CrossAmerica Partners LP

CrossAmerica reported second-quarter 2026 net income of $20.8 million versus $25.2 million in second-quarter 2025, and adjusted EBITDA of $51.8 million versus $37.1 million, a 40% increase. Retail segment gross profit was $85.7 million, up 13% from $76.1 million, and wholesale segment gross profit was $27.1 million, up 9% from $24.9 million. Retail fuel gross profit per gallon was $0.492 versus $0.37 last year, and merchandise margin was 29.5%, up 130 basis points. Distributable cash flow was $33.6 million versus $22.4 million, and the distribution coverage ratio was 1.68x versus 1.12x a year ago. For capital deployment, the company spent $7.4 million on capex, sold 5 properties for about $2.7 million in proceeds, reduced credit facility balance by approximately $10 million, and lowered leverage to 3.57x. Management did not provide formal next-quarter or full-year financial guidance on the call.

Maura Topper said the quarter reflected progress on the company’s controllable levers: retail pricing discipline, better store image and offerings, improved wholesale execution, and active portfolio preparation for long-term success. She emphasized momentum in merchandise margin, cost management, and balance sheet strength despite a volatile fuel environment. Her tone was confident and operationally focused, and she highlighted that June trends were mostly persistent into early third quarter, while fuel margins had moderated.

Jonathan Benfield highlighted stronger financial performance across the income statement and cash flow. He cited adjusted EBITDA of $51.8 million, distributable cash flow of $33.6 million, operating expenses of $55 million, and cash interest of $10.9 million versus $12.1 million a year earlier. He also noted the credit facility balance fell by about $10 million, leverage improved to 3.57x, about 60% of the balance is swapped at roughly 3.4% blended fixed rate, and the effective interest rate at quarter-end was 5.5%. He added that the company amended its credit facility on July 15 to extend maturity to July 15, 2031 and remove the SOFR credit spread adjustment.

There was no analyst Q&A because no questions were asked after management opened the line. As a result, the call did not surface new concerns or clarifications beyond management’s prepared remarks. The closest thing to guidance was management’s commentary that fuel margins had moderated in early third quarter, June volume trends had generally persisted, and the company still sees a strong pipeline of property sales for the rest of 2026, though at a lower level than 2025.