Superior Announces Q4 and Full-Year 2025 Results

Executive Summary

• Superior Plus reported FY 2025 Adjusted EBITDA of $463.5 M (up 2%) and Q4 2025 Adjusted EBITDA of $161.9 M (up 2%).
• FY 2025 free cash flow per share rose 89% to $0.87; Q4 2025 free cash flow per share increased 23% to $0.37.
• The company revised its 2026‑2027 growth outlook, now forecasting ~2% FY 2026 Adjusted EBITDA growth and lowering the expected CAGR for Adjusted EBITDA (2% vs prior 8%) and free cash flow (20‑25% vs prior 40%).

Key Details

• Financial Performance – FY 2025
• Adjusted EBITDA: $463.5 M (+2% YoY)
• Adjusted EBITDA per share: $1.46 (+15% YoY)
• Free cash flow per share: $0.87 (+89% YoY)
• Net earnings: $79.7 M (vs a loss of $17.9 M in 2024)

• Revenue: $2,460.6 M (up from $2,382.3 M)

• Financial Performance – Q4 2025

• Adjusted EBITDA: $161.9 M (+2% YoY)
• Adjusted EBITDA per share: $0.55 (+12% YoY)
• Free cash flow per share: $0.37 (+23% YoY)

• Net earnings: $49.1 M (vs $4.2 M in Q4 2024)

• Segment Results

• U.S. Propane Adjusted EBITDA FY 2025: $246.3 M (+5%)
• Canadian Propane Adjusted EBITDA FY 2025: $100.4 M (≈+2%)

• CNG Adjusted EBITDA FY 2025: $142.5 M (‑4%) – volume up 7% to 31.33 MMBtu, operating cost per MMBtu down 6%

• Superior Delivers Program

• Contributed $16.2 M to FY 2025 Adjusted EBITDA and $11.2 M in Q4 2025.

• New market‑assessment tools launched; scheduling optimization tool expected to drive 2026 EBITDA growth.

• Share Repurchases

• FY 2025: repurchased 19.6 M shares (8% of outstanding) for C$141.2 M at ~C$7.20/share.

• Total since Nov 2024: ~32 M shares (13%) for ≈C$225 M.

• Dividend

• Quarterly dividend declared: C$0.045 per share, payable 15 Apr 2026 to shareholders of record 31 Mar 2026.

• Leverage & Debt

• Q4 2025 net‑debt/Adjusted EBITDA leverage: 4.0× (down from 4.1×).

• Target leverage: ~3.8× by end‑2026, 3.5× by end‑2027; ultimate goal 3.0×.

• 2026 Outlook

• Expected Adjusted EBITDA growth ≈2% YoY.
• North American Propane Adjusted EBITDA growth forecast: +3% to +8%.
• CNG Adjusted EBITDA expected decline: –4% to –9%.
• Capital expenditures ~ $160 M; corporate operating costs ~ $26 M.

• Share repurchases planned $50‑$100 M in 2026, with possible shift to debt repayment for preferred‑share redemption (≈$260 M) in mid‑2027.

• Revised Growth Guidance

• Adjusted EBITDA CAGR 2024‑2027: now ~2% (down from 8%).
• Free cash flow CAGR 2024‑2027: now 20‑25% (down from 40%).

Notable Quotes

“We modernized key parts of our operations and improved productivity… the long‑term benefits remain intact; however, we have extended the timeline needed to complete the full transformation.” – Allan MacDonald, President & CEO

“While pricing pressure in the wellsite segment offset these accomplishments… we remain confident in the long‑term trajectory of the business.” – Allan MacDonald, President & CEO