Superior Plus Q2 revenue misses estimates

Overview

• Superior Plus Q2 revenue missed analyst expectations, per LSEG data

• Q2 adjusted EBITDA fell due to lower propane volumes and supply disruption

• Co reaffirmed 2025 adjusted EBITDA growth guidance of approximately 8%

Outlook

• Superior reaffirms 2025 Adjusted EBITDA growth rate of approximately 8%

• Superior anticipates ending 2025 with leverage ratio of ~3.7x

Result Drivers

• PROPANE VOLUME DECLINE - Q2 adjusted EBITDA fell due to lower propane volumes following strong Q1 deliveries and deferral of some Q2 deliveries

• SUPPLY DISRUPTION - Temporary plant shutdown in California negatively impacted margins in Q2

• RNG BUSINESS - Growth in RNG business helped offset competitive pressures in the wellsite sector

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the natural gas utilities peer group is "buy"

• Wall Street's median 12-month price target for Superior Plus Corp is C$10.25, about 32.8% above its August 11 closing price of C$6.89

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nBw2fLnqna