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 in the Great Lakes region.

• Completed the IPO of subsidiary ARKO Petroleum Corp. (APC) in February 2026, raising $206.8 million and retaining 73.6% economic interest and 93.3% voting power.

• Transformation Plan includes remodeling stores, expanding foodservice, converting retail stores to dealer locations, and growing fleet fueling sites.

• First half 2026 Adjusted EBITDA up 14% year-over-year to $123 million, despite a challenging consumer environment and volatile fuel prices.

• Retail demand softened in June, but disciplined pricing and loyalty initiatives helped maintain margins and customer engagement.

Financial highlights

• Q2 2026 revenue: $2.35 billion, up 17.4% year-over-year; six-month revenue: $4.12 billion, up 7.6%.

• Q2 Adjusted EBITDA was $72 million, down from $76.9 million in Q2 2025; first half Adjusted EBITDA reached $123 million, up from $108 million year-over-year.

• Net income for Q2 was $9.4 million, compared to $20.1 million in the prior year, which included a $21 million non-cash gain from a sale-leaseback.

• Retail same-store merchandise sales (ex-cigarettes) declined 0.9%, but merchandise margin expanded 110 basis points to 34.7%.

• Retail fuel same-store gallons declined 5.7%, but cents per gallon margin increased 6.5% to $0.487.

Outlook and guidance

• Reaffirmed full-year 2026 Adjusted EBITDA guidance of $245–$265 million.

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

• USPP acquisition expected to be accretive upon closing, adding ~$30 million annual Adjusted EBITDA.

• Targeting 20 new fleet fueling locations in 2026, with three opened and 17 in process.

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