Crossamerica Partners LP ((CAPL)) has held its Q3 earnings call. Read on for the main highlights of the call.
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The recent earnings call for CrossAmerica Partners LP painted a mixed picture of the company’s financial health. On the positive side, the company reported a significant increase in net income and successful asset sales, which have bolstered its financial position. However, challenges were highlighted in the form of declining profits in both retail and wholesale segments, as well as an overall decrease in fuel volume. Strategic pricing decisions have negatively impacted fuel volume, yet the company maintains strong financial metrics and asset management strategies.
Increase in Net Income
Net income for the third quarter of 2025 saw a notable increase, reaching $13.6 million compared to $10.7 million in the same period of 2024. This growth was primarily driven by increased gains from asset sales and a reduction in interest expenses.
Strong Asset Sale Proceeds
CrossAmerica Partners LP realized approximately $22 million from the sale of 29 sites during the quarter. This contributed to a year-to-date total of around $100 million, marking the highest in the company’s history.
Reduced Interest Expense
The company successfully reduced its interest expense from $14.1 million in Q3 2024 to $11.8 million in Q3 2025. This reduction was achieved through a lower average interest rate and a decreased debt balance.
Increase in Inside Sales
Inside sales experienced a 3% year-over-year increase, driven by strong performance in packaged beverages and other tobacco products.
Decline in Retail Segment Gross Profit
The retail segment’s gross profit decreased by 4% to $80 million, down from $83.6 million in Q3 2024. This decline was attributed to lower retail fuel margins.
Decrease in Wholesale Segment Gross Profit
The wholesale segment’s gross profit fell by 10% to $24.8 million, compared to $27.6 million in Q3 2024. This was primarily due to a decline in fuel volume, fuel margin, and rental income.
Overall Fuel Volume Decline
Retail fuel volume saw a 4% year-over-year decline, with company-operated sites down 3% and commission sites down 7%. This was attributed to deliberate changes in pricing strategy.
Forward-Looking Guidance
During the earnings call, significant guidance was provided on operational and financial metrics. The retail segment’s gross profit decreased by 4%, driven by a 5% decline in retail fuel margin. Same-store retail fuel volume declined by 4%, with company-operated sites down 3% and commission sites down 7%, due to strategic pricing adjustments. National gasoline demand was down 2.5%, making the company’s performance slightly below the market average. Despite these challenges, the company reduced its credit facility balance by $62 million, achieving a decrease in interest expenses and a leverage ratio of 3.56x. The third quarter was marked by strategic asset sales and pricing strategies aimed at optimizing long-term performance.
In summary, CrossAmerica Partners LP’s earnings call revealed a mixed financial landscape. While the company achieved a significant increase in net income and benefited from strong asset sales, it faced challenges in its retail and wholesale segments. Strategic pricing decisions impacted fuel volume negatively, yet the company remains focused on optimizing its long-term performance through strong financial metrics and asset management strategies.