Sunoco (SUN) Q4 2025 earnings summary

Executive summary

• Achieved record adjusted EBITDA of $2.12 billion for 2025, up 36% year-over-year, driven by strong base business and contributions from Parkland and Tanquid acquisitions.

• Reported Q4 2025 net income of $97M and adjusted EBITDA of $706M (excluding $60M in one-time transaction expenses), with distributable cash flow, as adjusted, of $442M.

• Expanded operations to 32 countries, becoming the largest independent fuel distributor in the Americas.

• Closed the Parkland transaction in Q4 and completed the Tanquid acquisition in Q1 2026, with integration progressing well.

• Declared a distribution increase for the fifth consecutive quarter, with a minimum 5% annual growth outlook.

Financial highlights

• Q4 adjusted EBITDA reached $706 million, excluding $60 million in one-time transaction expenses.

• Q4 distributable cash flow, as adjusted, was $442 million.

• Q4 2025 net income was $97M, down from $141M in Q4 2024; full-year 2025 net income was $527M.

• Q4 2025 revenue was $8.6B, up from $5.27B in Q4 2024; full-year 2025 revenue was $25.2B.

• $2.5 billion available under the revolving credit facility; leverage at 4x, in line with targets.

Outlook and guidance

• 2026 adjusted EBITDA guidance set at $3.1–$3.3 billion, reflecting confidence in Parkland and Tanquid synergies.

• Expect to realize $125 million of $250 million annual synergy target in 2026.

• Maintenance capital projected at $400–$450 million, with at least $600 million in quick-return capital projects and bolt-on acquisitions.

• Minimum 5% annual distribution growth expected for 2026 and beyond.

• Bolt-on M&A guidance of at least $500 million annually, considered a sustainable floor.