Strong third quarter Adjusted EBITDA(1) of $540 million
On track to deliver midpoint of 2025 Adjusted EBITDA Guidance(2) of $1.8 to $2.1 billion
Sunoco Transaction(3) expected to close on October 31, 2025
CALGARY, AB, Oct. 27, 2025 /CNW/ - Parkland Corporation ("Parkland", "we", the "Company", or "our") (TSX: PKI), today announced its financial and operating results for the three and nine months ended September 30, 2025.
"Parkland delivered another strong quarter, reflecting the strength of its diversified business, and clearly demonstrating our ability to deliver 2025 Adjusted EBITDA guidance," said Bob Espey, President and Chief Executive Officer. "As we approach this important milestone, I am incredibly proud and grateful of the Parkland team and the industry leading business we have built together. I am excited about Parkland's next phase of growth with Sunoco, the power of the combined platform, and have confidence in the Company's ability to deliver significant synergies and long-term value for its stakeholders."
Q3 2025 Highlights
-- Delivered Adjusted EBITDA of $540 million, up from $431 million in Q3
2024, primarily driven by strong operations and margins at the Burnaby
Refinery and robust performance in the Canada and International segments.
These were partially offset by softness in the USA segment due to
continued macroeconomic pressures and competition.
-- Net earnings of $129 million ($0.74 per share, basic), up from $91
million ($0.52 per share, basic) in Q3 2024, and Adjusted earnings4 of
$180 million ($1.03 per share4, basic), as compared to $106 million
($0.61 per share, basic) in Q3 2024.
-- Trailing twelve months ("TTM") Available cash flow4 of $668 million
($3.83 per share4), up from $627 million ($3.58 per share) in 2024,
primarily driven by higher Adjusted EBITDA. TTM Cash generated from
operating activities2 of $1,646 million ($9.45 per share2), up from
$1,490 million ($8.51 per share) in 2024.
-- Leverage Ratio5 decreased to 3.1 times (3.6 times in Q4 2024) and
liquidity available2 of approximately $2.3 billion.
-- Total recordable injury frequency rate6 on a TTM basis was 1.07, compared
to 1.04 in Q3 2024.
____________________________
(1) Total of segments measure. See "Measures of Segment
Profit(Loss) and Total of Segments Measures" section
of this news release.
(2) Supplementary financial measure. See "Supplementary
Financial Measures" section of this news release.
(3) On May 5, 2025, Parkland and Sunoco LP $(SUN)$
("Sunoco") announced that they entered into a definitive
agreement whereby Sunoco will acquire all outstanding
shares of Parkland by way of a court-approved plan
of arrangement (the "Plan of Arrangement") in a cash
and equity transaction valued at approximately U.S.$9.1
billion, including assumed debt (the "Transaction").
(4) Non-GAAP financial measure or non-GAAP financial
ratio. See "Non-GAAP Financial Measures and Ratios"
section of this news release.
(5) Capital management measure. See "Capital Management
Measures" section of this news release.
(6) Non-financial measure. See "Non-Financial Measures"
section of this news release.
Q3 2025 Segment Highlights
-- Canada delivered Adjusted EBITDA of $208 million, compared to $196
million in Q3 2024, driven by stronger fuel unit margins from continued
price and supply optimization. Results were partially offset by softer
retail demand in our company-owned network, which is reflected in our
Company same-store volume growth ("Company SSVG")6 of (2.3) percent. Food
and Company C-Store same-store sales growth ("Food and Company C-Store
SSSG")4 excluding cigarettes was 4.1 percent, reflecting continued growth
in alcohol and packaged beverages driven by successful marketing
initiatives through our loyalty program.
-- International delivered Adjusted EBITDA of $161 million, compared to $150
million in Q3 2024, reflecting strong volume growth in both the retail
and commercial businesses.
-- USA delivered Adjusted EBITDA of $28 million, compared to $52 million in
Q3 2024, driven by lower fuel unit margins due to an ongoing competitive
pricing environment and reduced rail and regional arbitrage
opportunities.
-- Refining delivered Adjusted EBITDA of $151 million, compared to $48
million in Q3 2024, driven by higher refining margins combined with
strong composite utilization6 of 103.1 percent.
Update on the Sunoco Transaction
Parkland announced that the Transaction is expected to close on October 31, 2025, subject to the satisfaction or waiver of customary closing conditions. Following completion of the Transaction, Parkland shares will be delisted from the Toronto Stock Exchange.
Common Units representing limited liability company interests in SunocoCorp ("SunocoCorp Units"), to be issued to shareholders of Parkland in connection with the Transaction, are expected to begin trading on the New York Stock Exchange on November 3, 2025 under the ticker symbol "SUNC".
Parkland also announced the preliminary results of the elections in respect of the consideration received pursuant to the Transaction. Based on the elections received by the election deadline of October 17, 2025:
-- Parkland shareholders holding approximately 94,964,700 Parkland shares
elected the all-cash consideration,
-- Parkland shareholders holding approximately 9,734,800 Parkland shares
elected the all SunocoCorp Unit consideration; and
-- Parkland shareholders holding approximately 69,911,000 Parkland shares
elected, or were deemed to have elected, a combination of cash
and SunocoCorp Unit consideration.
The all-cash elected consideration and all SunocoCorp Unit elected consideration are subject to proration, maximum amounts and adjustments in accordance with the Plan of Arrangement.
Due to the pending closing of the Transaction, Parkland will not host a conference call or webcast to discuss its third quarter results.
Consolidated Financial Overview
($ millions, unless otherwise noted) Three months ended
September 30,
Financial Summary 2025 2024
Sales and operating revenue 7,353 7,126
Adjusted EBITDA(1) 540 431
Canada(2)(3) 208 196
International(2)(3) 161 150
USA(2)(3) 28 52
Refining(2)(3) 151 48
Corporate(2)(3) (8) (15)
Net earnings (loss) 129 91
Net earnings (loss) per share -- basic ($ per share) 0.74 0.52
Net earnings (loss) per share -- diluted ($ per share) 0.73 0.52
Trailing twelve months ("TTM") Cash generated from
(used in) operating activities(4) 1,646 1,490
TTM Cash generated from (used in) operating activities
per share(4) 9.45 8.51
TTM Available cash flow(5)(6) 668 627
TTM Available cash flow per share(5)(6) 3.83 3.58
TTM ROIC(6) 8.5 % 7.8 %
(1) Total of segments measure. See "Measures of Segment
Profit (Loss) and Total of Segments Measures" section
of this news release.
( (2) For comparative purposes, certain amounts certain
amounts in 2024 were revised to conform to the presentation
used in the current period with respect to the allocation
of Corporate costs. See Note 2d of the Interim Condensed
Consolidated Financial Statements for further details
(3) Measure of segment profit (loss). See "Measures of
Segment Profit (Loss) and Total of Segments Measures"
section of this news release.
(4) Supplementary financial measure. See "Supplementary
Financial Measures" section of this news release.
(5) For comparative purposes, certain amounts were reclassified
between realized and unrealized gain/(loss) on risk
management with no changes to Adjusted EBITDA or net
earnings to conform to the presentation used in the
current period.
(6) Non-GAAP financial measure or non-GAAP financial
ratio. See "Non-GAAP Financial Measures and Ratios"
section of this news release.
MD&A and Annual Consolidated Financial Statements
The Management's Discussion and Analysis for the three and nine months ended September 30, 2025 (the "Q3 2025 MD&A") and Interim Condensed Consolidated Financial Statements for the three and nine months ended September 30, 2025 (the "Q3 2025 Condensed Consolidated Financial Statements") provide a detailed explanation of Parkland's operating results for the three and nine months ended September 30, 2025. An English version of these documents will be available online at www.parkland.ca and the System for Electronic Data Analysis and Retrieval+ ("SEDAR+") after the results are released by newswire under Parkland's profile at www.sedarplus.ca. The French versions of the Q3 2025 MD&A and the Q3 2025 Condensed Consolidated Financial Statements will be posted to www.parkland.ca and SEDAR+ as soon as they become available.
About Parkland Corporation
Parkland is a leading international fuel distributor, marketer, and convenience retailer with safe and reliable operations in twenty-six countries across the Americas. Our retail network meets the fuel and convenience needs of everyday consumers. Our commercial operations provide businesses with fuel to operate, complete projects and better serve their customers. In addition to meeting our customers' needs for essential fuels, Parkland provides a range of choices to help them lower their environmental impact, including manufacturing and blending renewable fuels, ultra-fast EV charging, a variety of solutions for carbon credits and renewables, and solar power. With approximately 4,000 retail and commercial locations across Canada, the United States and the Caribbean region, we have developed supply, distribution and trading capabilities to accelerate growth and business performance.
Our strategy is focused on two interconnected pillars: our Customer Advantage and our Supply Advantage. Through our Customer Advantage, we aim to be the first choice of our customers through our proprietary brands, differentiated offers, extensive network, competitive pricing, reliable service, and compelling loyalty program. Our Supply Advantage is based on achieving the lowest cost to serve among independent fuel marketers and distributors in the hard-to-serve markets in which we operate, through our well-positioned assets, significant scale, and deep supply and logistics capabilities. Our business is underpinned by our people and our values of safety, integrity, community and respect, which are embedded across our organization.
Forward-Looking Statements
Certain statements contained herein constitute forward-looking information and statements (collectively, "forward-looking statements"). When used the words "expect", "will", "could", "would", "believe", "continue", "pursue", "on track", "aim" and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things: business strategies, objectives and initiatives; expectation to remain on track to achieve midpoint of 2025 Adjusted EBITDA Guidance range; Parkland's ability to achieve 2025 guidance; the combined company's ability to deliver significant synergies and long-term value to stakeholders; and the Transaction, including the completion and timing thereof, and expectations respecting the trading of the SunocoCorp Units.
These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligation to publicly update or revise any forward-looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to: the completion of the Transaction, including the timing thereof and realizing the benefits resulting therefrom; Parkland's ability to successfully integrate its operations with Sunoco following the Transaction; general economic, market and business conditions; micro and macroeconomic trends and conditions, including increases in interest rates, inflation, imposition of tariffs and fluctuating commodity prices; Parkland's ability to execute its business objectives, projects and strategies, including the completion, financing and timing thereof, realizing the benefits therefrom, meeting our targets, outlook and commitments relating thereto, and the impact of the Transaction thereon; ability to remain on track to achieve the midpoint of 2025 Adjusted EBITDA Guidance range and achieve its 2025 guidance and the assumptions relating thereto; and other factors, many of which are beyond the control of Parkland and the assumptions and risks described in "Cautionary Statement Regarding Forward-Looking Information" and "Risk Factors" included in Parkland's most recently filed Annual Information Form, and in "Forward-Looking Information" and "Risk Factors" in the Q4 2024 MD&A, each as filed on SEDAR+ and available on the Parkland website at www.parkland.ca. In addition, the 2025 Adjusted EBITDA Guidance reflects continued integration of acquired businesses and synergy capture, and progression of organic growth initiatives, and key material assumptions include: market trends in line with Parkland's current expectations; expected performance from Parkland's combined retail and commercial lines of business during the 2025 financial year that is consistent with the prior year; Burnaby Refinery composite utilization of 90 to 95% based on the Burnaby Refinery's crude processing capacity of 55,000 bpd, and completion of planned maintenance, including deferral of the previously planned turnaround to 2026; and implementation of ongoing cost reductions across the business. The forward-looking statements contained in this news release are expressly qualified by these cautionary statements.
Specified Financial Measures
This news release contains total of segments measures, non-GAAP financial measures and non-GAAP financial ratios, supplementary financial measures and capital management measures (collectively, "specified financial measures"). Parkland's management uses certain specified financial measures to analyze the operating and financial performance, leverage, and liquidity of the business. These specified financial measures do not have any standardized meaning under International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards") and are therefore unlikely to be comparable to similar measures presented by other companies. The specified financial measures should not be considered in isolation or used in substitute for measures of performance prepared in accordance with the IFRS Accounting Standards. See Section 15 of the Q3 2025 MD&A, which is incorporated by reference into this news release, for further details regarding specified financial measures used by Parkland.
Non-GAAP Financial Measures and Ratios
Adjusted earnings (loss) is a non-GAAP financial measure and Adjusted earnings (loss) per share is a non-GAAP financial ratio, each representing the underlying core operating performance of business activities of Parkland at a consolidated level. The most directly comparable financial measure to Adjusted earnings (loss) and Adjusted earnings (loss) per share is Net earnings (loss).
Adjusted earnings (loss) and Adjusted earnings (loss) per share represent how well Parkland's operational business is performing, while considering depreciation and amortization, interest on leases and long-term debt, accretion and other finance costs, and income taxes. The Company uses these measures because it believes that Adjusted earnings (loss) and Adjusted earnings (loss) per share are useful for management and investors in assessing the Company's overall performance, as they exclude certain items that are not reflective of the Company's underlying business operations.
See Section 15 of the Q3 2025 MD&A, which is incorporated by reference into this news release, for the detailed definition and composition of Adjusted earnings (loss) and Adjusted earnings (loss) per share.
Please see below for the reconciliation of Adjusted earnings (loss) to net earnings (loss) and the calculation of Adjusted earnings (loss) per share.
Three months ended Nine months ended
September 30, September 30,
($ millions, unless otherwise
stated) 2025 2024 2025 2024
Net earnings (loss) 129 91 365 156
Add/(less):
Acquisition, integration and other
costs 22 61 97 137
(Gain) loss on foreign exchange -- 7 1 (2) 8
unrealized
(Gain) loss on risk management and
other -- unrealized(4) (3) (48) (51) 11
Costs related to the Sunoco
Transaction 38 -- 84 --
Other (gains) and losses (4) (1) (93) 8
Other adjusting items(1)(4) 8 7 19 33
Tax normalization(2) (17) (5) (16) (48)
Adjusted earnings (loss) 180 106 403 305
Weighted average number of common
shares (million
shares)(3) 175 174 174 175
Weighted average number of common
shares adjusted
for the effects of dilution
(million shares)(3) 177 176 176 177
Adjusted earnings (loss) per share
($ per share)
Basic 1.03 0.61 2.31 1.74
Diluted 1.02 0.60 2.29 1.72
(1) Other adjusting items for the three months ended
September 30, 2025, include: (i) the share of depreciation,
income taxes and other adjustments for investments
in joint ventures and associates of $8 million (2024
- $4 million); (ii) other income of $3 million (2024
- $3 million); and (iii) realized gains and losses
on risk management and other assets and liabilities
related to underlying physical sales activity in another
period of $3 million gain (2024 - nil). Other adjusting
items for the nine months ended September 30, 2025,
include: (i) the share of depreciation, income taxes
and other adjustments for investments in joint ventures
and associates of $21 million (2024 - $11 million);
(ii) other income of $6 million (2024 - $8 million);
(iii) realized gains and losses on risk management
and other assets and liabilities related to underlying
physical sales activity in another period of $4 million
gain (2024 - $12 million loss); (iv) adjustment to
foreign exchange gains and losses related to cash
pooling arrangements of $4 million gain (2024 - $4
million loss); and (v) realized risk management gains
related to interest rate swaps, as these gains do
not relate to commodity sale and purchase transactions,
of nil (2024 -$2 million gain).
(2) The tax normalization adjustment was applied to net
earnings (loss) adjusting items that were considered
temporary differences, such as acquisition, integration
and other costs, unrealized foreign exchange gains
and losses, unrealized gains and losses on risk management
and other, gains and losses on asset disposals, changes
in fair value of redemption options, changes in estimates
of environmental provisions, loss on inventory write-downs
for which there are offsetting associated risk management
derivatives with unrealized gains, impairments of
non-current assets and costs related to the Sunoco
Transaction. The tax impact was estimated using the
effective tax rates applicable to jurisdictions where
the related items occur.
(3) Weighted average number of common shares is calculated
in accordance with Parkland's accounting policy contained
in Note 2 of the Annual Consolidated Financial Statements.
(4) For comparative purposes, certain amounts were reclassified
between realized and unrealized gain/(loss) on risk
management with no changes to Adjusted earnings (loss)
to conform to the presentation used in the current
period.
Available cash flow is a non-GAAP financial measure and Available cash flow per share is a non-GAAP financial ratio. The most directly comparable financial measure for Available cash flow and Available cash flow per share is cash generated from (used in) operating activities. Parkland uses these measures to set targets (including annual guidance and variable compensation target) and monitor its ability to generate cash flow for capital allocation, including distributions to shareholders, investment in the growth of the business, and deleveraging. See Section 15 of the Q3 2025 MD&A, which is incorporated by reference into this news release, for the detailed definition and composition of Available cash flow and Available cash flow per share. See the following table for a calculation of historical Available cash flow and Available cash flow per share and a reconciliation to cash generated from (used in) operating activities.
Three months ended Trailing
twelve
months
ended
September
30,
2025
($ millions, unless othe December March 31, June 30, September 30,
rwise noted)
31, 2024 2025 2025 2025
Cash generated from (used
in) operating activities 462 286 502 396 1,646
Reverse: Change in other
assets and other
liabilities 80 1 (7) 22 96
Reverse: Net change in
non-cash working capital
related
to operating
activities(1) (180) 53 (87) 42 (172)
Include: Maintenance
capital expenditures (96) (62) (70) (56) (284)
Include: Dividends
received from
investments in
associates
and joint ventures 7 5 6 3 21
Include: Interest on
leases and long-term
debt (87) (89) (83) (82) (341)
Include: Payments of
principal amount on
leases (76) (77) (74) (71) (298)
Available cash flow 110 117 187 254 668
Weighted average number
of common shares
(millions)(2) 174
TTM Available cash flow
per share 3.83
Three months ended Trailing
twelve
months
ended
September
30,
2024
($ millions, unless othe December March 31, June 30, September 30,
rwise noted)
31, 2023 2024 (1) 2024 2024
Cash generated from (used
in) operating activities 417 217 450 406 1,490
Reverse: Change in other
assets and other
liabilities (4) 28 3 (68) (41)
Reverse: Net change in
non-cash working capital
related
to operating
activities(1) 17 55 (34) 21 59
Include: Maintenance
capital expenditures (93) (59) (53) (71) (276)
Include: Dividends
received from
investments in
associates
and joint ventures 3 2 8 3 16
Include: Interest on
leases and long-term
debt (88) (85) (88) (85) (346)
Include: Payments on
principal amount on
leases (71) (71) (64) (69) (275)
Available cash flow 181 87 222 137 627
Weighted average number
of common shares
(millions)(2) 175
TTM Available cash flow
per share 3.58
(1) For comparative purposes, certain amounts within
the net change in non-cash working capital related
to operating activities for the three months ended
March 31, 2024, were revised to conform to the current
period presentation.
(2) Weighted average number of common shares is calculated
in accordance with Parkland's accounting policy contained
in Note 2 of the Annual Consolidated Financial Statements.
ROIC is a non-GAAP financial ratio. The measure is calculated as a ratio of Net operating profit after tax ("NOPAT") divided by average invested capital. NOPAT describes the profitability of Parkland's base operations, excluding the impact of leverage and certain other items of income and expenditure that are not considered representative of Parkland's underlying core operating performance. NOPAT is based on Adjusted EBITDA, defined in the "Measures of Segment Profit (Loss) and Total of Segments Measures" section of this news release, less depreciation and amortization expense, including pro-forma depreciation on assets classified as held for sale, and the estimated tax expense using the expected average tax rate estimated using statutory tax rates in each jurisdiction where Parkland operates. Average invested capital is the amount of capital deployed by Parkland that represents the average of opening and closing debt, including debt liabilities classified as held for sale, as well as shareholder's equity, including equity reserves, net of cash and cash equivalents. We use this non-GAAP measure to assess Parkland's efficiency in investing capital.
($ millions, Three months ended
unless
otherwise
noted)
ROIC December March 31, June 30, September Trailing twelve
31, 2024 2025 2025 30, 2025 months ended
September 30,
2025
Net earnings
(loss) (29) 64 172 129 336
Add/(less):
Income tax
expense
(recovery) (8) 8 39 39 78
Acquisition,
integration
and other
costs 81 29 46 22 178
Depreciation
and
amortization 210 202 220 213 845
Finance cost 92 99 93 91 375
(Gain) loss on
foreign
exchange -
unrealized (2) (5) (4) 7 (4)
(Gain) loss on
risk
management
and other -
unrealized 34 3 (51) (3) (17)
Costs related
to the Sunoco
Transaction -- -- 46 38 84
Other (gains)
and losses 30 (19) (70) (4) (63)
Other
adjusting
items 20 (6) 17 8 39
Adjusted
EBITDA 428 375 508 540 1,851
Less:
Depreciation
and
amortization (210) (202) (220) (213) (845)
Less:
Pro-forma
depreciation
and
amortization
on
assets
classified as
held for sale (7) (7) 14 -- --
Adjusted EBIT 211 166 302 327 1,006
Average
effective tax
rate 21.9 %
Less: Taxes (220)
Net operating
profit after
tax 786
Opening
invested
capital 9,306
Closing
invested
capital 9,280
Average
invested
capital 9,293
Return on
invested
capital 8.5 %
Invested Capital September 30,
($ millions, unless otherwise noted) 2025 2024
Long-term debt - current portion 848 220
Long-term debt 5,569 6,104
Long-term debt in liabilities classified as held
for sale(1) 2 181
Shareholders' equity 3,267 3,164
Exclude: Cash and cash equivalents (406) (363)
Total 9,280 9,306
($ millions, Three months ended
unless
otherwise
noted)
ROIC December March 31, June 30, September Trailing twelve
31, 2023 2024 2024 30, 2024 months ended
September 30,
2024
Net earnings
(loss) 86 (5) 70 91 242
Add/(less):
Income tax
expense
(recovery) (15) (29) 20 17 (7)
Acquisition,
integration
and other
costs 42 30 46 61 179
Depreciation
and
amortization 222 206 202 207 837
Finance cost 89 91 99 96 375
(Gain) loss on -- 3 4 1 8
foreign
exchange -
unrealized
(Gain) loss on
risk
management
and other -
unrealized(2) 28 3 56 (48) 39
Other (gains)
and losses 5 10 (1) (1) 13
Other
adjusting
items(2) 6 18 8 7 39
Adjusted
EBITDA 463 327 504 431 1,725
Less:
Depreciation
and
amortization (222) (206) (202) (207) (837)
Adjusted EBIT 241 121 302 224 888
Average
effective tax
rate 19.0 %
Less: Taxes (169)
Net operating
profit after
tax 719
Opening
invested
capital 9,238
Closing
invested
capital 9,306
Average
invested
capital 9,272
Return on
invested
capital 7.8 %
Invested Capital September 30,
($ millions, unless otherwise noted) 2024 2023
Long-term debt - current portion 220 180
Long-term debt 6,104 6,227
Long-term debt in liabilities classified as held 181 --
for sale(1)
Shareholders' equity 3,164 3,259
Exclude: Cash and cash equivalents (363) (428)
Total 9,306 9,238
(1) For comparative purposes, long-term debt in liabilities
classified as held for sale were included as part
of invested capital as at September 30, 2024, to conform
to the current period presentation.
(2) For comparative purposes, certain amounts were reclassified
between realized and unrealized gain/(loss) on risk
management for the three months ended March 31, 2024,
with no changes to Adjusted EBITDA.
Food and Company C-Store SSSG is a non-GAAP financial ratio and refers to the period-over-period sales growth generated by retail food and convenience stores at the same Company sites. The effects of opening and closing stores, temporary closures (including closures for On the Run / Marché Express conversions), expansions of stores, renovations of stores, and stores with changes in food service models in the period are excluded to derive a comparable same-store metric. Same-store sales growth is a metric commonly used in the retail industry that provides meaningful information to investors in assessing the health and strength of Parkland's brands and retail network, which ultimately impacts financial performance. The most directly comparable financial measure to Food and Company C-Store SSSG is food and convenience store revenue within sales and operating revenue.
Below is a reconciliation of convenience store revenue (Food and C-Store revenue) for the Canada segment with the Food and Company C-Store same store sales ("SSS"), and the calculation of the Food and Company C-Store SSSG.
Three months ended Nine months ended
September 30, September 30,
($ millions, unless otherwise
noted) 2025 2024 %(1) 2025 2024 %(1)
Food and Company C-Store
revenue 86 82 248 242
Add:
Point-of-sale ("POS") value of
goods and services
sold at Food and Company
C-Store operated by retailers
and franchisees(2) 313 312 876 891
Less:
Rental and royalty income from
retailers, franchisees
and other(3) (64) (62) (182) (184)
Same Store revenue
adjustments(4) (excluding
cigarettes) (15) (14) (41) (38)
Food and Company C-Store
same-store sales (including
cigarettes) 320 318 0.5 % 901 911 (1.2) %
Less:
Same Store revenue
adjustments(4) (cigarettes) (102) (109) (284) (312)
Food and Company C-Store
same-store sales (excluding
cigarettes) 218 209 4.1 % 617 599 2.7 %
Three months ended Nine months ended
September 30, September 30,
($ millions, unless otherwise
noted) 2024 2023 %(1) 2024 2023 %(1)
Food and Company C-Store
revenue 82 81 242 230
Add:
Point-of-sale ("POS") value of
goods and services
sold at Food and Company
C-Store operated by
retailers(2) 314 331 895 925
Less:
Rental income from retailers
and other(3) (61) (67) (183) (186)
Same Store revenue
adjustments(4)(5) (excluding
cigarettes) (15) (13) (43) (39)
Food and Company C-Store
same-store sales (including
cigarettes) 320 332 (3.8) % 911 930 (2.2) %
Less:
Same Store revenue
adjustments(4)(5) (cigarettes) (109) (118) (309) (331)
Food and Company C-Store
same-store sales (excluding
cigarettes) 211 214 (1.1) % 602 599 0.3 %
(1) Percentages are calculated based on actual amounts
and are impacted by rounding.
(2) POS values used to calculate Food and Company C-Store
SSSG are not a Parkland financial measure and do not
form part of Parkland's consolidated financial statements,
as Parkland earns rental income from retailers in
the form of a percentage rent on convenience store
sales. POS values are calculated based on the information
obtained from Parkland's POS systems at retail sites,
including transactional data, such as sales, costs,
and volumes, which are subject to internal controls
over financial reporting. We also use this data to
calculate rental income from retailers in the form
of a percentage rent on convenience store sales, which
is recorded as revenue in our consolidated financial
statements.
(3) Includes rental income from retailers in the form
of a percentage rent on Food and Company C-Store sales,
royalty, and franchisee fees and excludes revenues
from automated teller machines, POS system licensing
fees, and other.
(4) This adjustment excludes the effects of acquisitions,
opening and closing stores, temporary closures (including
closures for On the Run / Marché Express conversions),
expansions of stores, renovations of stores, and stores
with changes in food service models, to derive a comparable
same-store metric.
(5) Excludes sales from acquisitions completed within
the year as these will not impact the metric until
after the completion of one year of the acquisitions
when the sales or volume generated establishes the
baseline for these metrics.
These non-GAAP financial measures and ratios should not be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS Accounting Standards. Except as otherwise indicated, these non-GAAP financial measures and ratios are calculated and disclosed on a consistent basis from period to period. See Section 15 of the Q3 2025 MD&A, which is incorporated by reference into this news release, for further details regarding Parkland's non-GAAP financial measures and ratios.
Capital Management Measures
Parkland's primary capital management measure is the Leverage Ratio, which is used internally by key management personnel to monitor Parkland's overall financial strength, capital structure flexibility, and ability to service debt and meet current and future commitments. In order to manage its financing requirements, Parkland may adjust capital spending or dividends paid to shareholders or issue new shares or new debt. The Leverage Ratio is calculated as a ratio of Leverage Debt to Leverage EBITDA and does not have any standardized meaning prescribed under IFRS Accounting Standards. It is, therefore, unlikely to be comparable to similar measures presented by other companies. The detailed calculation of the Leverage Ratio is as follows:
($ millions, unless otherwise noted) September 30, 2025 December 31, 2024
Leverage Debt 4,937 5,268
Leverage EBITDA 1,571 1,481
Leverage Ratio 3.1 3.6
($ millions, unless otherwise noted) September 30, 2025 December 31, 2024
Long-term debt 6,417 6,641
Less:
Lease obligations (1,091) (1,054)
Cash and cash equivalents (406) (385)
Non-recourse debt(1) (73) (30)
Risk management liability (asset)(2) (10) (30)
Add:
Non-recourse cash(1) 30 31
Letters of credit and other 70 95
Leverage Debt 4,937 5,268
(1) Represents non-recourse debt and non-recourse cash
balance related to project financing.
(2) Represents the risk management asset/liability associated
with the spot element of the cross-currency swap designated
in a cash flow hedge relationship to hedge the variability
of principal cash flows of the 2024 Senior Notes resulting
from changes in the spot exchange rates.
Three months ended Trailing
twelve
months
ended
September
30, 2025
($ millions, unless othe December 31, March 31, June 30, September 30,
rwise noted)
2024 2025 2025 2025
Adjusted EBITDA 428 375 508 540 1,851
Share incentive
compensation 11 8 7 7 33
Reverse: IFRS 16
impact(1) (91) (93) (90) (87) (361)
348 290 425 460 1,523
Acquisition pro-forma 2
adjustment(2)
Other adjustments(3) 46
Leverage EBITDA 1,571
(1) Includes the impact of operating leases prior to
the adoption of IFRS 16, previously recognized under
operating costs, which aligns with management's view
of the impact of earnings.
(2) Includes the impact of pro-forma pre-acquisition
EBITDA estimates based on anticipated benefits, costs
and synergies from acquisitions.
(3) Includes adjustments to normalize Adjusted EBITDA
for non-recurring events relating to the unplanned
shutdown at the Burnaby Refinery, completion of turnarounds
at the Burnaby Refinery and the EBITDA attributable
to EV charging operations financed through non-recourse
project financing.
Three months ended Trailing
twelve
months
ended
December
31, 2024
($ millions, unless othe March 31, June 30, September December
rwise noted)
2024 2024 30, 2024 31, 2024
Adjusted EBITDA 327 504 431 428 1,690
Share incentive
compensation 6 8 6 11 31
Reverse: IFRS 16
impact(1) (83) (80) (84) (91) (338)
250 432 353 348 1,383
Acquisition pro-forma
adjustment(2) 11
Other adjustments(3) 87
Leverage EBITDA 1,481
(1) Includes the impact of operating leases prior to
the adoption of IFRS 16, previously recognized under
operating costs, which aligns with management's view
of the impact of earnings.
(2) Includes the impact of pro-forma pre-acquisition
EBITDA estimates based on anticipated benefits, costs
and systems from acquisitions.
(3) Includes adjustments to normalize Adjusted EBITDA
for non-recurring events relating to the unplanned
shutdowns at the Burnaby Refinery and the EBITDA attributable
to EV charging operations financed through non-recourse
project financing.
Measures of Segment Profit (Loss) and Total of Segments Measures
Adjusted earnings (loss) before interest, taxes, depreciation and amortization ("Adjusted EBITDA") is a measure of segment profit (loss) and its aggregate is a total of segments measure used by the chief operating decision maker to make decisions about resource allocation to the segment and to assess its performance. In accordance with IFRS Accounting Standards, adjustments and eliminations made in preparing an entity's financial statements and allocations of revenue, expenses, and gains or losses shall be included in determining reported segment profit (loss) only if they are included in the measure of the segment's profit (loss) that is used by the chief operating decision maker. As such, Parkland's Adjusted EBITDA is unlikely to be comparable to measures of segment profit (loss) presented by other issuers, who may calculate these measures differently. Parkland views Adjusted EBITDA as the key measure for the underlying core operating performance of business segment activities at an operational level. Adjusted EBITDA is used by management to set targets for Parkland (including annual guidance and variable compensation targets) and is used to determine Parkland's ability to service debt, finance capital expenditures and provide for dividend payments to shareholders. See Section 15 of the Q3 2025 MD&A, which is incorporated by reference into this news release, for the detailed definition and composition of Adjusted EBITDA. Refer to the table below for the reconciliation of Adjusted EBITDA to net earnings (loss), which is the most directly comparable financial measure, for the three and nine months ended September 30, 2025 and September 30, 2024.
Three months ended Nine months ended
September 30, September 30,
($ millions) 2025 2024 2025 2024
Adjusted EBITDA(1) 540 431 1,423 1,262
Less/(add):
Acquisition, integration and other
costs 22 61 97 137
Depreciation and amortization 213 207 635 615
Finance costs 91 96 283 286
(Gain) loss on foreign exchange -- 7 1 (2) 8
unrealized
(Gain) loss on risk management and
other -- unrealized(4) (3) (48) (51) 11
Costs related to the Sunoco
Transaction 38 -- 84 --
Other (gains) and losses(2) (4) (1) (93) 8
Other adjusting items(3)(4) 8 7 19 33
Income tax expense (recovery) 39 17 86 8
Net earnings (loss) 129 91 365 156
(1) Total of segments measure. See Section 15 of the
Q3 MD&A.
(2) Other (gains) and losses for the three months ended
September 30, 2025, include: (i) $3 million gain (2024
- $24 million loss) in others; (ii) $3 million (2024
- $3 million) in other income; (iii) $1 million non-cash
valuation loss (2024 - $5 million loss) due to the
change in estimates of environmental provisions; (iv)
$1 million loss (2024 - $2 million gain) on disposal
of assets; and (v) nil non-cash valuation (2024 -
$25 million gain) due to change in fair value of redemption
options. Other (gains) and losses for the nine months
ended September 30, 2025, include: (i) $76 million
non-cash valuation gain (2024 - $1 million gain) due
to change in fair value of redemption options; (ii)
$10 million (2024 - $8 million) in other income; (iii)
$3 million gain (2024 -$33 million loss) in others;
(iv) $3 million non-cash valuation gain (2024 - $11
million gain) due to the change in estimates of environmental
provisions; and (v) $1 million gain (2024 - $5 million
gain) on disposal of assets.
(3) Other adjusting items for the three months ended
September 30, 2025, include: (i) the share of depreciation,
income taxes and other adjustments for investments
in joint ventures and associates of $8 million (2024
- $4 million); (ii) other income of $3 million (2024
- $3 million); and (iii) realized gains and losses
on risk management and other assets and liabilities
related to underlying physical sales activity in another
period of $3 million gain (2024 - nil). Other adjusting
items for the nine months ended September 30, 2025,
include: (i) the share of depreciation, income taxes
and other adjustments for investments in joint ventures
and associates of $21 million (2024 - $11 million);
(ii) other income of $6 million (2024 - $8 million);
(iii) realized gains and losses on risk management
and other assets and liabilities related to underlying
physical sales activity in another period of $4 million
gain (2024 - $12 million loss); (iv) adjustment to
foreign exchange gains and losses related to cash
pooling arrangements of $4 million gain (2024 - $4
million loss); and (v) realized risk management gains
related to interest rate swaps, as these gains do
not relate to commodity sale and purchase transactions,
of nil (2024 -$2 million gain).
(4) For comparative purposes, certain amounts were reclassified
between realized and unrealized gain/(loss) on risk
management for the nine months ended September 30,
2024, with no changes to Net earnings (loss).
Supplementary Financial Measures
Parkland uses a number of supplementary financial measures, including TTM Cash generated from (used in) operating activities, TTM Cash generated from (used in) operating activities per share, liquidity available and Adjusted EBITDA Guidance and Capital Expenditure Guidance, to evaluate the success of our strategic objectives. These measures may not be comparable to similar measures presented by other issuers, as other issuers may calculate these measures differently. See Section 15 of the Q3 2025 MD&A, which is incorporated by reference into this news release, for further details regarding supplementary financial measures used by Parkland, including the composition of such measures.
Non-Financial Measures
Parkland uses a number of non-financial measures, including Company SSVG, composite utilization and total recordable injury frequency rate, to measure the success of our strategic objectives and to set variable compensation targets for employees, where applicable. These non-financial measures are not accounting measures, do not have comparable IFRS Accounting Standards measures, and may not be comparable to similar measures presented by other issuers, as other issuers may calculate these metrics differently. See Section 15 of the Q3 2025 MD&A, which is incorporated by reference into this news release, for further details on the non-financial measures used by Parkland.
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October 27, 2025 07:48 ET (11:48 GMT)