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Tidewater Renewables Ltd. (TSE:LCFS)
TSX:LCFS
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Tidewater Renewables Ltd. (LCFS) AI Stock Analysis

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TSE:LCFS

Tidewater Renewables Ltd.

(TSX:LCFS)

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Neutral 54 (OpenAI - Gpt-5.6Sol)
Rating:54Neutral
Price Target:
C$18.50
▼(-1.07% Downside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by improving but still mixed financial performance (strong operating momentum, thin net profitability, elevated leverage, and historically volatile cash flow). Technicals support the uptrend but are tempered by overbought signals. Valuation is a major headwind due to the extremely high P/E, while the latest earnings call adds support via raised guidance and deleveraging progress.
Positive Factors
High utilization and operating reliability
Throughput above nameplate capacity indicates that debottlenecking has expanded effective output without requiring a proportionate new build. Combined with high facility reliability, this supports stronger fixed-cost absorption, recurring fuel volumes, and more durable operating leverage.
Negative Factors
Thin net profitability and uneven earnings quality
Very thin bottom-line profitability leaves limited protection if operating conditions weaken or financing and other costs rise. The history of substantial earnings volatility also makes it harder to view recent operating improvement as a consistently durable conversion into shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
High utilization and operating reliability
Throughput above nameplate capacity indicates that debottlenecking has expanded effective output without requiring a proportionate new build. Combined with high facility reliability, this supports stronger fixed-cost absorption, recurring fuel volumes, and more durable operating leverage.
Read all positive factors

Tidewater Renewables Ltd. (LCFS) vs. iShares MSCI Canada ETF (EWC)

Tidewater Renewables Ltd. Business Overview & Revenue Model

Company Description
Established in 2021 and headquartered in Calgary, Canada, Tidewater Renewables Ltd. is a North American entity dedicated to the production of sustainable fuels. The company's primary focus is on generating low-carbon energy sources, such as renewa...
How the Company Makes Money
Tidewater Renewables makes money primarily by (1) selling physical low-carbon fuels it produces and (2) monetizing environmental attributes tied to those fuels under clean-fuel regulatory programs. 1) Sale of renewable/low-carbon fuels: The compa...

Tidewater Renewables Ltd. Earnings Call Summary

Earnings Call Date:Aug 13, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call contained multiple operational and financial positives: record throughput and adjusted EBITDA at the Renewables complex, consolidated record adjusted EBITDA, improved leverage with net debt down $44.4M, upgraded 2026 guidance (+20% vs prior midpoint), and proactive hedging and SAF project progress with secured pre‑FID credits. Offsetting issues were localized operational curtailments (BRC and Red River), a planned refinery outage that lowered quarterly throughput, some realized hedge losses, and remaining noncore asset sales and regulatory dependencies for the SAF project. On balance, the positive operational results, stronger markets and meaningful deleveraging outweigh the highlighted operational and execution risks.
Positive Updates
HDRD Complex Record Throughput and Utilization
HDRD complex achieved record average daily throughput of 3.31 thousand barrels per day in Q2 2026, operating at 111% of nameplate capacity driven by low-cost debottlenecking initiatives and high facility reliability.
Negative Updates
BRC Throughput Decline and Fractionation Utilization Drop
BRC gas processing throughput averaged 105 MMcf/d in Q2 2026, an 8% decrease versus Q1 2026 due to NGTL curtailments; fractionation facility utilization fell to 76% in Q2 from 90% in Q1 (14 percentage point decline), reducing midstream margins.
Read all updates
Q2-2026 Updates
Negative
HDRD Complex Record Throughput and Utilization
HDRD complex achieved record average daily throughput of 3.31 thousand barrels per day in Q2 2026, operating at 111% of nameplate capacity driven by low-cost debottlenecking initiatives and high facility reliability.
Read all positive updates
Company Guidance
Management raised full‑year 2026 adjusted EBITDA guidance to consolidated $230–$250 million (a 20% increase versus the prior midpoint), with Tidewater Renewables guided to $130–$140 million and Tidewater Midstream (deconsolidated) to $100–$110 million; 2026 capital expenditures remain unchanged at $2–$3 million for Renewables and $20–$25 million for the consolidated group (net of expected BCLCFS credits). The upgrade is driven by higher facility utilization, sustained forward crack spreads and improved renewable diesel and emissions pricing; hedging coverage is ~50% of crack exposure Apr–Dec 2026 and ~40% for 2027. Management expects BCLCFS credits in Q3–Q4 2026 and to receive $13.8 million of biofuels production incentive cash (covering Q1–Q2) in Q3 2026. Balance‑sheet progress includes consolidated net debt down $44.4 million in Q2, debt/adjusted EBITDA of 1.47x at Renewables, 2.3x at Midstream and 1.7x consolidated (target range 1.2–2.5x), with free cash flow to be directed primarily to debt reduction.

Tidewater Renewables Ltd. Financial Statement Overview

Summary
Improving operating picture with strong TTM revenue growth (+30.6%) and healthy gross (~21.3%) and EBIT (~19.0%) margins, but net profitability is extremely thin (~0.1% net margin) and results have been volatile. Leverage is meaningful (debt-to-equity ~1.09) and returns are weak (ROE ~0.2%). Cash flow has turned positive (TTM OCF ~$21.9M; FCF ~$11.4M) but has been historically inconsistent.
Income Statement
56
Neutral
Balance Sheet
48
Neutral
Cash Flow
52
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue370.90M248.00M426.54M97.68M76.10M23.05M
Gross Profit78.90M18.10M118.15M44.05M46.13M8.93M
EBITDA89.03M30.00M-404.94M-17.12M62.30M12.11M
Net Income326.00K3.50M-357.85M-41.02M25.94M2.76M
Balance Sheet
Total Assets468.20M397.60M406.53M1.09B993.32M730.99M
Cash, Cash Equivalents and Short-Term Investments600.00K0.0044.00K105.00K11.38M1.02M
Total Debt187.10M199.20M192.98M345.60M219.37M81.86M
Total Liabilities297.10M242.40M248.75M573.57M443.20M215.40M
Stockholders Equity171.10M155.20M151.27M506.63M543.63M515.60M
Cash Flow
Free Cash Flow11.40M5.60M30.60M-180.02M-177.13M-24.62M
Operating Cash Flow21.91M18.70M54.65M22.78M67.44M6.36M
Investing Cash Flow-9.81M-13.00M129.08M-136.04M-194.50M-213.15M
Financing Cash Flow-11.65M-5.70M-183.79M101.98M137.41M207.81M

Tidewater Renewables Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price18.70
Price Trends
50DMA
16.38
Positive
100DMA
13.67
Positive
200DMA
9.39
Positive
Market Momentum
MACD
0.62
Positive
RSI
51.44
Neutral
STOCH
41.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LCFS, the sentiment is Neutral. The current price of 18.7 is below the 20-day moving average (MA) of 18.96, above the 50-day MA of 16.38, and above the 200-day MA of 9.39, indicating a neutral trend. The MACD of 0.62 indicates Positive momentum. The RSI at 51.44 is Neutral, neither overbought nor oversold. The STOCH value of 41.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:LCFS.

Tidewater Renewables Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
54
Neutral
C$666.78M5,703.120.20%23.90%
52
Neutral
C$29.98M-2.59-28.27%6.49%-162.69%
48
Neutral
C$14.25M-4.66-72.76%-66.21%-378.27%
45
Neutral
C$51.89M-3.59-18.15%-19.22%11.82%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:LCFS
Tidewater Renewables Ltd.
18.25
14.38
371.58%
TSE:GIP
Green Impact Partners Inc
2.35
-1.10
-31.88%
TSE:REVV
ReVolve Renewable Power Corp
0.17
-0.04
-19.05%
TSE:WEB
Westbridge Energy
1.14
-0.96
-45.71%

Tidewater Renewables Ltd. Corporate Events

Business Operations and StrategyFinancial Disclosures
Tidewater Renewables Lifts 2026 Guidance on Record EBITDA and Strong Biofuels Output
Positive
Aug 13, 2026
Tidewater Renewables reported second-quarter 2026 net income of $5.1 million, down from $13.0 million a year earlier, but delivered record adjusted EBITDA of $56.0 million on revenue of $160.6 million. The company’s Hydrotreated Renewable Di...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 17, 2026