Consolidated 2025 Adjusted EBITDA and 2026 Guidance
Delivered consolidated adjusted EBITDA of $219.2M in 2025. Management guides to a recovery in 2026 with consolidated adjusted EBITDA of $230M–$250M (up ~4.9% to ~14.0% vs. 2025), and free cash flow guidance of $140M–$150M.
Industrial Services Growth (Phoenix Contribution)
Industrial Services (including Phoenix Global) generated $62.3M adjusted EBITDA in 2025, up $11.9M (+23.6% YoY). Phoenix acquisition (net purchase consideration ~$295.8M; cash acquired $24.3M) is expected to drive Industrial Services EBITDA to $90M–$100M in 2026 (+44.5% to +60.4% vs. 2025) with incremental synergies anticipated in 2027.
Strong Liquidity and Capital Return
Ended 2025 with $88.7M cash and $132M availability on a $325M revolver (total liquidity ~$221M). Returned ~$41M to shareholders via a $0.48 annual dividend and expect to continue quarterly dividends in 2026.
Positive Operating Cash Flow (Adjusted for One‑Time Items)
Reported operating cash flow of $109.1M in 2025. Management stated operating cash flow would have been approximately $59M higher without two one‑time items (Phoenix incentive/transaction cash of $29.3M and a $30M Algoma-related impact), implying adjusted operating cash flow of ~ $168.1M.
Safety Performance
Strong safety results: total recordable incident rate (TRIR), excluding Phoenix, of 0.55 for 2025, highlighted as a top priority and differentiator.
Deleveraging Plan
Plan to prioritize deleveraging and use excess free cash flow to pay down revolver; management expects 2026 year-end gross leverage around 2.45x, below the long-term target of 3.0x.
Capital Discipline and CapEx Execution
2025 capital expenditures were $66.8M (slightly below revised guidance of $70M). 2026 CapEx guidance is $90M–$100M reflecting a full year of Phoenix capex requirements.