Superior Raises Medium-Term Growth Outlook; Announces Q1 2026 Results

The most recent releases, both from May 13, 2026, report Superior Plus’s first‑quarter 2026 results and a related operational expansion by its Certarus subsidiary.

• Q1 2026 earnings: Revenue fell 11 % year‑over‑year to $897 million; Adjusted EBITDA slipped to $245.9 million from $260.5 million. The CNG segment delivered record volumes (9.38 million MMBtu, +6 %) but Adjusted EBITDA collapsed 30 % to $38.4 million, hurt by lower ancillary revenue and wellsite pricing. U.S. propane EBITDA also declined modestly, while Canadian propane improved. Per‑share metrics edged higher thanks to aggressive share buybacks.

• Guidance overhaul: Management raised the 2027 Adjusted EBITDA growth target from 2 % to 5 %, citing the flow‑through of data‑center contracts. However, it simultaneously withdrew its free‑cash‑flow growth guidance (previously 20–25 % CAGR) because capital expenditure for 2026 is being lifted from $160 million to $230 million to fund CNG data‑center projects. Leverage is now expected to stay at 3.9× by end‑2026 (vs. prior –3.6×) before easing to 3.5× in 2027.

• Utah CNG hub: Certarus is commissioning a new compressed‑natural‑gas supply hub southeast of Salt Lake City and has been awarded a contract to serve as primary gas supplier for a 60 MW hyperscale data center. Operations begin this month. The contract covers early operations until permanent infrastructure is built.

• Capital‑allocation shift: Management is deliberately pivoting from share repurchases (around $233 million spent since November 2024) toward investing in the CNG data‑center opportunity.

The announcement combines a mildly disappointing quarter with a strategic pivot that leaves the near‑term free‑cash‑flow outlook murky.

• Earnings trajectory: The Q1 2026 Adjusted EBITDA decline was anticipated after the February 2026 guidance cut, but the 30 % drop in CNG profitability – despite record volumes – underscores the structural headwind from cheaper wellsite pricing and the absence of high‑margin ancillary sales. This is not a one‑off blip; the company itself expects CNG EBITDA to decline 4–9 % for full‑year 2026. The weakness in the former growth engine is now firmly embedded.

• Data‑center optimism: The 2027 EBITDA growth upgrade to 5 % is positive, yet it flows largely from the $300 million contract announced in April 2026 and the new 60 MW Utah deal. The market had already priced in a data‑center tailwind after the April 20 release, which sent shares from $6.28 to $7.50. Therefore the latest guidance raise does not represent genuinely “new” information – it is an operationalization of contracts that were already disclosed.

• Free‑cash‑flow ambiguity: Withdrawing the free‑cash‑flow growth target and raising capex by 44 % instantly muddies the investment case. A company that until recently was a reliable dividend‑plus‑buyback story is now asking investors to accept lower cash returns today for a growth story that is unproven in the CNG space and heavily dependent on the hyperscaler boom.

• Market reaction: The stock fell from $7.48 to $7.41 on the day of the release, a decline that suggests the market viewed the combination of weak Q1 results and the capital‑allocation tilt as marginally negative. The absence of a positive surprise, plus the withdrawal of free‑cash‑flow guidance, likely triggered some selling.

Taken together, the most recent news is an expected, negative follow‑up to the February guidance cut, with the positive 2027 outlook already largely reflected in the April‑inspired rally. It does not meet the threshold for “Material” because the quarter and commentary are broadly in line with the lowered expectations established three months ago.

Superior Plus Corp. is a North American energy distribution company with two main segments: propane distribution (U.S. and Canada) and compressed natural gas (CNG) delivery through its wholly‑owned subsidiary Certarus Ltd. Certarus operates the industry’s largest portable compression fleet and CNG transport trailer fleet, providing “over‑the‑road” natural gas to industrial, utility, and energy‑intensive customers who lack immediate pipeline access. The flagship project is the company’s expansion into supplying natural gas for hyperscale data centres, a high‑growth end‑market where Certarus can deploy its mobile infrastructure rapidly while permanent gas connections are built.