Superior Plus (SPB) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 Adjusted EBITDA of $260.5 million, up 10.5%–11% year-over-year, with strong performance in both propane and CNG segments, supported by colder weather and operational improvements.

• Superior Delivers transformation contributed $2.3 million to Adjusted EBITDA in Q1, with over 20 pilot initiatives underway and on track for $20 million adjusted EBITDA in 2025.

• Adjusted EBITDA per share rose 19% to $0.89; adjusted net earnings per share increased 32% to $0.66; free cash flow per share up 54% to $0.94.

• Teams managed increased volumes efficiently, delivering 24 million more gallons year-over-year with fewer trucks and optimized routes.

• Returned over $35 million to shareholders via dividends and share repurchases, reducing public float by 2.6%.

Financial highlights

• Revenue increased to $1,008.4 million from $897.7 million year-over-year; gross profit rose to $498.9 million from $465.2 million.

• Adjusted EBITDA from operations reached $267.8 million, up from $241.1 million; adjusted EBITDA per share was $0.98, up from $0.85.

• U.S. propane adjusted EBITDA rose to $163.6 million (from $143.9 million); Canadian propane to $49.1 million (from $45.7 million); CNG to $55.1 million (from $51.5 million).

• Free cash flow per share increased to $0.94 from $0.61 year-over-year, benefiting from lower CapEx.

• Share count reduced by roughly 5% quarter-over-quarter due to repurchases, supporting per-share growth.

Outlook and guidance

• Full-year guidance maintained, but expect to finish toward the lower end of the 5-10% growth range due to pricing pressure in CNG.

• Superior Delivers expected to contribute $20 million to adjusted EBITDA in 2025 and $70 million by 2027, with most benefits realized in Q4.

• Certarus guidance slightly below midpoint, offset by stronger propane performance.

• Leverage ratio forecasted to end 2025 at ~3.6x, with a mid-2027 target of ~3.0x.

• Plans to allocate approximately C$140 million annually to share repurchases, up to 10% of public float.