CrossAmerica Partners LP Reports Fourth Quarter and Full Year 2025 Results

Core Insights - CrossAmerica Partners LP reported strong financial performance for Q4 and FY2025, driven by improved fuel margins and strategic site conversions [3][4][6] Financial Performance - Q4 2025 net income was $10.2 million, down from $16.9 million in Q4 2024, while FY2025 net income increased to $41.8 million from $22.5 million in FY2024 [4][5] - Adjusted EBITDA for Q4 2025 was $43.4 million, up from $35.5 million in Q4 2024, and for FY2025 it was $146.0 million, slightly up from $145.5 million in FY2024 [4][5] - Distributable Cash Flow for Q4 2025 was $28.5 million, compared to $21.1 million in Q4 2024, and for FY2025 it was $87.8 million, up from $86.0 million in FY2024 [4][5] Retail Segment Performance - Retail segment gross profit for Q4 2025 was $82.9 million, a 10% increase from $75.1 million in Q4 2024, while FY2025 gross profit was $302.2 million, up from $289.7 million in FY2024 [8][9] - Motor fuel gross profit in the retail segment increased by $6.7 million or 17% in Q4 2025, driven by a 19% increase in margin per gallon [10] - Merchandise gross profit increased by 3% year-over-year in Q4 2025, with same-store merchandise sales excluding cigarettes rising by 1% [11] Wholesale Segment Performance - Wholesale segment gross profit for Q4 2025 was $24.2 million, down from $25.9 million in Q4 2024, while FY2025 gross profit was $100.5 million, down from $108.6 million in FY2024 [17][19] - Motor fuel gross profit in the wholesale segment increased by 6% in Q4 2025, attributed to a 13% increase in margin per gallon, despite a 6% decline in wholesale volume [18] - The total average site count in the wholesale segment declined by 6% year-over-year due to site conversions to retail [18] Divestment Activity - In Q4 2025, CrossAmerica sold eleven sites for $8.8 million, generating net gains of $3.4 million, while for FY2025, 107 properties were sold for $103.3 million, resulting in net gains of $45.9 million [22] Liquidity and Capital Resources - As of December 31, 2025, CrossAmerica had $692.3 million outstanding under its credit facility, with approximately $216.6 million available for future borrowings [23] - Leverage was reported at 3.51 times as of December 31, 2025, down from 4.36 times a year earlier [23] Distributions - The Board declared a quarterly distribution of $0.5250 per limited partner unit for Q4 2025, paid on February 12, 2026 [24]