Superior Plus Corp (SUUIF) Q1 2025 Earnings Call Highlights: Strong Growth in Propane and CNG ...

GuruFocus News

Thu, May 15, 2025, 12:09 AM 4 min read

• Adjusted EBITDA: $260.5 million, a 10.5% summation compared to the archetypal 4th past year.

• EBTDA per Share: $0.89, a 19% increase.

• Adjusted Net Earnings per Share: $0.66, a 32% increase.

• Free Cash Flow per Share: $0.94, a 54% increase.

• US Propane Adjusted EBITDA: $163.6 million, up 14% from past year.

• Canadian Propane Adjusted EBITDA: $49.1 million, up 7% from Q1 2024.

• Compressed Natural Gas (CNG) Adjusted EBITDA: $55.1 million, a 7% summation year-over-year.

• Leverage: 3.7 times, down from 3.8 times a twelvemonth ago.

• Share Repurchases: 6.2 cardinal shares repurchased, astir 2.6% of the outstanding float.

• Warning! GuruFocus has detected 9 Warning Signs with SUUIF.

Release Date: May 14, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• Superior Plus Corp (SUUIF) reported a beardown commencement to 2025 with a 10.5% summation successful adjusted EBITDA for Q1, driven by robust show successful some propane and compressed earthy state (CNG) segments.

• The institution delivered 24 cardinal much gallons of propane successful Q1 compared to the erstwhile year, with less trucks and much businesslike routes, showcasing operational efficiency.

• Superior Delivers, a lawsuit maturation initiative, contributed astir $2.3 cardinal to EBITDA successful Q1, with expectations to lend $20 cardinal to adjusted EBITDA successful 2025 and $70 cardinal by 2027.

• The CNG business, Certarus, grew its EBITDA by astir 7% year-over-year, maintaining beardown margins and returns contempt pricing pressures.

• Superior Plus Corp (SUUIF) continued its stock repurchase program, buying backmost 6.2 cardinal shares successful Q1, which is astir 2.6% of the outstanding float, reflecting assurance successful the company's valuation.

• Despite beardown performance, the CNG conception faces pricing unit owed to cautious lawsuit behaviour amid broader economical uncertainties, perchance impacting maturation towards the little extremity of the 5% to 10% range.

• Corporate operating costs accrued to $7.3 cardinal successful Q1 from $5.5 cardinal a twelvemonth ago, partially owed to higher inducement program expenses and one-time costs associated with an Investor Day.

• The institution anticipates costs associated with achieving Superior Delivers to beryllium successful the scope of $10 cardinal to $15 cardinal successful some 2025 and 2026, which volition beryllium excluded from adjusted EBITDA.

• There is interest astir imaginable impacts connected Certarus from volatility successful the lipid and state sector, peculiarly successful the Permian Basin, which could impact enactment levels and pricing.

• The integration of the wholesale concern into the US and Canadian propane segments resulted successful a flimsy alteration successful wholesale contributions, with Q1 2025 figures little than the erstwhile year.