Sunoco LP(SUN) - 2025 Q4 - Annual Results

Financial Performance - Net income attributable to Sunoco LP for Q4 2025 was $97 million, down from $141 million in Q4 2024[3] - Full-year net income attributable to Sunoco LP for 2025 was $527 million, down from $866 million in 2024[9] - Revenues for Q4 2025 reached $8.6 billion, a 63.5% increase from $5.3 billion in Q4 2024[26] - Total revenues for Q4 2025 were $8,600 million, with total costs and expenses amounting to $8,416 million, resulting in an operating income of $184 million[51] - Operating income for the year ended December 31, 2025 was $935 million, compared to $791 million for the year ended December 31, 2024[26] Adjusted EBITDA - Adjusted EBITDA for Q4 2025 was $646 million, compared to $439 million in Q4 2024, including one-time transaction-related expenses of $60 million and $7 million respectively[3] - Full-year Adjusted EBITDA for 2025 was $2.05 billion, compared to $1.46 billion in 2024, including one-time transaction-related expenses of $77 million and $106 million respectively[9] - Adjusted EBITDA for Q4 2025 was $646 million, a 47.2% increase from $439 million in Q4 2024[28] - Adjusted EBITDA for Q4 2025 was reported at $646 million, with $706 million when excluding transaction-related expenses[53] Distributable Cash Flow - Distributable Cash Flow, as adjusted, for Q4 2025 was $442 million, up from $261 million in Q4 2024[4] - Cash distribution per common unit increased to $0.9317 in Q4 2025 from $0.8865 in Q4 2024[28] - Total distributions to partners for Q4 2025 were $236 million, compared to $158 million in Q4 2024, reflecting a 49.4% increase[28] - Distributable Cash Flow attributable to common unitholders was $48 million for Q4 2025[53] - Distributable Cash Flow is a widely accepted financial indicator used by investors to compare partnership performance[56] - Distributable Cash Flow provides an enhanced perspective of the operating performance of the company's assets and the cash generated by the business[56] Capital Expenditures - Total capital expenditures for Q4 2025 were $233 million, including $130 million of growth capital and $103 million of maintenance capital[15] Debt and Leverage - At the end of Q4 2025, Sunoco LP had long-term debt of approximately $13.4 billion and a leverage ratio of net debt to Adjusted EBITDA of approximately 4.0 times[14] Segment Performance - Fuel Distribution segment's Adjusted EBITDA for Q4 2025 was $332 million, compared to $192 million in Q4 2024, with a fuel margin of 17.7 cents per gallon[5] - Fuel profit rose to $419 million in Q4 2025, up from $239 million in Q4 2024, marking a 75% increase[36] - Segment Adjusted EBITDA for Fuel Distribution increased to $391 million in Q4 2025, compared to $192 million in Q4 2024, reflecting a growth of 103%[36] - Terminals segment profit increased to $130 million in Q4 2025, up from $120 million in Q4 2024, a rise of 8.3%[40] - Crude utilization in the Refinery segment was reported at 90% for Q4 2025, with a segment profit of $40 million[42] Acquisitions - Sunoco LP completed the acquisition of Parkland Corporation on October 31, 2025, and TanQuid in January 2026[10] Other Financial Metrics - The company incurred $60 million in transaction-related expenses in Q4 2025, compared to $7 million in Q4 2024[34] - The financial metrics do not reflect total cash expenditures or future capital expenditure requirements[56] - Changes in working capital are not reflected in the financial metrics presented[56] - Interest expense and cash requirements for servicing interest or principal payments are not included in the financial metrics[56] - Adjusted EBITDA does not account for cash requirements necessary for replacing depreciated, amortized, or accreted assets[56] - The presentation of Adjusted EBITDA and Distributable Cash Flow may not be comparable to similar measures of other companies due to differing calculation methods[56]