Thank you, Laura.
Hi, everybody, and welcome to our Q3 call. This quarter was a period of initial transition for our new management team following the May recapitalization transaction and marked the early stages of what we're planning as a platform reset. This means we're driving disciplined optimization across our team, our people, our assets, and our systems. The focus of this effort is really on building stabilized performance, a strong foundation for our business, positioning EverGen for scalable growth in 2026 and beyond. In the quarter, our RNG assets, Fraser Valley Biogas and GrowTEC, the core drivers of long-term value, delivered record quarterly production, which Maria will detail further on this call. In terms of revenues, decisions made under prior previous capital constraints continued to impact the quarter, particularly within our organics and composting businesses.
While these actions impacted revenue, they were intentional, necessary, and provide a reset that we believe will set the business up for long-term value creation. In terms of our strategic process, the quarter really represented the first 100 days for us in the business. We were focused on operational excellence, capital discipline, and strengthening our financial footing. Core to that is the refinancing of our corporate debt with a CAD 13 million debt facility that we'll talk about later on this call at Fraser Valley Biogas. I'll turn it over to Maria to walk through the financial performance in more detail.
Thanks, Chase. Good morning, everyone. Thanks for joining us for the earnings call. Turning to revenue for Q3 2025, this has remained largely in line with the prior quarter, mainly due to the RNG segment continuing to deliver record production, where we saw month-on-month increased productions throughout Q3. We saw carbon credit revenues realized in the quarter, which helped to offset some lower tonnages received at the composting sites. Revenues decreased relative to Q3 in the prior year, mainly due to lower tip fee revenues due to those lower volumes received at the organic waste and composting facilities as the company continued to focus on increased screening activities. We had no management fees earned from Project Radius in the quarter, and these decreases were offset by the already mentioned increased RNG revenues and carbon credits realized.
Turning to adjusted EBITDA, this came in at CAD 0.5 million for Q3 2025, compared to CAD 0.4 million in the prior quarter. This was mainly due to the already mentioned increased revenues in our RNG segment and lower corporate G&A costs. These are partially offset by some increased direct operating costs related to cycling up and increased screening activities at the organics and composting facilities. When compared to prior year, adjusted EBITDA has decreased, mainly due to, again, the lower volumes at the composting facilities, partially offset by lower direct operating costs. For the third quarter, as Chase has already touched on, we delivered results that reflected continued steady production in our RNG segment, which achieved quarterly record production, and good progress was made in site prep and screening activities at our compost sites to position us to optimize these assets for continued future growth.
With that, I'll turn it back to Chase to conclude the Q3 2025 Earnings Presentation.
I think one thing just to point out before we wrap this call up, our outlook for the organics business is that when we acquired the assets, call it Pacific Coast Renewables and Sea to Sky Soils, in 2021, there was a number of contracts that were entered into by the previous owner under a much different pricing environment. We've seen Metro Vancouver go through a significant transition in terms of the tip fee that is charged by both our competitors and paid by the municipalities in the region, as well as the spot tip fees for other businesses that are dropping off organic waste on a daily basis, but not under contract. That market, we have a very strong outlook for, and we believe it's gone up close to 30% relative to the contracted rates that we were seeing prior to 2020, prior to COVID.
That is a positive for the business and one of the reasons that we spent time this year to reset and open up available capacity at those facilities. Ultimately, our goal is to maximize throughput at our RNG facilities, something that was challenging to achieve in previous years. We have shown that the strategy and the foundation that has been set by EverGen at Fraser Valley Biogas and GrowTEC has resulted in very steady production. I think if you look across the sector, we would be best in class in terms of uptime of those two facilities, and we continue to make improvements. With that sustained strong RNG production levels, we also expect to see significant carbon credit revenue, and that is typically on a delayed basis. We do not hold any of that in inventory. There is a very strong market for CFR credits right now in Canada.
We don't have an outlook on that that's publicly available, but if you'd like more information, feel free to reach out. In conclusion, we believe that with our improved resiliency, this platform is well positioned to drive long-term shareholder value, and we will be pursuing attractive opportunities to grow our business in the RNG landscape in Canada. Thank you, Maria, and thank you, Laura.
Thanks very much, Chase. We do have a few questions in our Q and A here. We're going to start with, can you give us an update on the financing?
Absolutely. We have been working with a very strong lending institution to finance a CAD 13 million debt facility at Fraser Valley Biogas, at the asset level. With that debt facility, we have negotiated full credit agreements. We are in the final stages waiting to meet final conditions in order to close that financing, which we expect to meet in Q4 2025. Those conditions are related to third-party consents that we need to chase. With that financing, I'll also touch on we intend to close an up to CAD 2 million private placement, and we have funds committed for that financing. With those two steps, what we see is a dramatically improved balance sheet. It gives us flexibility as we go forward, moving the majority of our corporate debt down to the asset level and freeing up the business to make long-term capital allocation decisions.
Thank you. Given the record production at Fraser Valley Biogas, do you see this continuing on the same trend?
I think it's very important to—we probably missed it earlier—to call out the fantastic work by our team, including our COO, Ron Green, in driving a disciplined process around our assets and something that the company was challenged to do under previous financial constraints. With financial flexibility and with a really strong team, both of our GMs at Fraser Valley Biogas and GrowTEC have done an amazing job forward planning and ensuring that we have resiliency at those assets. One of the things that typically shuts down RNG facilities is unplanned downtime.
We believe that bringing some of the core operational expertise from the oil and gas sector, one of the strongest sectors in the world globally, the Canadian oil and gas sector in terms of operational performance and safety performance, is bringing a level of discipline into the RNG space that we think will not just be beneficial to our assets, but be beneficial to other assets that we look at acquiring down the road.
All right. Lastly, any update on Project Radius?
Project Radius has been advancing. We have been working on some exciting elements to bringing that project, advancing that project towards FID. We expect to be able to update the market in Q1 on that, but I would say that the Radius team has been hard at work, and there has been some really helpful dynamics recently. In particular, I'll touch on the latest budget announcement from the Government of Canada offers ITC credits for certain RNG facilities. What that means is we get investment tax credits for RNG facilities that are similar to Radius in terms of how they're delivering fuel to market, and that could provide up to 30% tax credit. It moves the needle significantly on a project like that that's greenfield.
One of the reasons that we chose Radius as a project to get involved with in the first place was the strong permitting process in Ontario, a very strict and streamlined permitting process. Something that we've learned over the years is just to really try and pursue jurisdictions that are very supportive of RNG infrastructure and organics infrastructure being built. We are still in early days in this market. It's one of the reasons that we believe EverGen will be able to attract capital long-term is that we're focused on a sector that continues to evolve in the organics and RNG space, but where there's a significant amount of infrastructure that needs to get built.
Awesome. Thank you, Chase. Thank you, everyone, for joining us today. This concludes EverGen's Q3 2025 Earnings Call.