- Historic Adjusted EBITDA Surpassed $150 million for the first time in 2025, while adjusted net earnings hit $72 million, up 9% YoY and over double in 5 years.
- Sugar Segment Performance Full-year adjusted EBITDA rose 4% to $129 million, though Q4 sales volume fell 4% to 196,000 metric tons.
- Maple Segment Growth Sales volume increased 14%, driving $263 million in annual revenues (+13% YoY), with over 50% of products exported to 50+ countries.
- LEAP Project Update Construction of a $280–300 million project delayed to H1 2027, with $27 million allocated for 2026 capital spending excluding LEAP.
- Dividend Yield and Shareholder Returns Returned $46 million via dividends in 2025 (6% yield), with a payout ratio declining to 64%.
Segmental Performance
The Sugar segment performed well, with a 4% increase in adjusted EBITDA to $129 million for the full year. However, sugar sales volume for the fourth quarter was 196,000 metric tons, down 4% from last year. In contrast, the Maple segment saw a 14% increase in sales volume, driven by export business, with over 50% of its products exported to more than 50 countries. The company's diversified product portfolio and strong demand in both segments contributed to its robust financial performance.
LEAP Project Update
The company's LEAP project, a key growth initiative, is progressing, albeit with a delayed expected in-service date extended to the first half of calendar 2027. The estimated cost of the project remains between $280-300 million. Despite the delay, the company expects the LEAP project to drive growth in the Sugar segment and improve its competitive position. The delayed start-up will not affect OpEx costs, providing some comfort to investors.
Outlook and Valuation
For 2026, the company expects demand and pricing to remain strong in the Sugar segment, with a forecast of 750,000-770,000 metric tons in sales volume. The company will prioritize serving domestic customers while remaining alert to select export opportunities. With an EV/EBITDA ratio of 7.82, the company's valuation appears reasonable, considering its growth prospects. The dividend yield of 5.91% also provides a relatively stable source of return for investors. Analysts estimate next year's revenue growth at -2.4%, but the company's solid balance sheet and prudent financial approach provide stability and flexibility to meet customer needs and deliver value to shareholders.
Financial Management
The company repaid $150 million in convertible debentures last year and refinanced $115 million, demonstrating its commitment to managing its debt effectively. With a Net Debt / EBITDA ratio of 2.44, the company's leverage is manageable. The company is monitoring capital markets for options to replace the remaining convertible debentures, with a focus on pacing financing with the LEAP Project spending. A prospectus filing is imminent, allowing for quick market access if opportunities arise.