Casey's General Stores (CASY) Q1 2025 earnings summary

Executive summary

• Diluted EPS rose 7% to $4.83, net income increased 6.5% to $180.2 million, and EBITDA grew 9.1% to $346 million year-over-year, driven by strong inside and fuel margins.

• Store base grew by 138 units year-over-year, reaching 2,674 locations as of July 31, 2024, with 16 net new stores in Q1.

• The pending Fikes/CEFCO acquisition will add 198 stores, accelerating growth and expanding presence in Texas and the Southeast, expected to close in calendar 2024.

• Focus remains on food innovation, digital engagement, and operational efficiency, with a strategic plan targeting 8–10% EBITDA CAGR through FY2026.

• Emphasizes rural market leadership, with about two-thirds of stores in towns of 20,000 or fewer.

Financial highlights

• Q1 FY2025 revenue was $4.10 billion, up 5.9% year-over-year, with inside sales up 7.6% to $1.47 billion and prepared food and beverage sales up 8.7% to $405 million.

• Grocery and general merchandise sales grew 7.2% to $1.07 billion; fuel gallons sold increased 8.2% to 772.5 million, with same-store gallons up 0.7%.

• Gross profit was $955 million, up 8.8%, with inside gross profit margin at 41.7% (+110 bps) and prepared food margin at 58.3%.

• Free cash flow for Q1 was $181 million, up from $160 million a year ago; cash from operations was $281.4 million, up $52.2 million.

• FY24 EBITDA was $1.06 billion, up from $952.46 million in FY23, and total enterprise value exceeded $15 billion as of July 31, 2024.

Outlook and guidance

• Store growth target for FY2025 raised to approximately 270 units, up from 100, due to the Fikes acquisition; three-year target increased to 500 units by FY2026.

• Fiscal 2025 EBITDA expected to increase at least 8%; inside same-store sales projected to rise 3%–5% with margins comparable to fiscal 2024.

• Free cash flow projected at ~$1.25 billion through FY2026; no update to full-year guidance until after Fikes transaction closes.

• Second quarter operating expenses expected within annual range, including several million dollars in one-time Fikes deal costs.

• Plans to expand EV charging and renewable fuel offerings as consumer demand grows.