Parkland Corp's Q2 adjusted EBITDA beats estimates, hits record

Overview

• Parkland Q2 revenue misses analyst expectations, adjusted EBITDA beats estimates

• Adjusted net income for Q2 beats analyst expectations, per LSEG data

• Sunoco transaction advances, expected to close in Q4 2025

Outlook

• Parkland maintains 2025 Adjusted EBITDA guidance of C$1.8 bln to C$2.1 bln

• Company expects 2025 capital expenditures between C$475 mln and C$525 mln

• Sunoco transaction expected to close in Q4 2025

Result Drivers

• CANADIAN STRENGTH - Strong fuel unit margins and volume growth in Canada drove adjusted EBITDA to C$190 mln, up from C$168 mln in Q2 2024

• REFINING MARGINS - Higher refining margins and strong utilization at Burnaby Refinery contributed to a rise in adjusted EBITDA to C$136 mln from C$119 mln

• INTERNATIONAL CHALLENGES - Lower unit margins in the International segment, due to market instability, reduced adjusted EBITDA to C$168 mln from C$180 mln

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the oil & gas refining and marketing peer group is "hold."

• Wall Street's median 12-month price target for Parkland Corp is C$44.00, about 12.7% above its August 1 closing price of C$38.43

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nCNWXDlcJa