Murphy USA (MUSA) - 2025 Q3 - Quarterly Results

Financial Performance - Net income for Q3 2025 was $129.9 million, or $6.76 per diluted share, down from $149.2 million, or $7.20 per diluted share in Q3 2024, impacted by a $12.6 million restructuring charge[4] - Total operating revenues for Q3 2025 were reported at $5,110 million, compared to $5,238.5 million in Q3 2024, reflecting a decrease[26] - Net income for Q3 2025 was $129.9 million, down from $149.2 million in Q3 2024, resulting in diluted earnings per share of $6.76 compared to $7.20[26] - EBITDA for Q3 2025 was $272.3 million, down 4.6% from $284.9 million in Q3 2024[39] - Cash provided by operating activities for Q3 2025 was $184.8 million, compared to $202.1 million in Q3 2024, reflecting a decrease of 8.1%[36] - Net income for Q3 2025 was $129.9 million, a decrease of 12.8% compared to $149.2 million in Q3 2024[36] Sales and Revenue - Total retail gallons increased by 1.2%, while same store sales (SSS) volumes declined by 2.6% in Q3 2025 compared to Q3 2024[4] - Merchandise contribution dollars rose by 11.3% to $241.2 million, with average unit margins increasing to 21.5% from 20.0% in Q3 2024[4] - Total merchandise sales revenue for same store sales increased by 0.7% to $214.1 million for the three months ended September 30, 2025, compared to $211.4 million in the same period of 2024[29] - The merchandise margin for the three months ended September 30, 2025, was 8.3%, compared to 8.4% in the same period of 2024[29] - The company reported a decrease in petroleum product sales to $3,924.7 million for the three months ended September 30, 2025, down from $4,121.4 million in the same period of 2024[28] Expenses and Costs - Total store and other operating expenses increased by $9.8 million in Q3 2025, mainly due to higher employee-related expenses and maintenance costs[10] - Retail fuel margins were 28.3 cents per gallon, an 11.3% decrease compared to the prior-year quarter[7] - Total fuel contribution for Q3 2025 was $384.8 million, a decrease of $19.4 million, or 4.8%, compared to Q3 2024, primarily due to lower fuel contribution margins[7] - Depreciation and amortization increased to $69.9 million in Q3 2025 from $62.8 million in Q3 2024, representing an increase of 17.9%[39] Capital and Investments - The company repurchased approximately 569.4 thousand common shares for $221.4 million at an average price of $388.80 per share during Q3 2025[4] - The company is currently constructing 39 new stores and has 2 raze-and-rebuild projects underway, which are expected to generate operational momentum heading into 2026[5] - Capital expenditures remain on track within the original guidance range of $450 million to $500 million as the company completes its 2025 build programs[20] - The company has acquired 4 locations in the Denver market, expected to reopen as Murphy USA locations before year-end 2025[16] Guidance and Projections - The updated guidance for 2025 includes organic growth with new store openings adjusted to 45 or more, down from up to 50, and raze-and-rebuilds revised to 23 to 24 from up to 30[16] - Retail fuel volume per store is now expected to be between 235 to 237 thousand gallons, down from the original range of 240 to 245 thousand gallons[16] - Merchandise contribution is projected to be between $870 million to $875 million, slightly increased from the previous range of $855 million to $875 million[16] - Store operating expenses (OPEX) are revised to a range of $36.2k to $36.6k per store, down from $36.5k to $37.0k[19] - SG&A costs are forecasted to be between $230 million to $240 million for the full year, reduced from the previous guidance of $245 million to $255 million[19] - The effective tax rate is now expected to be between 23.5% and 24.5%, lowered due to discrete state tax refunds and federal energy tax credits[20] Debt and Liabilities - The company had cash and cash equivalents of $42.8 million and long-term debt of $2.223 billion as of September 30, 2025[12] - Long-term debt, including capitalized lease obligations, increased to $2,223.0 million as of September 30, 2025, compared to $1,832.7 million as of December 31, 2024[34] - Total liabilities increased to $4,130.6 million as of September 30, 2025, from $3,701.5 million as of December 31, 2024[34] - Total debt borrowings in Q3 2025 amounted to $746.9 million, significantly higher than $225.0 million in Q3 2024[36] Cash Flow - The company reported a net cash outflow from investing activities of $116.9 million in Q3 2025, compared to an outflow of $131.5 million in Q3 2024[36] - Cash, cash equivalents, and restricted cash at the end of Q3 2025 totaled $42.8 million, down from $52.5 million at the end of Q3 2024[36] - The company experienced a net decrease in noncash operating working capital of $63.3 million in Q3 2025, compared to a decrease of $23.8 million in Q3 2024[36]