ARKO Petroleum (APC) Q2 2026 earnings summary

Executive summary

• Reported strong Q2 2026 results with net income up 22% to $12.2 million and Adjusted EBITDA rising to $39.8 million, reflecting continued momentum and execution across the platform.

• Completed IPO in February 2026, raising $206.8 million in net proceeds and listing Class A shares on Nasdaq; ARKO Parent retains 73.6% economic interest and 93.3% voting power via Class B shares.

• Announced agreement to acquire U.S. Petroleum Partners (USPP), expected to add 280 million gallons in annual fuel volume, $30 million in annual Adjusted EBITDA, and expand infrastructure capabilities.

• Acquisition aligns with growth strategy outlined at IPO, reinforcing fee-based, fixed-margin business model and long-term growth outlook.

• Business model emphasizes cost efficiency, scalable operations, and consistent cash dividends to shareholders.

Financial highlights

• Q2 2026 revenue rose 27.4% year-over-year to $1.84 billion; net income increased 22% to $12.2 million; Adjusted EBITDA was $39.8 million.

• Discretionary Cash Flow for the six months ended June 30, 2026 was $52.1 million, up from $41.3 million year-over-year.

• Wholesale fuel contribution rose 3.7% to $26.3 million, despite a 4.6% decline in gallons sold.

• Declared a quarterly dividend of $0.50 per share, maintaining an annual target of $2 per share.

• Maintenance capital expenditures for the six months ended June 30, 2026 were $5.2 million; growth capital expenditures were $7.1 million.

Outlook and guidance

• Maintaining full-year 2026 guidance: Adjusted EBITDA of ~$156 million and Discretionary Cash Flow of ~$110 million.

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

• USPP acquisition expected to close later in 2026 and contribute in line with planning assumptions.

• Expects continued conversion of ARKO Retail Sites to dealer locations, enhancing profit and rental income.

• Confident in platform stability, cash flow generation, and ability to deliver consistent earnings growth.