#Canada #Calgary #Parkland Corporation #Q2 2025 #Sunoco

Parkland Corporation's Q2 2025 Financial Highlights

Parkland Corporation, a prominent fuel distribution and marketing company, has made headlines with its recently released financial results for the second quarter of 2025. The organization reported record Adjusted EBITDA of $508 million, a slight increase from $504 million during the same period last year. This achievement underscores the resilience of Parkland’s diversified business model, which is further enhanced by optimized supply chains and robust operational performance at its Burnaby refinery.

CEO Bob Espey’s Remarks
Bob Espey, the President and CEO, expressed his gratitude towards the team for their dedication in serving customers, contributing to the outstanding financial outcomes. He stated, "Our Canadian and International businesses continue to demonstrate strength and resilience." The company's strategy of integrating its operations with Sunoco will undoubtedly enhance its scale and boost cash flow over the long run.

Q2 2025 Highlights

• - Net Earnings: Parkland recorded net earnings of $172 million, a significant increase from $70 million in Q2 2024. This translates to $0.99 per share, compared to $0.40 for the prior year. Adjusted earnings also fared well at $158 million against last year’s $156 million.
• - Cash Flow Insights: The trailing twelve months (TTM) Available cash flow was reported at $551 million per share, down from $823 million in the previous year, reflecting the ongoing challenges in the refining margin environment.
• - Segment Performance:

- Canada: Achieved an Adjusted EBITDA of $190 million, a notable increase from $168 million last year, thanks to improved margin optimization and volume growth.
- International Operations: Adjusted EBITDA fell slightly to $168 million from $180 million, impacted by market instability.
- USA Segment: The Adjusted EBITDA declined to $26 million from $47 million, primarily due to low fuel margins in a competitive environment.
- Refining Segment: Showed a solid rise in Adjusted EBITDA, climbing to $136 million from $119 million, attributed to higher refining margins.

Updates on the Sunoco Transaction

The board of Parkland has also received overwhelming shareholder support for the Sunoco acquisition, with over 93% voting in favor at the recent Annual Special Meeting. With final court approval secured, the transaction is progressing through remaining regulatory reviews and is anticipated to close by the end of Q4 2025. As part of this transition, Parkland will terminate its Dividend Reinvestment Plan effective August 6, 2025.

2025 Guidance and Future Outlook

Looking ahead, Parkland remains well-positioned to meet its previously announced Adjusted EBITDA guidance for 2025, estimated between $1,800 to $2,100 million. Furthermore, the anticipated capital expenditures are projected to be within the $475 to $525 million range. However, due to expected transaction costs related to the Sunoco deal, the firm will not provide additional updates on specific metrics like available cash flow per share.

In summary, Parkland’s second quarter results showcase their strong operational capabilities and highlight a positive trajectory amidst industry fluctuations. The expected merger with Sunoco promises to further strengthen the company’s market position, enhance cash flows, and promote long-term growth strategies. Stakeholders and investors can look forward to Parkland's continued commitment to performance and expansion in the fuel sector.