Parkland to Launch Three-Year Network Expansion Plan
CALGARY, Alberta — Parkland Corp. plans to add more than 100 new-to-industry convenience stores, raze-and-rebuilds or tuck-ins over the next three years, the retailer shared in a release detailing the company's 2025 guidance.
The convenience store chain expects to support its organic growth initiatives by allocating approximately $1.3 billion of growth capital expenditures from 2025 to 2028.
"We enter 2025 confident in our strategy and plan to achieve our 2028 growth ambitions," said Bob Espey, Parkland president and CEO. "Next year, despite anticipating lower than mid-cycle refining margins, adjusted EBITDA from our retail and commercial businesses are expected to increase by approximately five percent, in line with our growth commitments. The Parkland team will continue to focus on growing our customer volumes while achieving the synergies and efficiencies from previous acquisitions."
Approximately half of Parkland's growth capital expenditures will be used to strengthen its retail customer advantage with a focus on growing market share and loyalty. It will also work to enhance brand recognition by building scale and density with the 100-plus added stores, completing more than 175 On the Run conversions with differentiated food offers, and installing around 1,800 additional electric vehicle charging ports.
[Read more: Parkland Focuses on Loyalty Following Challenging Third Quarter]
Parkland will use approximately 20% of these expenditures to strengthen its commercial customer advantage, with a focus on growing volumes through cardlock expansion, multiproduct offers and tailored customer solutions. The remaining approximate 30% will be used to strengthen its supply advantage with a focus on building scale and purchasing power through strategic infrastructure investments, including increasing co-processing capacity to 7,500 barrels per day by 2028.
In its 2025 guidance, Parkland listed an adjusted EBITDA goal of $1,800 million to $2,100 million, including refining adjusted EBITDA of approximately $300 million. It expects refinery composite utilization of 90% to 95%, having deferred its previously planned major turnaround to 2026 following the completion of maintenance activities this year. It expects refining adjusted gross margin of $32 to $33 per barrel, reflecting industry dynamics that are currently below mid-cycle, the company said.
Capital expenditures for 2025 are expected to be between $475 million and $525 million.
Parkland's 2028 goals include an adjusted EBITDA of $2.5 billion, driven by organic growth, supply optimization, cost efficiencies and returning to mid-cycle refining margins.
Calgary-based Parkland Corp. is an independent supplier and marketer of fuel and petroleum products and a convenience store operator. Parkland currently services customers across Canada, the United States, the Caribbean region and the Americas through three channels: retail, commercial and wholesale.
