CrossAmerica Partners LP : Q1 2026 Earnings Call Presentation
CAPL
Published on 05/07/2026 at 08:43 am EDT
May 2026
Maura Topper, President & CEO
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First Quarter 2026 Earnings Call May 2026
OPERATING RESULTS
(in thousands, except for margin per gallon and merchandise
gross margin percentage)
Three Months ended March 31,
2026 2025
% Change
Retail Segment:
Gross Profit
$74,303
$63,159
18%
Operating Expenses
$49,999
$51,704
(3%)
Operating Income
$24,304
$11,455
112%
Motor Fuel Gross Profit
$39,860
$31,180
28%
Retail Margin Per Gallon
$0.437
$0.339
29%
Volume of Gallons Sold
117,686
126,532
(7%)
Merchandise Gross Profit*
$26,952
$24,913
8%
Same Store Sales Excluding Cigarettes*
$59,622
$58,307
2%
Merchandise Gross Margin Percentage*
29.7%
27.9%
180 bps
Wholesale Segment:
Gross Profit
$23,320
$26,655
(13%)
Operating Income
$16,883
$19,485
(13%)
Motor Fuel Gross Profit
$14,453
$15,764
(8%)
Wholesale Margin Per Gallon
$0.094
$0.097
(3%)
Volume of Gallons Distributed
153,588
162,918
(6%)
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*Includes only company operated retail sites
Jon Benfield, Interim Chief Financial Officer
First Quarter 2026 Earnings Call May 2026
OPERATING RESULTS
(in thousands, except for distributions per unit and coverage)
Three Months ended March 31,
2026 2025
% Change
Net Income (Loss)
$10,659
($7,115)
250%
Adjusted EBITDA
$35,081
$24,269
45%
Distributable Cash Flow
$21,502
$9,095
136%
Distribution Paid per LP Unit
$0.5250
$0.5250
0%
Distributions Paid
$20,021
$19,981
0%
Distribution Coverage (Paid Basis-current quarter)
1.07x
0.46x
136%
Distribution Coverage (Paid Basis - trailing twelve months)
1.25x
1.04x
20%
Note: See the reconciliation of Adjusted EBITDA and Distributable Cash Flow (or "DCF") to net income and the definitions of EBITDA, Adjusted EBITDA and DCF in the appendix of this presentation.
First Quarter 2026 Earnings Call May 2026
Capital Expenditures
First quarter 2026 capital expenditures of $3.4 million with $2.1 million of growth capex
Growth capital projects continue to focus on targeted renovations as well as projects to increase food offerings
Leverage
Credit facility balance at 03/31/26: $682.0 million
Continue to manage debt levels and leverage ratio
Leverage ratio was 3.35x at 03/31/26
Effective interest rate at 03/31/26: 5.6%
- Ongoing benefit of interest rate swaps in elevated rate environment
Continued Focus on Execution, Expense Management, Cash Flows, and Strong Balance Sheet
First Quarter 2026 Earnings Call
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First Quarter 2026 Earnings Call May 2026
Non-GAAP Financial Measures
We use the non-GAAP financial measures EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio. EBITDA represents net income (loss) before deducting interest expense, income taxes and depreciation, amortization and accretion (which includes certain impairment charges). Adjusted EBITDA represents EBITDA as further adjusted to exclude equity-based compensation expense, gains or losses on dispositions and lease terminations, net and certain discrete acquisition related costs, such as legal and other professional fees, separation benefit costs and certain other discrete non-cash items arising from purchase accounting. Distributable Cash Flow represents Adjusted EBITDA less cash interest expense, sustaining capital expenditures and current income tax expense. The Distribution Coverage Ratio is computed by dividing Distributable Cash Flow by distributions paid on common units.
EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio are used as supplemental financial measures by management and by external users of our financial statements, such as investors and lenders. EBITDA and Adjusted EBITDA are used to assess our financial performance without regard to financing methods, capital structure or income taxes and the ability to incur and service debt and to fund capital expenditures. In addition, Adjusted EBITDA is used to assess the operating performance of our business on a consistent basis by excluding the impact of items which do not result directly from the wholesale distribution of motor fuel, the leasing of real property, or the day to day operations of our retail site activities. EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio are also used to assess the ability to generate cash sufficient to make distributions to our unitholders.
We believe the presentation of EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio provides useful information to investors in assessing the financial condition and results of operations. EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio should not be considered alternatives to net income or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio have important limitations as analytical tools because they exclude some but not all items that affect net income. Additionally, because EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio may be defined differently by other companies in our industry, our definitions may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.
First Quarter 2026 Earnings Call May 2026
The following table presents reconciliations of EBITDA, Adjusted EBITDA, and Distributable Cash Flow to net income (loss), the most directly comparable U.S. GAAP financial measure, for each of the periods indicated (in thousands, except for per unit amounts):
Income tax expense (benefit) 2,498 (3,598)
Net income (loss) $ 10,659 $ (7,115)
Interest expense
10,750
12,844
Three Months Ended March 31, 2026 2025
Depreciation, amortization and accretion expense 17,062 26,304
Equity-based employee and director compensation expense
201
813
Acquisition-related costs (b)
27
58
Cash interest expense
(10,265 )
(12,359 )
Current income tax expense (d)
(1,964 )
(94)
Distributions paid on common units
20,021
19,981
Distribution Coverage Ratio 1.07x 0.46x
Distributable Cash Flow $ 21,502 $ 9,095
Sustaining capital expenditures (c) (1,350 ) (2,721)
Adjusted EBITDA 35,081 24,269
Gain on dispositions and lease terminations, net (a) (6,116 ) (5,037)
EBITDA 40,969 28,435
Primarily includes net gains in connection with CrossAmerica's ongoing real estate rationalization effort of $6.3 million and $5.6 million for the three months ended March 31, 2026 and 2025, respectively.
Relates to certain acquisition-related costs, such as legal and other professional fees, separation benefit costs and purchase accounting adjustments associated with recent acquisitions.
Under the Partnership Agreement, sustaining capital expenditures are capital expenditures made to maintain CrossAmerica's long-term operating income or operating capacity. Examples of sustaining capital expenditures are those made to maintain existing contract volumes or to maintain the sites in conditions suitable to operate or lease, such as parking lot or roof replacement/renovation, or to replace equipment required to operate the existing business.
Excludes $0.5 million of current income tax incurred on sales of sites for the first quarter of 2026.
Disclaimer
CrossAmerica Partners LP published this content on May 07, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2026 at 12:42 UTC.