CrossAmerica Partners LP (CAPL) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Foundation here at Cross America. Over the past few years, we have been deliberately shaping the partnership, increasing our exposure to retail operations and retail fuel pricing through our class of trade conversion activities, and utilizing targeted real estate asset sales to generate capital to reinvest in the business. These portfolio optimization efforts have positioned Cross America to perform well across a range of economic environments. as I think our first quarter results demonstrate. Our team remains focused on ensuring the competitiveness of our sites in the markets where we operate, with continued investment to drive growth and enhance the durability of our earnings. The result is an organization that is both disciplined and flexible, and one that we believe is well positioned to capitalize on the opportunities ahead. If you turn to slide four, I will review some of the operating highlights of our first quarter. Overall, we had a strong first quarter, generating $35 million of adjusted EBITDA, a record amount for the first quarter and a 45% increase when compared to the first quarter of 2025. We benefited from strong gross profits from our retail segment, driven by motor fuel margins and merchandise sales, and focused expense control across our operations. For the first quarter of 2026, our retail segment gross profit increased 18% to $74.3 million, compared to $63.2 million in the first quarter of 2025. The increase was driven by an increase in motor fuel gross profit due to higher retail fuel margins for the quarter compared to the prior year, along with strong growth in merchandise gross profit. For the quarter, our retail fuel margin on a cents per gallon basis was 43.7 cents per gallon, compared to 33.9 cents per gallon in the first quarter of last y...