Parkland Reports 2025 Third Quarter Results and Provides Update on the Sunoco Transaction

Core Insights - Parkland Corporation reported a strong third quarter with Adjusted EBITDA of $540 million, an increase from $431 million in Q3 2024, driven by robust operations and margins, particularly at the Burnaby Refinery [8][13] - The company is on track to meet its 2025 Adjusted EBITDA guidance of $1.8 to $2.1 billion, reflecting confidence in its diversified business model and upcoming synergies from the Sunoco acquisition [2][10] - The Sunoco transaction, valued at approximately $9.1 billion, is expected to close on October 31, 2025, with Parkland shares to be delisted from the Toronto Stock Exchange post-transaction [5][10] Financial Performance - Total sales and operating revenue for Q3 2025 was $7,353 million, up from $7,126 million in Q3 2024 [13] - Net earnings for Q3 2025 were $129 million ($0.74 per share), compared to $91 million ($0.52 per share) in Q3 2024 [8][13] - Trailing twelve months (TTM) available cash flow increased to $668 million ($3.83 per share) from $627 million ($3.58 per share) in 2024 [8][16] Segment Performance - Canada segment delivered Adjusted EBITDA of $208 million, up from $196 million in Q3 2024, attributed to stronger fuel unit margins [7][14] - International segment reported Adjusted EBITDA of $161 million, an increase from $150 million in Q3 2024, driven by strong volume growth [14] - USA segment's Adjusted EBITDA decreased to $28 million from $52 million in Q3 2024, impacted by competitive pricing and reduced arbitrage opportunities [14] Transaction Update - The Sunoco acquisition is structured as a court-approved plan of arrangement, with Parkland shareholders having the option to elect cash or SunocoCorp Units as consideration [5][11] - Approximately 94.96 million Parkland shares elected all-cash consideration, while 9.73 million shares opted for all SunocoCorp Unit consideration [15] Operational Metrics - The leverage ratio improved to 3.1 times from 3.6 times in Q4 2024, indicating enhanced financial strength [8][44] - The total recordable injury frequency rate on a TTM basis was 1.07, slightly up from 1.04 in Q3 2024, reflecting ongoing safety performance [8]