CrossAmerica Partners LP
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.90%.
Did CAPL Beat Earnings? Q3 2025 Results
CrossAmerica Partners delivered a blowout third quarter, posting earnings per unit of $0.34 against a consensus estimate of just $0.07, a beat of 385.71%, while revenue of $971.85 million topped the $780.93 million estimate by 24.45%, even as total revenue slipped 9.9% year over year. The most material driver behind the headline strength was a 27% surge in net income to $13.59 million, fueled by significant gains from an accelerating asset-sale program and meaningfully lower interest expense, as the partnership sold 29 properties during the quarter for $21.90 million in proceeds and used the capital to reduce its credit facility balance to $705.50 million, bringing leverage down to 3.56x from 4.36x at year-end 2024. Distributable Cash Flow rose modestly to $27.77 million, supporting a distribution coverage ratio of 1.39x, and the partnership maintained its quarterly distribution of $0.53 per unit. Adjusted EBITDA did decline 6% to $41.31 million, reflecting softer fuel margins and lower wholesale volumes, underscoring that operational headwinds remain even as the balance sheet improves considerably.
- Gains from asset sales and lease terminations of $7.4 million in Q3 2025
- Interest expense declined from $14.1 million to $11.8 million due to lower average interest rate and lower outstanding debt balance
- Operating expenses declined 5% year-over-year driven by lower site count from real estate rationalization and lower legal fees
- Merchandise gross profit increased 5% with margin expanding to 28.9% from 27.9%
- Same-store merchandise sales excluding cigarettes increased 4%
- Transition of certain merchandise products from commission basis to gross profit model boosted merchandise results
“We generated solid operating results for the third quarter. Our retail same-store sales, same-store merchandise margin percentage and overall merchandise margin dollars increased during the quarter. Retail same-store fuel volumes declined, reflecting both broader market trends during the quarter and deliberate pricing strategy adjustments within our commission class of trade. We also continued to make meaningful progress on our asset-sale initiative, completing approximately $22 million in transactions during the quarter. These sales enabled us to reduce debt by a similar amount, lower operating and administrative expenses, and further advance our strategic objective of enhancing the long-term quality and performance of our portfolio.”
CrossAmerica Partners CEO, on the earnings call
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Figures from SEC filings and company reports. Not investment advice.