Sunoco LP (SUN)
NYSE:SUN
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Sunoco
(NYSE:SUN)
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Rating:68Neutral
Price Target:
$69.00
â–²(5.34% Upside)
Action:ReiteratedDate:03/10/26
The score is driven primarily by improving operational and cash-flow momentum (including strong earnings-call guidance and record adjusted EBITDA) and bullish technical trends. Offsetting these positives are thin margins and elevated leverage, while valuation and a high dividend yield provide additional support.
Positive Factors
Scale & Geographic Diversification
The Parkland/TanQuid acquisitions materially increase Sunoco's distribution scale and geographic footprint, creating durable commercial leverage across North America and the Caribbean. Greater scale supports negotiating power with suppliers, broader terminal coverage, and higher throughput that can sustain fuel margin capture and resiliency to local demand swings.
Negative Factors
Elevated Leverage
High leverage materially constrains financial flexibility. With leverage near management's upper target and large absolute debt, earnings volatility or slower-than-expected synergies could quickly pressure coverage metrics and limit the ability to invest, repurchase, or cut distributions without external financing or asset sales.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale & Geographic Diversification
The Parkland/TanQuid acquisitions materially increase Sunoco's distribution scale and geographic footprint, creating durable commercial leverage across North America and the Caribbean. Greater scale supports negotiating power with suppliers, broader terminal coverage, and higher throughput that can sustain fuel margin capture and resiliency to local demand swings.
Read all positive factors
Sunoco (SUN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.42B
Dividend Yield6.88%
Average Volume (3M)560.87K
Price to Earnings (P/E)13.6
Beta (1Y)0.58
Revenue Growth-5.18%
EPS Growth-33.14%
CountryUS
Employees3,298
SectorEnergy
Sector Strength52
IndustryOil & Gas Refining & Marketing
Share Statistics
EPS (TTM)-0.24
Shares Outstanding136,894,760
10 Day Avg. Volume681,936
30 Day Avg. Volume560,869
Financial Highlights & Ratios
PEG Ratio-0.35
Price to Book (P/B)0.89
Price to Sales (P/S)0.28
P/FCF Ratio11.63
Enterprise Value/Market Cap1.81
Enterprise Value/Revenue0.96
Enterprise Value/Gross Profit10.83
Enterprise Value/Ebitda13.41
Forecast
1Y Price Target
$67.50Price Target Upside3.05% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)6.53
Revenue Forecast (FY)$40.70B
Sunoco Business Overview & Revenue Model
Company Description
Sunoco LP, together with its subsidiaries, distributes and retails motor fuels in the United States. It operates in two segments, Fuel Distribution and Marketing, and All Other. The Fuel Distribution and Marketing segment purchases motor fuel from...
How the Company Makes Money
Sunoco generates revenue primarily through the sale of motor fuels and convenience store merchandise. The company's revenue model includes wholesale fuel distribution to a large network of branded and unbranded retail outlets, which comprise a sig...
Sunoco Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call emphasized multiple material achievements: record quarterly and annual adjusted EBITDA, significant pro forma volume and margin gains in fuel distribution driven by the Parkland acquisition, strong Q4 distributable cash flow, robust liquidity ($2.5B revolver availability) and a clear 2026 growth plan (guidance $3.1B–$3.3B, $125M synergy capture, at least $500M/year bolt-on M&A). Lowlights were present but mostly execution- and integration-related (one-time transaction costs, a planned refinery turnaround raising near-term maintenance capex and temporary disruption risk, margin variability, and dependence on synergy delivery). Overall, positives — including record results, clear capital allocation, and solid liquidity — materially outweigh the risks identified on the call.Positive Updates
Record Fourth Quarter Adjusted EBITDA
Reported record adjusted EBITDA of $706,000,000 in Q4 2025 (excluding ~ $60,000,000 of one-time transaction expenses).
Negative Updates
One-Time Transaction Expenses Impact
Approximately $60,000,000 of one-time transaction-related expenses in the quarter were excluded from adjusted EBITDA, reducing reported GAAP results and indicating notable transaction costs.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Fourth Quarter Adjusted EBITDA
Reported record adjusted EBITDA of $706,000,000 in Q4 2025 (excluding ~ $60,000,000 of one-time transaction expenses).
Read all positive updates
Company Guidance
Sunoco’s 2026 guidance targets adjusted EBITDA of $3.1–$3.3 billion, assumes realization of ~$125 million of a $250 million annual Parkland synergy target in 2026, and contemplates a planned 50‑day refinery turnaround; maintenance capital is forecast at $400–$450 million, the company has at least $600 million of quick‑spend/quick‑return growth projects in the pipeline and a $500 million‑per‑year floor for bolt‑on M&A. Management reiterated a minimum 5% annual distribution growth goal (most recent distribution $0.9317/unit, up 1.25% quarter over quarter) with a trailing‑12‑month coverage ratio of 1.9x, target leverage around ~4x (current ~4x) and $2.5 billion revolver availability at year‑end; the guide is supported by 2025 results including Q4 adjusted EBITDA of $706 million (ex ~ $60 million transaction expenses), Q4 distributable cash flow as adjusted of $442 million, and full‑year adjusted EBITDA of $2.12 billion (up 36% y/y).Sunoco Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
55
Neutral
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 25.20B | 22.69B | 23.07B | 25.73B | 17.60B |
| Gross Profit | 2.10B | 1.73B | 1.18B | 1.19B | 1.17B |
| EBITDA | 1.82B | 1.03B | 829.00M | 870.00M | 887.00M |
| Net Income | 527.00M | 716.00M | 311.00M | 397.00M | 446.00M |
Balance Sheet | |||||
| Total Assets | 28.36B | 14.38B | 6.85B | 6.86B | 5.82B |
| Cash, Cash Equivalents and Short-Term Investments | 891.00M | 94.00M | 29.00M | 82.00M | 25.00M |
| Total Debt | 16.11B | 8.00B | 4.11B | 4.12B | 3.79B |
| Total Liabilities | 20.35B | 10.31B | 5.87B | 5.91B | 5.00B |
| Stockholders Equity | 8.01B | 4.07B | 978.00M | 942.00M | 811.00M |
Cash Flow | |||||
| Free Cash Flow | 615.00M | 205.00M | 385.00M | 375.00M | 369.00M |
| Operating Cash Flow | 1.19B | 549.00M | 600.00M | 561.00M | 543.00M |
| Investing Cash Flow | -2.81B | 477.00M | -288.00M | -464.00M | -387.00M |
| Financing Cash Flow | 2.41B | -961.00M | -365.00M | -40.00M | -228.00M |
Sunoco Technical Analysis
Positive
65.50
Price Trends
60.77
Positive
56.67
Positive
53.38
Positive
Market Momentum
1.41
Positive
60.96
Neutral
50.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SUN, the sentiment is Positive. The current price of 65.5 is above the 20-day moving average (MA) of 64.37, above the 50-day MA of 60.77, and above the 200-day MA of 53.38, indicating a bullish trend. The MACD of 1.41 indicates Positive momentum. The RSI at 60.96 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SUN.
Sunoco Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $13.42B | 13.57 | 7.27% | 6.88% | -5.18% | -33.14% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | $5.93B | 9.20 | 15.50% | 8.03% | -3.51% | 3.75% | |
62 Neutral | $2.65B | 5.68 | -14.06% | 3.42% | -22.37% | -27.22% | |
62 Neutral | $10.98B | 14.84 | 6.25% | 4.26% | -9.55% | 27.65% | |
57 Neutral | $5.77B | -19.51 | -3.05% | 4.14% | -15.35% | -81.94% | |
47 Neutral | $3.29B | 94.69 | 4.13% | 10.50% | -7.21% | 135.72% |
* Energy Sector Average
SUN
Sunoco
65.50
10.70
19.53%
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Sunoco Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Sunoco Completes $1.2 Billion Senior Notes Offering
Positive
Mar 9, 2026
On March 9, 2026, Sunoco LP completed a $1.2 billion private offering of senior unsecured notes, issuing $600 million of 5.375% notes due 2031 and $600 million of 5.625% notes due 2034, guaranteed by certain subsidiaries. The notes, sold under Rul...
Business Operations and StrategyPrivate Placements and Financing
Sunoco Upsizes Private Senior Notes Offering for Refinancing
Positive
Feb 27, 2026
On February 26, 2026, Sunoco LP announced it had priced an upsized private offering of $1.2 billion in senior notes, split between $600 million of 5.375% notes due 2031 and $600 million of 5.625% notes due 2034, both priced at par. The deal, incre...
Financial DisclosuresPrivate Placements and FinancingRegulatory Filings and Compliance
Sunoco Announces $1 Billion Senior Notes Offering
Positive
Feb 26, 2026
On February 26, 2026, Sunoco LP announced a $1 billion private offering of senior notes, split between 2031 and 2034 maturities, aimed at refinancing higher-cost debt. The partnership plans to use proceeds, together with borrowings under its revol...
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Sunoco Posts Strong Q4 2025 Results, Lifts Distribution
Positive
Feb 17, 2026
On February 17, 2026, Sunoco LP and SunocoCorp LLC reported solid fourth-quarter and full-year 2025 results, highlighted by fourth-quarter net income of $97 million, Adjusted EBITDA of $706 million excluding one-time transaction expenses and Distr...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsRegulatory Filings and Compliance
Sunoco Finalizes Parkland Acquisition, Expands North American Footprint
Positive
Jan 16, 2026
On October 31, 2025, Sunoco LP, via SunocoCorp LLC, completed a previously announced strategic transaction to acquire all issued and outstanding common shares of Canada’s Parkland Corporation under a court-approved plan of arrangement, makin...
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Sunoco Issues 2026 Guidance and Capital Allocation Outlook
Positive
Jan 6, 2026
On January 6, 2026, Sunoco LP issued its 2026 guidance, projecting full-year adjusted EBITDA between $3.1 billion and $3.3 billion, underpinned by an expected $125 million in synergies from the Parkland acquisition, a planned 50-day maintenance tu...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.