Crossamerica Partners (NYSE:CAPL) Q4 2025 Earnings call February 26, 2026 09:00 AM ET Company ParticipantsCharles Nifong - CEO and PresidentMaura Topper - Chief Financial OfficerOperatorGood morning, ladies and gentlemen, and welcome to CrossAmerica Partners' fourth quarter and full year 2025 earnings call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please pres ...

Financial Data and Key Metrics Changes - For Q3 2025, the company reported a net income of $13.6 million, an increase from $10.7 million in Q3 2024, driven by asset sales and reduced interest expenses [17][18] - Adjusted EBITDA for Q3 2025 was $41.3 million, a decline of $2.6 million or 6% compared to the prior year, primarily due to lower fuel and rent gross profit [18][19] - Distributable cash flow increased slightly to $27.8 million from $27.1 million in Q3 2024, attributed to lower cash interest expenses [19] Business Line Data and Key Metrics Changes - Retail segment gross profit decreased 4% to $80 million in Q3 2025 from $83.6 million in Q3 2024, mainly due to lower motor fuel gross profit [4][12] - Retail fuel margin decreased 5% year over year to 38.4 cents per gallon, down from 40.6 cents per gallon [5] - Inside sales on a same-store basis increased approximately 3%, with a 4% increase excluding cigarettes, driven by strong performance in packaged beverages and tobacco products [9][10] Market Data and Key Metrics Changes - National gasoline demand was down approximately 2.5% for the quarter, impacting the company's same-store volume performance [7][14] - The company's overall retail same-store volume declined slightly more than the national average, reflecting strategic pricing adjustments [8][11] Company Strategy and Development Direction - The company continues to focus on strategic asset sales, realizing approximately $100 million year to date, which has strengthened its balance sheet and reduced debt [16][26] - The retail strategy remains unchanged, with a focus on being in the right markets with the right assets [11][28] Management's Comments on Operating Environment and Future Outlook - Management noted a favorable fuel margin environment in October following the quarter end, which is expected to positively impact future results [12][17] - The company is focused on maintaining a strong balance sheet and generating value for unitholders as it looks forward to 2026 [28] Other Important Information - The company reported a decrease in operating expenses by $3.2 million year over year, with G&A expenses down by $0.8 million [21][24] - Capital expenditures for Q3 totaled $6.7 million, with $4.8 million allocated to growth-related projects [25] Q&A Session Summary - No questions were raised during the Q&A session, indicating a lack of immediate inquiries from analysts or investors [29]