Crossamerica Partners (CAPL) Q1 2025 earnings summary

Executive summary

• Net loss narrowed to $7.1 million from $17.5 million in Q1 2024, a 59% improvement, aided by asset sales and absence of prior year lease termination charges.

• Adjusted EBITDA increased 3% year-over-year to $24.3 million.

• Retail segment gross profit rose 16% to $63.2 million, while wholesale segment gross profit declined 1% to $26.7 million.

• Distribution coverage ratio for trailing twelve months fell to 1.04x from 1.37x year-over-year; Q1 2025 coverage was 0.46x.

• Asset rationalization continued with sale of seven sites for $8.6 million, generating a $5.6 million net gain.

Financial highlights

• Retail margin per gallon rose 10% to $0.339; wholesale margin per gallon up 23% to $0.097.

• Retail segment inside sales declined 1.5% year-over-year, but outperformed national trends; merchandise gross profit increased 16% to $24.9 million.

• Wholesale segment gross profit declined 1% to $26.7 million, with an 11% drop in volume due to site conversions; operating income up 8%.

• Distributable cash flow fell to $9.1 million from $11.7 million year-over-year, mainly due to higher interest expense.

• Operating revenues for Q1 2025 decreased 8% year-over-year to $862.5 million, while gross profit increased 10% to $89.8 million.

Outlook and guidance

• Retail and wholesale volumes since quarter end have outperformed national demand trends.

• Management remains focused on executing strategy, optimizing site mix, and capital recycling.

• Results for 2025 are expected to be influenced by continued site conversions, asset divestitures, and potential acquisitions.

• Uncertainty remains high due to macroeconomic factors and new tariffs, with many peers withdrawing guidance.

• Future distributions remain at the discretion of the Board and are subject to ongoing review.