SECURE Waste Infrastructure Corp Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Konark Gupta - Scotiabank GBM - Analyst : Thanks operator. Good morning, everyone. Allen, you're sounding on the guidance side of things, you're sounding cautioned on macro and commodity prices, yet the guidance is still the same, without any incremental M&A that you announced today or contribution from the new contract that you just disclosed. So just wondering like are there any areas in your business where things are stronger than you expected back in December? And that's offsetting any of the market weakness you might be baking into guidance?

Question: Konark Gupta - Scotiabank GBM - Analyst : Okay. That makes sense. And just to be clear, when you talk about the customers who are kind of saying they're not looking to significantly reduce activity. Is that because you're more skewed to production and like drilling guys could be impacted somewhat incrementally?

Question: Konark Gupta - Scotiabank GBM - Analyst : Okay. That's great. And if I can follow-up on the new contract you got, so congrats on that. It seems like the big 10-year contracts. Any sense on how much return on capital you expect from this over the 10-year time frame? And is there room to expand beyond the anchor customer you have?

Question: Konark Gupta - Scotiabank GBM - Analyst : Okay. That's great. Good to hear that. Thank you so much for the time.

Question: Patrick Kenny - National Bank Financial - Analyst : Thank you, good morning. I guess just on the upsized growth CapEx, I just wanted to check in to see if you're still pursuing other commercial opportunities from here that if successful, might push the growth budget for the year even higher? Or are you looking to take a bit of a pause now on adding more organic growth projects until, say, next year or at least until things settle out on the macro front?

Question: Patrick Kenny - National Bank Financial - Analyst : Okay. That's helpful. And then I guess on the buybacks, assuming there's full take-up of the SIB, it sounds like you might take a bit of a pause on the NCIB afterwards. Is that more a function of just wanting to maintain a bit more liquidity and cushion on the balance sheet in this environment? Or -- is there some other technicality that might be holding you back from fully executing the NCIB for the remainder of the year?

Question: Patrick Kenny - National Bank Financial - Analyst : Okay. Great. Last one for me, if I could. Just the decision not to proceed with the BC metals recycling tuck-in there. Was that just a function of getting in under the hood and seeing the quality of the inventory? Or was it something with the operations? And I guess how does this maybe change your due diligence process and the way you might be thinking about pursuing other tuck-in opportunities in the space going forward?

Question: Patrick Kenny - National Bank Financial - Analyst : Okay. That's great. I'll leave it there. I appreciate all the comments. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 02, 2025 / 3:00PM, SES.TO - Q1 2025 SECURE Waste Infrastructure Corp Earnings Call

Question: Arthur Nagorny - RBC Capital Markets - Analyst : Hey, good morning. Just wanted to follow up on the earlier question around tariffs by focusing on the metals recycling business. Are you seeing any meaningful impacts on demand or prices so far across your US and Canadian customers?

Question: Arthur Nagorny - RBC Capital Markets - Analyst : That's helpful. And then just on the new Montney project, specifically the one that's coming online in Q4 here. Do you expect any meaningful contribution in 2025? Or is that going to be kind of coming online closer to the end of the quarter?

Question: Arthur Nagorny - RBC Capital Markets - Analyst : Okay. And then I guess just sticking on that, too. I think you mentioned the contracts or more area dedication. So just wondering if you can maybe detail that out a little bit. Again the weather and maybe help us with whether there's more kind of take-or-pay elements to those contracts as well?

Question: Arthur Nagorny - RBC Capital Markets - Analyst : All right. That's perfect. Thank you. And then I guess just one last question for me. Just wanted to follow up on the metals recycling acquisition. I think were, you touched on it a little bit. But just wondering how integration is going so far and if there's anything that's kind of surprised you? I know it's still early days, but are things generally going along according to plan? Or is there anything that, I guess, has surprised you so far? Thank you.

Question: Konark Gupta - Scotiabank GBM - Analyst : Thanks. Sorry, just getting back here and a quick follow-up for pricing. In these kind of environments, did you expect pricing? I know you took some pricing increases over the last few years, but did you expect pricing as we head in '26 to soften down a bit as commodity prices are being volatile? And obviously, the macro is not pretty clear at this point? Or do you see like the infrastructure that you have provides enough value to your customers that you can still push some pricing increases regardless of the environment.

Question: Konark Gupta - Scotiabank GBM - Analyst : All right. That makes sense. And can you share like the inflationary effects that you might be seeing because of tariff. To what magnitude this incrementally over and above a base inflation that we are seeing? Like are we talking like a few percentage points? Or these are like mid to high single impacts?

Question: Konark Gupta - Scotiabank GBM - Analyst : Okay. That's great. I appreciate the time again. Thank you.