uh, the, the Christmas break and so, depending on whether or in December and how close they get to their budgets, we know that there's going to be some softer uh volumes coming through in that month.

Alan Gransch: It took us throughout the entire Q3 to get into some of these new U.S. markets. We were successful now transitioning 95%. I mean, it's a huge competitive advantage for our facilities here in Western Canada to have not only the mega shredder in Edmonton and being able to process more efficiently, but also to have these rail cars and move into markets into the U.S. Huge advantage for us to shift entirely all of our scrap into the U.S. I think I talked about it in Q2, just maybe we could get an agreement with the U.S. on tariffs on steel. That didn't happen. We've effectively transitioned now 95% to the U.S. market. For us, now that we have the market, it's all around the logistics and being able to get the turnaround time on the trains.

Alan Gransch: Typically when it's closer in Canada or relatively close from the border, you're looking at 21 days turning around your cars and getting them back and filled up again. As we think about further into the U.S., we're moving more into the 40, 45 days to get those same cars back. That logistics and that turnaround time is really the delta here. We've seen our inventory start to build here in through October and it's going to be how efficient we can get the logistics nailed down here for the fourth quarter. There could be some amount that spills in. It's really just a shift of profits. As we think about our logistics, we've got an additional 50 cars that we've just leased that's going to add on to our fleet. We're sitting around 270 rail cars right now.

So there's a part part of it as a associated. With that, part of it is associated with Metals. It took us throughout the entire Q3 to get into some of these new US markets. And so we were successful now, transitioning 95%. I mean, it's a huge competitive Advantage for our facilities here in western Canada to have, you know, not only the, you know, the mega Shredder in Edmonton and being able to, to process more efficiently, but also to have these rail cars and move into markets into the US. And so, you know, huge Advantage for us to shift entirely all of our scrap into the US. I think I talked about it in Q2 just, you know, maybe we could get a an agreement with the US on, on tariffs on steel and that didn't happen. So, we've effectively transitioned now, 95% to the US market. So, for us, it's, it's now that we have the market, it's all around the logistics and being able to get this, the the turnaround time on the trains, typically, when it's

Alan Gransch: We're going to run with that, make sure we can optimize our logistics. Those would be the two main factors for pinning it down on approximately $500 million.

Closer in Canada or relatively close from the border you're looking at 21 days turning around, uh, your cars and getting them back and filled up again, you know, as we think about further into the us we're we're moving more into the 4045 days, to get those same cars back. And so that, that Logistics and that turnaround time is really the, the Delta here. And and we, we've seen our inventory start to build here in through October, and it's going to be how we can get the logistics, uh, nailed down here to to Fork the fourth quarter here. But, you know, there could be some amount that spills in. So, it's really just a shift of profits. As we think about our, our Logistics, we've got um, an additional 50, uh, cars that we've just least, uh, that's going to add on to our Fleet. So we're sitting around 270 uh, rail cars right now. And so we're going to run with that. Make sure we can optimize our Logistics and, uh,

[Analyst 1]: Okay, that's really helpful color and I just want to wrap up on the metals recycling side. I think you laid out a lot of factors there and numbers there. I just want to understand, is that shift to the U.S. 95%? That's obviously significantly higher than what you typically did before. Is that more like a temporary phenomenon? When you get more cars in next year, A, do you plan to return the leased cars, and B, do you expect the 40, 45 day inventory, sorry, the car turnaround time to get back to close to like 21 days, or could it still be higher because of the U.S.?

Yeah, so those would be the the 2 main factors for, you know, pinning it down on on approximately 500 million.

Okay, that's, that's really helpful color and I just want to wrap up on on the metal recycling site. I think you laid out a lot of factors there and numbers there. So just wanted to understand uh you know, is that shift to the US? 95%, I mean that's obviously significant and be higher than what you typically did before. It's not more like a temporary phenomenon and

Alan Gransch: Logistically, it is further to transport the car. I think the average days, maybe we get it down into that, call it 40, 40 days range. The lease cars that we brought on, that's, I think, another three-year lease or five-year lease for those cars. They're in our fleet and it'll be able to allow us to manage into the U.S. market for quite some time. We don't anticipate coming back into the Canadian market for quite some time. We're really in developing these relationships with the mills in the U.S. and just optimizing our turnaround time. If we need a few more lease cars, if we find that that is the optimal level that we need, that's what we're going to run. We'll get it figured out here. I call it a three to six months figuring out the logistics.

And uh, you know, I mean, when you get more cars in next year, uh, a do you plan to return the beast cars and B? Do you expect the 40? 45 day inventory, sorry. The the car turn. Turn around time to get back to close it. Like 21% of the US.

Yeah. I mean, logistically. It it is further to transport the car so I I think the average days maybe we we get it down into that, call it 40. Uh 40 days range, the least cars that we brought on. That's I think another 3 3 year lease or if 5 year lease uh for those cars. So they're in our Fleet and and it'll be able uh,

Alan Gransch: It just puts us at such an advantage to our competition to be able to have these markets and to be able to price into the U.S. Again, coming up with this whole hub and spoke model, getting these other locations to feed into Edmonton, to not only process it more efficiently, but then get it on the cars and get it down to these markets is great for us. We'll navigate that through Q4 and Q1, but after that, it really should be just smooth, smooth running.

To allow us to manage into the US market for quite some time. We don't anticipate coming back into the Canadian market for quite some time. So we're really in developing, these relationships with the mills in the US and just optimizing our our turnaround time. So if we need a few more lease cars, if we find that, that is the optimal level that we need. Then that's what we're going to run. So we'll, we'll get it. Figured out here. It's it's what I call call it. A 3 to 6 months, figuring out the logistics, but it just puts us, it's such an advantage to our competition, to be able to have these markets and to be able to price into the US. So it's again, you know, coming up with this whole Hub and spoke model. Getting these other locations to feed into Edmonton. To not only process it more efficiently but then get it on the cars and and get it down to these markets is is great for us. So

Corey Higham: Once the Canadian mills get some.

Alan Gransch: Demand back and whether that's tariff relief.

Corey Higham: It's part of our federal government's Build Canada Better program. Even if you have some Canadian mills resume, we've built some really good relationships with these mills, and there's certainly demand that we're seeing into Q1. We don't have any issues in this current environment in being able to get rid of this inventory. If Canada does get in a much better position, we just have more outlets for our product, which is good news all around.

So we don't have any issues.

[Analyst 1]: Yeah, that's great. Thanks for taking my question.

Uh, in this current environment, being able to get rid of this inventory, um, if Canada does get in a much better position, we just have more outlets for our product, which is good news all around.

Alan Gransch: Thanks, Connor.

Yeah, that's great. Considering my questions.

Operator: Thank you. Your next question comes from the line of Michael Tumet from National Bank Financial. Please go ahead.

Thanks Connor.

Thank you. And your next question comes from the line of Michael to met from National Bank. Please go ahead.

[Analyst 2]: Hey, good morning, guys. I know it's 10% of your business, but I do want to press on it a little bit more. On the metals business, is there any way you can quantify how much of the 2025 EBITDA guidance was attributable to the metals? The reason why I'm asking is because I feel like that's part of the business that can bounce back relatively easily in 2026. Just the latter part of that question, when you guys think about the metals business recovering in 2026, I would think that feedstock prices have to decline to offset the higher logistic costs. I'm just wondering if you're seeing that already.

Uh, hey, good morning, guys. Um, I know it's 10% of your business, um, but I, I do want to press on it a little bit more so on the metals business is there any way you can quantify

How much of the 2025 even without guidance was attributable to to the metals? Um, and the reason why I'm asking is

Because I feel like that's part of the business that can bounce back relatively easily in 2026.

Uh, and the just the latter part of that question. Um,

When you guys think about the metals? Uh,

Covering in 2026.

I I would think that beattock prices have to decline to offset the higher logistic costs. So I'm just wondering if you're seeing that already.

Alan Gransch: Morning, Michael. Yeah, great question. When we look at our guidance for 2025, we've talked about metals being about 10% of that overall guidance, so call it in the ballpark of around $50 million. I commented there's a couple things that have happened. Number one, when we acquired GRI in February, we knew that there was going to be a time frame here, call it 12 to 18 months to realize synergies. What are our synergies for? The first synergy we wanted to achieve was operational synergies. This was getting our other locations that we call the feeder locations set up in a manner which we can transfer that scrap efficiently into the Edmonton market and then process it. Get the operational synergies. Our shredder was running around 50% utilization.

Alan Gransch: Our goal was to get it above 65% and we're well on track to getting higher utilization, which is a more efficient way to process the scrap. We knew there was going to be operational synergies. We knew there was going to be transportation synergies, and that's really from these new cars where they can hold 30% more scrap than these old leased cars that we have and that transportation centers. You pay by the car, you don't pay by the size that it can hold. We knew we would gain transportation synergies as well. We had some system integrations we wanted to do as well. A lot of these mom and pops run very archaic systems.

Good morning, Michael. Uh, yeah, great, great question. So I I when, when we look at our guidance for 2025, we've talked about Metals being about 10% of that overall guidance. So, you know, call it in the ballpark of around 50 million and uh, you know, I commented there's a couple things that have happened. Number number 1. When we acquired gri in February, we knew that there was going to take there was going to be a time frame here. Call it 12, to 18 months, to realize synergies. And what are our synergies for the first Synergy? We wanted to achieve was operational Synergy. So this was, you know, getting our other locations that we called the feeder location setup in a matter which we can transfer that scrap, uh, efficiently into the the Edmonton market and then process it. So get the operational synergies, our Shredder was running around 50% utilization. Our goal is to get it above 65% and we're well on track to getting higher utilization, which is a more efficient way to process the scratch.

Alan Gransch: We wanted to get it all up to a new operating system where we could use a lot of data management to make our inventory turns and our annual or our monthly processing very, very efficient. Those synergies were going to take time. We're going to get synergies into 2026 once we have all of that figured out. When we think about the, let's call it the $50 million or so associated with metal switching into the U.S. market, there was a time that we're sending kind of smaller loads where they're getting test loads and we're getting relationships complete with some mills that we haven't done business with in quite some time. There was a bit of a, and I think I said in Q2 and Q3, you're calling like a $3 to $5 million kind of impact to get that all established.

So we knew there was going to be operational synergies. We knew there was going to be, you know, transportation synergies. And that's really from these new cars where they can hold 30% more scrap than these old leased cars that we have. And at transportation centers, you pay by the car; you don't pay by the size that it can hold. So we knew we would gain transportation synergies as well. And then we had some system integrations we wanted to do as well. A lot of these Mom and Pops run very archaic systems. We want.

Alan Gransch: Now we're moving into really, can we turn the inventory? I wanted to turn the inventory every 30 days so that you're not taking any sort of commodity risk. That's ultimately the way we're going to set up the business. We don't want the volatility. We just want the spread between what's coming across the scale to what we can sell to in the U.S. market. To your point, is the price coming down to offset the logistics expense? The answer is yeah, we have to factor in what we would be willing to pay on the scale versus the cost to transport it to get to these U.S. markets. That just takes time to figure out. There is more upside as we think about 2026 metals and we have all of this logistically figured out and optimized, but also get those synergies realized. There will be upside into 2026.

Wanted to get it all up to the, you know, a new operating system where we could use a lot of data management to make, make our inventory turns and our annual, or our monthly processing, very, very efficient. And so those synergies we're going to take time. So we're going to get synergies into 2026 once we have all of that figured out but when we think about the, you know, let's call it the 50 million or so associated with Metals switching into the US markets. There was a time, you know, that we're sending kind of smaller loads, where they're getting test loads. And we're, uh, getting relationships complete with some Mills that we haven't done business with, in quite some time. So, there was a bit of a, and, and I think I said in Q2 and Q3 and you're calling like a 3 to 5 million kind of impact to get that all established. So now that we're moving into really can we turn the inventory? Uh, you know, I wanted to turn the inventory every 30 days so that, you know, you're not taking any sort of commodity risk. That's ultimately the way we're going to set up the business.

We don't want the volatility, we just want the spread between what's coming across the scale, to what we can sell to in the US market. And so to, your point is the price coming down to offset the logistics expense. The answer is, yeah, we have to factor in. What we would be willing to pay on the scale versus the cost to transport it to get to these us markets. So that just takes time to figure out. So there is, uh, more upside as we think about 2026 medals and sending all of this logistically figured out and optimized, but also get

Alan Gransch: Q4 really is just a matter of what is our inventory build and how many cars do we need to make this as optimal as possible.

Synergies realized. So there will be upside um into 2026 and Q4 really, is just a matter of what is our inventory, Bill and and how many cars do we need to to

Corey Higham: That's really helpful.

[Analyst 2]: Alan, just on the $3 to $5 million that you talked about there, was that the Q2 Q3 impact or potentially the full year impact?

Alan Gransch: That's right. That's the Q2 Q3 impact. Now I'm moving more into just the logistics aspect in Q4 on inventory build and how much I can transfer out. Got it.

[Analyst 2]: Maybe changing topics here on the buyback. What are your thoughts on share repurchases at these higher levels? Do you or maybe the board, do you have a preference for opportunistic buybacks, or is there a view that maybe a more regular pro rata purchase makes more sense here?

That's really helpful caller Alan just on the 3 to 5 million that you you talked about there was that the the Q2 Q3 impact or, or potentially the full year impact. That's right, that's the Q2 Q3 impact. So now I'm moving more into just, the logistics aspect in Q4 on the inventory bills and how much I can transfer them. Um, and and maybe changing topics here on the buyback.

Alan Gransch: Yeah.

For opportunistic, BuyBacks or is there a view that maybe um a more regular Prada purchase, um, makes more sense here.

Chad Magus: Good morning, Michael. It's Chad here. We've always said we're going to be opportunistic and we reevaluate every quarter, along with our board and just kind of set parameters as to how much we're going to buy. Obviously, we want to be in the market buying at levels that we think are attractive that period of time. Now things have been transitioning nicely for us in that the multiple have been expanding and continue to reevaluate. We kept the wording on purpose that we're going to continue to be opportunistic buyers of our own stock.

Yeah, good morning Michael, it's Chad here. Um yeah we've always said we're we're going to be opportunistic and we reevaluate it every quarter um you know along with our board. Um and just kind of set parameters as to as to how much we're going to buy and and

obviously, we want to, you want to be um,

[Analyst 2]: Okay, great. Thanks, guys.

In the market. Um, buying at levels that we think, uh, are attractive about period of time. Now things have been transitioning uh, nicely for us in that the multiple has been expanding and continue to reevaluate but, um, you know, I we we kept the wording on purpose that we're going to continue to be opportunistic, uh, buyers of our own stock.

Okay, great. Thanks, guys.

Corey Higham: Thanks, Michael. Thank you.

Operator: Thank you. Once again, should you have a question, please press star followed by the one on your telephone keypad. Your next question comes from the line of Arthur Nagorni from Royal Bank Of Canada Capital Markets. Please go ahead.

Thanks Michael. Thank you.

Thank you. Once again, should you have a question, please press star 4 on your keypad.

[Analyst 3]: Good morning. Thanks for taking my questions. Just on the specialty chemicals business, correct me if I'm wrong, but I think you previously called out that drilling and completion is about 50% of that business, with the rest being more tied to production. Would it be fair to say that drilling and completion activity or revenue was down meaningfully more than that 12% for that business, or are there any other moving pieces that we should be keeping in mind there?

And your next question comes from the line of Arthur nagini from RBC Capital markets, please go ahead.

Hey, good morning. Thanks for taking my questions.

Uh, just on a Specialty Chemicals business. Uh, correct me if I'm wrong, but I think you've previously called out that Drilling and completion is about 50% of that business with the rest, being more tied to production.

So I guess would it be fair to say that Drilling and completion uh activity or Revenue was down meaninglessly more than that. 12%. Uh for that business. Are there any other moving pieces?

That we should be keeping in mind there.

Corey Higham: Good morning.

Chad Magus: Within specialty chemicals, about half is drilling fluids, so really tied to the rig count, and then the other half is specialty chemicals. I'd say the revenue decline there is fairly close to what we saw with rig activity decline in the quarter.

Yeah, good morning Arthur's chat here. Um, yeah, within Specialty. Chemicals about half is Drilling Fluids. So really tied to the rig count. Um, and then the other half is Specialty, Chemicals. And so um, yeah, I'd say uh, the, the revenue decline there um, is is barely close to what we saw with with, uh, reactivity to client on the quarter.

[Analyst 3]: Got it. On the metals recycling business, it seems like the Edmonton facility generated $28 million of revenue in the quarter, which is only modestly lower than the $30 million in Q2. That's, I guess, despite all the headwinds. Can you maybe talk about how things are progressing with that acquisition and maybe what the revenue generated capacity of that business could be like in a steadier operating environment?

Got it. And then uh, on the Metals Recycling business,

It seems like the Edmonton facility generated, 28 million of Revenue in the quarter, which is only Manas lower than the 30 million in Q2. And that's, I guess despite all the headwinds. So can you maybe talk about how things are progressing with that acquisition and maybe with the revenue, generating capacity of that business could be like in a steadier operating environment.

Alan Gransch: Morning, Arthur. Yeah, I mean, when you think about having a macro challenge, like finished steel tariffs in Canada, it has an impact on the market. This is pretty unprecedented. Not only with the tariffs, but also just general kind of slowdown in activity from an industrial standpoint. We knew we had to deal with that more challenging backdrop. The business and the acquisition that we've acquired, we're very happy with, like it is performing very well. We're super happy with the utilization of that shredder and how the shredder's operating the yard, how we're integrating all of our facilities. We know there is substantial upside as we think about 2026 and 2027 with this asset. You kind of bought it in the low part of the cycle and we're currently optimizing at the same time. Managing, like I said, the logistics piece.

Good morning, Arthur. Yeah. I mean, um, I would say that when you think about having a macro challenge like finishing the steel tariffs in Canada, it has an impact on the market. This is pretty unprecedented, and it's why, not only with the tariffs, but also just a general kind of slowdown in activity from an industrial standpoint, you know,

Alan Gransch: Once we get that figured out, this thing is going to be running very, very smoothly. Our goal will be to turn this inventory every month. I think it gives you that, again, that competitive advantage to have multiple markets to be able to send your product to. That creates that advantage for us, specifically when we're attracting scrap into the Edmonton facility from that industrial market. I would consider what you see this year as being our low part of what metals can do. There's definitely going to be upside and we'll, I think I mentioned it in the call, we're going to put 2026 guidance out with our 2025 annual Q4 release, kind of end of February. That's when most of our waste peers put out guidance. At that point, I'll give you more clarity on where I think metals could go for the 2026 year.

We, we knew we had to deal with that, you know, kind of more challenging backdrop, but the business and the acquisition that we were, we required were very happy with, like it is performing very well. We're super happy with the, uh, the utilization of that Shredder and how the Shredder's off, any operating the yard, um, how we're integrating, all of our facilities. So we know there's substantial upside as we think about 26 and 27 with this asset. You know, you kind of bought it in the low part of the cycle. And we're currently optimizing at the same time. And so, you know, managing like I said, the the logistics piece, once we get that figured out, this thing is going to be running, very, very, uh, smoothly. And our goal will be that, you know, turn this inventory every month and I think it, it gives you that again, that competitive advantage to have multiple markets to be able to, uh, to be able to send your product to and that creates that Advantage for us specifically, when we're, you know, attracting scrap into the into the evidence.

Alan Gransch: Just gives me a few more months to get through some of these areas I spoke about.

Facility from that industrial market. So so, yeah. So there there is, uh, you know, I would consider what you see this year as being, our low part of what metals can do. And there's definitely going to be upside and we'll, I, I think I mentioned it in, in the call, we're going to put 2026 guidance out with our 2025 annual and Q4 release kind of end of February. That's when most of our waste peers put out guidance. So at that point, I'll I'll give you a more clarity on where I think Metals could go, uh, for the 2026 year. It just gives me a few few more months to get through some of these these uh areas I spoke about

[Analyst 3]: Got it. That's helpful. In the energy infrastructure segment, you called out lower contribution from more mature areas. Is that just a function of decline curves on producing wells, and do we need to see an uptick in drilling and completion activity for this to maybe reverse?

Got it, that's helpful.

Um, and then, I guess in the energy infrastructure segment you called a lower contribution from more mature areas, uh, is that just a function of, I guess decline curves on producing Wells, and do we need to see an uptick in drilling and completion activity for this to maybe reverse?

Corey Higham: Yeah, I think it's a bit of both of those, Arthur. You know, you do have mature areas, and when they stop drilling in some of those areas, the production does come down, again offset with the contributions from our NEPA C business. We're pretty comfortable and confident in this business and market growth.

Um, Arthur, you know, you you do have mature areas and when they stopped Drilling, and some of those areas, the production does come down, but again offset with the, the contributions from our, from our nicy business. So, we're, we're pretty

Alan Gransch: I think when you look at the price of oil and I said, you know, kind of high 50s, if you look at the basins here, the reservoirs in Canada, you know, you're kind of in that break even at a $50 WTI. They're going to slow down when you're into the 50s. When you look at the plays, they're very, I would say from a netback perspective ahead of where maybe some of the U.S. production would be. All of this, you see that little bit of a pause and it's to be expected given we're in the third year where WTI seems to be soft. It just shows you though, even with that little bit of decline on the drilling aspect, production still was very flat and kind of came into where we expected. It's a good signal for us.

Comfortable and confident in the in this business and, and market growth. So yeah, I think, I think when you look at the price of oil and I said, you know, you kind of high 50s, you look at the the basins here, the the reservoirs in Canada, you know, you're kind of in that break, even at a 50 dollar WTI

And so yeah they're they're going to slow down when you're into the 50s. But you know when you look at the plays that they're very uh I would say from a net back perspective, ahead of where maybe some of the US production would be and so

Alan Gransch: Obviously we're more bullish as we think about activity levels into 2026.

All of this. You see that little bit of a pause and it's to be expected given we're in the third year of where WTI seems to be soft. But it just shows you though even even with that little bit of decline on on, on the drilling aspect production still, you know, uh, you know, was very flat and kind of came into, you know, where we expected. So it's it's a good signal for us and and obviously, we're, you know, more bullish as we think about activity levels in the 2026.

[Analyst 3]: The adjusted EBITDA margins were notably strong in the quarter, particularly in light of the revenue declines across your segments. Is there anything in there that you would call out as maybe being more one time in nature, or can we expect margins to be more in this range going forward? I guess with keeping seasonality in mind?

And then last one for me, the adjusted IBA margins were notably strong in the quarter, particularly in light of, I guess, the revenue declines across your segments. Is there anything in there that you would call out as maybe being more one-time in nature? Or can we expect margins to be more in this range going forward, I guess with keeping seasonality in mind?

Chad Magus: Yeah, I think, you know, when you look at the last couple years of where the margin percentage has been, it has fluctuated. It is, you know, with all our different service lines, they all do have, you know, in some instances fairly significantly different margin profiles. It really is the mix in the quarter. This quarter, I think the biggest drivers were specialty chemicals being a lower percentage of the overall EBITDA. They are at a lower margin, and that helped, I guess, void the margin to a higher than where we've seen on average and then also probably lower than normal G&A this quarter as well just helped to get to that 37%.

yeah, I think you know, when you look at the last, you know, couple years of

of, uh,

Where the, with the margin percentage has been it? It has fluctuated. It is, you know, with all our different service lines, they all do have uh,

Chad Magus: I think year to date we're about 34%, and I think that's probably, you know, when you look at what we forecast going forward, we'd expect to be in the mid-30s, but it will be somewhat variable quarter over quarter.

You know, in some instances, fairly significantly, different margin profiles and so it really is the the mix in the quarter. And so this quarter I think the biggest drivers were, you know Specialty Chemicals being a a lower percentage of the overall ibida. Um, they are at a lower margin and so that that that helped I guess, uh, void the void, the, the margin to a higher than where we've seen on average. Um, and then also you know, probably lower than normal uh GNA this quarter as well. Just able to get to that 37% but I think year to date we're about 34%. And I think that's probably, you know, when you look uh

And what we forecast going forward, we expect to be in the mid-30s.

But it will be somewhat variable quarter recorder.

[Analyst 3]: Thanks, guys. Turn it over.

Thanks guys. Turn it over.

Operator: Thank you. There are no further questions at this time. Mr. Gransch, please proceed.

Alan Gransch: Thank you for your time today. We look forward to presenting at the Baird Industrial Conference in Chicago in a couple of weeks, followed by the Scotiabank Transportation and Industrials Conference in Toronto, mid November. As mentioned, we expect to release our fourth quarter and 2025 annual results along with 2026 guidance at the end of February. Thank you all for your continued support.

Thank you. There are no further questions at this time. Mr. Crunch. Please proceed.

Thank you for your time today. We look forward to presenting at the Barrett industrial conference in Chicago in a couple of weeks followed by Scotia Bank transportation and Industrials conference in Toronto. Mid November as mentioned, we expect the to release our fourth quarter in 2025 annual results, along with 2026 guidance, at the end of February. Thank you all for your continued support.

Operator: This concludes today's call. Thank you for participating. You may all disconnect.

And this concludes today's call. Thank you for participating. You may all disconnect.