CrossAmerica Partners LP announced its third‑quarter 2025 earnings on November 6, 2025, reporting net income of $13.6 million—an increase of $2.9 million, or 27%, from $10.7 million in the same quarter a year earlier. The company’s adjusted EBITDA fell 6% to $41.3 million, down $2.6 million from $43.9 million in Q3 2024, reflecting lower fuel margins and volumes. Operating expenses were $57.5 million, a $3.2 million reduction from the prior year, and the distribution‑coverage ratio improved to 1.39× from 1.36×.
The earnings call did not disclose total revenue, but management highlighted segment performance. Retail fuel volumes declined 4% year‑over‑year, while wholesale volumes fell 5%. Inside sales, excluding cigarettes, grew 4% year‑over‑year, driven by stronger packaged beverages, other tobacco products, and food categories. Merchandise gross profit rose 5% to $32 million, with a 100‑basis‑point increase in gross margin, underscoring the company’s shift toward higher‑margin merchandise.
Net income growth was largely attributable to $22 million in asset‑sale proceeds during the quarter, which also helped reduce debt by a similar amount. The asset‑sale strategy lowered the company’s leverage ratio from 4.36× at the end of 2024 to 3.56× as of September 30, 2025. However, the decline in adjusted EBITDA indicates that core fuel operations are under pressure: lower retail and wholesale fuel margins and volumes offset the gains from asset sales and lower interest expense.
CEO Charles Nifong emphasized that the quarter was “solid operating” and that the company continued to make meaningful progress on its asset‑sale initiative, completing approximately $22 million in transactions. He noted that inside sales were up 3% year‑over‑year and that merchandise gross profit grew 5% to $32 million. CFO Maura Topper highlighted that the increase in net income was driven by gains on asset sales and a decline in interest expense, while adjusted EBITDA fell 6% year‑over‑year.
The company’s strategy of portfolio optimization and debt reduction is a clear tailwind, but the ongoing decline in fuel margins and volumes presents a headwind. Management’s focus on higher‑margin merchandise and inside sales growth signals a shift toward more resilient revenue streams. No new guidance was issued, so investors will need to monitor future earnings calls for updates on the company’s outlook.
The earnings call underscores CrossAmerica’s dual challenge: managing declining fuel‑segment profitability while leveraging asset sales to strengthen its balance sheet and invest in higher‑margin merchandise. The company’s ability to sustain this balance will shape its near‑term performance and long‑term value creation.
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