Fuel distribution company ARKO Petroleum filed for an initial public offering in the United States on Friday. ...

RICHMOND, Va., Dec. 19, 2025 (GLOBE NEWSWIRE) -- ARKO Corp. (Nasdaq: ARKO) (“ARKO” or the “Company”), a Fortune 500 company and one of the largest convenience store operators, fuel wholesalers and cardlock operators in the United States, announced, as part of its strategic plan, the public filing with the Securities and Exchange Commission (the “Commission”) of a registration statement on Form S-1 relating to the proposed initial public offering of Class A common stock of its subsidiary, ARKO Petroleum Corp ...

Group 1: AI Perception Among Young Americans - A majority of young Americans (59%) view AI as a threat to their job prospects, more than concerns about immigration (31%) or outsourcing (48%) [3] - Nearly 45% believe AI will reduce job opportunities, while only 14% expect it to create new opportunities [3] - About 41% feel AI will make work less meaningful, contrasting with 14% who think it will enhance meaning [4] Group 2: Trust in AI - The Harvard poll indicates that 52% of young people trust AI for school and work tasks, with trust rising to 63% among college students [8] - Trust in AI for personal matters is significantly lower, highlighting a divide in perception based on context [8] Group 3: Future of Work and AI - Research from McKinsey suggests that while AI could automate about 57% of U.S. work hours, this does not equate to immediate job loss, as human skills remain relevant [6][7] - The future of work is expected to involve partnerships between humans and AI, rather than mass job replacement [7] Group 4: Communication and Training - There is a need for leaders to effectively communicate how AI will change job roles and to provide ongoing training for employees to adapt in an AI-driven workplace [9]

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Core Insights - ARKO Corp. has appointed Galagher Jeff as the new Executive Vice President and Chief Financial Officer, effective December 1, 2025, to support its growth and transformation plans [1][3]. Company Overview - ARKO Corp. is a Fortune 500 company and one of the largest convenience store operators and fuel wholesalers in the United States, owning 100% of GPM Investments, LLC [4]. - The company operates in four reportable segments: retail, wholesale, fleet fueling, and GPM Petroleum, providing a range of products including prepared foods, beverages, and fuel [4]. Leadership Background - Galagher Jeff has a distinguished career as a CFO and finance executive, previously serving as CFO for Murphy USA, Inc., and holding senior finance roles at major retailers such as Dollar Tree, Advance Auto Parts, and Walmart [2][3]. - Jeff holds a Bachelor of Science in Electrical Engineering and two Master's degrees in Engineering and Business Administration from reputable institutions [2]. Strategic Vision - The appointment of Jeff is expected to enhance ARKO's leadership team as the company continues its multi-year transformation plan and focuses on organic growth initiatives [3]. - Jeff expressed optimism about the opportunities for ARKO as it executes its transformation plan and channel optimization work [3].

Core Insights - GPM Investments, LLC has signed a non-binding Memorandum of Understanding (MOU) with Apollo Power to explore solar energy solutions at gas station sites across the U.S. [1][2] - The partnership aims to evaluate the deployment of Apollo Power's flexible solar energy solutions at a minimum of 300 sites, with an estimated project value of approximately $53 million [2][3] - This collaboration marks Apollo Power's significant entry into the U.S. gas station market, leveraging ARKO Corp.'s extensive network of over 3,500 gas stations and convenience stores [3][4] Company Overview - ARKO Corp. is a Fortune 500 company that owns GPM Investments, LLC, and operates in the gas station and convenience store sector in the U.S. [6] - The company operates in four segments: retail, wholesale, fleet fueling, and GPM Petroleum, providing a wide range of products and services [6] Strategic Implications - The MOU is seen as a major milestone for Apollo Power, enhancing its position in the renewable energy sector and providing a strategic platform for further expansion in the U.S. market [4][5] - The technology offered by Apollo Power allows gas station operators to generate solar energy from rooftops that cannot support traditional solar panels, creating additional revenue streams [5]

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分组1 - ARKO Corp. reported quarterly earnings of $0.1 per share, missing the Zacks Consensus Estimate of $0.12 per share, but showing an increase from $0.07 per share a year ago, resulting in an earnings surprise of -16.67% [1] - The company posted revenues of $2.02 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.97%, but down from $2.28 billion year-over-year [2] - Over the last four quarters, ARKO has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] 分组2 - ARKO shares have declined approximately 32.9% since the beginning of the year, contrasting with the S&P 500's gain of 15.1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.01 on revenues of $1.84 billion, and for the current fiscal year, it is $0.17 on revenues of $7.65 billion [7] - The Zacks Industry Rank for Consumer Products - Staples is currently in the bottom 18% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q3 2025 was $75.2 million, slightly above the midpoint of guidance, compared to $78.8 million in the same period last year, primarily due to softer retail performance [17][18] - Net income for the quarter was $13.5 million, an increase from $9.7 million in the year-ago period [20] - Total general and administrative expenses for the quarter were $40 million, up from $38.6 million year-over-year, driven by a $1.7 million increase in share-based compensation [20] Business Line Data and Key Metrics Changes - Retail segment operating income was approximately $77.5 million, down from $85.1 million year-over-year; same-store merchandise sales, excluding cigarettes, decreased by 0.9% [18] - Wholesale segment operating income increased to $24.1 million from $20.3 million in the prior year, with gallons up approximately 7.5% year-over-year [18][19] - Fleet fueling segment operating income was $12.2 million, slightly down from $12.6 million year-over-year, with total gallons down 1.6% [19] Market Data and Key Metrics Changes - Same-store sales, excluding cigarettes, were nearly flat, representing the best comp performance in the last 18 months [6] - Consumer sentiment data indicates that consumers are feeling stretched, leading to more deliberate shopping behavior and increased price sensitivity [5] Company Strategy and Development Direction - The company is focused on its transformation plan, particularly dealerization, which is expected to deliver a cumulative annualized operating income benefit of more than $20 million once fully scaled [8][9] - The Fueling America's Future campaign and Fast Rewards loyalty platform are central to deepening customer relationships and driving engagement [10] - The company plans to launch a new version of its app by the end of Q1 2026 to enhance customer engagement [11] Management's Comments on Operating Environment and Future Outlook - Management noted that while there are pressures in certain markets, healthier trends are observed in the Northeast, Southeast, and Mid-Atlantic regions [5][6] - The company expects adjusted EBITDA for Q4 2025 to be in the range of $50 million to $60 million, with full-year adjusted EBITDA guidance updated to $233 million to $243 million [21][23] Other Important Information - The company repurchased approximately 935,000 shares in Q3 2025, reflecting confidence in its stock value [16] - The company ended Q3 with $911.6 million in long-term debt and maintained liquidity of approximately $890 million [20] Q&A Session Summary Question: Store remodels and food service opportunities - Management indicated that they are working on increasing the number of stores involved in the remodel program, with plans for an additional 20-25 stores following the initial seven [26] Question: Dealerization performance and same-store sales - Management highlighted that they are targeting stores that do not meet return on investment criteria and are focusing on regions with better performance metrics [29][30] Question: Capital expenditure allocation for projects - Management stated that they are measuring return on investment for each capital project and will focus on those that provide the best returns [41] Question: Mom-and-pop dealers' appetite for conversions - Management clarified that the majority of stores converted to dealers are not lower-margin properties but rather those that do not meet their investment criteria [42] Question: Gross margin sustainability - Management emphasized that margin increases are driven by vendor-supported promotions and believe that the improvements are sustainable moving forward [39]

Financial Performance - Net income for Q3 2025 was $13.5 million, up from $9.7 million in Q3 2024[7] - Adjusted EBITDA for Q3 2025 was $75.2 million, compared to $78.8 million in the same quarter last year[7] - Net income attributable to common shareholders for the three months ended September 30, 2025, was $12,009, compared to $8,228 for the same period in 2024, representing a growth of 46%[37] - Net income for the three months ended September 30, 2025, was $13,459,000, up 39.1% from $9,674,000 in the same period of 2024[39] - Operating income for the Retail Segment in Q3 2025 was $77,470,000, compared to $85,094,000 in Q3 2024, a decrease of 9.5%[48] - Operating income for the Wholesale Segment in Q3 2025 was $24,128,000, up from $20,294,000 in Q3 2024, an increase of 19.1%[49] - Operating income for Q3 2025 was $12,211,000, slightly down from $12,640,000 in Q3 2024, indicating a decrease of 3.4%[51] - Operating income for the nine months ended September 30, 2025, was $36,282,000, slightly up from $36,100,000 in the same period of 2024[51] Revenue and Sales - For the three months ended September 30, 2025, total revenues were $2,020,833, a decrease of 11.3% from $2,279,236 in the same period of 2024[37] - Total revenues for the Retail Segment in Q3 2025 were $1,148,847,000, down from $1,415,481,000 in Q3 2024, a decrease of 18.8%[48] - Total revenues for the Wholesale Segment in Q3 2025 were $739,687,000, compared to $727,397,000 in Q3 2024, an increase of 1.8%[49] - Total revenues for Q3 2025 were $124,932,000, a decrease of 2.6% from $128,268,000 in Q3 2024[51] - Total revenues for the nine months ended September 30, 2025, were $365,822,000, a decline of 9.7% compared to $405,270,000 for the same period in 2024[51] Margins and Costs - Merchandise margin increased to 33.7% in Q3 2025 from 32.8% in Q3 2024[7] - Retail fuel margin for Q3 2025 was 43.6 cents per gallon, an increase from 41.3 cents per gallon in Q3 2024[7] - Fuel revenue in the Retail Segment for Q3 2025 was $744,405,000, compared to $929,783,000 in Q3 2024, a decline of 20%[48] - Fuel costs in the Retail Segment for Q3 2025 were $640,278,000, down from $812,693,000 in Q3 2024, a decrease of 21.1%[48] - Fuel costs for Q3 2025 were $105,952,000, down from $109,752,000 in Q3 2024, reflecting a decrease of 2.5%[51] Assets and Liabilities - Total liquidity as of September 30, 2025, was approximately $891 million, with outstanding debt of approximately $912 million[18] - Total current assets increased to $753,154,000 from $722,208,000, representing a growth of 4.6%[38] - Long-term debt, current portion, increased to $36,994,000 from $12,944,000, indicating a significant rise of 186.5%[38] - Total liabilities decreased slightly to $3,213,858,000 from $3,243,792,000, a reduction of 0.9%[38] - Cash and cash equivalents rose to $306,932,000 from $261,758,000, marking an increase of 17.3%[38] - Inventory decreased to $202,290,000 from $231,225,000, a decline of 12.5%[38] - Shareholders' equity decreased to $273,126,000 from $276,866,000, a decrease of 1.4%[38] Dividends and Shareholder Actions - The board declared a quarterly dividend of $0.03 per share, payable on December 1, 2025[19] - Common stock repurchased amounted to $4,182,000 during the three months ended September 30, 2025[39] Operational Changes - The company converted 65 retail stores to dealer sites in Q3 2025, totaling 194 conversions year-to-date[7] - The company closed or divested 32 sites in the wholesale segment during the three months ended September 30, 2025[22] - The number of wholesale segment sites increased to 2,053 at the end of September 2025, up from 1,832 at the end of September 2024, reflecting a growth of 12%[22] - The fleet fueling segment had 288 sites at the end of September 2025, an increase from 281 sites at the end of September 2024, marking a growth of 2.5%[22] Cash Flow - Net cash provided by operating activities for the nine months ended September 30, 2025, was $148,009,000, compared to $199,130,000 for the same period in 2024, reflecting a decrease of 25.7%[39] - Net cash used in investing activities for the nine months ended September 30, 2025, was $93,725,000, compared to $80,935,000 in 2024, an increase of 15.7%[39] - Net cash used in financing activities for the period was $16,893,000, compared to $12,907,000 in the previous period, indicating an increase in cash outflow[40]