Globenewswire·2026-02-25 21:05Core Insights - ARKO Corp. reported a net income of $1.9 million for Q4 2025, a significant improvement from a net loss of $2.3 million in the same quarter of the previous year. For the full year, net income rose by 9.1% to $22.7 million compared to $20.8 million in 2024 [4][6] - Adjusted EBITDA for Q4 2025 increased by 15.6% to $65.7 million, while for the full year, it was $248.7 million, slightly below the previous year's $248.9 million but above the initial guidance of $233.0 million to $253.0 million [4][6] - The company completed its IPO for ARKO Petroleum Corp., raising approximately $184 million to reduce debt and enhance financial flexibility [4][6] Financial Performance - Q4 2025 merchandise margin increased to 34.4% from 33.0% year-over-year, while for the full year, it rose to 33.7% from 32.8% [4][6] - Retail fuel margin for Q4 2025 was 44.5 cents per gallon, up from 38.7 cents per gallon in Q4 2024. For the full year, it increased to 42.8 cents per gallon from 39.6 cents per gallon [4][6] - The company reported a decrease in merchandise contribution for Q4 2025 by $18.6 million, or 13.8%, compared to Q4 2024, attributed to store closures and conversions [9][10] Operational Highlights - The company converted 62 retail stores to dealer locations in Q4 2025, totaling 256 conversions for the year, with an expectation to complete additional conversions by the end of 2026 [4][6] - The company introduced a new store format, fas craves, which has shown early success with double-digit increases in merchandise sales and fuel gallons [4][6] - The company plans to open approximately 25 remodels featuring the fas craves format and expand its network with new-to-industry retail stores [4][6] Liquidity and Capital Expenditures - As of December 31, 2025, the company's total liquidity was approximately $888 million, with $305 million in cash and cash equivalents and $583 million available under lines of credit [28] - Capital expenditures for Q4 2025 were $29.6 million, including investments in new retail stores and remodeling efforts [28] Dividend and Share Repurchase - The Board of Directors declared a quarterly dividend of $0.03 per share, to be paid on March 20, 2026 [5][29] - During Q4 2025, the company repurchased approximately 1.7 million shares for about $7.2 million, completing its current share repurchase program [30] Segment Performance - In the retail segment, fuel gallons sold decreased by 4.1% in Q4 2025 compared to Q4 2024, while same-store merchandise sales also saw a decline of 3.0% [7][11] - The wholesale segment experienced an increase in fuel gallons sold, with fuel contribution from fuel supply locations rising to $13.7 million in Q4 2025 [16][19] - The fleet fueling segment reported a slight increase in fuel contribution, with proprietary cardlock locations showing a fuel margin of 49.1 cents per gallon [24][27] Guidance - The company expects full-year 2026 Adjusted EBITDA to range between $245 million and $265 million, with an average retail fuel margin assumption of 41.5 to 43.5 cents per gallon [35]