Superior Plus (SPB) Q4 2024 earnings summary

Executive summary

• 2024 marked a pivotal year with the Superior Delivers transformation, rebuilding operational capabilities and customer focus after unsustainable M&A-driven growth.

• Full-year 2024 Adjusted EBITDA rose 10% to $455.5 million; Q4 Adjusted EBITDA was $159.1 million, down about 2% year-over-year.

• Adjusted EBITDA per share increased, and $177 million was returned to shareholders via dividends and buybacks, including 4.2% of public float repurchased in Q4.

• Superior Delivers targets at least $50 million incremental Adjusted EBITDA by 2027, with $20 million expected in 2025.

• Foundational changes in 2024 are expected to drive significant growth and profitability in 2025 and beyond.

Financial highlights

• 2024 revenue was $2,382.3 million, down from $2,482.5 million in 2023; gross profit increased to $1,284.4 million.

• Net loss for 2024 was $17.9 million, compared to net earnings of $57.6 million in 2023.

• Q4 Adjusted EBITDA was CAD 159.1 million, down about CAD 3 million year-over-year, mainly due to lower Canadian and wholesale propane results.

• Full-year Adjusted EBITDA reached CAD 455.5 million, up CAD 40.8 million from 2023, driven by a full-year contribution from Certarus.

• Net cash flows from operating activities for 2024 were $274.1 million, down from $405.9 million in 2023.

Outlook and guidance

• 2025 Adjusted EBITDA is expected to grow by approximately 8%, supported by Superior Delivers, CNG segment growth, and normalized weather.

• North American propane and CNG Adjusted EBITDA projected to grow 5%-10%, with 1%-5% growth in each division, assuming five-year average weather.

• CAD 20 million in in-year EBITDA from Superior Delivers is targeted, with a $40 million run-rate improvement by year-end.

• Capital expenditures for 2025 forecast at ~$150 million, with CNG division capex at ~$50 million.

• Leverage ratio targeted to decrease by ~0.5x in 2025; medium-term leverage target remains ~3.0x.