#Canada #Calgary #Parkland Corporation #EBITDA #Sunoco

Parkland Corporation Reports Second Quarter Financial Results

Overview of Q2 2025 Performance

On August 8, 2025, Parkland Corporation released its financial results for the second quarter ending June 30, 2025, highlighting a record adjusted EBITDA of $508 million. This remarkable performance demonstrates the company's resilience and effective strategies in navigating the global market.

Bob Espey, President, and CEO of Parkland, expressed gratitude towards the team for their commitment to safety and excellence, stating, "Our Canadian and international operations continue to show strength and resilience. The robust optimization of supplies, coupled with strong performance from our Burnaby refinery, has enabled us to achieve refining margins above the mid-cycle levels."

Financial Highlights

Adjusted EBITDA and Net Income

Parkland reported an adjusted EBITDA of $508 million, a slight increase from $504 million in Q2 2024. The growth was primarily driven by strong operational performance and refinery margins, particularly from the Burnaby site. Additionally, net earnings skyrocketed to $172 million ($0.99 per share) compared to $70 million ($0.40 per share) in the previous year. This marks a significant improvement, reinforcing Parkland's operational efficiency and profitability in a challenging macroeconomic environment.

Cash Flow and Leverage Ratios

For the trailing twelve months, Parkland's available cash flow reached $551 million, reflecting a decrease from $823 million in 2024 due to lower refining margins in the latter half of the previous year. Despite this, the company's leverage ratio improved to 3.4 times, down from 3.6 times in Q4 2024, showcasing its stronger financial standing.

Safety Performance

The total recordable injury frequency rate stood at 1.15, a reduction from 1.21 in Q2 2024. This improvement indicates Parkland's commitment to operational integrity and workplace safety.

Segment Performance Analysis

Canadian Operations

In Canada, adjusted EBITDA increased to $190 million, up from $168 million in the same quarter last year. The rise can be attributed to enhanced unit margins and a 4.6% growth in same-store sales from the company-owned network, demonstrating effective sales strategies and customer engagement.

International Operations

Internationally, adjusted EBITDA was reported at $168 million, down from $180 million in Q2 2024. The continuing strength in retail operations was offset by lower unit margins due to global market instability.

U.S. Operations

The U.S. segment faced a decline in adjusted EBITDA, from $47 million to $26 million, driven by decreased fuel unit margins amid competitive pricing pressures and declining consumer spending.

Refining Operations

Refining operations showed positive momentum with an adjusted EBITDA of $136 million, up from $119 million in the previous year, owing to improved refining margins and a strong utilization rate of 94.0% at the refinery.

Sunoco Transaction Update

The shareholders approved the transaction with Sunoco on June 24, 2025, with over 93% voting in favor. Currently, Parkland is in progress with the necessary regulatory reviews and anticipates the transaction's finalization in Q4 2025.

Parkland has also suspended its Dividend Reinvestment Plan (DRIP) effective August 6, 2025, simplifying its strategy in light of upcoming transactions and investments.

2025 Guidance

Parkland is optimistic about maintaining its adjusted EBITDA forecast for 2025 in the range of $1.8 billion to $2.1 billion, with anticipated capital expenditures between $475 million and $525 million. However, the company will not provide updates on specific cash flow expectations for the remainder of the year due to the complexities introduced by the ongoing Sunoco transaction.

Conclusion

Parkland Corporation's second-quarter results reflect a strong operational foundation and strategic advancements, particularly with the anticipated Sunoco transaction. The company's focus on optimizing its operations and navigating economic challenges will continue to position it for growth in the evolving energy landscape.

For more information, please visit Parkland Corporation's website.