Financial Data and Key Metrics Changes - Net income for Q4 2025 was $8.1 million, up from $7.5 million in Q4 2024, representing an increase of approximately 8% [15] - Adjusted EBITDA for Q4 2025 was $36.9 million, compared to $35.4 million in the prior year, reflecting a growth of about 4% [15] - For the full year 2025, net income was $32.7 million, down from $40.2 million in 2024, while adjusted EBITDA increased to $143.5 million from $139.2 million [16] Business Line Data and Key Metrics Changes - In the wholesale segment, fuel contribution increased by 8% to $24 million in Q4 2025, with wholesale gallons rising approximately 4% to 249 million gallons [16] - Fleet fueling segment contributed $15.9 million in Q4 2025, down from $16.3 million in the previous year, with gallons sold totaling 34.9 million [18] - GPMP segment's fuel contribution from related party locations was $10.2 million for Q4 2025, compared to $12.3 million in Q4 2024, with gallons sold decreasing to 204 million [19] Market Data and Key Metrics Changes - The company distributed over 2 billion gallons in the last 12 months, holding a market share of approximately 1% in the fragmented fuel distribution market [7] - The macro environment has seen extraordinary volatility in fuel costs due to events in the Middle East, impacting pricing and margins [8] Company Strategy and Development Direction - The company aims to expand its platform through strategic acquisitions, currently in due diligence for two targets that could add significant gallons to its operations [7] - The focus remains on capital allocation towards accretive projects, including M&A in the wholesale segment and building new cardlock locations [13][14] Management's Comments on Operating Environment and Future Outlook - Management noted that while there could be softness in volume due to rising costs, the business model's cost-plus structure provides margin stability [9] - The company expects to deliver approximately $156 million in adjusted EBITDA and discretionary cash flow of about $110 million for 2026, with an anticipated increase in gallons sold from acquisitions [22][23] Other Important Information - The company declared a dividend of $0.26 per share, consistent with an annual rate of $2 per share, representing an attractive yield [13] - Following the IPO, the company used $206.7 million of net proceeds to reduce debt, enhancing its capital structure and financial flexibility [20][21] Q&A Session Summary Question: Impact of rising fuel costs on business lines - Management explained that 85% of gallons sold are on a cost-plus basis, which mitigates the impact of volatility on margins, with prompt pay discounts providing additional margin benefits [29][30] Question: M&A activity in light of market volatility - Management indicated that while it is too early to assess the full impact of current volatility, they have ongoing acquisition opportunities and are prepared to act if small operators face pressure [33] Question: Margin enhancement details - Management clarified that the margin enhancement is linked to prompt pay discounts, which increase as fuel prices rise, benefiting the overall business [40][41] Question: CapEx outlook for fleet fueling and M&A - Management confirmed that the cost to build new fleet fueling locations remains around $1 million-$2 million, targeting mid- to high-single-digit returns, with ongoing due diligence for M&A opportunities [45]

Investment Rating - The report maintains a positive outlook on the company, indicating it is a differentiated and high-growth entity benefiting from strong economic and consumer growth in the UAE, Egypt, and Saudi Arabia [1][2]. Core Insights - The company reported a significant increase in net profit for Q4 2025, reaching 6.41 billion AED, exceeding market expectations of 6.64 billion AED, driven by strong operational performance and sales volume [2]. - The company aims for double-digit growth in its non-fuel retail business, focusing on AI and digitalization to enhance operational efficiency and profit margins [1][2]. - The company plans to expand its network by adding 60-70 new gas stations and 50-60 electric vehicle charging points in FY 2026, with a total capital expenditure guidance of 250-300 million AED [3]. Summary by Sections Financial Performance - In Q4 2025, the company achieved revenues of 9.459 billion AED, a 1% increase from the previous quarter and a 7% increase year-on-year, surpassing the consensus estimate of 9.033 billion AED [2][5]. - The EBITDA margin for Q4 2025 was reported at 11%, aligning with market expectations, while net profit margin remained at 7% [2][5]. Business Expansion - The total number of gas stations reached 1,010 by the end of Q4 2025, with plans to increase this to 1,150 by 2030 [3]. - The company currently operates 536 convenience stores, contributing significantly to its profitability, with non-fuel retail gross profit accounting for nearly 14% of total retail gross profit [2][3]. Dividend Policy - The company reiterated its commitment to a dividend policy, planning to distribute 700 million USD or at least 75% of net profit as dividends by FY 2030, with quarterly payments starting in Q1 2026 [3].