Sunoco Raises Outlook as Refinery Recovery Lifts Earnings
Distributable cash flow more than doubled from a year earlier to $608 million.
SunocoCorp (SUNC), the fuel distributor and infrastructure operator, raised its full-year earnings outlook after acquired assets and a refinery recovery lifted second-quarter results. The company now expects 2026 adjusted EBITDA of $3.5 billion to $3.7 billion, a $400 million increase from its previous range.
The quarter extended an expansion driven by the Parkland and other acquisitions, even as net income attributable to Sunoco LP fell to $283 million from $644 million in the first quarter. Net income was $86 million a year earlier and $97 million in the fourth quarter.
Adjusted EBITDA excluding transaction-related expenses rose to $996 million from $867 million in the first quarter and $706 million in the fourth quarter. Reported adjusted EBITDA more than doubled from a year earlier to $982 million. Gross profit increased to $1.183 billion from $416 million, while total segment profit climbed to $1.464 billion from $569 million.
Fuel Distribution adjusted EBITDA eased to $504 million from $529 million sequentially, as the first quarter included a $92 million inventory-sale gain. Gallons sold increased to 4.125 billion from about 3.8 billion, while fuel margin edged up to 17.1 cents from 17.0 cents a gallon. Compared with a year earlier, fuel volumes rose 88% and segment adjusted EBITDA increased from $206 million, primarily reflecting acquisitions.
The refinery supplied the clearest sequential lift. Adjusted EBITDA rose to $175 million from $43 million as average throughput increased to about 57,000 barrels a day from 22,000 following a planned 50-day maintenance turnaround in the first quarter. The newly acquired business operated at 97% crude utilization and 103% composite utilization.
Pipeline Systems adjusted EBITDA increased to $190 million from $179 million in the first quarter and $177 million a year earlier, helped by stronger demand and new business. Terminals adjusted EBITDA rose to $113 million from $107 million sequentially and $71 million a year earlier as acquisitions and customer growth lifted throughput 52%.
Sunoco ended the quarter with net debt at approximately 3.7 times adjusted EBITDA, improving from about 4.0 times at the end of the first quarter, while long-term debt declined to roughly $13.3 billion from $13.9 billion. The company also increased its quarterly distribution 1.25% to $1.0023 a unit, its seventh consecutive quarterly increase and a gain of more than 10% from a year earlier.