Superior Plus (SPB) Q2 2025 earnings summary

Executive summary

• H1 2025 Adjusted EBITDA rose 5.4% to $294 million, driven by strong Q1 results in propane and CNG, though Q2 was seasonally weak and impacted by a California supply disruption.

• Superior Delivers transformation contributed $5.0M to H1 Adjusted EBITDA and is on track for $20M in 2025 and $70M by 2027, with major benefits expected in Q4.

• Certarus (CNG) delivered strong H1 growth, offsetting well site headwinds with gains in industrial, RNG, and hydrogen segments.

• Net loss for Q2 improved to $14.7M from $45.3M last year, while H1 net earnings surged to $131.7M from $39.9M, driven by derivative gains and higher gross profit.

• Over 10% of equity repurchased since Q4 2024, with C$114.5M returned to shareholders in H1 2025 via dividends and buybacks.

Financial highlights

• H1 adjusted EBITDA rose 5.4% to $294 million; 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 revenue was $423.2M, flat year-over-year; H1 revenue was $1,431.6M, up 8%.

• Q2 gross profit was $228.9M, down 3%; H1 gross profit was $727.8M, up 4%.

• Q2 adjusted net loss per share was $0.25, down $0.02; free cash flow per share was -$0.14, improved by $0.02.

Outlook and guidance

• 2025 Adjusted EBITDA growth target of 8% reaffirmed, driven by Superior Delivers and CNG segment growth.

• Majority of transformation and weather-driven EBITDA benefits expected in Q4.

• Leverage ratio expected to end 2025 at ~3.7x, slightly above prior target due to currency effects; mid-2027 target is 3.0x.

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

• Capital allocation strategy includes ~$140M annual share repurchases and continued dividend payments.