Financial Data and Key Metrics Changes - Net income for Q3 2025 was $29 million, down from $45.9 million in Q3 2024, impacted by a $7.8 million one-time gain on asset sales last year [6] - EBITDA decreased to $97.1 million from $119.1 million, while adjusted EBITDA fell to $98.8 million from $114 million [6] - Distributable cash flow was $53 million compared to $71.1 million, with adjusted distributable cash flow at $53.3 million versus $71.6 million [6] - Trailing 12-month distribution coverage remained strong at 1.64 times, or 1.5 times after factoring in distributions to preferred unit holders [6] Business Line Data and Key Metrics Changes - GDSO product margin decreased by $18.8 million to $218.9 million [7] - Gasoline distribution product margin fell by $19.3 million to $144.8 million, with fuel margins down 7% year-over-year to $0.37 per gallon [8] - Stage and operations product margin increased by $0.5 million to $74.1 million, attributed to an increase in sundries [8] - Wholesale segment product margin increased by $6.9 million to $78 million, driven by favorable marketing conditions in gasoline [9] - Commercial segment product margin decreased by $2.5 million to $7 million due to less favorable marketing conditions in bunkering [9] Market Data and Key Metrics Changes - The company expanded its marine fuel supply operations into the Port of Houston, enhancing its presence in the Gulf Coast [4] - The retail network saw a decrease in site count to 1,540, down by 49 from the previous year [8] Company Strategy and Development Direction - The company is focused on capital discipline and operational efficiency, seeking sustainable returns and long-term value creation [12] - The strategy includes optimizing and upgrading the retail portfolio, with a focus on enhancing the convenience store experience through new brands and loyalty programs [4][12] Management's Comments on Operating Environment and Future Outlook - Management noted that the lower-end consumer is under pressure, with consumers trading down to more generic brands [25] - Despite challenges, the company reported strong performance in convenience stores, with year-over-year growth despite a decrease in company-operated sites [25] - Wage inflation has calmed, and there are signs of improvement in labor availability compared to previous years [27][28] Other Important Information - The board declared a quarterly cash distribution of $0.7550 per common unit, marking the 16th consecutive quarterly distribution increase [5] - Capital expenditures for Q3 were $19.7 million, with expectations for maintenance capex of $45 million-$55 million and expansion capex of $40 million-$50 million for the full year [10] Q&A Session Summary Question: Can you talk a little bit more about entering the bunkering market in Houston? - Management indicated that they already have a presence in the business and see differentiated assets compared to competition [17] Question: Can you explain the differentiated offering in the bunkering market? - The differentiation is primarily based on the location of facilities and the approach to market supply [18] Question: How is the acquisition environment looking? - Management noted that there was a quiet period for retail M&A but signs of activity are emerging [21] Question: Are you facing competition from Parkland? - Management confirmed that they do not operate in Parkland's footprint [23] Question: Are you seeing pressure on lower-end consumers? - Yes, there is pressure, but the company is leveraging its loyalty program to drive promotions [25] Question: How is labor availability for the company? - Labor availability has improved, with more applicants compared to the previous years [28]

Financial Data and Key Metrics Changes - In Q3 2025, consolidated volume was 4.3 billion gallons, down 4% year over year, and consolidated gross profit declined 7% to $250 million [14] - Operating expenses were $181 million, down 7% year over year, primarily due to lower variable costs [19] - Operating cash flow was $116 million, and free cash flow was $102 million, increasing year-to-date operating cash flow to $259 million and free cash flow to $215 million [21][25] Business Line Data and Key Metrics Changes - Aviation volume was 1.8 billion gallons, down 4% year over year, but gross profit increased by 11% to $143 million due to strong results in Europe and government sales [14][15] - Land volumes declined 8% year over year, with gross profit down 20% to $81 million, impacted by unfavorable market conditions and recent business exits [16][17] - Marine volumes increased 3% year over year, but gross profit decreased 32% due to lower profit contributions and market volatility [18] Market Data and Key Metrics Changes - The aviation segment showed resilience with growth in government and business aviation activities, while the land segment faced challenges from market exits and inefficiencies [10][17] - Marine performance was affected by low market volatility and bunker prices, but there are expectations for cash generation when market conditions improve [18][19] Company Strategy and Development Direction - The company is focusing on core businesses and has made leadership changes to enhance growth and returns, with a commitment to talent development [5][6] - A strategic acquisition of Universal Trip Support Services is expected to enhance service offerings and contribute to earnings growth [15][22] - The company is actively reshaping its portfolio by exiting non-core and underperforming businesses to concentrate on profitable activities [12][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the leadership team and their ability to navigate challenges, including macroeconomic headwinds and market volatility [6][10] - The company anticipates continued growth in aviation gross profit and is focused on improving land segment performance through operational efficiencies [15][18] - There is optimism about future M&A opportunities as interest rates decline, with a sharper focus on strategic acquisitions [39][40] Other Important Information - The company generated strong operating cash flow, maintaining a net debt to adjusted EBITDA ratio of under one times, which supports a healthy liquidity profile [25] - The company has returned $214 million to shareholders through buybacks and dividends since the beginning of 2024, exceeding its target [26] Q&A Session Summary Question: What is needed to turn around unfavorable market conditions in the land segment? - Management is exploring strategies to improve transportation efficiencies and evaluating long-term viability of certain markets [31][34] Question: How will the earnings accretion from the latest acquisition flow in the first year? - The earnings accretion is expected to be ratable on a monthly basis, with potential increases from synergies in the second year [35][37] Question: How is the company balancing divestitures and potential M&A opportunities? - The company is focused on restructuring the land business while actively looking for M&A opportunities as interest rates decline [38][39] Question: What other areas are expected to see variable cost efficiencies? - Management is looking at various parts of the business for cost-effective operations, including a global finance transformation initiative [41][42]

Financial Performance - For the quarter ended March 2025, World Kinect (WKC) reported revenue of $9.45 billion, down 13.7% year-over-year, and EPS of $0.48, slightly up from $0.47 in the same quarter last year [1] - The reported revenue was below the Zacks Consensus Estimate of $10.27 billion, resulting in a revenue surprise of -7.99%, while the EPS exceeded the consensus estimate of $0.45, yielding an EPS surprise of +6.67% [1] Key Metrics - World Kinect's stock has returned -16.3% over the past month, compared to a -5.1% change in the Zacks S&P 500 composite [3] - The company currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3] Segment Performance - Aviation volume was reported at 1,700.2 million gallons, exceeding the average estimate of 1,646.91 million gallons, with revenue of $4.65 billion, above the $4.41 billion estimate, but showing a year-over-year decline of -9.5% [4] - Land segment revenue was reported at $2.87 billion, significantly below the $3.68 billion estimate, reflecting a year-over-year decline of -16.1% [4] - Marine segment revenue was $1.93 billion, also below the $2.22 billion estimate, with a year-over-year decline of -19.1% [4] - Income from operations in the Aviation segment was $56.20 million, surpassing the estimate of $42.91 million, while Land reported a loss of -$45.30 million against an expected profit of $15.38 million [4]