Q2 2026 Crossamerica Partners LP Earnings Call Transcript
Key Points
- Adjusted EBITDA increased 40% year-over-year to $51.8 million in Q2 2026, driven by strong gross profits in both Retail and Wholesale segments.
- Retail segment gross profit rose 13% to $85.7 million, with merchandise margin percentage improving 130 basis points to 29.5%.
- Wholesale segment gross profit grew 9% to $27.1 million, supported by a 31% increase in fuel margin per gallon.
- Operating expenses declined for the seventh consecutive quarter, with total expenses down $2.9 million year-over-year.
- Distribution coverage ratio improved to 1.68 times for Q2 2026, up from 1.12 times in the prior year period.
- Credit facility was amended to extend maturity to July 2031 and reduce interest costs, with leverage ratio improving to 3.57 times.
- Retail same-store fuel volume declined 11% year-over-year, with company-operated sites down 8% and commission sites down more significantly.
- Elevated fuel prices and input cost volatility during the quarter negatively impacted fuel volumes across both Retail and Wholesale segments.
- Wholesale segment fuel volume declined 11% year-over-year, partly due to the net loss of independent dealer contracts.
- Net income decreased to $20.8 million from $25.2 million in Q2 2025, primarily due to lower gains from real estate sales.
- Average company-operated site count declined 9% year-over-year, reflecting ongoing portfolio optimization and asset sales.
- Fuel margins have moderated in Q3 2026, and the company expects continued volatility, which could pressure future results.
Good morning, ladies and gentlemen, and welcome to the CrossAmerica Partners second-quarter 2026 earnings call. (Operator Instructions) This call is being recorded on Thursday, August 6, 2026. I would now like to turn the conference over to Randy Palmer, Investor Relations. Please go ahead.
Thank you, operator. Good morning, and thank you for joining the CrossAmerica Partners' second-quarter 2026 earnings call. With me today are Maura Topper, CEO and President; and Jon Benfield, Chief Financial Officer. We'll start throughout the call today with Maura providing some opening comments and an overview of CrossAmerica's operational performance for the second quarter, then Jon will discuss the financial results. We'll then open up the call to questions.
Today's call will follow presentation slides that are available as part of the webcast and are posted on the CrossAmerica website. Before we begin, I would like to remind everyone that today's call, including the question-and-answer session, may
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