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.

• Adjusted EBITDA for Q1 2026 was $245.9 million, down 6% year-over-year, mainly due to lower CNG and U.S. Propane results, partially offset by Canadian Propane growth and lower corporate costs.

• Net earnings were $126.9 million, a decrease from Q1 2025, with EPS at $0.50 (down from $0.54).

• Significant expansion in the data center vertical, with over $350 million in new contracts signed since September, driving a shift in business mix and growth outlook.

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

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 $1.00, driven 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 $158.7 million (down 3%), Canadian Propane $55.9 million (up 14%), and CNG $38.4 million (down 30%) year-over-year.

• Operating cost per MMBtu for CNG increased 2% to $7.58 due to higher third-party trucking costs.

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, with similar elevated levels expected in 2027.

• Leverage expected to rise to around 4x by year-end due to increased investment, then decline as contracted EBITDA materializes.

• Free cash flow growth guidance for 2024–2027 withdrawn due to higher capital allocation to CNG.