Superior Raises Medium-Term Growth Outlook; Announces Q1 2026 Results

All dollar amounts are in USD unless otherwise noted and changes in performance are relative to comparable period of 2025 unless otherwise noted

• Superior is increasing its expected 2027 Adjusted EBITDA growth rate to 5% from 2% reflecting the signing of multiple new agreements to provide delivered energy to hyperscale data center projects; Superior continues to expect 2% growth in 2026 Adjusted EBITDA
• Certarus is also commissioning a new CNG supply hub in Utah and has been awarded a contract to serve as the primary natural gas supply for a hyperscale data center project in the area
• Adjusted EBITDA⁽¹⁾ in North American Propane was $214.6 million in the first quarter of 2026, generating modest growth compared to a strong Q1 2025
• Adjusted EBITDA in CNG was $38.4 million, a decrease consistent with management’s expectations; CNG is well positioned for future growth
• Adjusted EBTDA per share⁽¹⁾ of $0.91 increased 2% primarily because of the company’s share repurchase program
• The company has repurchased approximately 34 million common shares, representing approximately 14% of its outstanding common shares since November 2024. While management continues to view the company’s shares as exceptional value, Superior is strategically shifting capital allocation priorities from share repurchases to accretive investments in Certarus’ growing data center business, as its pipeline of opportunities continues to expand

⁽¹⁾ Adjusted EBITDA, Adjusted EBTDA per share and Free Cash Flow per share are Non-GAAP Financial Measures. See “Non-GAAP Financial Measures and Ratios” section below.

TORONTO--(BUSINESS WIRE)--Superior Plus Corp. (“Superior” or “the company”) (TSX: SPB) today released its first quarter results for the period ended March 31, 2026.

The results for the quarter saw modest growth in propane with an anticipated temporary decline in the CNG business.

“We’re pleased with our first quarter performance, which reflects the commitment of our teams across North America to serving customers safely through a challenging winter,” said Allan MacDonald, President and Chief Executive Officer. “In propane, we continued to modernize our operations, advancing delivery systems and technology that are improving visibility and execution across the network.”

The company also announced revised guidance, following the signing of multiple new agreements to provide delivered energy to hyperscale data center projects. In addition, Certarus announced plans to open a new hub in Salt Lake City, Utah.

“In CNG, we are seeing unprecedented growth in the total addressable market for delivered energy across North America,” continued MacDonald. “The more than $350 million in contracts signed in the past 9 months represents the largest period of contract commitments in Certarus’ history. Delivered energy is now well established as an important enabler of hyperscale data center development, and Certarus is the market leader, providing safe, scalable solutions to customers across all geographies.”

Segmented Information

Three Months Ended
March 31
(millions of dollars)	2026	2025
U.S. Propane Adjusted EBITDA^(1)	158.7	163.6
Canadian Propane Adjusted EBITDA^(1)	55.9	49.1
CNG Adjusted EBITDA^(1)	38.4	55.1
Adjusted EBITDA from Operations^(1)	253.0	267.8
Corporate Operating Costs^(1)	(7.1)	(7.3)
Adjusted EBITDA^(1)	245.9	260.5
^(1) Adjusted EBITDA from operations, Corporate Operating Costs and Adjusted EBITDA are Non-GAAP Financial Measures. See “Non-GAAP Financial Measures and Ratios” section below.

Financial Overview
	Three Months Ended
	March 31
(millions of dollars, except per share amounts)		2026		2025
Revenue		897.4		1,008.4
Gross Profit		492.4		498.9
Net earnings for the period		126.9		146.4
Net earnings for the period attributable to Superior per share, basic and diluted	$	0.50	$	0.54
Adjusted Net earnings per share^(1)(2)	$	0.68	$	0.67
Adjusted EBITDA from operations^(1)		253.0		267.8
Adjusted EBITDA^(1)		245.9		260.5
Adjusted EBITDA per share^(1)(3)	$	1.00	$	0.98
Adjusted EBTDA per share^(1)(3)	$	0.91	$	0.89
Free Cash Flow per share^(1)(2)	$	0.87	$	0.94
Cash dividends declared per share on common shares	C$	0.045	C$	0.045
^(1) Adjusted EBITDA from operations, Adjusted EBITDA, Adjusted EBTDA per share, Adjusted Net Earnings (loss) per share and Free Cash Flow per share are Non-GAAP Financial Measures. See “Non-GAAP Financial Measures and Ratios” section below.
^(2) The basic weighted average number of outstanding shares for the three months ended March 31, 2026, was 216.4 million (three months ended March 31, 2025, was 235.6 million). The preferred share dividends are deducted from the numerator in this calculation.
^(3) The diluted weighted average number of outstanding shares for the three months ended March 31, 2026, was 246.4 million (three months ended March 31, 2025, was 265.6 million). The diluted weighted average number of shares assumes the exchange of the issued and outstanding preferred shares into common shares. There were no other dilutive instruments for the three months ended March 31, 2026, and 2025.

Updated Outlook

• Given CNG’s growing data center business, Superior plans to invest an additional $70 million of capital in 2026, bringing total expected capital expenditures in 2026 from approximately $160 million to $230 million. Recently announced data center work is expected to begin contributing to EBITDA in 2027; as a result, the company is making no changes to its 2026 EBITDA guidance, however is modestly increasing its expected EBITDA growth from 2026 to 2027 to approximately 5% based on the recently signed data center contracts
• 2027 capital allocation decisions remain under consideration, however the assumptions underlying the previously disclosed compound annual free cash flow growth rate of 20-25% from 2024 to 2027 have changed given the anticipated capital expenditures related to recently awarded data center contracts. As a result, the company is withdrawing its previous free cash flow growth rate guidance for the 2024-2027 timeframe as management views the most attractive use of capital to be reinvestment in CNG
• Additional key assumptions for the above forward-looking information can be found under the “Financial Outlook” section in Superior’s 2026 First Quarter MD&A

Propane Distribution Results and Superior Delivers (changes in performance are relative to the same period of 2025)

• Q1 Adjusted EBITDA⁽¹⁾ across propane operations increased $1.9 million, or 1%, driven by a more efficient cost structure and favourable currency, offset by lower volumes
• Superior Delivers contributed $12.0 million to Adjusted EBITDA⁽¹⁾ in Q1 and remains on track to contribute $50 million during 2026, with the largest contribution expected in Q4, and to contribute at least $75 million in 2028
• Within the Cost-to-Serve pillar, the scheduling optimization tool remains the focus and is expected to contribute to EBITDA growth in 2026, primarily during the peak delivery season that begins later in the year
• Within the Wholesale Advantage pillar, the company continues to optimize propane procurement which is expected to contribute to EBITDA growth this year

CNG Results (changes in performance are relative to the same period in 2025)

• Q1 Adjusted EBITDA⁽¹⁾ decreased 30% to $38.4 million driven by lower ancillary revenue from utility winter standby services and reduced wellsite pricing from the year-ago period
• Q1 volumes of 9,382,000 MMBtu increased 6%, a new record for the division. Volume growth was driven by business expansion with industrial power, industrial mining, and wellsite customers
• In Q1, operating costs per MMBtu increased 2% primarily due to increased use of third-party trucking services partially offset by reduced repair and maintenance costs
• In May, Certarus announced it is commissioning a new CNG supply hub in Utah and has been awarded a contract to serve as the primary natural gas supply for a hyperscale data center project in the area. Operations at its Utah facility, along with gas supply to the data center, are expected to commence this month
• From the beginning of the year through today’s release, Certarus has secured four new gas supply agreements for prime power generation at new data center and related cloud infrastructure manufacturing facilities. The project pipeline continues to expand with demand growing at a faster rate than available power and fuel

Common Share Repurchases

• For the quarter ended March 31, 2026, Superior repurchased 2% of the outstanding common shares, or 4.2 million shares for C$29.6 million at a volume weighted average cost of approximately C$7.03 per common share
• Since November 2024, the company has repurchased approximately 34 million shares or 14% of its outstanding common shares for approximately C$233 million at an average price below C$7.00
• As at March 31, 2026, Superior has 214.6 million common shares issued and outstanding compared to 232.2 million on March 31, 2025
• While management continues to view the company’s shares as exceptional value, Superior is strategically shifting capital allocation priorities from share repurchases to accretive investments in Certarus’ growing data center business

Quarterly Dividend

• Superior is declaring a quarterly common share dividend of C$0.045 per share, payable to shareholders of record as of June 30, 2026. The common share dividend will be payable on July 15, 2026

Debt, Leverage and the Preferred Shares Outstanding

• The Company’s Q1 2026 leverage ratio of 3.9x increased modestly from 3.7x at Q1 2025, but declined from 4.0x in Q4 2025, reflecting seasonally lower net debt balances, partially offset by lower Adjusted EBITDA
• Given the increased capital investment and EBITDA growth related to CNG, the company expects to achieve a leverage ratio of approximately 3.9x by the end of 2026 and continues to expect 3.5x by the end of 2027
• If the company were to redeem its preferred shares using incremental debt, its 2027 targeted leverage ratio would increase by approximately 0.5x
• Superior remains committed to reducing leverage towards 3.0x over time to preserve financial flexibility and support future growth

^(1) Adjusted EBITDA and Leverage Ratio are Non-GAAP Financial Measures. See “Non-GAAP Financial Measures and Ratios” section below.

MD&A and Financial Statements

Superior’s MD&A and the unaudited condensed Consolidated Financial Statements as at and for the quarter ended March 31, 2026, provide a detailed explanation of Superior’s operating results. These documents are available online on Superior’s website at Superior Plus Financial Reports and on Superior’s profile at SEDAR+.

2026 First Quarter Conference Call

A conference call and webcast to discuss the 2026 first quarter financial results will be held at 8:30 AM EDT on Thursday, May 14, 2026. To register as a participant, please use the following link: Register Here. The webcast will be available for replay on Superior's website at: https://www.superiorplus.com/ under the Events section.

About Superior Plus

Superior is a North American distributor and marketer of propane, compressed natural gas (“CNG”), hydrogen and related products and services, and transports renewable natural gas (“RNG”) from production facilities to natural gas distribution networks. The company is headquartered in Toronto, Ontario, and trades on the Toronto Stock Exchange (“TSX”) under the symbol SPB. Superior has approximately 4,400 employees located in Canada and the United States.

Forward-Looking Information

This news release contains information or statements that are or may be “forward-looking statements” within the meaning of applicable Canadian securities laws. When used in this presentation, the words “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “predict”, “forecast”, “project”, “intend”, “target”, “potential”, “continue” or the negative of these terms or terminology of a similar nature as they relate to Superior or an affiliate/subsidiary of Superior are intended to identify forward-looking statements. Forward-looking statements in this news release include, without limitation, information and statements relating to: Superior’s future financial position, the anticipated initiatives, impact of, and our ability to successfully execute on the Superior Delivers transformation, expected 2026 Adjusted EBITDA growth, expected Adjusted EBITDA growth from 2026 to 2027, expected 2026 Adjusted EBITDA of $50 million attributable to Superior Delivers initiatives in 2026 and $75+ million by 2028, commissioning and commencement of operations at a new CNG supply hub, expected Adjusted EBITDA contribution from CNG data center contracts beginning in 2027, increase in allocation of capital to capital expenditures, in connection with CNG data center contracts, expected pause in share repurchases, expected Leverage Ratio at the end of 2026 and 2027 and the estimated impact on leverage related to a potential redemption of Superior’s $260 million preferred shares in 2027 and capital investment in CNG.

Forward-looking information is provided to provide information about management’s expectations and plans for the future and may not be appropriate for other purposes. Forward-looking information herein is based on various assumptions, and expectations that Superior believes are reasonable in the circumstances, including the assumptions referenced in this press release as well as assumptions about our ability to execute on the goals and targets of the Superior Delivers transformation, including $40 million in Adjusted EBITDA growth from cost-to-serve improvements, $30 million in Adjusted EBITDA growth from customer growth initiatives; and $5 million in Adjusted EBITDA growth from the company’s wholesale business activities, in each case, from 2025 to 2028; the anticipated revenue, capital requirements and timing of projects associated with CNG data center contracts; timing of operations commencing at a new CNG supply hub; foreign exchange rates; competition; expected average weather; interest rates remaining flat with the current level; number and average acquisition price of common shares repurchased; management’s estimates and expectations in relation to future economic and business conditions and the resulting impact on growth and accretion in various financial metrics; the absence of significant undisclosed costs or liabilities associated with acquisitions; and other assumptions disclosed in Superior’s 2026 Q1 MD&A available at SEDAR+ at www.sedarplus.ca and on Superior’s website at http://www.superiorplus.com/investor-relations/financial-reports/. No assurance can be given that these assumptions and expectations will prove correct. Those assumptions and expectations are based on information currently available to Superior, including information obtained from third-party industry analysts and other third-party sources, and the historic performance of Superior’s businesses and businesses it has acquired. Superior cautions that the assumptions used to prepare such forward-looking information, including estimated financial guidance, could prove to be incorrect or inaccurate.

The forward-looking information is also subject to the risks and uncertainties set forth below. By its very nature, forward-looking information involves numerous assumptions, risks and uncertainties, both general and specific. Should one or more of these risks and uncertainties materialize or should underlying assumptions prove incorrect, as many important factors are beyond our control, Superior’s actual performance and financial results may vary materially from those estimates and expectations contemplated, expressed or implied in the forward-looking information. These risks and uncertainties include the success and of, and timing to achieve, the initiatives being pursued pursuant to the Superior Delivers program, ongoing capital requirements of the businesses, anticipated completion and related timing of data center projects serviced by the CNG business, anticipated timing of operations commencing at a new CNG supply hub, weather differing materially from the five year average weather, market conditions, demand and competition for CNG in jurisdictions where CNG operates, economic activity in the oil and gas sector, commodity prices, risks relating to incorrect assessments of value when making acquisitions, failure to realize expected cost-savings and synergies from acquisitions, increases in debt service charges, the loss of key personnel, fluctuations in foreign currency and exchange rates, fluctuations in commodity prices, increasing rates of inflation, inadequate insurance coverage, liability for cash taxes, counterparty risk, compliance with environmental laws and regulations, reduced customer demand, operational risks involving our facilities and equipment, force majeure, labour relations matters, our ability to access external sources of debt and equity capital, and the risks identified in (i) our 2026 Q1 MD&A under the heading “Risk Factors” and (ii) Superior’s most recent Annual Information Form. The preceding list of assumptions, risks and uncertainties is not exhaustive.

When relying on our forward-looking information to make decisions with respect to Superior, investors and others should carefully consider the preceding factors, other uncertainties and potential events. Any forward-looking information is provided as of the date of this document and, except as required by law, Superior does not undertake to update or revise such information to reflect new information, subsequent or otherwise. For the reasons set forth above, investors should not place undue reliance on forward-looking information.

The estimates and targets regarding Superior’s future financial performance, including, but not limited to, estimated target of incremental Adjusted EBITDA of $75+ million from the Superior Delivers transformation by 2028, are provided herein to assist readers in understanding Superior’s estimated and targeted financial results, and such information may not be appropriate for other purposes. Superior and its management believe that such information has been prepared based on assumptions that are reasonable in the circumstances, reflecting management’s best estimates and judgements, and represents, to the best of management’s knowledge and opinion, Superior’s estimated and targeted financial results. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results.

Non-GAAP Financial Measures and Ratios

Throughout this news release, Superior has identified specific terms, including ratios, that it uses that are not standardized measures under International Financial Reporting Standards (“Non-GAAP Financial Measures”) and therefore may not be comparable to similar financial measures disclosed by other issuers. Information to reconcile these Non-GAAP Financial Measures to the most directly comparable financial measures in Superior’s condensed consolidated financial statements as at and for the three months ended March 31, 2026 (“Q1 2026 Financial Statements”) is provided below. Certain additional disclosures for these Non-GAAP Financial Measures, including an explanation of the composition of these financial measures, how they provide helpful information to an investor, and any additional purposes management uses for them, are incorporated by reference from the “Non-GAAP Financial Measures and Reconciliations” section in Superior’s 2026 First Quarter MD&A dated May 13, 2026, available on www.sedarplus.com.

Adjusted EBITDA is consistent with the Segment profit (loss) disclosed in Note 18 Reportable Segment Information of the Financial Statements. Adjusted EBITDA from operations is the sum of U.S. Propane, Canadian Propane, and CNG Segment profit (loss). Adjusted EBITDA per share is calculated by dividing Adjusted EBITDA by the weighted average outstanding shares assuming the exchange of the issued and outstanding preferred shares into common shares.

Adjusted EBTDA is calculated as Adjusted EBITDA less interest on borrowings and interest on lease liability. Adjusted EBTDA per share is calculated by dividing Adjusted EBTDA by the weighted average outstanding shares assuming the exchange of the issued and outstanding preferred shares into common shares.

Corporate Operating Costs are defined as Corporate Segment profit (loss) disclosed in Note 18 Reportable Segment Information of the condensed consolidated financial statements for the quarter ended March 31, 2026.

Capital Expenditures are inclusive of purchases of property, plant and equipment and intangible assets and lease additions.

Leverage Ratio is determined by dividing Superior’s Net Debt ($1,749.0 million) by its Adjusted EBITDA ($448.9 million), both components are Non-GAAP Financial Measures.

Free Cash Flow per share for Q1 2026 is calculated as Segment Profit (Loss) ($245.9 million) less interest expense ($21.2 million), taxes paid ($3.5 million), capital expenditures ($24.8 million), transaction, restructuring and other costs ($3.4 million) and the preferred share dividend paid in the period ($4.7 million). Free Cash Flow per share is calculated by dividing Free Cash Flow by the weighted average common outstanding shares. This calculation excludes changes in non-cash operating working capital and other, which can fluctuate meaningfully and from quarter to quarter and can therefore detract from the purpose of the metric which is to demonstrate the performance from the underlying operations.

Adjusted Net Earnings for Q1 2026 is calculated as segment profit for the period ($245.9 million) and adjusting for depreciation and amortization ($64.6 million), current taxes ($7.6 million), gain (loss) on disposal ($0.4 million), finance expense ($22.4 million) and the preferred share dividend paid in the period ($4.7 million). Adjusted Net Earnings per share is calculated by dividing Adjusted Net Earnings by the weighted average common shares outstanding.