Sunoco (SUN) Q4 2025 earnings summary

Executive summary

• Achieved record adjusted EBITDA of $706 million in Q4 and $2.12 billion for full year 2025, up 36% year-over-year, driven by strong base business and contributions from Parkland and Tanquid acquisitions.

• Reported Q4 2025 net income of $97 million and distributable cash flow, as adjusted, of $442 million.

• Expanded operations to 32 countries, becoming the largest independent fuel distributor in the Americas, with all segments delivering strong performance.

• Closed Parkland acquisition in October and Tanquid in January, with integration progressing well and synergy targets on track.

• Achieved eighth consecutive year of growth in distributable cash flow per unit and fifth consecutive quarterly distribution increase.

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

• Q4 2025 revenue was $8.6 billion; full-year 2025 revenue was $25.2 billion.

• Trailing twelve-month coverage ratio finished at 1.9x; leverage at quarter-end was approximately 4x, in line with targets.

• $2.5 billion available under revolving credit facility at year-end; long-term debt at year-end was $13.4 billion.

Outlook and guidance

• 2026 adjusted EBITDA guidance set at $3.1–$3.3 billion, assuming $125 million in realized synergies and a 50-day refinery turnaround in Q1.

• Maintenance capital expected at $400–$450 million, with at least $600 million in quick-return capital projects and a $500 million floor for bolt-on acquisitions annually.

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

• Management remains committed to disciplined capital allocation and maintaining leverage at long-term target levels.