Superior Announces Q2 2025 Results with Strong First Half; Reaffirms Guidance

Executive Summary

• Superior Plus Corp. reported its second quarter and first half 2025 financial results, with H1 Adjusted EBITDA increasing 5.4% to $294.0 million, driven by strong Q1 propane volumes and contributions from the "Superior Delivers" transformation.
• Second quarter performance was impacted by seasonally lower propane volumes following a strong Q1, delivery efficiency improvements reducing in-tank volumes, and a temporary supply disruption in California.
• The company reaffirmed its 2025 Adjusted EBITDA growth target of approximately 8% and its "Superior Delivers" targets, while returning C$114.5 million to shareholders in H1 through dividends and share repurchases.

Key Details

• Financial Performance (H1 2025 vs H1 2024):
  • Adjusted EBITDA: $294.0 million (up $15.1 million or 5.4%).
  • Adjusted EBITDA per share: $1.12 (up $0.12).
  • Adjusted Net Earnings per share: $0.43 (up $0.14).
  • Free Cash Flow per share: $0.81 (up $0.36).
• Financial Performance (Q2 2025 vs Q2 2024):
  • Adjusted EBITDA: $33.5 million (down $9.8 million or 22.6%).
  • Adjusted EBITDA per share: $0.13 (down $0.03).
  • Adjusted Net Earnings per share: $(0.25) (down $0.02).
  • Free Cash Flow per share: $(0.14) (up $0.02).
  • Revenue: $423.2 million (vs $422.9 million in Q2 2024).
  • Net Loss: $(14.7) million (vs Net Loss of $(45.3) million in Q2 2024).
• Segment Results:
  • Propane Operations: H1 Adjusted EBITDA increased $12.6 million (5.9%) to $225.3 million. Q2 declined $10.5 million due to timing of deliveries and efficiency tools reducing customer in-tank volumes.
  • Superior Delivers: Contributed $5.0 million to H1 Adjusted EBITDA and $2.7 million in Q2. Company expects $20 million contribution in 2025 and at least $70 million incremental Adjusted EBITDA by 2027.
  • CNG Business (Certarus): H1 Adjusted EBITDA grew 4.8% to $82.5 million. Q2 Adjusted EBITDA grew 0.7% to $27.4 million.
  • CNG Operational Metrics: MSU fleet averaged 869 units (up 14% YoY). Q2 volumes were 7,186,000 MMBtu (up 2.5%). Revenue from Industrial, RNG, and Hydrogen increased 48% YoY.
• Capital Allocation & Shareholder Returns:
  • Returned C$114.5 million in H1 via dividends and share repurchases.
  • Repurchased 13.6 million shares in H1 (5.7% of outstanding) at an average price of C$6.87 per share (Total: C$93.4 million).
  • Repurchased 7.4 million shares in Q2 (3.2% of outstanding) at an average price of C$7.30 per share (Total: C$53.2 million).
  • Declared quarterly dividend of C$0.045 per share, payable October 15, 2025, to shareholders of record September 29, 2025.
  • Expects to allocate ~C$140 million annually to share repurchases; NCIB renewal expected in mid-Q4.
• Debt and Leverage:
  • Leverage Ratio: 3.8x as of Q2 2025 (vs 3.7x in Q1 2025 and 3.8x in Q2 2024).
  • Updated 2025 Leverage Ratio target: ~3.7x (previously 3.6x, adjusted for stronger CAD).
  • Mid-2027 Leverage Ratio target remains 3.0x.
  • Amended credit facilities on August 8, 2025: Core revolver extended to August 2030 with limit converted to US$600M; Side car facility extended to August 2028.

Notable Quotes

• “We delivered a strong first-half and continue to build momentum as we advance our Superior Delivers transformation... Superior Delivers remains on track, and we are well positioned for the remainder of the year.” — Allan MacDonald, President and CEO
• “I’m also encouraged by the performance of our CNG business, especially given the challenges in the oil and gas sector... Certarus grew EBITDA by 5% in the first half of 2025 and maintained its leadership position in the market as the sector navigates a temporary cyclical slowdown.” — Allan MacDonald, President and CEO