Overview

* Parkland Q2 revenue misses analyst expectations, adjusted EBITDA beats estimates

* Adjusted net income for Q2 beats analyst expectations, per LSEG data

* Sunoco transaction advances, expected to close in Q4 2025

Outlook

* Parkland maintains 2025 Adjusted EBITDA guidance of C$1.8 bln to C$2.1 bln

* Company expects 2025 capital expenditures between C$475 mln and C$525 mln

* Sunoco transaction expected to close in Q4 2025

Result Drivers

* CANADIAN STRENGTH - Strong fuel unit margins and volume growth in Canada drove adjusted EBITDA to C$190 mln, up from C$168 mln in Q2 2024

* REFINING MARGINS - Higher refining margins and strong utilization at Burnaby Refinery contributed to a rise in adjusted EBITDA to C$136 mln from C$119 mln

* INTERNATIONAL CHALLENGES - Lower unit margins in the International segment, due to market instability, reduced adjusted EBITDA to C$168 mln from C$180 mln

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss C$6.87 C$7.13

Revenue bln bln (4

Analysts

)

Q2 EPS C$0.97

Q2 Beat C$158 C$127.20

Adjusted mln mln (1

Net Analyst)

Income

Q2 Net C$172

Income mln

Q2 Beat C$508 C$484.90

Adjusted mln mln (8

EBITDA Analysts

)

Q2 Basic C$0.99

EPS

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the oil & gas refining and marketing peer group is "hold."

* Wall Street's median 12-month price target for Parkland Corp ( PKIUF ) is C$44.00, about 12.7% above its August 1 closing price of C$38.43

* The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)