Record Q2 performance: Tidewater Renewables reported record adjusted EBITDA of C$56 million, driven by 111% HDRD utilization, stronger renewable diesel pricing and C$0.16 per litre in Biofuel Production Incentive support. Raised guidance and lower leverage: The company increased 2026 consolidated adjusted EBITDA guidance to C$230 million–C$250 million and reduced renewables debt by C$13.5 million, bringing its debt-to-adjusted-EBITDA ratio to 1.47 times. SAF project advances: Tidewater is targeting a fourth-quarter final investment decision for its approximately C$1.2 billion sustainable aviation fuel project, which could begin operations in 2030, subject to regulatory support and financing arrangements.
Tidewater Renewables (TSE:LCFS) reported record second-quarter adjusted EBITDA of C$56 million, supported by above-nameplate renewable diesel production, stronger pricing and contributions from Canada's Biofuel Production Incentive program. Chief Executive Officer Jeremy Baines said the company's HDRD complex achieved record average daily throughput of 3,315 barrels per day in the quarter, representing 111% utilization. Low-cost debottlenecking projects and facility reliability allowed the complex to operate consistently above nameplate capacity, he said. → Lumentum Just Delivered the AI Growth Investors Wanted The performance came as the company sold renewable diesel at record margins under offtake contracts indexed to U.S. import-parity pricing.
Tidewater also captured an additional C$0.16 per litre of margin through the Biofuel Production Incentive, according to Baines. Tidewater Renewables received conditional approval from Natural Resources Canada for the Biofuel Production Incentive during the first quarter. The company executed its contribution agreement on July 7, securing funding aligned with the HDRD complex's full annual production capacity. → Ryman Checks Into a $1.38B Hospitality Upgrade Baines said Tidewater expects to receive C$13.8 million in cash contributions covering the first and second quarters during the third quarter of 2026.
Contributions are then expected quarterly in arrears. CFO Ian Quartly said second-quarter adjusted EBITDA included C$7.7 million of expected Biofuel Production Incentive proceeds recognized during the period. The result also included C$7.7 million of adjusted EBITDA from Tidewater's equity investment in a cattle company, primarily reflecting higher cattle prices. → Joby's Defense Pivot Accelerates With $500M Resonant Sciences Deal The company continues to advance its sustainable aviation fuel project toward a final investment decision in the fourth quarter.
On June 19, Tidewater executed a new initiative agreement with the Government of British Columbia that is intended to provide additional BC-LCFS credits for critical pre-final-investment-decision work. The work includes engineering, regulatory advancement, preservation of vendor and fabrication capacity, and maintaining the project schedule, Baines said. Tidewater expects to receive the BC-LCFS credits in the third and fourth quarters as milestones are achieved.
In response to an analyst question, Baines said a final investment decision depends on a supportive regulatory environment, including targeted amendments under the Clean Fuel Regulations and other potential programs supporting Canada's sustainable aviation fuel sector. He put the project's estimated capital cost at about C$1.2 billion and said the company has completed a class 3 front-end engineering design study. Baines said the project would have a three-year construction period and could enter service in 2030.
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