Arko (ARKO) Q2 2026 earnings summary

Executive summary

• Announced agreement to acquire US Petroleum Partners (USPP), expected to add 280 million gallons annually and $30 million in annual Adjusted EBITDA, expanding scale and vertical integration.

• Completed APC IPO in February 2026, raising ~$226 million and repaying $206.7 million in debt, with parent retaining majority interest and voting power.

• Transformation plan includes dealerization, remodels, new-to-industry (NTI) store openings, and foodservice expansion, with nearly 500 stores dealerized since launch.

• Q2 2026 Adjusted EBITDA was $72 million, up 14% year-over-year, with resilient margins despite softer consumer demand and volatile fuel prices.

• Retail demand softened, but disciplined pricing, loyalty initiatives, and operational efficiency supported margin expansion.

Financial highlights

• Q2 2026 revenue was $2.35 billion, up 17.4% year-over-year; Adjusted EBITDA was $72 million, up 14% year-over-year.

• Net income for Q2 2026 was $9.4 million, down from $20.1 million in Q2 2025 due to prior-year one-time gains.

• Merchandise margin reached 34.7%, up 110 basis points year-over-year; retail fuel margin increased to $0.487 per gallon.

• Wholesale segment operating income rose 7.1% to $24.9 million; fleet fueling operating income up 1.6% to $13.3 million.

• Ended Q2 2026 with $246 million in cash and $1 billion in total liquidity; long-term debt at $675 million, down from Q1.

Outlook and guidance

• Reaffirmed full-year 2026 Adjusted EBITDA guidance of $245–$265 million; USPP acquisition expected to add ~$30 million annual Adjusted EBITDA.

• Increased full-year retail fuel margin outlook to $0.455–$0.475 per gallon, expecting higher margins to offset lower volumes.

• Targeting mid-single digit annual growth in total gallons distributed and 20 new cardlock locations in 2026.

• Cautious outlook due to ongoing macroeconomic and geopolitical uncertainties impacting fuel prices and consumer demand.