CrossAmerica Partners LP Reports Third Quarter 2025 Results

Core Insights - CrossAmerica Partners LP reported solid operating results for Q3 2025, with increases in retail same-store sales and merchandise margin percentage, despite a decline in retail same-store fuel volumes [3][4] - The company completed approximately $22 million in asset sales during the quarter, which helped reduce debt and lower operating expenses [3][4] - Net income for Q3 2025 was $13.6 million, up from $10.7 million in Q3 2024, primarily due to gains from asset sales and reduced interest expenses [4][5] Financial Performance - Q3 2025 consolidated results showed: - Net Income: $13.6 million (up from $10.7 million in Q3 2024) - Adjusted EBITDA: $41.3 million (down from $43.9 million in Q3 2024) - Distributable Cash Flow: $27.8 million (up from $27.1 million in Q3 2024) - Distribution Coverage Ratio: 1.39x (compared to 1.36x in Q3 2024) [4][5][6] - Operating expenses decreased by 5% from $60.8 million in Q3 2024 to $57.5 million in Q3 2025 [5][6] Retail Segment Performance - Retail segment gross profit for Q3 2025 was $80.0 million, down from $83.6 million in Q3 2024, with motor fuel gross profit declining by $5.0 million or 11% [7][8] - Same-store motor fuel gallons distributed decreased by 4%, totaling 132.6 million gallons in Q3 2025 compared to 137.9 million gallons in Q3 2024 [7][8] - Merchandise gross profit increased by 5% year-over-year, with a gross profit percentage rising from 27.9% to 28.9% [9][10] Wholesale Segment Performance - Wholesale segment gross profit decreased by 10% to $24.8 million in Q3 2025, driven by a decline in motor fuel and rent gross profit [11][12] - Motor fuel gallons distributed in the wholesale segment fell to 177.7 million in Q3 2025 from 186.9 million in Q3 2024 [11][12] Asset Sales and Debt Management - CrossAmerica sold 29 properties for $21.9 million in proceeds during Q3 2025, resulting in a net gain of $7.4 million [12] - As of September 30, 2025, leverage was 3.56 times, down from 4.36 times at the end of 2024 [13] Distribution Information - The Board declared a quarterly distribution of $0.5250 per limited partner unit for Q3 2025, to be paid on November 13, 2025 [14]