Arko Q3 net income rises, lifts lower end of 2026 EBITDA outlook

Overview

• U.S. convenience store and fuel wholesaler's Q3 net income rose to $14.3 mln from $13.5 mln

• Company raised lower end of full-year 2026 Adjusted EBITDA guidance

• Company repurchased $62.1 mln in senior notes to strengthen balance sheet

Outlook

• Arko raises lower end of 2026 adj EBITDA guidance to $250 mln-$265 mln

• Company now sees 2026 average retail fuel margin at 47.0-49.0 cents/gal, up from prior view

• Company expects USPP acquisition to close in Q4 2026, contributing to 2026 outlook

Result Drivers

• MERCHANDISE MARGIN - Co said merchandise margin improved for 12th consecutive qtr, rising to 34.8% from 33.7%

• FUEL MARGIN - Co said same store retail fuel margin rose 4.6 cents per gallon, mainly due to fuel market volatility

• STORE CONVERSIONS - Co said lower merchandise contribution was mainly due to stores closed or converted to dealer locations

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil & gas refining and marketing peer group is "buy"

• Wall Street's median 12-month price target for Arko Corp. is $8.50, about 110.4% above its November 4 closing price of $4.04

• The stock recently traded at 32 times the next 12-month earnings vs. a P/E of 23 three months ago

Reuters Recommended Reads

• Nov 4 - CrossAmerica Partners Q3 net income, adjusted EBITDA fall on lower fuel volumes

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)