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Tidewater Midstream (TSX:TWM) Stock Extends Rally On Record EBITDA Surge

Simply Wall St · 3d ago

Tidewater Midstream and Infrastructure stock closed at CA$22.32 on Friday, capping a sharp three month run that already delivered just over a 30% gain. The market had been pricing in a cleaner story, and Q2 2026 results provided one. Tidewater swung from a series of quarterly losses to basic earnings per share of CA$0.68 on CA$552.1m of revenue and record adjusted earnings before interest, tax, depreciation and amortization (EBITDA) of CA$88.9m.

Short term traders will focus on that momentum. Long term investors will be more interested in what this kind of profitability means for debt reduction and the balance sheet over the next several years.

Impressed by Tidewater Midstream and Infrastructure swinging back to earnings but still mindful of balance sheet risk and debt reduction? Compare this setup with our list of solid balance sheet and fundamentals stocks (12 results).

Q2 2026 Earnings Summary

  • Revenue, Q2 2026 vs. Q2 2025: CA$552.1m vs. CA$340.6m (up about 62%)
  • Net Income, Q2 2026 vs. Q2 2025: CA$15m profit vs. CA$16.3m loss (returned to profit)
  • Basic EPS, Q2 2026 vs. Q2 2025: CA$0.68 vs. a loss of CA$0.76 per share (moved from loss to positive EPS)
  • Trailing 12 Month Net Income, Q2 2026 TTM vs. Q2 2025 TTM: CA$76.2m loss vs. CA$58.7m loss (loss widened by about 30%)

Prefer clear charts over reading another wall of text and spreadsheets on Tidewater Midstream and Infrastructure? Get a full visual view of the company, with a focus on its balance sheet strength and debt profile, in the company report for Tidewater Midstream and Infrastructure.

TSX:TWM Trailing 12-Month Revenue & Expenses Breakdown as at Aug 2026
TSX:TWM Trailing 12-Month Revenue & Expenses Breakdown as at Aug 2026

Tidewater Midstream’s Bull Story Meets Early Milestones

Bulls argue Tidewater Midstream is turning tight renewable diesel supply and cleaner fuels into faster earnings and margin progress. Q2 results give that view some concrete support. Record consolidated adjusted EBITDA of CA$88.9m, with CA$56m from renewables, shows that premium pricing, Biofuels Production Incentive cash support and low cost debottlenecking at the HDRD complex are translating into real profit rather than just a story.

Utilization at 111% and throughput of 3,315 bpd at HDRD indicate that the clean fuels platform is already running above original design, which fits the idea of scale driven operating leverage. The decision to lift 2026 adjusted EBITDA guidance to a range of CA$230m to CA$250m while keeping capex steady also lines up with the thesis that integration, throughput gains and regulatory credits can improve margins and free cash flow without a heavy spend.

Compare whether this push toward higher utilization, record adjusted EBITDA, and steadier capex is winning over the street. See the consensus price target analysis for Tidewater Midstream and Infrastructure

Tidewater Midstream Bear Case: Risks Eased, Not Erased

The harsher Tidewater Midstream and Infrastructure bear view says high leverage, fragile refining margins and execution risk in renewables will cap any recovery and keep cash flows unreliable. Q2 cuts against the pure leverage worry. Consolidated net debt fell by CA$44.4m and leverage now sits at 1.7x, inside the stated 1.2x to 2.5x range, with free cash flow earmarked for further debt reduction. That weakens the argument that the balance sheet is boxed in.

Other bear points are less resolved. Prince George benefited from strong crack spreads and heavy hedging into 2026 and 2027, which cushions volatility but does not answer long term demand risk in Western Canada. On execution, HDRD is running hard, yet the large sustainable aviation fuel project still needs regulatory clarity and a final investment decision. That timing overhang keeps the concern about renewables execution risk very much alive.

With Tidewater Midstream and Infrastructure still loss making over the last 12 months yet leaning on higher utilization and future earnings forecasts, check whether the balance sheet and cash coverage really line up in our financial health analysis of Tidewater Midstream and Infrastructure stock.

Stay Ahead With Simply Wall St

If Tidewater Midstream and Infrastructure swinging to Q2 earnings and record adjusted EBITDA has your attention, register for free with Simply Wall St and add it to a Watchlist to track the share price against fair value and watch for a better entry point. After you own the stock, keep your bigger picture clear by using the Portfolio Command Center so you only see the most important updates on your holdings. For longer term perspective and fresh ideas, tap into the crowd with the Community and see what other investors are focusing on. By spotting potential catalysts and risks early, you put yourself in a stronger position to stay ahead of the market.

Seeking Alternatives Beyond Tidewater Midstream

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.