Parkland Corporation Reveals Ambitious 2025 Financial Guidance and Future Growth Plans

Parkland Corporation, a leading fuel distributor and convenience retailer, recently unveiled its financial outlook for 2025. The announcement not only outlines specific targets for the upcoming fiscal year but also reaffirms the company’s growth strategy leading up to 2028.

Encouraging Financial Targets for 2025

According to the information released, Parkland has set an Adjusted EBITDA guidance range between $1.8 billion and $2.1 billion for 2025. This guidance reflects a robust approach in light of expected lower refining margins while remaining optimistic about the contribution from retail and commercial segments, where growth of approximately five percent is anticipated. President and CEO Bob Espey expressed confidence in this strategy, stating that the refining adjusted gross margin is projected to be approximately $32 to $33 per barrel.

The company has also deferred its previously planned major turnaround at its refinery to 2026. This postponement, following the maintenance activities planned for 2024, is expected to enhance operational fluidity and maintain higher utilization rates, projected between 90 to 95 percent. Moreover, Parkland has outlined a capital expenditure budget between $475 million to $525 million for the year.

Long-Term Vision Reaffirmed

Alongside the 2025 guidance, Parkland has reiterated its ambitions for 2028. The company aims for an Adjusted EBITDA target of $2.5 billion, with available cash flow expected to be $8.50 per share. The strategy driving these objectives includes organic growth initiatives, cost optimization, and the return to mid-cycle refining margins.

Parkland anticipates a cumulative available cash flow of approximately $5 billion from 2025 to 2028, showcasing a disciplined capital allocation framework where 25% of cash flow is directed to dividends, another 25% to organic growth projects, and the remaining 50% into high-return opportunities. The allocation for growth capital expenditures from 2025 to 2028 will total around $1.3 billion.

Focused on Retail and Supply Advantages

Parkland emphasizes two strategic pillars: Customer Advantage and Supply Advantage. The goal is to enhance market share within the retail sector while increasing brand loyalty. To support its retail strategy, the company plans to construct over 100 new locations, repurpose existing sites, and complete more than 175