Superior Announces Q3 and Nine Month 2025 Results

Executive Summary

• Superior Plus reported Q3 2025 Adjusted EBITDA of $7.6 M (down $9.8 M YoY) and a YTD Adjusted EBITDA of $301.6 M, reflecting a modest 2% increase year‑to‑date.
• The company revised its 2025 Adjusted EBITDA growth target from 8% to ~2%, citing lower propane pricing, one‑time delivery‑technology costs, and CNG pricing pressure.
• Share repurchases continued aggressively: 1.8 M shares bought in early Q3 at an average of C$7.44 (C$13.4 M) and YTD total repurchase of ~C$107 M (6.5% of float).

Key Details

• Financial Performance – Q3 2025
• Adjusted EBITDA: $7.6 M vs. $17.4 M in Q3 2024.
• Adjusted EBITDA per share: $(0.05) vs. $(0.03) a year earlier.
• Free Cash Flow per share: $(0.32) vs. $(0.29) YoY.
• Net loss for the quarter: $(101.1 M); adjusted net loss per share $(0.41).
• Financial Performance – YTD (9 months)
• Adjusted EBITDA: $301.6 M vs. $296.3 M in 2024 (+2%).
• Adjusted EBITDA per share: $0.91 vs. $0.79 a year earlier (+$0.12).
• Free Cash Flow per share: $0.51 vs. $0.16 a year earlier (+$0.35).
• Segment Results
• U.S. Propane Adjusted EBITDA (Q3): $(14.0) M; YTD $149.6 M.
• Canadian Propane Adjusted EBITDA (Q3): $2.5 M; YTD $64.2 M.
• CNG Adjusted EBITDA (Q3): $25.7 M; YTD $108.2 M.
• Revenue & Gross Profit
• Q3 revenue: $338.0 M vs. $359.4 M in Q3 2024.
• YTD revenue: $1,769.6 M vs. $1,680.0 M a year earlier.
• Gross profit (Q3): $191.5 M; YTD gross profit $919.3 M.
• Updated 2025 Guidance
• Adjusted EBITDA growth target lowered to ~2% (from prior 8%).
• Revised segment assumptions:
  • North American Propane EBITDA growth 3‑5% (down from 5‑10%).
  • U.S. Propane distribution 0‑2% (down from 1‑5%).
  • Canadian Propane distribution –2% to 0% (down from –1% to –5%).
  • CNG EBITDA growth –5% to 0% (down from 5‑10%).
• Capital expenditures remain ~C$150 M; corporate operating costs ~C$25 M.
• Operational Highlights
• Propane YTD Adjusted EBITDA up $6.2 M (+3%) despite Q3 decline of $6.4 M.
• Superior Delivers contributed $5 M to YTD Adjusted EBITDA; negligible in Q3 due to one‑time costs.
• Workforce reduction of ~12% incurred a one‑time $11 M cost, expected to save ~$5 M annually starting Q2 2026.
• CNG volumes: 7.112 MMBtu (up 1% YoY); industrial & renewable revenue up 29%.
• New supply agreement signed by Certarus with a large data‑center operator; hub site in Florida slated for year‑end operation.
• Share Repurchases
• Q3 purchase: 1.8 M shares (≈1% of float) at C$7.44 average, total C$13.4 M.
• YTD repurchase: 15.4 M shares (~6.5% of float) at C$7.10 avg., total ≈C$107 M (incl. taxes C$109.4 M).
• Total repurchases over past year: ~26 M shares (≈10.8% of outstanding).
• Dividend
• Quarterly dividend declared: C$0.045 per common share, payable Jan 15 2026 to shareholders of record Dec 31 2025.
• Leverage
• Q3 2025 net debt/EBITDA ratio (leverage) = 3.9× (down from 4.0× in Q3 2024).
• Expected year‑end 2025 leverage ~4.0×, up from original target of 3.6×; aim to reach 3.0× by 2027.
• Management Change
• Deena LaMarque Piquion appointed Chief Commercial Officer, North American Propane (replacing Rick Carron).

Notable Quotes

“Since April, Superior Plus has made tremendous progress implementing generational change within our business,” – Allan MacDonald, President & CEO.
“I remain encouraged by the actions we are taking in our CNG business… while current challenges … are tempering near‑term results, our disciplined approach … is strengthening the business.” – Allan MacDonald, President & CEO.