CrossAmerica Partners LP on Thursday reported fourth-quarter 2025 results, highlighting gains in merchandise sales and the impact of strategic retail site conversions on margins.
The Allentown, Pennsylvania-based company said it continued optimizing its portfolio through site conversions to retail to maximize long-term value. For the past few years, CrossAmerica Partners has been converting dealer sites to grow its company-operated footprint.
“The quarter highlights the benefits of our strategic site conversions to retail, which enabled us to capitalize on a favorable margin environment,” said Charles Nifong, president and CEO of CrossAmerica.
CrossAmerica said the conversions expanded the company’s financial options.
“In our retail segment, if you look at our total number of retail sites at the end of the quarter, we finished the quarter with 352 company-operated sites, down one site from the third quarter and 13 sites relative to the fourth quarter of last year,” Nifong said, according to a transcript from AlphaSense. “We successfully divested non-core locations, generating over $100 million in proceeds that we used to materially reduce our debt and enhance our financial flexibility."
- CrossAmerica is No. 24 on CSP’s 2025 Top 202 ranking of U.S. c-store chains by store count.
The fuel distributor and convenience-store operator also reported that inside sales on a same-site basis were slightly higher compared to fourth-quarter 2024.
Retail merchandise gross profit increased 3% to $28.8 million in fourth-quarter 2025, with merchandise gross margin percentage up approximately 70 basis points, driven by strong growth in higher margin categories like other tobacco products (OTP).
“Inside sales, excluding cigarettes, increased 1% year-over-year on a same-store basis for the quarter,” said Nifong. “Our inside sales growth was driven by continued strong performance in our OTP and packaged beverage categories.” He added that the company’s food category, both branded and proprietary, also contributed to growth of same-store sales.
Highlights of 2025’s fourth quarter versus the same period of 2024—and for the full year:
- Net income in the fourth quarter was $10.2 million compared with $16.9 million. Full-year net income was $41.8 million compared with $22.5 million for 2024.
- Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in the fourth quarter was $43.4 million versus $35.5 million. Full-year adjusted EBITDA was $146 million versus $145.4 million.
- Distributable cash flow (DCF) in the fourth quarter was $28.5 million compared with $21.1 million. Full-year DCF was $87.8 million compared with $86 million.
CrossAmerica is a leading wholesale distributor of motor fuels, convenience-store operator, and owner and lessee of real estate used in the retail distribution of motor fuels. Formed in 2012, CrossAmerica Partners is a distributor of branded and unbranded petroleum for motor vehicles in the United States and distributes fuel to approximately 1,600 locations and owns or leases approximately 1,000 sites.
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