ARKO Petroleum Q3 2026 Results, Guidance Increase, USPP Acquisition

ARKO Petroleum Corp. (Nasdaq: APC), a major North American fuel wholesaler, announced robust financial results for the third quarter ended September 30, 2026. The company reported increased net income and Adjusted EBITDA, raised its full-year 2026 financial guidance, and declared a quarterly dividend of $0.50 per share. These results reinforce the company's growth strategy, including a significant asset purchase agreement to acquire U.S. Petroleum Partners, LLC (USPP).

Arie Kotler, Chairman, President, and CEO of APC, highlighted that the third-quarter results underscore the strategy outlined at the time of its initial public offering. He noted the year-over-year growth in Adjusted EBITDA and Discretionary Cash Flow, demonstrating the platform's durability and stable cash generation, even in a volatile market. Based on year-to-date performance, the outlook for the remainder of the year, and the anticipated closing of the USPP acquisition, the company has confidently raised its full-year 2026 Adjusted EBITDA guidance.

Key Financial Highlights (Q3 2026 vs. Q3 2025)

• Net Income: Increased to $13.3 million, up from $10.1 million.

• Adjusted EBITDA: Rose to $41.0 million, compared to $37.4 million.

• Net Cash Provided by Operating Activities: Stood at $21.6 million, compared to $25.0 million in the prior-year period.

• Discretionary Cash Flow: Grew to $32.3 million, up from $26.5 million.

• Full-Year 2026 Adjusted EBITDA Guidance: Raised to a range of $156 million to $157 million.

• Quarterly Dividend: Declared $0.50 per share of common stock, payable November 30, 2026, consistent with an expected annual rate of $2.00 per share.

Strategic Acquisition of U.S. Petroleum Partners, LLC (USPP)

On August 4, 2026, APC entered into an asset purchase agreement to acquire USPP, a vertically integrated fuel supply and distribution platform operating across the Great Lakes region. This acquisition is a strategic move designed to significantly expand APC's scale and infrastructure, aligning with its growth strategy post-IPO.

• Expected Annual Fuel Volume: Approximately 280 million additional gallons, representing about 14% of APC's trailing 12-month fuel volume.

• Expanded Network: Adds approximately 400 dealer locations.

• Annualized Adjusted EBITDA Contribution: Expected to contribute approximately $30 million.

• Enhanced Vertical Integration: Includes two fuel terminals and expanded transportation capabilities, aiming to improve terminal utilization, transportation efficiency, and generate additional fixed-margin and fee-based income.

• Consideration: $205 million in cash plus the value of inventory at closing, along with $30 million in APC Class A common stock held in escrow, subject to performance-based financial targets over the first four quarters post-closing.

• Expected Closing: Anticipated during the fourth quarter of fiscal year 2026.

Segment Performance Overview

The Wholesale Segment saw operating income increase by $1.7 million, primarily due to the conversion of ARKO Retail Sites to dealer locations. Fuel contribution rose by $1.7 million, and fuel margins per gallon increased, largely driven by prompt pay discounts. In Q3 2026, 17 ARKO Retail Sites were converted, bringing the total conversions since 2024 to 488, with more expected by the end of 2027.

The Fleet Fueling Segment experienced a $0.9 million increase in fuel contribution, with fuel margin per gallon also rising. These improvements were mainly attributed to significant volatility in the fuel market. The company continues to invest in this segment, having opened five new fleet fueling locations in the first nine months of 2026, with 16 additional locations in planning stages.

The GPMP Segment reported a $109.4 million, or 18.0%, increase in fuel revenue - related party, mainly due to higher average fuel prices, despite a decrease in gallons sold. Fuel contribution - related party increased by $0.3 million, driven by an increase in the fixed margin from 5.0 cents per gallon to 6.0 cents per gallon.

As of September 30, 2026, APC maintained strong liquidity of approximately $715 million, comprising $10 million in cash and cash equivalents and $705 million in credit line availability. Total net debt was approximately $189 million, resulting in Net Debt of approximately $338 million. The company's capital expenditures for the quarter included $2.1 million for maintenance and $9.5 million for growth initiatives.