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Highlights

  • SES reported a 6.1% YoY revenue decline in Q1FY25; net earnings fell to 91.4% YoY.
  • SES is reopening an industrial waste facility and expanding its rail car fleet to enhance capacity
  • SES maintains FY25 Adjusted EBITDA guidance of CAD 510–540 million and expects free cash flow of CAD 270–300 million.

Secure Waste Infrastructure Corp. (TSX: SES) provides fluids and solids solutions to the oil and gas industry through its Midstream Infrastructure segment, which manages crude oil processing, storage, shipping, and waste treatment across Canada and the U.S., and its Environmental & Fluid Management segment, offering landfill services, water disposal, and site remediation solutions.

In the first quarter of the financial year 2025 (Q1FY25), the company’s net revenue decreased by 6.1% YoY to CAD 2,699.0 million due to lower performance in the oil purchase and resale segment, resulting in a decline in gross margin by 6.9% YoY to CAD 108.0 million. The operating profit fell by 12.5% YoY to CAD 63.0 million, primarily due to the lower gross margin and transaction-related costs, partially offset by reduced general and administrative expenses. Net earnings declined by 91.4% YoY to CAD 38.0 million due to a CAD 520 million gain from an asset divestiture related to the sale transaction recorded in Q1FY24.

Business update

The company is reopening and upgrading a suspended industrial waste facility and expanding its rail car fleet as part of ongoing infrastructure optimisation efforts. It also announced plans to release its Q2 FY25 financial and operating results before the market opens on Tuesday, July 29, 2025.

Company Outlook

The company is maintaining its Adjusted EBITDA guidance of CAD 510 million to CAD 540 million. While its outlook reflects a more cautious stance considering the potential slowdown in activity levels. Moreover, they expect discretionary free cash flow of CAD 270 million to CAD 300 million.

Top 10 Shareholders

The top 10 shareholders collectively hold approximately 40.29% of the company’s shares, with the largest stakes held by TPG Angelo Gordon (~17.50%) and Solus Alternative Asset Management, L.P. (~10.63%).

Stock Information

The stock has gained approximately 2.03% over the past week and around 2.23% over the past month. As of July 15, 2025, it closed at CAD 16.02, trading above the average of its 52-week low of CAD 11.125 and the 52-week high of CAD 17.13.

 Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels Is 15 July 2025. The reference data in this report has been partly sourced from EODHD/Others.

Technical Indicators Defined

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.