CrossAmerica Partners LP Reports Q1 2026 Financial Results with Increased Gross Profit and Net Income Turnaround

CrossAmerica Partners LP reported its financial results for the first quarter of 2026, revealing a decrease in operating revenues to $841.8 million, down 2% from $862.5 million in the same period last year. The company achieved a gross profit of $97.6 million, reflecting a 9% increase from $89.8 million in the prior year. This improvement in gross profit was primarily driven by enhanced motor fuel and merchandise gross profit in the retail segment, despite a decline in revenues from fuel sales, which fell by 3% due to a 6% decrease in volume linked to the loss of independent dealer contracts.

The partnership's operating income surged to $23.8 million, a significant increase from $2.0 million in the previous year, largely attributed to reduced operating expenses, which decreased by 14% to $80.0 million. General and administrative expenses also saw a decline of 15%, primarily due to lower legal fees and equity compensation costs. The company recorded a net income of $10.7 million, compared to a net loss of $7.1 million in the same quarter of 2025, resulting in a net income per common unit of $0.26, a turnaround from a loss of $0.20 per unit in the prior year.

In terms of operational developments, CrossAmerica continued its real estate optimization strategy, selling 16 properties for $12.7 million during the quarter, which contributed to a net gain of $6.3 million. The company also reported a decrease in its average retail site count, which fell to 568 from 599, as part of its ongoing efforts to optimize its asset portfolio. The retail segment's gross profit increased by 18%, driven by a higher margin per gallon of motor fuel sold, while the wholesale segment experienced a decline in gross profit due to reduced volumes and the conversion of certain sites.

Looking ahead, CrossAmerica anticipates that its financial performance will continue to be influenced by fluctuations in crude oil prices, which directly affect wholesale motor fuel costs. The company plans to maintain its focus on optimizing the class of trade for its properties, which may lead to further conversions and divestitures. Additionally, the partnership expects to leverage proceeds from asset sales to reduce its debt, thereby decreasing interest expenses. Overall, CrossAmerica's management remains cautiously optimistic about its ability to navigate market conditions and enhance profitability in the coming quarters.