Crossamerica Partners (CAPL) Q1 2026 earnings summary

Executive summary

• Achieved record Adjusted EBITDA of $35.1 million, up 44–45% year-over-year, and net income of $10.7 million, reversing a net loss of $7.1 million in Q1 2025, driven by strong retail segment margins and cost management.

• Distributable cash flow more than doubled to $21.5 million, with distribution coverage ratio improving to 1.07x for the quarter and 1.25x for the trailing twelve months.

• Real estate rationalization continued, with 16 properties sold for $12.7 million, generating a $6.3 million net gain used primarily for debt reduction.

• Leadership transition completed, with a new CEO and interim CFO appointed effective March 2, 2026.

• Strategic focus on retail operations, portfolio optimization, and disciplined expense management supported strong performance despite market volatility.

Financial highlights

• Revenue for Q1 2026 was $841.8 million, down from $862.5 million in Q1 2025, mainly due to a 6% drop in fuel volume and lower rent income.

• Gross profit increased 9% to $97.6 million, led by a 29% rise in retail margin per gallon and higher merchandise gross profit.

• Retail segment gross profit rose 18% to $74.3 million, with operating income up 112% to $24.3 million; wholesale segment gross profit fell 13% to $23.3 million.

• Operating expenses declined $2.4 million, marking the sixth consecutive quarter of reductions, and interest expense decreased 16% to $10.8 million.

• Adjusted EBITDA was $35.1 million, up from $24.3 million; distributable cash flow more than doubled to $21.5 million.

Outlook and guidance

• Portfolio positioned for continued success in 2026, with a focus on maintaining strong fuel margins, disciplined expense management, and ongoing portfolio optimization.

• Ongoing real estate sales and site conversions expected, though at a lower pace than 2025, with continued supply contracts for many divested sites.

• Priorities remain debt reduction, cash flow generation, and targeted network investment, including food-related retail initiatives.

• Management will pursue acquisitions opportunistically, subject to market and financing conditions.

• Anticipates further gains or impairment charges from asset sales and expects lower interest expense as sale proceeds reduce debt.