Crossamerica Partners (CAPL) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2025 rose to $25.2 million from $12.4 million year-over-year, driven by asset sale gains and real estate rationalization, despite lower adjusted EBITDA and segment profits.

• Operating income increased 47% year-over-year for Q2 2025, supported by cost controls and real estate gains.

• Retail and wholesale segments saw declines in gross profit and volumes, but retail store sales outperformed industry trends.

• Asset sales during the quarter generated $29.7 million in net gains and reduced debt by over $50 million.

• Adjusted EBITDA declined to $37.1 million from $42.6 million year-over-year.

Financial highlights

• Q2 2025 net income was $25.2 million, up 103% year-over-year, with $28.4–$29.7 million in asset sale gains.

• Adjusted EBITDA for Q2 2025 was $37.1 million, down 13% year-over-year; distributable cash flow fell to $22.4 million.

• Retail segment gross profit was $76.1 million (down 1%); wholesale segment gross profit was $24.9 million (down 12%).

• Distribution coverage ratio dropped to 1.12x from 1.30x year-over-year; quarterly distribution paid per unit was $0.5250.

• Q2 2025 revenues were $961.9 million, down 15% year-over-year.

Outlook and guidance

• Ongoing real estate rationalization and asset sales are expected to continue, with proceeds used to pay down debt and reduce interest expense.

• Management remains focused on maintaining a leverage ratio around 4x and generating value for unitholders.

• Retail segment gross profit and expenses are expected to rise as more sites convert from wholesale to company operated.

• Opportunistic acquisitions will be pursued, subject to market and capital conditions.

• Store sales and fuel volumes are expected to continue outperforming industry trends.