CrossAmerica Partners LP (NYSE:CAPL) Reports Q2 2025 Earnings: Revenue Beat Offsets EPS Miss Amid Market Challenges

CrossAmerica Partners LP (NYSE:CAPL) Reports Q2 2025 Earnings: Mixed Results Amid Market Softness

CrossAmerica Partners LP (NYSE:CAPL) reported its second-quarter 2025 earnings, delivering a mixed performance relative to analyst expectations. The company posted revenue of $961.93 million, significantly surpassing the consensus estimate of $809.39 million. However, earnings per share (EPS) came in at $0.07, well below the estimated $0.204.

Key Financial Highlights vs. Estimates

• Revenue: $961.93M (vs. $809.39M expected) – 18.8% beat
• EPS: $0.07 (vs. $0.204 expected) – 65.7% miss
• Net Income: $25.2M (up from $12.4M in Q2 2024)
• Adjusted EBITDA: $37.1M (down from $42.6M YoY)
• Distributable Cash Flow (DCF): $22.4M (down from $26.1M YoY)

The revenue beat was driven by strong fuel distribution and merchandise sales, but profitability was pressured by higher operating expenses and lower fuel margins. The EPS miss reflects weaker-than-expected earnings despite gains from asset sales, which contributed $28.4 million in net income.

Market Reaction

Following the earnings release, CAPL shares saw a slight decline in after-hours trading, down 0.15%, extending a recent downtrend with a -8.23% drop over the past week. The market’s muted reaction suggests investors are weighing the revenue strength against declining profitability metrics, particularly the lower Adjusted EBITDA and DCF figures.

Segment Performance

• Retail Segment: Gross profit declined slightly to $76.1M (from $76.6M YoY), with fuel margins per gallon dipping to $0.370 from $0.373. Same-store merchandise sales (excluding cigarettes) rose 4%.
• Wholesale Segment: Gross profit fell 12% to $24.9M, with fuel volumes down 7% due to site conversions and weaker market conditions.

Balance Sheet & Capital Allocation

CrossAmerica reduced its debt by $51 million in Q2, bringing leverage down to 3.65x (from 4.36x at year-end 2024). The company also declared a quarterly distribution of $0.5250 per unit, maintaining its payout despite the softer earnings environment.

Outlook vs. Analyst Estimates

While management did not provide explicit forward guidance, analysts currently expect:

• Q3 2025 Revenue: $832.99M (vs. $961.93M in Q2)
• Q3 2025 EPS: $0.204 (a potential rebound from Q2’s $0.07)
• Full-Year 2025 Revenue: $3.334B
• Full-Year 2025 EPS: $0.2958

Given the sequential decline in profitability, investors will monitor whether cost controls and asset sales can stabilize earnings in the coming quarters.

Conclusion

CrossAmerica’s Q2 results reflect resilience in revenue but challenges in maintaining profitability amid softer fuel margins and higher costs. The market’s cautious reaction indicates skepticism about near-term earnings recovery, though the company’s debt reduction and steady distribution may provide some support.

For more detailed earnings estimates and historical performance, visit CrossAmerica Partners LP’s earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research before making any financial decisions.