Parkland Corporation announces 2025 guidance
Parkland Corporation announced its 2025 guidance reaffirming its 2028 ambitions and its continuing support to its long-term strategy and business model.
"We enter 2025 confident in our strategy and plan to achieve our 2028 growth ambitions," said Bob Espey, president and chief executive officer. "Next year, despite anticipating lower than mid-cycle refining margins, Adjusted EBITDA from our retail and commercial businesses are expected to increase by approximately five percent, in line with our growth commitments. The Parkland team will continue to focus on growing our customer volumes while achieving the synergies and efficiencies from previous acquisitions."
According to the 2025 guidance, Adjusted EBITDA will be $1,800 million to $2,100 million, which includes Refining Adjusted EBITDA of approximately $300 million with refinery composite utilization of 90-95%.
“We have deferred the previously planned major turnaround to 2026 following the completion of maintenance activities in 2024,” the company said in a statement.
Refining adjusted gross margin of $32 to $33 per barrel reflecting industry dynamics that are currently below mid-cycle, the company continued in its statement, with capital expenditures of between $475 million to $525 million.
2028 looks to bring an Adjusted EBITDA of $2.5 billion, driven by organic growth, supply optimization, cost efficiencies and returning to mid-cycle refining margins.
“We anticipate generating approximately $5 billion in cumulative available cash flow from 2025 to 2028 and are positioned to deliver sustainable growth while enhancing shareholder returns and strengthening our balance sheet,” Parkland continued. “The company's capital allocation framework remains in place with 25% of available cash flow directed toward dividends, 25% toward organic growth initiatives, and the remaining 50% t toward opportunities that generate the greatest returns, including share buybacks and inorganic growth opportunities.:
Parkland also looks to strengthen its retail customer advantage, focused on growing market share and loyalty, while enhancing brand recognition through more than 100 new to industry sites, raze and rebuilds or tuck-ins; completing more than 175 ON the RUN conversions with differentiated food offers; and installing approximately 1,800 additional EV charging ports.
“Approximately 20% to strengthen our commercial customer advantage, focused on growing volumes through cardlock expansion, multi-product offers and tailored customer solutions,” Parkland added. “Approximately 30% to strengthen our supply advantage, focused on building scale and purchasing power through strategic infrastructure investments, including increasing co-processing capacity to 7,500 barrels per day by 2028.”
