Sunoco (SUN) Q3 2025 earnings summary

Executive summary

• Completed the $9 billion acquisition of Parkland, expanding operations to 32 countries and territories and creating the largest independent fuel distributor in the Americas and a leading energy infrastructure operator.

• Parkland deal led to the creation of SunocoCorp, a new publicly traded entity, and is expected to be immediately accretive to distributable cash flow per unit, with over $250 million in synergies targeted by 2028 and greater than 10% accretion.

• Entered into an agreement to acquire TanQuid, a fuel terminal operator in Germany and Poland, with closing expected in Q4 2025.

• SunocoCorp to begin trading on NYSE as SUNC, broadening investment options and offering tax advantages for certain investors.

• Net income for Q3 2025 was $137 million, a significant increase from $2 million in Q3 2024.

Financial highlights

• Record Q3 adjusted EBITDA of $496 million, up from $470 million year-over-year, excluding one-time transaction expenses.

• Revenue for Q3 2025 was $6.03 billion, up from $5.75 billion in Q3 2024.

• Distributable cash flow (as adjusted) was $326 million.

• Growth capital expenditures were $115 million; maintenance capital was $42 million in Q3 2025.

• Declared Q3 distribution of $0.9202 per unit, up 1.25% sequentially, with a trailing 12-month coverage ratio of 1.8x.

Outlook and guidance

• Formal 2026 guidance for the combined company to be provided early next year, post-integration of Parkland and pending TanQuid asset closing.

• Free cash flow expected to exceed $1 billion annually in the near future, a 50%+ increase over standalone projections.

• On track to achieve at least 5% annual distribution growth for 2025.

• Confident in achieving leverage target of 4.0x within 12 months, faster than previously guided.

• Expect to spend approximately $150 million in maintenance capital and at least $400 million in growth capital for full year 2025.