Superior Plus (SPB) Q3 2025 earnings summary

Executive summary

• Transformation initiatives, including Superior Delivers, are driving operational efficiency, customer growth, and technology adoption, though Q3 results do not yet reflect full progress.

• Centralized functions, AI-driven distribution, and a 12% reduction in non-field workforce have been implemented, incurring ~$11 million in severance and $20 million in total restructuring costs, with $5 million annual savings expected from Q2 2026.

• Certarus (CNG) faced pricing headwinds and lower EBITDA, but remains profitable, expanding into new markets such as data centers and regional hubs.

• Management highlights ongoing operational improvements, new contract wins in CNG, and the appointment of a new Chief Commercial Officer.

Financial highlights

• Year-to-date Adjusted EBITDA increased 2% to $301.6 million, driven by higher U.S. and Canadian Propane results, offset by a small CNG decline; Q3 Adjusted EBITDA was $7.6 million, down $9.8 million year-over-year.

• YTD Adjusted EBITDA per share rose 15% to $0.91; Free Cash Flow per share tripled to $0.51; Q3 per-share metrics declined due to seasonality and operational changes.

• Q3 2025 revenue was $338.0 million, down from $359.4 million in Q3 2024; YTD revenue was $1,769.6 million, up from $1,680.0 million.

• Q3 net loss was $101.1 million (loss per share $0.47); YTD net earnings were $30.6 million (earnings per share $0.07).

• Certarus Adjusted EBITDA for nine months was ~$108 million, flat year-over-year, with industrial and renewable revenues up 24% and 42%, respectively.

Outlook and guidance

• 2025 Adjusted EBITDA growth target revised down from 8% to 2% due to CNG pricing, one-time delivery tool costs, and a refinery supply disruption.

• Superior Delivers run rate target for 2027 increased from $70 million to $75 million, reflecting incremental savings from restructuring.

• 2025 EBITDA per share expected to grow 15%, and Free Cash Flow per share by ~70% versus 2024, driven by reduced share count and CapEx.

• Leverage expected to finish 2025 at 4.0x, with a target of 3.0x by end of 2027.