ARKO Petroleum Corp. Class A (APC) Q2 2026 Earnings Report

The call delivered a generally positive message driven by steady quarterly operating results (net income up ≈22%, adjusted EBITDA up ≈4%, discretionary cash flow up ≈12%), strong liquidity ($710M available), a strategic and accretive acquisition expected to add ~$30M of annual adjusted EBITDA and ~14% additional gallons, and maintained full‑year guidance plus a consistent dividend. Noted challenges included lower wholesale and GPMP gallons, temporary operating cash flow pressure from working capital, modest fleet margin compression, and contingent earn‑out/integration risks tied to the USPP deal. On balance, the positives — particularly the accretive acquisition, healthy cash generation, disciplined leverage posture, and maintained guidance — outweigh the listed headwinds.

Management reaffirmed 2026 guidance, reiterating full‑year adjusted EBITDA of approximately $156 million and discretionary cash flow of about $110 million, and expects to close the U.S. Petroleum Partners (USPP) acquisition later this year; USPP is projected to add ~280 million annual wholesale gallons (≈14% increase), more than 400 wholesale locations, and roughly $30 million of annual adjusted EBITDA (consideration: $205M cash plus inventory and $30M of Class A stock in escrow tied to earn‑outs requiring $31.7M of EBITDA, including $2.2M of fuel‑related EBITDA), with synergies expected to begin in 2027. Management said pro forma Net Debt to Adjusted EBITDA should be ~3.0x–3.5x on an annualized basis after closing (within their 3x–4x target), versus quarter‑end leverage of ~2.2x; they also highlighted Q2 results of adjusted EBITDA $39.8M, discretionary cash flow ~$27.1M (up ~12% YoY), net income $12.2M, Net Debt $324.2M, total debt net $184.7M, ~ $710M available under credit lines, and a declared quarterly dividend of $0.50 (annualized $2.00).