Parkland (PKI) Q1 2025 earnings summary

Executive summary

• Achieved Adjusted EBITDA of $375M in Q1 2025, up $48M or 15% year-over-year, driven by strong refining and international performance, offset by lower results in Canada and USA segments and a $53M one-time loss from exiting the California compliance market.

• Net earnings rose to $64M from a $5M loss in Q1 2024, reflecting higher EBITDA, unrealized gains from risk management, and gains on redemption options.

• Announced definitive agreement for acquisition by Sunoco LP in a $9.1B cash and equity transaction, expected to close in H2 2025; planned Q1 2025 results call cancelled.

• International segment delivered strong growth; refining margins exceeded expectations; robust Canadian driving season anticipated.

• Macroeconomic and regulatory volatility persists, but portfolio resilience is highlighted.

Financial highlights

• Sales and operating revenue was $6,813M, down $126M year-over-year, mainly due to lower commodity prices and reduced volumes in the USA and Refining segments.

• Adjusted EBITDA by segment: Canada $110M (down $76M), International $181M (up $34M), USA $16M (down $15M), Refining $79M (up $112M), Corporate expense $11M (up $7M).

• Adjusted earnings increased to $65M from $43M year-over-year.

• Cash generated from operating activities was $286M, up from $217M in Q1 2024.

• Available cash flow per share (TTM) decreased to $3.37 from $4.34 year-over-year.

Outlook and guidance

• 2025 Adjusted EBITDA guidance maintained at $1,800M–$2,100M, with results expected at the lower end of the range.

• Capital expenditures guidance for 2025 is $475M–$525M.

• Available cash flow per share guidance is $5.00–$6.00.

• Leverage Ratio targeted at the low end of 2–3x by year-end 2025.

• International segment expected to continue strong growth; robust Canadian driving season anticipated.