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• Adjusted EBITDA: $260.5 million, a 10.5% increase compared to the first quarter last 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 last year.

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

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

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

• Share Repurchases: 6.2 million shares repurchased, approximately 2.6% of the outstanding float.

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

Release Date: May 14, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Superior Plus Corp (SUUIF) reported a strong start to 2025 with a 10.5% increase in adjusted EBITDA for Q1, driven by robust performance in both propane and compressed natural gas (CNG) segments.

• The company delivered 24 million more gallons of propane in Q1 compared to the previous year, with fewer trucks and more efficient routes, showcasing operational efficiency.

• Superior Delivers, a customer growth initiative, contributed approximately $2.3 million to EBITDA in Q1, with expectations to contribute $20 million to adjusted EBITDA in 2025 and $70 million by 2027.

• The CNG business, Certarus, grew its EBITDA by approximately 7% year-over-year, maintaining strong margins and returns despite pricing pressures.

• Superior Plus Corp (SUUIF) continued its share repurchase program, buying back 6.2 million shares in Q1, which is approximately 2.6% of the outstanding float, reflecting confidence in the company's valuation.

Negative Points

• Despite strong performance, the CNG segment faces pricing pressure due to cautious customer behavior amid broader economic uncertainties, potentially impacting growth towards the lower end of the 5% to 10% range.

• Corporate operating costs increased to $7.3 million in Q1 from $5.5 million a year ago, partly due to higher incentive plan expenses and one-time costs associated with an Investor Day.

• The company anticipates costs associated with achieving Superior Delivers to be in the range of $10 million to $15 million in both 2025 and 2026, which will be excluded from adjusted EBITDA.

• There is concern about potential impacts on Certarus from volatility in the oil and gas sector, particularly in the Permian Basin, which could affect activity levels and pricing.

• The integration of the wholesale business into the US and Canadian propane segments resulted in a slight decrease in wholesale contributions, with Q1 2025 figures lower than the previous year.