CAPL · CrossAmerica Partners LP

CrossAmerica Partners LP delivered a strong first quarter 2026, achieving record Adjusted EBITDA of $35.1 million, a 45% increase year-over-year. This performance was primarily driven by the Retail segment, where gross profit rose 18% to $74.3 million. Retail motor fuel gross profit surged 28% due to a 29% increase in margin per gallon, benefiting from market volatility and crude oil price movements, despite a 7% decline in fuel volume attributed to portfolio optimization and base business declines. Merchandise gross profit also improved 8%, with same-store sales excluding cigarettes rising 2% and merchandise margins expanding 180 basis points to 29.7%. Conversely, the Wholesale segment experienced a 13% decline in gross profit to $23.3 million, largely due to a $1.9 million drop in rent gross profit from site sales and conversions, alongside lower fuel margins and volumes. The Partnership significantly strengthened its balance sheet, reducing its leverage ratio to 3.35x from 4.27x a year ago, aided by debt repayment and lower interest expenses. During the quarter, CrossAmerica sold 16 sites for $12.7 million, realizing a net gain of $6.3 million. Concurrently, the Board maintained the quarterly distribution at $0.5250 per unit, supported by a robust trailing 12-month distribution coverage ratio of 1.25x. Leadership transitions were also effected, with Maura Topper assuming the role of CEO and President and Jon Benfield appointed as Interim CFO.