Superior Plus (SPB) Q1 2026 earnings summary

Executive summary

• Q1 2026 performance was solid, with Propane operations improving and Certarus positioned for resumed growth in Q2, despite a challenging winter and subdued well site pricing.

• Significant expansion into the data center vertical, with over $350 million in new contracts signed since September, is transforming the CNG business and expanding the total addressable market.

• Share repurchases since late 2024 have reduced outstanding shares by approximately 14%, enhancing per share metrics.

• Certarus is expanding with a new CNG hub in Utah, with operations and data center supply commencing in May.

Financial highlights

• Q1 2026 adjusted EBITDA was $245.9 million, down 6% year-over-year, mainly due to lower CNG results offsetting Propane gains.

• Adjusted EBITDA per share rose to $0.91, up 2% quarter-over-quarter and from $0.89 year-over-year, aided by share repurchases.

• Free cash flow was $188 million, $32 million lower than Q1 2025, which included a $20 million legal recovery.

• U.S. Propane adjusted EBITDA was $58.7 million (down 3% year-over-year); Canadian Propane was $55.9 million (up 14%).

• CNG adjusted EBITDA was $38.4 million, down 30% year-over-year, due to lower utility work and well site pricing.

Outlook and guidance

• 2026 EBITDA growth expectation reaffirmed at 2%, with Certarus expected to resume growth for the remainder of the year.

• Adjusted EBITDA growth guidance for 2027 increased to 5% year-over-year, driven by contracted data center revenue.

• CapEx for 2026 raised to $230 million (from $160 million) to support CNG growth; similar elevated CapEx expected in 2027.

• Free cash flow growth rate guidance for 2024-2027 withdrawn due to higher capital allocation to CNG.

• Leverage expected to rise to around 4x by year-end, with a temporary increase into Q3 before declining as new EBITDA flows in.