Record second quarter Adjusted EBITDA¹of $508 million

Demonstrates strength and run rate potential of Parkland's diversified business

Advancing the Sunoco Transaction²

CALGARY, AB, Aug. 5, 2025 /PRNewswire/ - Parkland Corporation ("Parkland", "we", the "Company", or "our") (TSX:PKI), today announced its financial and operating results for the three and six months ended June 30, 2025.

"I want to thank the Parkland team for safely serving our customers to deliver record second quarter results," said Bob Espey, President and Chief Executive Officer. "Our Canadian and International businesses continue to demonstrate strength and resilience, while strong supply optimization coupled with solid operations at the Burnaby refinery enabled us to capture above mid-cycle refining margins. These results reflect the run rate potential of Parkland's integrated platform and together with Sunoco, the combined scale is well positioned to grow cash flow for years to come."

Q2 2025 Highlights

Delivered Adjusted EBITDA of $508 million, as compared to $504 million in Q2 2024, primarily driven by strong operations and margins at the Burnaby Refinery and robust performance in the Canada segment. These were partially offset by lower fuel unit margins in the International segment and continued softness in the USA segment primarily due to ongoing macroeconomic pressures.
Net earnings of $172 million ($0.99 per share, basic), as compared to $70 million ($0.40 per share, basic) in Q2 2024, and Adjusted earnings³ of $158 million ($0.91 per share, basic³), as compared to $156 million ($0.89 per share, basic) in Q2 2024.
Trailing twelve months ("TTM") Available cash flow³ of $551 million ($3.17 per share³), as compared to $823 million ($4.69 per share) in 2024, primarily reflecting a significantly lower refining margin environment during the second half of 2024 and realized losses due to the wind down of California compliance market positions in the first quarter of 2025. TTM Cash generated from (used in) operating activities⁴ of $1,656 million ($9.52 per share⁴), as compared to $1,612 million ($9.19 per share) in 2024, reflecting favourable working capital movements in the current period.
Leverage Ratio⁵ decreased to 3.4 times (3.6 times in Q4 2024) and liquidity available⁴ of approximately $2.2 billion.
Parkland's total recordable injury frequency rate⁶ on a TTM basis was 1.15, compared to 1.21 in Q2 2024, reflecting the Parkland team's continued focus on operational integrity.

Q2 2025 Segment Highlights

Canada delivered Adjusted EBITDA of $190 million, as compared to $168 million in Q2 2024. The increase was primarily driven by stronger fuel unit margins from continued price and supply optimization, and volume growth in our company-owned network. We delivered company same-store volume growth ("Company SSVG")⁶ of 4.6 percent and Food and Company C-Store same-store sales growth ("Food and Company C-Store SSSG")³ excluding cigarettes of 4.2 percent, reflecting stronger site execution, and increased engagement though our loyalty program.
International delivered Adjusted EBITDA of $168 million, as compared to $180 million in Q2 2024. Continued strength in the retail business was more than offset by lower unit margins driven by market instability from global conflicts resulting in price volatility, particularly in diesel.
USA delivered Adjusted EBITDA of $26 million, as compared to $47 million in Q2 2024. The decrease was primarily driven by lower fuel unit margins due to an ongoing competitive pricing environment and reduced rail and regional arbitrage opportunities. Lower retail volumes, consumer spending, and foot traffic in convenience stores were consistent with broader industry trends.
Refining delivered Adjusted EBITDA of $136 million, as compared to $119 million in Q2 2024. The increase was primarily driven by higher refining margins combined with strong composite utilization⁶ of 94.0 percent.

____________________________________
⁽¹⁾	Total of segments measure. See "Measures of Segment Profit(Loss) and Total of Segments Measures" section of this news release.
⁽²⁾	On May 5, 2025, Parkland and Sunoco LP (NYSE:SUN) ("Sunoco") announced that they entered into a definitive agreement whereby Sunoco will acquire all outstanding shares of Parkland in a cash and equity transaction valued at approximately U.S.$9.1 billion, including assumed debt (the "Sunoco Transaction").
⁽³⁾	Non-GAAP financial measure or non-GAAP financial ratio. See "Non-GAAP Financial Measures and Ratios" section of this news release.
⁽⁴⁾	Supplementary financial measure. See "Supplementary Financial Measures" 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.

Update on the Sunoco Transaction

Parkland shareholders approved the Sunoco Transaction at the June 24, 2025 Annual and Special Meeting, with more than 93 percent of votes cast in favour. Following this strong shareholder endorsement, Parkland received a final order from the Court of King's Bench of Alberta's approval and the parties have obtained Competition Act (Canada) clearance.

The Sunoco Transaction continues to advance through the remaining regulatory review processes and other closing conditions, including the ongoing review under the Investment Canada Act, and is expected to close in the fourth quarter of 2025.

The Company will terminate its Dividend Reinvestment Plan ("DRIP") effective August 6, 2025. The DRIP has been suspended since November 2, 2022.

2025 Guidance

Following strong second quarter 2025 operating and financial results, Parkland remains on track to be within its previously stated 2025 Adjusted EBITDA Guidance⁴ range of $1,800 to $2,100 million and 2025 Capital Expenditure Guidance⁴ range of $475 to $525 million.

Due to expected transaction-related costs and certain restrictions associated with the Sunoco Transaction, and to simplify external guidance, Parkland will no longer provide updates with respect to its 2025 Available cash flow per share, 2025 Leverage Ratio, non-core asset divestment program from 2023 to 2025 and 2025 Adjusted EBITDA for its Refining segment.

Consolidated Financial Overview

($ millions, unless otherwise noted)	Three months ended June 30,
Financial Summary	2025	2024
Sales and operating revenue	6,874	7,504
Adjusted EBITDA⁽¹⁾	508	504
Canada⁽²⁾⁽³⁾	190	168
International⁽²⁾⁽³⁾	168	180
USA⁽²⁾⁽³⁾	26	47
Refining⁽²⁾⁽³⁾	136	119
Corporate⁽²⁾⁽³⁾	(12)	(10)
Net earnings (loss)	172	70
Net earnings (loss) per share – basic ($ per share)	0.99	0.40
Net earnings (loss) per share – diluted ($ per share)	0.97	0.39
Trailing twelve months ("TTM") Cash generated from (used in) operating activities⁽⁴⁾	1,656	1,612
TTM Cash generated from (used in) operating activities per share⁽⁴⁾	9.52	9.19
TTM Available cash flow⁽⁵⁾⁽⁶⁾	551	823
TTM Available cash flow per share⁽⁵⁾⁽⁶⁾	3.17	4.69
TTM ROIC⁽⁶⁾	7.7 %	9.0 %

⁽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 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 six months ended June 30, 2025 (the "Q2 2025 MD&A") and Interim Condensed Consolidated Financial Statements for the three and six months ended June 30, 2025 (the "Q2 2025 Condensed Consolidated Financial Statements") provide a detailed explanation of Parkland's operating results for the three and six months ended June 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 Q2 2025 MD&A and the Q2 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 26 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" 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; run rate potential of Parkland's integrated platform; Parkland and Sunoco well positioned to grow cash flow for years to come; the Sunoco Transaction, including progress of regulatory approvals and other closing conditions and expectation to close in the fourth quarter of 2025; expected costs relating to the Sunoco Transaction; expected to remain on track to be within its 2025 Adjusted EBITDA Guidance and 2025 Capital Expenditure Guidance ranges; and the termination of the DRIP and timing thereof.

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 Sunoco Transaction, including the ability to obtain the approvals required in connection thereto, the timing thereof and realizing the benefits resulting therefrom; Parkland's ability to successfully integrate its operations with Sunoco following the Sunoco 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 Sunoco Transaction thereon; ability to fall within its 2025 Adjusted EBITDA Guidance and 2025 Capital Expenditure Guidance ranges 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 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 2025 Capital Expenditure Guidance is mainly driven by increased Adjusted EBITDA and assumes no material change to underlying operations and no planned turnaround at the Burnaby Refinery. The forward-looking statements contained in this news release as 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 Q2 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 Q2 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 June 30,		Six months ended June 30,
($ millions, unless otherwise stated)	2025	2024	2025	2024
Net earnings (loss)	172	70	236	65
Add/(less):
Acquisition, integration and other costs	46	46	75	76
(Gain) loss on foreign exchange – unrealized	(4)	4	(9)	7
(Gain) loss on risk management and other – unrealized⁽⁴⁾	(51)	56	(48)	59
Costs related to the Sunoco Transaction	46	—	46	—
Other (gains) and losses	(70)	(1)	(89)	9
Other adjusting items⁽¹⁾⁽⁴⁾	17	8	11	26
Tax normalization⁽²⁾	2	(27)	1	(43)
Adjusted earnings (loss)	158	156	223	199
Weighted average number of common shares (million shares)⁽³⁾	174	175	174	175
Weighted average number of common shares adjusted for the effects of dilution (million shares)⁽³⁾	177	177	176	178
Adjusted earnings (loss) per share ($ per share)
Basic	0.91	0.89	1.28	1.14
Diluted	0.90	0.88	1.27	1.12

⁽¹⁾	Other adjusting items for the three months ended June 30, 2025 include: (i) realized gains and losses on risk management and other assets and liabilities related to underlying physical sales activity in another period of $12 million loss (2024 - $1 million loss); (ii) the share of depreciation, income taxes and other adjustments for investments in joint ventures and associates of $8 million (2024 - $3 million); (iii) other income of $1 million (2024 - $3 million); (iv)adjustment to foreign exchange gains and losses related to cash pooling arrangements of $4 million (2024 - $2 million); and (v) adjustment to realized risk management gains related to interest rate swaps, as these gains do not relate to commodity sale and purchase transactions, of nil (2024 - $1 million). Other adjusting items for the six months ended June 30, 2025 include: (i) realized gains and losses on risk management and other assets and liabilities related to underlying physical sales activity in another period of $1 million gain (2024 - $12 million loss); (ii) the share of depreciation, income taxes and other adjustments for investments in joint ventures and associates of $13 million (2024 - $7 million) (iii) other income of $3 million (2024 - $5 million); (iv) adjustment to foreign exchange gains and losses related to cash pooling arrangements of $4 million (2024 - $4 million); and (v) adjustment to 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). 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.

⁽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 strategic transaction costs. 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 Q2 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 June 30, 2025
($ millions, unless otherwise noted)	September 30, 2024	December 31, 2024	March 31, 2025	June 30, 2025	Trailing twelve months ended June 30, 2025
Cash generated from (used in) operating activities	406	462	286	502	1,656
Reverse: Change in other assets and other liabilities	(68)	80	1	(7)	6
Reverse: Net change in non-cash working capital related to operating activities⁽¹⁾	21	(180)	53	(87)	(193)
Include: Maintenance capital expenditures	(71)	(96)	(62)	(70)	(299)
Include: Dividends received from investments in associates and joint ventures	3	7	5	6	21
Include: Interest on leases and long-term debt	(85)	(87)	(89)	(83)	(344)
Include: Payments of principal amount on leases	(69)	(76)	(77)	(74)	(296)
Available cash flow	137	110	117	187	551
Weighted average number of common shares (millions)⁽²⁾					174
TTM Available cash flow per share					3.17

	Three months ended
					Trailing twelve months ended June 30, 2024
($ millions, unless otherwise noted)	September 30, 2023	December 31, 2023	March 31, 2024⁽¹⁾	June 30, 2024	Trailing twelve months ended June 30, 2024
Cash generated from (used in) operating activities	528	417	217	450	1,612
Reverse: Change in other assets and other liabilities	7	(4)	28	3	34
Reverse: Net change in non-cash working capital related to operating activities⁽¹⁾	(14)	17	55	(34)	24
Include: Maintenance capital expenditures	(52)	(93)	(59)	(53)	(257)
Include: Dividends received from investments in associates and joint ventures	4	3	2	8	17
Include: Interest on leases and long-term debt	(83)	(88)	(85)	(88)	(344)
Include: Payments on principal amount on leases	(57)	(71)	(71)	(64)	(263)
Available cash flow	333	181	87	222	823
Weighted average number of common shares (millions)⁽²⁾					175
TTM Available cash flow per share					4.69

⁽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, unless otherwise noted)	Three months ended
ROIC	September 30, 2024	December 31, 2024	March 31, 2025	June 30, 2025	Trailing twelve months ended June 30, 2025
Net earnings (loss)	91	(29)	64	172	298
Add/(less):
Income tax expense (recovery)	17	(8)	8	39	56
Acquisition, integration and other costs	61	81	29	46	217
Depreciation and amortization	207	210	202	220	839
Finance cost	96	92	99	93	380
(Gain) loss on foreign exchange - unrealized	1	(2)	(5)	(4)	(10)
(Gain) loss on risk management and other - unrealized	(48)	34	3	(51)	(62)
Costs related to the Sunoco Transaction	—	—	—	46	46
Other (gains) and losses	(1)	30	(19)	(70)	(60)
Other adjusting items	7	20	(6)	17	38
Adjusted EBITDA	431	428	375	508	1,742
Less: Depreciation and amortization	(207)	(210)	(202)	(220)	(839)
Less: Pro-forma depreciation and amortization on assets classified as held for sale	—	(7)	(7)	14	—
Adjusted EBIT	224	211	166	302	903
Average effective tax rate					21.0 %
Less: Taxes					(189)
Net operating profit after tax					714
Opening invested capital					9,362
Closing invested capital					9,201
Average invested capital					9,282
Return on invested capital					7.7 %

Invested Capital	June 30,
($ millions, unless otherwise noted)	2025	2024
Long-term debt - current portion	847	213
Long-term debt	5,618	6,275
Long-term debt in liabilities classified as held for sale⁽¹⁾	2	52
Shareholders' equity	3,173	3,138
Exclude: Cash and cash equivalents	(439)	(316)
Total	9,201	9,362

($ millions, unless otherwise noted)	Three months ended
ROIC	September 30, 2023	December 31, 2023	March 31, 2024	June 30, 2024	Trailing twelve months ended June 30, 2024
Net earnings (loss)	230	86	(5)	70	381
Add/(less):
Income tax expense (recovery)	54	(15)	(29)	20	30
Acquisition, integration and other costs	38	42	30	46	156
Depreciation and amortization	205	222	206	202	835
Finance cost	93	89	91	99	372
(Gain) loss on foreign exchange - unrealized	1	—	3	4	8
(Gain) loss on risk management and other - unrealized⁽²⁾	(19)	28	3	56	68
Other (gains) and losses	(37)	5	10	(1)	(23)
Other adjusting items⁽²⁾	20	6	18	8	52
Adjusted EBITDA	585	463	327	504	1,879
Less: Depreciation and amortization	(205)	(222)	(206)	(202)	(835)
Less: Pro-forma depreciation and amortization on assets classified as held for sale	—	—	—	—	—
Adjusted EBIT	380	241	121	302	1,044
Average effective tax rate					19.9 %
Less: Taxes					(208)
Net operating profit after tax					836
Opening invested capital					9,191
Closing invested capital					9,362
Average invested capital					9,277
Return on invested capital					9.0 %

Invested Capital	June 30,
($ millions, unless otherwise noted)	2024	2023
Long-term debt - current portion	213	178
Long-term debt	6,275	6,278
Long-term debt in liabilities classified as held for sale⁽¹⁾	52	—
Shareholders' equity	3,138	3,080
Exclude: Cash and cash equivalents	(316)	(345)
Total	9,362	9,191

⁽¹⁾	For comparative purposes, long-term debt in liabilities classified as held for sale were included as part of invested capital as at March 31, 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 June 30,			Six months ended June 30,
($ millions, unless otherwise noted)	2025	2024	%⁽¹⁾	2025	2024	%⁽¹⁾
Food and Company C-Store revenue	83	82		162	160
Add:
Point-of-sale ("POS") value of goods and services sold at Food and Company C-Store operated by retailers and franchisees⁽²⁾	300	303		563	579
Less:
Rental and royalty income from retailers, franchisees and other⁽³⁾	(61)	(63)		(118)	(122)
Same Store revenue adjustments⁽⁴⁾ (excluding cigarettes)	(5)	(4)		(17)	(14)
Food and Company C-Store same-store sales (including cigarettes)	317	318	(0.3) %	590	603	(2.1) %
Less:
Same Store revenue adjustments⁽⁴⁾ (cigarettes)	(98)	(108)		(182)	(203)
Food and Company C-Store same-store sales (excluding cigarettes)	219	210	4.2 %	408	400	2.0 %




	Three months ended June 30,			Six months ended June 30,
($ millions, unless otherwise noted)	2024	2023	%⁽¹⁾	2024	2023	%⁽¹⁾
Food and Company C-Store revenue	82	79		160	149
Add:
Point-of-sale ("POS") value of goods and services sold at Food and Company C-Store operated by retailers⁽²⁾	305	316		581	594
Less:
Rental income from retailers and other⁽³⁾	(63)	(64)		(122)	(119)
Same Store revenue adjustments⁽⁴⁾⁽⁵⁾ (excluding cigarettes)	(16)	(15)		(28)	(26)
Food and Company C-Store same-store sales (including cigarettes)	308	316	(3.0) %	591	598	(1.3) %
Less:
Same Store revenue adjustments⁽⁴⁾⁽⁵⁾ (cigarettes)	(105)	(112)		(200)	(213)
Food and Company C-Store same-store sales (excluding cigarettes)	203	204	(0.7) %	391	385	1.1 %

⁽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 Q2 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)	June 30, 2025	December 31, 2024
Leverage Debt	4,979	5,268
Leverage EBITDA	1,468	1,481
Leverage Ratio	3.4	3.6

($ millions, unless otherwise noted)	June 30, 2025	December 31, 2024
Long-term debt	6,465	6,641
Less:
Lease obligations	(1,104)	(1,054)
Cash and cash equivalents	(439)	(385)
Non-recourse debt⁽¹⁾	(55)	(30)
Risk management liability (asset)⁽²⁾	1	(30)
Add:
Non-recourse cash⁽¹⁾	35	31
Letters of credit and other	76	95
Leverage Debt	4,979	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 June 30, 2025
($ millions, unless otherwise noted)	September 30, 2024	December 31, 2024	March 31, 2025	June 30, 2025	Trailing twelve months ended June 30, 2025
Adjusted EBITDA	431	428	375	508	1,742
Share incentive compensation	6	11	8	7	32
Reverse: IFRS 16 impact⁽¹⁾	(84)	(91)	(93)	(90)	(358)
	353	348	290	425	1,416
Acquisition pro-forma adjustment⁽²⁾					6
Other adjustments⁽³⁾					46
Leverage EBITDA					1,468

⁽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, 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 otherwise noted)	March 31, 2024	June 30, 2024	September 30, 2024	December 31, 2024	Trailing twelve months ended December 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 Q2 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 six months ended June 30, 2025 and June 30, 2024.

	Three months ended June 30,		Six months ended June 30,
($ millions)	2025	2024	2025	2024
Adjusted EBITDA⁽¹⁾	508	504	883	831
Less/(add):
Acquisition, integration and other costs	46	46	75	76
Depreciation and amortization	220	202	422	408
Finance costs	93	99	192	190
(Gain) loss on foreign exchange – unrealized	(4)	4	(9)	7
(Gain) loss on risk management and other – unrealized⁽⁴⁾	(51)	56	(48)	59
Costs related to the Sunoco Transaction	46	—	46	—
Other (gains) and losses⁽²⁾	(70)	(1)	(89)	9
Other adjusting items⁽³⁾⁽⁴⁾	17	8	11	26
Income tax expense (recovery)	39	20	47	(9)
Net earnings (loss)	172	70	236	65

⁽¹⁾	Total of segments measure. See Section 15 of the Q2 MD&A.

⁽²⁾	Other (gains) and losses for the three months ended June 30, 2025, include: (i) $55 million non-cash valuation gain (2024 - $11 million loss) due to change in fair value of redemption options; (ii) $8 million non-cash valuation gain (2024 - $12 million gain) due to the change in estimates of environmental provisions; (iii) $3 million (2024 - $3 million) in other income; (iv) $3 million gain (2024 - $1 million gain) on disposal of assets; and (v) $1 million gain (2024 -$4 million loss) in others. Other (gains) and losses for the six months ended June 30, 2025, include: (i) $76 million non-cash valuation gain (2024 - $24 million loss) due to change in fair value of redemption options; (ii) $7 million (2024 - $5 million) in other income; (iii) $4 million non-cash valuation gain (2024 - $16 million gain) due to the change in estimates of environmental provisions; (iv) $2 million gain (2024 - $3 million gain) on disposal of assets; and (v) nil (2024 -$9 million loss) in others.

⁽³⁾	Other adjusting items for the three months ended June 30, 2025, include: (i) realized gains and losses on risk management and other assets and liabilities related to underlying physical sales activity in another period of $12 million loss (2024 - $1 million loss); (ii) the share of depreciation, income taxes and other adjustments for investments in joint ventures and associates of $8 million (2024 - $3 million); (iii) adjustment to foreign exchange loss related to cash pooling arrangements of $4 million (2024 - $2 million); (iv) other income of $1 million (2024 - $3 million); 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 -$1 million gain). Other adjusting items for the six months ended June 30, 2025, include: (i) the share of depreciation, income taxes and other adjustments for investments in joint ventures and associates of $13 million (2024 - $7 million); (ii) adjustment to foreign exchange losses related to cash pooling arrangements of $4 million (2024 - $4 million); (iii) other income of $3 million (2024 - $5 million); (iv) realized gains and losses on risk management and other assets and liabilities related to underlying physical sales activity in another period of $1 million gain (2024 - $12 million loss); (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 six months ended June 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 Q2 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 Q2 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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SOURCE Parkland Corporation

Parkland Reports 2025 Second Quarter Results