Superior Plus (SPB) Q4 2024 earnings summary

Executive summary

• 2024 marked a pivotal year with a strategic shift from M&A-driven growth to operational excellence and customer focus, launching the Superior Delivers transformation initiative in November.

• Full-year 2024 Adjusted EBITDA rose 10% to $455.5 million versus prior year; Q4 Adjusted EBITDA declined 2% to $159.1 million year-over-year, mainly due to lower Canadian and wholesale propane results, partially offset by CNG and US propane growth.

• Adjusted EBITDA per share increased to $1.64 in 2024 from $1.60 in 2023.

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

• Certarus strategy was adjusted to focus on optimizing MSU performance, scaling back CapEx, and strengthening free cash flow.

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 from $1,194.3 million.

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

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

• Q4 Adjusted EBITDA was CAD 159.1 million, down CAD 3 million year-over-year.

• Certarus delivered Q4 Adjusted EBITDA of CAD 39.2 million, up 13% year-over-year; full-year contribution was CAD 148.2 million.

Outlook and guidance

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

• North American propane business anticipated to grow 5%-10%, with 1%-5% growth in each division; CNG business targeted for 5%-10% growth.

• Superior Delivers expected to contribute CAD 20 million in 2025, with a run-rate improvement of CAD 40 million by year-end and at least $50 million incremental Adjusted EBITDA by 2027.

• CapEx for 2025 set at CAD 150 million, with CNG division capex at ~$50 million; share repurchases planned at CAD 135 million.

• Plan to delever the balance sheet by half a turn through debt reduction and higher EBITDA; medium-term leverage target remains ~3.0x.