Q2 2026 EverGen Infrastructure Corp Earnings Call

August 27, 2026

Speaker #1: Good morning, everyone. Welcome to EverGen Infrastructure's Q2 2026 earnings presentation. As a reminder, this call is being recorded. Before we begin, I would like to direct all participants to our website at www.evergeninfra.com, where you'll find a copy of the second quarter earnings presentation.

Speaker #1: Please allow me to remind you that our discussions today contain forward-looking statements. Actual results may vary materially from those discussed. Additional information is contained in the Q2 2026 Management's Discussion and Analysis.

Speaker #1: I will now turn the call over to Chase Edgerow, who is EverGen's co-founder and CEO.

Speaker #2: Good morning, and thank you, Shubham. I'm Chase Edgelow, co-founder and CEO of EverGen, and I'm joined here today by Maria O'Sullivan, our CFO, and Shubham Trehan, who's our Director of Business Development.

Speaker #2: I want to begin somewhere other than the numbers, because numbers only matter if you understand the evidence of the hard work that we've put into the business over the last 15 months.

Speaker #2: When we took the reins at EverGen in May of 2025, EverGen was a set of genuinely good infrastructure assets that were not working. Real plants, real contracts, real waste coming in through the gate—and performance that did not reflect any of it.

Speaker #2: Today, our platform is running at record production, converting that production into cash, and doing it in a method that we believe we can repeat again and again.

Speaker #2: That is the story of Q2. Not a good print. Evidence of a method that works. So I'll take you through it in four parts.

Speaker #2: What we've stabilized, what the turnaround is now producing, the team that produced it, and why I believe this is a business that is priced at a value that bears very little resemblance to what you actually own.

Speaker #2: Maria will then take you through the financials in detail, and we'll open up the call for questions. So just to recap on the stabilization: starting with what we took on in May of 2025, EverGen went through a recapitalization transaction and a change of management.

Speaker #2: I returned as CEO alongside Ron Green, our COO. Ask America came in as our lead investor, and across two tranches of equity raise, we did $7 million of new equity into the business, all at $0.60 a share.

Speaker #2: What we inherited was four operating assets across British Columbia and Alberta, about $75 million of total assets, feedstock arriving at our gate under long-dated municipal contracts, and RNG going out to our utility buyers.

Speaker #2: What we did not inherit was reliability. And for infrastructure companies, reliability is critical. So we focused, one, on the assets. Without capital and without operating discipline, we saw significant downtime—unplanned downtime, interruptions—and overall, our facility uptime went from under 80% to the high 90s.

Speaker #2: Fraser Valley Biogas continues to set new production records, with a beat in July and continued strong performance. Secondly, fixing the balance sheet.

Speaker #2: You know, along with the equity raise, we also closed a $13 million asset-level debt facility at Fraser Valley, which is non-recourse to the parent, and used the proceeds to retire approximately $12 million of corporate senior debt.

Speaker #2: You know, what that did for the business—we saved a significant amount of debt service costs, and we've aligned with a lender that's committed to the space, Farm Credit Canada.

Speaker #2: Thirdly, our business is about contracts, and we entered into the 20-year period at Fraser Valley Biogas with FortisBC on our new contract in January of this year.

Speaker #2: That, collectively, is stabilization. It's not, you know—it's not changing numbers, but it's the foundation for everything I'm about to take you through.

Speaker #2: Our next phase was a turnaround, and I think that, you know, what what we're here today to tell you is that, you know, after 15 months with the business, you know, first 6 months really focused on what we talked about above, the stabilization.

Speaker #2: You're starting to see the evidence of the turnaround in the numbers. What that foundation produced in the second quarter: revenue, up 71% year over year, R&G production, up 11%, incoming feedstock, up 34%, compost sales, up 51%, collectively adjusted EBITDA of $1.75 million, against sub $400,000 the same quarter last year.

Speaker #2: An increase of over 400%. I think if you take nothing else from this call, take the three numbers that sit below those headline numbers, which are: 1) our direct operating costs didn’t rise, while our revenues did; 2) with that, over $0.70 of every incremental dollar that comes in the door converted straight to adjusted EBITDA. That’s, you know, that’s the torque that’s in this business if we get our operations stabilized.

Speaker #2: And, three, from a cash flow perspective, you know, we look at positive cash flow versus negative cash flow, where the business was in the same business in the same period last year.

Speaker #2: And Maria will take you through the first half in detail in a moment. But what I want to highlight here is that the direction of the business has been four consecutive quarters of a rising floor, and our run rate has moved from approximately $4.3 million of EBITDA to over $5 million in a single quarter.

Speaker #2: From our perspective, that's what our turnaround has resulted in. It's not one, you know, it's not a single number—it's a floor that keeps rising.

Speaker #2: And that floor only rises with the team. I think before I get into growth, I wanted to talk about something that doesn't appear in our Q2 financials, our MD&A.

Speaker #2: I think we've, you know, we've really focused in this turnaround on building a strong team, empowering, you know, those within the business that are capable, and, you know, these plants were not fixed from our head office.

Speaker #2: They were fixed at site by operators who understand that uptime is achieved through preventative maintenance, having inventories on spare parts, and, you know, not in a boardroom.

Speaker #2: If I ask you to think about two things about, you know, our team maybe versus other platforms in the space. We run a genuinely lean organization.

Speaker #2: G&A fell approximately 20%, while revenues grew. So we've got a small team carrying a lot of weight, and I want to recognize, you know, everyone that's made an impact this quarter and in the last 15 months.

Speaker #2: So why, you know, why is—why is the team important? Why is that base important? I think ultimately, you know, our vision for EverGen was there were strong assets underlying, you know, what were weak results. The, you know, the turnaround has shown that the strong production out of those assets is capable, but I think, more importantly than that, all of this provides for us a playbook for growth.

Speaker #2: So this is, you know, this is repeatable templatable turnaround of, you know, of assets that we think we can repeat to not just on our own assets, but as we look to grow.

Speaker #2: Organically, we've got growth at GrowTech that will expand that facility. We've got continued improvement at Fraser Valley Biogas. We've got a large expansion at Pacific Coast Renewables.

Speaker #2: That cleared a major regulatory hurdle in March of this year. It has $10.5 million of NRCAN funding towards it, of which we've allocated $9.2 million toward capital expenditure.

Speaker #2: As at June 30. And we are continuing to move that project towards FID beyond our PCR R&G expansion in terms of large capital projects.

Speaker #2: We also hold 50% of Project Radius, which is an approximately 550,000 gigajoule-per-year development project in Ontario. You know, we have an FID target on that project for later this year or early next year, and, you know, it’s had some really interesting developments in the last 12 months.

Speaker #2: And then finally, you know, I'll speak to the consolidation potential that we believe our platform is uniquely positioned to take advantage of.

Speaker #2: North America went from approximately 100 R&G facilities before 2020—before the sort of clean tech boom and funding, you know, push towards the space—to more than 600 today.

Speaker #2: A great deal of those were built by developers. Or, you know, I guess teams of teams and platforms that no longer exist. That, you know, that were maybe hit a little bit harder than EverGen as the as that capital outflow from the space happened in 2021, 2022.

Speaker #2: And we see that a meaningful share of those 600 facilities underperform, for exactly the same reasons that our facilities used to. And so, you know, what I'm saying is that EverGen is a natural owner of underperforming R&G assets.

Speaker #2: We've already proven we can fix fix the ones that we own, and that's our template. And so finally, you know, I think this is important for for all of our shareholders: the value question.

Speaker #2: And let me be direct, because I think this is probably the least understood part of the business. What you own today: $75 million in total assets.

Speaker #2: Shareholders' equity of $42 million, which is about $1.63 a share against 25 million shares outstanding. Four operating facilities that are strategically located in areas where, you know, it's challenging to build infrastructure.

Speaker #2: I.e., there is a moat. Feedstock arriving under long-dated municipal contracts. R&G being sold under 20-year, utility-grade offtakes. And roughly $16 million of debt sitting at the project level against the assets that service those.

Speaker #2: Against all of that value, EverGen carries a market cap of roughly $10 million. And let me give you three ways to consider, you know, to consider value here.

Speaker #2: One, on book value, you know, on our net asset value. Market is valuing our equity at about a quarter of its carrying value, despite—and obviously, we'll give the market time to adjust—but despite just delivering record production and record feedstock volumes.

Speaker #2: Two, on a cash flow basis, our run-rate adjusted EBITDA over the first half is over $5 million. Our enterprise value, including our debt net of cash, is sub-$25 million.

Speaker #2: Which is a sub-5 times EBITDA multiple. Publicly traded RNG and environmental infrastructure companies generally trade from high single digits into the mid-teens on that same EBITDA metric.

Speaker #2: And we continue to see private sector transactions clearing well above the 10-times EBITDA mark. And then finally, you know, what the informed shareholders have actually paid.

Speaker #2: Our last two equity tranches were priced at $6, and institutional holders hold roughly 70% of our shares. And nobody at this table is a seller.

Speaker #2: And finally, you know, consider the torque or asymmetry. Our valuation, with every incremental million dollars of EBITDA, would be worth somewhere between $9 to $12 million of enterprise value in the, you know, in the private sector or against other peers.

Speaker #2: Every single incremental dollar of EBITDA in our entire market cap is $10 million today. And that's really what I want to point you to—that we're now at the point where every incremental improvement that we put back into the business, every capital investment that our team makes, has a lot of torque for our shareholders.

Speaker #2: And so, to bring it all together: we've stabilized the platform, our uptime, our balance sheet, our contracts. The turnaround is now visible in the rearview mirror.

Speaker #2: And we believe we have a repeatable template to point at a North American market that is full of assets very similar to the ones that we've just fixed.

Speaker #2: And with that, I will hand it over to Maria to walk through the financials in more detail. Then, we'll open it up to questions at the end of the call.

Speaker #2: Thank you for your time. Over to you, Maria.

Speaker #1: Thanks, Chase. So, touching first on revenues, Q2 2026 revenue increased 71% compared to Q2 2025, reaching $4.8 million. This growth was driven by strength across nearly every revenue stream.

Speaker #1: Shipping fees grew 52% year over year on higher volumes at our organic waste and composting facilities. R&G revenue was up 15%, and organic compost and soil sales increased 22%.

Speaker #1: We also recognized $1.1 million of carbon credit revenue in the quarter, which wasn't a contributor in Q2 2025. Compared to Q1 2026, revenue increased 81%, from $2.6 million to $4.8 million.

Speaker #1: Reflecting the normal seasonal recovery in tipping and compost volumes we found last quarter, plus the carbon credit contribution, for the first half of 2026, revenue was $7.4 million, up 57% from $4.7 million in the same period last year.

Speaker #1: Turning to adjusted EBITDA, Q2 2026 came in at $1.7 million, a $1.4 million or 416% increase compared to Q2 2025, and up from $870,000 in Q1 2026.

Speaker #1: This was primarily driven by the revenue growth already described and touched on by Chase. Looking at the six-month period, adjusted EBITDA was $2.6 million, up $1.8 million from the prior year, reflecting both the revenue increases and also a reduction in general and administrative expenses.

Speaker #1: On net loss, we saw an improvement of $1.6 million here, from a loss sitting at $3.86 million for Q2 2026. For the six months ended June 30, 2026, net loss was $1.1 million, down from $3.1 million in the prior period.

Speaker #1: Turning to the balance sheet and liquidity, our working capital surplus has improved to $3.23 million as of June 30, 2026, up from $2.1 million in the prior quarter, and compared to a deficit of $0.86 million at the end of 2025.

Speaker #1: This is showing continued improvement off the back of the financing activity we discussed in Q1 2026, and that Chase has also spoken about earlier in the presentation.

Speaker #1: The Q2 results show that our core operations—tipping volumes and R&G production—are driving sustained improvement. With that, I'll turn it back to Chase to conclude the presentation and open it up to Q&A.

Speaker #2: Yeah, thank you, Maria. I believe you know, this is a really really important time to be looking at our business. And we've you know, we have as mentioned, we've completed our our stabilization move through a turnaround phase and and the results speak for themselves.

Speaker #2: And we're really, you know, keen to speak with anybody that wants to discuss our business further after the call. We'll move into a Q&A period.

Speaker #2: Why don't we start with this initial question, Shubham?

Speaker #3: Yeah. So, we have a question here that's saying roughly $1.1 million of our Q2 revenue was carbon credit sales. And if we strip that out, then the quarter looks very different. So, is the EBITDA real?

Speaker #2: Yeah, it's a fair question, and you know, one that I'd rather have people ask than wonder. I think, you know, we look at $1.1 million of carbon credit revenue, and think about it this way.

Speaker #2: Our credits are generated and cleared through ECCC, so there is lumpiness in the timing of the generation of those credits—not just the timing of the generation, but also the timing of the sale of those credits.

Speaker #2: And we recognize revenue as as those credits are sold. That said, you know, what we what we've seen in terms of carbon credit sales over the first half of 2026 it would be indicative of you know, the run rate carbon credit sales if we were generating instantaneously and selling instantaneously.

Speaker #2: So, you know, I think that's to say there will—it will continue to be not seasonal, but, you know, a lumpy revenue recognition on carbon credit sales.

Speaker #2: But we don't—we don't think it's a, it's not a one-time windfall. You know, this market has really stabilized since coming into effect.

Speaker #2: You know, it's been it's been steadily clearing north of 350 dollars per per ton of CO2 avoided emissions. And and the reason for that is it's a it's a market that's supported by both sides of the aisle.

Speaker #2: It, you know, it provides a stable, you know, a stable way of monitoring and clearing and dealing with emissions from large industrial producers.

Speaker #2: And I think R&G is uniquely positioned to continue to find, you know, homes and other markets as a lowest-cost decarbonization option.

Speaker #2: So, while we look at our business as primarily tip fee, primarily long-term base value in our contracts, our contracts also come with the upside of a portion of the carbon credits that are associated with our business.

Speaker #3: Great, thanks, Chase. The next question is: The company has had two good quarters in 2026, and if it says that, is our $5 million of run-rate EBITDA a fair characterization, given seasonality in the business?

Speaker #2: Yeah. So I think you know, I think is you know, is 5 million of run rate EBITDA you know, a a fair characterization given seasonality?

Speaker #2: I think you know, that's our run rate on our first half results. I'd point out that our first half is not typically our strongest period.

Speaker #2: I think you know, we have historically seen our highest volumes in the second and third quarters. But, you know, that said, I think we're—you know—we're confident in the business continuing to perform at, you know, at these levels that we're at today.

Speaker #2: Let's see. We'll skip time for any other questions here.

Speaker #3: Yeah. So the next question is around the PCR expansion project. It says: When does PCR reach FID, and how do you fund it?

Speaker #2: With the PCR R&G project, you know, we picked up development work on that project immediately after we got our main regulatory hurdle cleared in March.

Speaker #2: So we're updating our development work, our feed analysis, our front-end engineering and design, and sourcing long-lead equipment so that we can commence construction.

Speaker #2: I I mentioned the grant funding and CAPEX committed against it. And you know, we believe that we are you know, we are advancing towards FID from a timing perspective.

Speaker #2: And we'll announce it when we when we take it, not before. But you know, we are moving steadily forward towards towards that milestone. In terms of how we fund it, you know, as I mentioned, there's a large portion that can be funded by grant funding.

Speaker #2: We also see as we've shown with our project finance facilities, at both Fraser Valley and Grotech, there's a significant amount of of project finance capital available for our project like this, especially given what we believe is a is a much stronger revenue environment for this type of project, given the stacking of of a contracted cash flow.

Speaker #2: And the carbon credit attributes that this project will generate—you know, that's a significant improvement from where this project was three years ago.

Speaker #2: And then I think, you know, the final, final question is just around whether or not we can speak more to Project Radius and where, you know, where that project is going.

Speaker #2: And I think at this time, we continue to advance Radius to a notice to proceed or FID decision alongside PCR R&G expansion.

Speaker #2: You know, we don't talk about it as much, given that it's a project that is a 50/50 partnership, and a large capital commitment that requires an outside source of equity, debt, and grant funding.

Speaker #2: We have continued discussions, and I believe we'll be able to update the market on the full funding picture for Project Radius shortly.

Speaker #2: And, you know, we're excited about the development there. In particular, our partnerships on offtake and the scale and repeatability that Project Radius brings. I think with that, we'll conclude our call.

Speaker #2: And welcome, you know, welcome any inbound interest. Happy to, you know, take calls or set up times to go through the business in more detail if there's interest.

Speaker #2: Please, you know, see the link at the bottom of the press release to get in touch. And we'll see everybody on our Q3 call in November.

Speaker #2: Thanks, Maria. Thanks, Siobhan.

Speaker #1: Thanks, everyone.