Parkland Sees Recovery From Previous Challenges During Q1 2025
CALGARY, Alberta — Parkland Corp. saw a strong start to 2025 compared to one year ago, when multiple unexpected events in Canada had a negative effect on financial results.
Adjusted EBITDA for the first quarter of the 2025 fiscal year increased $48 million to $375 million, the company reported during its recent earnings call.
"Our first quarter of 2025 saw a recovery from 2024 as the refinery offset a slow start to the year and a one-time $53 million impact due to a decision to exit the California compliance market," said Bob Espey, president and CEO. "It is still early in the year, and as we assess performance across our business, we are encouraged by several positive developments."
Other wins are coming from an international segment that continues to deliver strong growth, refining margins that are stronger than anticipated, and an expected robust driving season in Canada, according to Espey, who last month announced plans to step down.
Parkland's net earnings for the first quarter were $64 million, up from a net loss of $5 million during the same quarter one year ago. Adjusted earnings were $65 million, up from $43 million.
Parkland did not comment further on its recently announced deal to sell to Sunoco LP. Shareholders will vote on the acquisition at the company's 2025 Annual General Meeting, which is delayed to June 24.
Q1 2025 Highlights
United States: Adjusted EBITDA was $16 million, down from $31 million in Q1 2024. Parkland stated that the decrease was driven by macroeconomic pressures continuing to impact fuel and convenience demand in line with broader industry trends. Additionally, regulatory developments impacted the company's ability to capture supply optimization opportunities associated with moving refined product between Canada and the U.S.
Canada: Adjusted EBITDA was $110 million, down from $186 million during the same quarter last year. Primary drivers of the decrease were Parkland's decision to wind down its California compliance market position and the sale of its commercial propane business in late 2024.
International: Adjusted EBITDA was $181 million, up from $147 million in Q1 2024. The increase was driven by higher volume and margins in the commercial and wholesale businesses from strategic and recurring customers and strength in the South American region, according to Parkland.
Refining: Adjusted EBITDA was $79 million, up from a loss of $33 million during the same quarter last year. The increase was primarily due to an 11-week unplanned shutdown of Parkland's refinery in Burnaby, B.C., in 2024. The Burnaby Refinery successfully completed a three-week planned maintenance in the quarter and performed safely and reliably, allowing Parkland to benefit from favorable market conditions, the company said.
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.