ARKO Petroleum Corp. (NASDAQ:APC) reported first-quarter results on Monday that came in ahead of analyst expectations, supported by stronger profitability and improved performance across its operating divisions.
Shares of the company were little changed in after-hours trading following the announcement.
Earnings and EBITDA Improve Year-Over-Year
The wholesale fuel distributor reported adjusted earnings per share of $0.20 for the quarter, exceeding analyst forecasts, while revenue totaled $1.34 billion, broadly unchanged from the same period last year.
Net income increased to $8.1 million from $4.5 million a year earlier.
Adjusted EBITDA rose 18% year-over-year to $36.4 million, compared with $30.9 million in the first quarter of 2025.
“We are excited to share that APC delivered strong year-over-year growth, in its first quarter as a public company, continuing on the momentum we built through the end of 2025,” said Chairman, President and Chief Executive Officer Arie Kotler.
“We saw growth in operating income across all three of our segments, which underscores the resilience of our platform, enabling us to perform even during volatile market conditions.”
Wholesale and Fleet Fueling Segments Deliver Growth
ARKO said operating income within its wholesale business increased by $4.4 million year-over-year to $23.0 million.
The improvement was partly driven by the conversion of 41 ARKO retail locations into dealer-operated sites during the quarter.
Fuel margin per gallon at fuel supply locations improved to 6.4 cents from 6.0 cents in the prior-year period.
Margins at consignment agent locations rose to 28.8 cents per gallon from 23.5 cents, primarily due to fuel market volatility and higher prompt-payment discounts.
The fleet fueling segment also posted growth, with operating income increasing to $12.0 million from $11.0 million.
Fuel margin per gallon at proprietary cardlock locations climbed to 52.2 cents from 46.1 cents year-over-year.
Meanwhile, the GPMP division generated operating income of $25.6 million, up from $21.9 million in the prior-year quarter.
Company Maintains Full-Year Guidance
ARKO reaffirmed its financial outlook for full-year 2026, continuing to project adjusted EBITDA of approximately $156 million and discretionary cash flow of roughly $110 million.
The company also used $206.7 million in proceeds raised from its February initial public offering to reduce debt during the quarter.
As of March 31, 2026, total debt net of cash stood at $184.5 million, while net debt totaled $313.5 million. Total liquidity was approximately $731 million.