Superior Plus (SPB) Q2 2025 earnings summary

Executive summary

• Transformation strategy is progressing well, with strong first half results in both propane and CNG businesses, despite Q2 being a seasonally low-volume period and impacted by a temporary supply disruption in California.

• Superior Delivers productivity transformation is on schedule, contributing $5.0M to H1 Adjusted EBITDA and $2.7M in Q2, with major benefits expected in Q4 as high volumes return.

• Certarus delivered a strong first half, offsetting well site headwinds with growth in industrial, RNG, and hydrogen segments.

Financial highlights

• H1 Adjusted EBITDA rose 5.4% to $294 million, driven by a strong Q1; Q2 Adjusted EBITDA was $33.5 million, down $9.8 million year-over-year due to U.S. propane performance and supply disruption.

• H1 Adjusted EBITDA per share was $0.95 (up 16%), Adjusted Net Earnings per share $0.43 (up 48%), and Free Cash Flow per share $0.81 (up 80%).

• Q2 Adjusted EBITDA per share was $0.05, down $0.02; Adjusted Net Loss per share was $0.25, down $0.02; Free Cash Flow per share was -$0.14, improved by $0.02.

• Q2 2025 revenue was $423.2M, nearly flat year-over-year; H1 revenue was $1,431.6M, up from $1,320.6M.

• Q2 net loss was $(14.7)M, improved from $(45.3)M; H1 net earnings were $131.7M, up from $39.9M.

Outlook and guidance

• Expect majority of transformation and weather-driven EBITDA benefits in Q4; reaffirmed 2025 Adjusted EBITDA growth rate guidance of approximately 8%.

• Superior Delivers expected to contribute $20M in Adjusted EBITDA in 2025 and at least $70M by 2027.

• Certarus expected to deliver within original annual range, with well site headwinds offset by operational efficiencies and growth in industrial and renewable segments.

• Leverage expected to finish the year at 3.7x, slightly above prior target due to currency effects; mid-2027 target remains 3.0x.

• Plans to allocate approximately C$140M annually to share repurchases and renew NCIB in mid-Q4.