Casey's General Stores (CASY) Q2 2026 earnings summary

Executive summary

• Operates approximately 2,900 convenience stores in 19 states, with over 800 million annual guest transactions and a strong rural presence; recent expansion includes the Fikes acquisition, adding 198 stores and a wholesale fuel network.

• Diluted EPS for Q2 FY2026 was $5.53, up 14% year-over-year, with net income of $206.3 million and EBITDA of $410.1 million, both up 14% and 17.5% respectively.

• Strong inside same-store sales growth of 3.3%, prepared food and dispensed beverage up 4.8%, and fuel same-store gallons up 0.8% year-over-year.

• Recognized as the 5th largest pizza chain and 4th in liquor licenses among US retailers, with a focus on prepared food, private label products, and digital engagement to drive growth and margins.

• Strategic plan targets 8-10% EBITDA CAGR through FY2026, with approximately 500 new stores planned.

Financial highlights

• Q2 FY2026 revenue was $4.51 billion, up 14.2% year-over-year; six-month revenue reached $9.07 billion, up 12.8%.

• Inside sales for the quarter were $1.66 billion, up 13%, with inside gross profit at $703.4 million and margin at 42.4%.

• Prepared food and dispensed beverage sales increased 12% to $468 million; grocery and general merchandise sales rose 13.4% to $1.19 billion.

• Fuel gross profit rose 20.9% to $377.4 million, with fuel margin at 41.6 cents per gallon; fuel gallons sold increased 16.8% year-over-year, driven by store count growth.

• Free cash flow for FY25 was $585 million, a significant increase from $136 million in FY19.

Outlook and guidance

• Fiscal 2026 EBITDA expected to increase 15%-17%, with management projecting 8-10% EBITDA CAGR through FY2026.

• Inside same-store sales projected to rise 3%-4%, with inside margin of 41%-42%.

• At least 80 new stores planned for fiscal 2026; total of ~500 new stores by FY2026 via new builds and acquisitions.

• Free cash flow guidance of ~$1.25 billion through FY2026.

• Tax rate expected at 24%-25%; Q3 operating expense expected to rise mid-single digits as FICOS acquisition is lapped.