Core Insights - Sunoco LP (SUN) reported second-quarter 2025 earnings of $0.33 per unit, missing the Zacks Consensus Estimate of $1.68 and declining from $3.85 per unit in the same quarter last year [1][9] - Total quarterly revenues were $5.39 billion, below the Zacks Consensus Estimate of $5.62 billion and down from $6.17 billion in the year-ago quarter [1][9] - The weaker-than-expected results were primarily due to lower contributions from the Fuel Distribution segment, attributed to reduced motor fuel profit per gallon [2][9] Distribution and Growth - The board declared a distribution of $0.9088 per unit for Q2 2025, marking a sequential increase of 1.25%, with an annualized basis of $3.6352 [3] - The partnership aims for a distribution growth rate of at least 5% for 2025 and plans to announce future increases quarterly [3] Segment Performance - **Fuel Distribution**: Adjusted EBITDA decreased to $206 million from $245 million in Q2 2024, impacted by lower fuel profits and higher expenses [4] - **Pipeline Systems**: Adjusted EBITDA rose to $177 million from $53 million in the prior year, aided by the acquisition of NuStar and a decline in operating costs [5] - **Terminals**: Adjusted EBITDA increased to $71 million from $22 million in the same period last year, primarily due to the NuStar acquisition, with throughput volumes at 692 thousand barrels per day compared to 638 thousand barrels per day in Q2 2024 [6] Financial Metrics - Motor fuel gross profit per gallon was 10.5 cents, down from 11.8 cents year-over-year [7] - Total operating income for the quarter was $203 million, up from $150 million in the prior-year quarter [7] - Net income for Q2 2025 was $86 million, compared to $501 million in Q2 2024 [7] - Adjusted distributable cash flow totaled $300 million, slightly up from $295 million year-over-year [8] Expenses and Capital Expenditure - Total cost of sales and operating expenses was $5.19 billion, down from $6.02 billion a year ago [10] - Capital expenditure for the quarter was $160 million, consisting of $120 million in growth capital and $40 million in maintenance capital [10] Balance Sheet and Outlook - As of June 30, 2025, Sunoco had cash and cash equivalents of $116 million and net long-term debt of $7.8 billion [11] - The company reaffirmed its full-year 2025 adjusted EBITDA guidance in the range of $1.90-$1.95 billion and aims to meet its distribution growth target of at least 5% [12]