Casey's General Stores (CASY) Q2 2025 earnings summary

Executive summary

• Operated over 2,600 locations in 17 states, ranking as the 5th largest US convenience store and pizza chain, with 198 stores added post-quarter via the Fikes acquisition, bringing the total to ~2,900 stores.

• Diluted EPS for Q2 FY2025 was $4.85, up 14% year-over-year; net income increased 14% to $181M; EBITDA grew 14% to $349M.

• The company focuses on operational efficiency, margin expansion, disciplined capital allocation, and a three-year strategic plan.

• Business is seasonal, with higher sales and profitability in the first and second fiscal quarters.

• Differentiators include prepared food, advanced technology, vertical integration, and a strong rewards program with 8.5M+ members.

Financial highlights

• Q2 FY2025 net income rose 13.9% to $180.9M; EBITDA up 14.1% to $348.9M; revenue was $3.95B, down 2.9% year-over-year due to lower retail fuel prices, nearly offset by higher inside sales and fuel gallons sold.

• Inside sales rose 9% to $1.47B; prepared food and dispensed beverage sales increased 9.2% to $418M; grocery and general merchandise sales grew 8.8% to $1.05B.

• Gross profit was $959M, up 8.2% year-over-year, driven by a 12% increase in inside gross profit and a 1.1% increase in fuel gross profit.

• Free cash flow was $160M for the quarter, up from $145M in the prior year; FY24 free cash flow was $370.95M.

• Operating expenses for Q2 rose 5.2% to $609.7M, with 4% attributed to new stores.

Outlook and guidance

• Fiscal 2025 EBITDA is expected to increase at least 10%, including the impact of the Fikes acquisition; total operating expenses projected to rise 11–13%, with $25–$30M in one-time deal and integration costs.

• Inside same-store sales are expected to grow 3–5%, with margins comparable to the prior year; same-store fuel gallons sold expected between -1% and +1%.

• Net interest expense is forecast at $90M; depreciation and amortization at $410M; PP&E purchases at $550M.

• Plan to add ~270 stores in fiscal 2025; targets 8–10% EBITDA CAGR and 500 new stores by FY2026 via new builds and acquisitions.

• Fikes is expected to contribute over $200M in inside sales and 200M gallons of fuel in the second half of fiscal 2025.