CrossAmerica Partners LP Q1 FY2026 earnings call

Portfolio Optimization Efforts

• Deliberately shaping partnership, increasing exposure to retail operations and retail fuel pricing through class of trade conversion activities, and using targeted real estate asset sales to generate capital for reinvestment.

First Quarter Results

• Strong first quarter, generating $35 million of adjusted EBITDA, a record for Q1 and a 45% increase from Q1 2025.

Retail Segment Operations

• Retail segment gross profit increased due to higher retail fuel margins and strong merchandise gross profit growth. Team focused on competitively pricing retail locations. Volume results differed by class of trade in retail segment. Inside sales had positive trends. Merchandise margin percentage improved. Expense control in retail locations.

Wholesale Segment Operations

• Wholesale segment gross profit decreased, driven by fuel volume decline and rental income decline. Same-store volume outperformed national benchmarks.

Asset Sale Progress

• Sold 16 properties in Q1, realized proceeds for debt paydown. Reduced credit facility balance and leverage ratio.

Retail Segment: In the first quarter of 2026, retail segment gross profit increased 18% to $74.3 million compared to $63.2 million in the first quarter of 2025. Retail fuel margin on a cents per gallon basis was 43.7 cents per gallon in Q1 2026 vs. 33.9 cents per gallon in Q1 2025. Same-store volume in retail segment was down 7% year over year, but fuel gross profit was $8.7 million higher than last year. Company-operated locations had a 4% same-store volume decline, while commission locations had a 14% same-store volume decline. Inside sales were up 2% on a same-store basis. Merchandise margin gross profit percentage was 29.7%, up 180 basis points from the prior year, and merchandise gross profit increased 8% to $27 million. There were 340 company-operated retail sites at the end of the quarter, down from previous quarters. Wholesale Segment: Wholesale segment generated gross profit of $23.3 million in Q1 2026 compared to $26.7 million in Q1 2025. Wholesale motor fuel gross profit decreased 8% to $14.5 million in Q1 2026 from $15.8 million in Q1 2025, driven by a 3% decline in fuel margin per gallon and a 6% decline in volume. Same-store volume in wholesale segment was down approximately 2% year over year, but outperformed national benchmarks. Asset Sale: Continued real estate rationalization in Q1, selling 16 properties and realizing approximately $12.7 million in proceeds, used primarily to pay down debt. Credit facility balance reduced by approximately $10 million during the quarter, and credit facility defined leverage ratio decreased.

Forward-Looking Statements

• Priorities remain paying down debt, generating strong and durable cash flow for unit holders, and investing in the quality and competitiveness of the network. Anticipate continued focus on these areas. Looking forward to summer driving season, aiming to maintain a strong balance sheet and generate value for unit holders.

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