Superior Plus Corp. (TSE:SPB)
TSX:SPB
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Superior Plus
(TSX:SPB)
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Rating:54Neutral
Price Target:
C$6.50
â–¼(-5.93% Downside)
Action:ReiteratedDate:02/23/26
The score is driven by solid 2025 cash flow and improved operating momentum, but is constrained by high leverage and a weak technical trend (price below major moving averages). Valuation is also a drag due to a very high P/E, while the earnings call was mixed with modest 2026 growth guidance but a downgraded multi-year outlook and delayed transformation benefits.
Positive Factors
Strong cash generation
Sustained operating and free cash flow in 2025 provides durable capacity to fund working capital, reinvest in logistics, service debt, and support targeted buybacks. Strong FCF improves resilience through seasonal cycles and gives management flexibility for strategic priorities.
Negative Factors
High and rising leverage
Elevated debt levels reduce financial flexibility and increase sensitivity to EBITDA shocks. High leverage limits the company's ability to invest or absorb commodity/seasonal swings, constrains optionality on buybacks vs. deleveraging, and raises refinancing and covenant risks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sustained operating and free cash flow in 2025 provides durable capacity to fund working capital, reinvest in logistics, service debt, and support targeted buybacks. Strong FCF improves resilience through seasonal cycles and gives management flexibility for strategic priorities.
Read all positive factors
Superior Plus (SPB) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.50B
Dividend Yield2.54%
Average Volume (3M)554.97K
Price to Earnings (P/E)18.8
Beta (1Y)0.17
Revenue Growth6.58%
EPS Growth9.33%
CountryCA
Employees4,261
SectorUtilities
Sector Strength65
IndustryRegulated Gas
Share Statistics
EPS (TTM)0.38
Shares Outstanding217,281,400
10 Day Avg. Volume527,723
30 Day Avg. Volume554,972
Financial Highlights & Ratios
PEG Ratio-0.05
Price to Book (P/B)1.45
Price to Sales (P/S)0.47
P/FCF Ratio5.34
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$7.80Price Target Upside12.88% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)0.37
Revenue Forecast (FY)C$2.50B
Superior Plus Business Overview & Revenue Model
Company Description
Superior Plus Corp. engages in the energy distribution business. It operates through two segments, U.S. Propane Distribution and Canadian Propane Distribution. The U.S. Propane Distribution segment distributes and sells propane, heating oil, and o...
How the Company Makes Money
Superior Plus generates revenue through multiple streams, primarily from the sale of propane and heating oil to residential and commercial customers. The company operates a network of distribution centers and storage facilities that allow it to ef...
Superior Plus Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 19, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: the company delivered modest consolidated EBITDA growth, materially improved per-share metrics via aggressive buybacks, reduced capex and costs, and achieved operational wins (record Certarus volumes, new hubs/contracts). However, significant headwinds remain — primarily CNG wellsite pricing pressure (a reported $40M impact), a downgraded multi-year growth outlook (3-year CAGR trimmed to ~2%), and execution challenges in propane delivery that delayed realization of transformation benefits (Superior Delivers timeline extended to three years). Management retains confidence in the long-term plan but acknowledges near-term revenue/EBITDA pressure and extended timelines.Positive Updates
Modest Consolidated EBITDA Growth
Full year adjusted EBITDA was $463.5M, up ~2% versus prior year; Q4 adjusted EBITDA was $161.9M, up 2% year-over-year.
Negative Updates
CNG Pricing Pressure and Gross Margin Headwind
Wellsite pricing deterioration created roughly a $40M gross margin headwind in 2025. Certarus full-year adjusted EBITDA declined ~4% to $142.5M; Q4 CNG EBITDA was $34.3M, down 13% YoY.
Read all updates
Q4-2025 Updates
Positive
Negative
Modest Consolidated EBITDA Growth
Full year adjusted EBITDA was $463.5M, up ~2% versus prior year; Q4 adjusted EBITDA was $161.9M, up 2% year-over-year.
Read all positive updates
Company Guidance
Management guided 2026 consolidated adjusted EBITDA to grow roughly 2% year-over-year, driven by propane growth of about 3–8% (assuming warmer weather in line with the 5‑year average) and a Superior Delivers contribution of ~US$50M in 2026 (up from ~US$16.2M in 2025), while Certarus (CNG) is expected to see adjusted EBITDA decline about 4–9% for the year (with the hit occurring in Q1 — Q1 EBITDA forecast flat to Q4‑25 or down ~30–35% vs Q1‑25, then growth in the next three quarters); 2026 capex (including lease additions) is ~US$160M (vs ~US$140M in 2025), year‑end 2025 leverage was 4.0x (management targets ~3.8x–3.5x toward 2027 depending on buybacks vs debt repayment), share repurchases may be reduced to ~US$50–100M in 2026 as capital shifts toward partly preparing to redeem the US$260M convertible preferred in mid‑2027 (conversion price ≈ CAD12; potential ~30M share dilution if not redeemed), the prior 3‑year EBITDA CAGR outlook was cut to ~2% (2024–2027) from ~8%, the US$75M Superior Delivers run‑rate is now expected to be fully realized in 2028, and the prior US$1.00–1.10 free cash flow target has been pushed out.Superior Plus Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
48
Neutral
Cash Flow
73
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.44B | 2.27B | 2.53B | 2.52B | 1.88B |
| Gross Profit | 1.45B | 972.74M | 965.10M | 708.68M | 557.74M |
| EBITDA | 640.66M | 372.80M | 428.57M | 151.51M | 300.51M |
| Net Income | 84.96M | -35.03M | 38.85M | -83.84M | 143.43M |
Balance Sheet | |||||
| Total Assets | 4.92B | 3.69B | 5.17B | 4.48B | 3.56B |
| Cash, Cash Equivalents and Short-Term Investments | 32.62M | 60.38M | 48.30M | 58.40M | 81.00M |
| Total Debt | 2.70B | 1.87B | 2.48B | 2.15B | 1.63B |
| Total Liabilities | 3.46B | 2.54B | 3.40B | 3.02B | 2.25B |
| Stockholders Equity | 1.11B | 885.80M | 1.43B | 1.11B | 983.60M |
Cash Flow | |||||
| Free Cash Flow | 299.58M | 113.70M | 349.80M | 131.40M | 126.90M |
| Operating Cash Flow | 459.57M | 274.10M | 550.00M | 248.70M | 232.00M |
| Investing Cash Flow | -132.60M | -142.10M | -467.10M | -632.10M | 172.00M |
| Financing Cash Flow | -317.32M | -144.70M | -99.70M | 410.90M | -399.60M |
Superior Plus Technical Analysis
Neutral
6.91
Price Trends
7.02
Negative
7.14
Negative
7.37
Negative
Market Momentum
>-0.01
Negative
52.54
Neutral
69.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SPB, the sentiment is Neutral. The current price of 6.91 is above the 20-day moving average (MA) of 6.71, below the 50-day MA of 7.02, and below the 200-day MA of 7.37, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.54 is Neutral, neither overbought nor oversold. The STOCH value of 69.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:SPB.
Superior Plus Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | C$15.11B | 16.39 | 9.01% | 2.99% | -0.68% | 49.61% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
58 Neutral | C$13.20B | 97.60 | 8.84% | 4.33% | -0.94% | 25.64% | |
54 Neutral | C$1.50B | 18.82 | 8.15% | 2.54% | 6.58% | 9.33% | |
54 Neutral | C$6.87B | 42.21 | 3.20% | 3.62% | 7.75% | 11.25% | |
51 Neutral | C$5.34B | -37.36 | -8.84% | 1.46% | -11.00% | -227.07% | |
51 Neutral | C$6.59B | 25.55 | 3.88% | 4.32% | -4.72% | 96.98% |
* Utilities Sector Average
TSE:SPB
Superior Plus
6.89
0.52
8.13%
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TransAlta
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48.55
10.72
28.33%
TSE:ACO.X
ATCO Ltd Cl I NV
68.10
19.99
41.56%
TSE:CU
Canadian Utilities A
48.50
13.38
38.11%
TSE:AQN
Algonquin Power & Utilities
8.57
1.41
19.76%
Superior Plus Corporate Events
Business Operations and StrategyDividends
Superior Plus Maintains Payout With Q1 2026 Dividend Declaration
Positive
Feb 20, 2026
Superior Plus Corp. has declared a quarterly dividend of CAD $0.045 per common share for the first quarter of 2026, payable on April 15 to shareholders of record as of March 31. The announcement maintains the company’s annualized cash divide...
Business Operations and StrategyFinancial Disclosures
Superior Plus Sets February Dates for 2025 Year-End Results and Investor Call
Neutral
Jan 16, 2026
Superior Plus Corp. announced it will release its 2025 fourth quarter and year-end financial results after markets close on February 19, 2026, followed by a conference call and webcast with investors and analysts on the morning of February 20, 202...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.