CrossAmerica Partners Q2 Earnings Call Highlights

CrossAmerica Partners NYSE: CAPL reported second-quarter results marked by higher fuel margins, improved merchandise profitability, lower operating expenses and reduced debt, even as fuel volumes declined amid elevated and volatile gasoline prices. The partnership generated net income of $20.8 million for the second quarter of 2026, compared with $25.2 million a year earlier. Chief Financial Officer Jon Benfield said the decline primarily reflected lower gains from real estate optimization activities: the prior-year period included $29.7 million in net gains, versus $1.1 million in the latest quarter. Lower interest expense and reduced impairment charges partly offset the impact. Adjusted EBITDA rose 40% year over year to $51.8 million from $37.1 million. Benfield attributed the increase to stronger motor fuel margins in both the retail and wholesale segments, higher retail merchandise gross profit and lower operating expenses. Fuel Margins Offset Lower Volumes CEO and President Maura Topper said the operating environment was volatile during the quarter, as the national average cost of gasoline rose above $4.50 per gallon in late May before moderating in June. While high prices and volatile input costs pressured demand, the conditions also supported higher retail fuel margins. Retail segment gross profit increased 13% to $85.7 million, driven principally by a $7.7 million increase in fuel gross profit. Retail fuel margin rose to 49.2 cents per gallon, compared with 37 cents per gallon in the second quarter of 2025. Retail same-store fuel volume declined 11% from a year earlier. Company-operated locations posted an approximately 8% same-store volume decline, while the commissioned class of trade experienced a steeper reduction. Topper said the company faced challenges in select commissioned markets while continuing to balance fuel volume and margin. “The pattern we experienced closely tracked the broader industry,” Topper said, describing a soft April, more difficult conditions in May as pump prices rose, and some improvement in June. She said volume trends seen in June had generally continued into the beginning of the third quarter. CrossAmerica said it remains focused on controlling retail fuel pricing where possible to preserve competitive positioning and customer loyalty in changing price environments. Merchandise Margin Improves Despite Flat Same-Store Sales Same-store inside sales were relatively flat in the retail business compared with the prior-year quarter. Growth in other tobacco products and branded and proprietary food sales was offset by lower customer traffic in other categories, according to Topper. Merchandise margin increased 130 basis points to 29.5%. The company cited a more favorable merchandise mix and improved execution in food and beverage, cigarettes and other tobacco products. Retail merchandise gross profit increased 2% to $31 million despite a 9% decline in average company-operated site count from the year-earlier period. Topper said investments in food operations acros...