CrossAmerica Q3 Earnings Fall as Fuel Volumes Decline

CrossAmerica Partners LP (NYSE: CAPL) reported lower third-quarter earnings and cash generation as reduced motor-fuel volumes weighed on both its retail and wholesale businesses. Net income fell 35% year over year to $8.8 million for the three months ended Sept. 30, 2026, while adjusted EBITDA declined 6% to $38.7 million.

Distributable cash flow decreased 21% to $21.8 million. The partnership paid distributions of $20.0 million, or $0.5250 per limited-partner unit, resulting in quarterly distribution coverage of 1.09 times, compared with 1.39 times a year earlier. Trailing-12-month coverage was 1.32 times, up from 1.00 times.

Lower volumes pressure fuel operations

Retail-segment gross profit declined 2% to $78.0 million, while operating income fell 6% to $27.5 million. Retail motor-fuel gross profit decreased 8% to $37.6 million as gallons sold dropped 9% to 128.6 million. The lower volume was partly offset by a 5% increase in retail margin per gallon to 40.4 cents.

Company-operated merchandise operations provided some support. Merchandise gross profit rose 2% to $32.8 million, and the merchandise gross-margin percentage increased 140 basis points to 30.3%. Same-store sales excluding cigarettes were approximately flat at $74.6 million.

In the wholesale segment, gross profit fell 7% to $23.1 million and operating income declined 3% to $17.3 million. Motor-fuel gross profit was down 9% at $14.4 million as distributed volume decreased 8% to 162.8 million gallons. Wholesale margin per gallon remained unchanged at 8.8 cents.

Capital spending and leverage

CrossAmerica recorded $7.2 million of capital expenditures during the quarter, including $1.9 million of growth spending. The partnership said growth projects remain focused on targeted renovations and initiatives to expand food offerings.

The credit-facility balance stood at $674.5 million as of Sept. 30, with a leverage ratio of 3.72 times and an effective interest rate of 5.6%. Management said it continues to focus on execution, expense control, cash flow and balance-sheet strength, while noting the ongoing benefit of interest-rate swaps in an elevated-rate environment.

CrossAmerica’s results remain sensitive to fuel volumes, margins, operating costs, interest expense and capital requirements. The partnership also cautioned that forward-looking expectations could differ materially from actual results if its assumptions prove incorrect or identified risk factors materialize.