Parkland Corporation Reports Strong Q3 2025 Financial Performance and Sunoco Transaction Update

On October 27, 2025, Parkland Corporation released its third-quarter financial results for 2025, showcasing strong operational performance across its diversified business portfolio and providing an update on its anticipated acquisition by Sunoco LP. This announcement comes as the company prepares for significant structural changes in the near future.

Q3 2025 Highlights

Parkland reported an impressive Adjusted EBITDA of CAD 540 million for the third quarter of 2025, up from CAD 431 million in the same period of 2024. This increase predominantly stems from exceptional operational margins at the Burnaby Refinery and robust performance across its Canada and International segments. However, the U.S. segment faced challenges due to intensified competition and ongoing macroeconomic pressures.

Net earnings for the quarter reached CAD 129 million or CAD 0.74 per share, a substantial rise compared to CAD 91 million or CAD 0.52 per share in Q3 2024. The Adjusted earnings also showed improvement, climbing to CAD 180 million or CAD 1.03 per share, compared to CAD 106 million or CAD 0.61 per share last year.

Moreover, the trailing twelve months (TTM) Available cash flow increased to CAD 668 million (CAD 3.83 per share) from CAD 627 million (CAD 3.58 per share) in the previous year, highlighting the company’s effective cash management amid fluctuating market conditions.

Segment Performance Overview

Canada Segment

The Canadian segment contributed an Adjusted EBITDA of CAD 208 million, a rise from CAD 196 million in Q3 2024. This growth was attributed to enhanced fuel unit margins driven by pricing and supply optimization, despite facing a decline in retail demand reflected by a same-store volume growth of -2.3%.

Consumer demand for food and beverage offerings within convenience stores appeared resilient, as same-store sales growth, excluding cigarettes, recorded a remarkable 4.1% boost.

International Segment

Parkland's international operations delivered an Adjusted EBITDA of CAD 161 million, increasing from CAD 150 million in Q3 2024. The strong performance can be attributed to significant volume growth across retail and commercial sectors.

United States Segment

Conversely, the U.S. segment revealed a decline in Adjusted EBITDA, which decreased to CAD 28 million from CAD 52 million in the previous year. This downturn was primarily due to reduced fuel unit margins amidst a highly competitive pricing landscape.

Refining Segment

The refining segment witnessed a dramatic surge in Adjusted EBITDA, soaring to CAD 151 million from CAD 48 million in Q3 2024, boosted by higher refining margins and strong utilization rates of 103.1%.

Update on the Sunoco Transaction

The much-anticipated transaction with Sunoco is expected to finalize on October 31, 2025, pending customary closing conditions. Following the completion of this acquisition, Parkland shares will be delisted from the Toronto Stock Exchange. Shareholders will receive Common Units of SunocoCorp, which are set to commence trading on the New York Stock Exchange under the ticker symbol “SUNC” on November 3, 2025.

In a breakdown of shareholder elections by the October 17 deadline, approximately 94,964,700 shares opted for all-cash consideration, while 9,734,800 shares chose the all-unit consideration. A notable 69,911,000 shares opted for a mix of cash and units, though these elections are subject to proration.

Due to the strategic nature of the ongoing transaction, Parkland will not hold a conference call to discuss the financial results.

Looking Forward

As Parkland prepares for its next growth phase with Sunoco, CEO Bob Espey expressed his pride in the company’s performance and the anticipated synergistic benefits from the upcoming merger. He also emphasized the management's ongoing commitment to delivering substantial long-term value to stakeholders.

With a solid financial performance in Q3 2025, Parkland is well-positioned for future growth amidst evolving market conditions and operational challenges. Investors and stakeholders alike remain optimistic about the opportunities that lie ahead following the finalization of the Sunoco transaction.