ARKO Petroleum Raises 2026 Adjusted EBITDA Outlook

The Tip Desk · November 11, 2026 · 4 min read

The fuel wholesaler now expects full-year Adjusted EBITDA of $156 million to $157 million after a third quarter of $41.0 million.

ARKO Petroleum Corp. (APC), one of the largest fuel wholesalers in North America, raised its full-year 2026 Adjusted EBITDA guidance to a range of $156 million to $157 million after reporting third-quarter Adjusted EBITDA of $41.0 million, up from $37.4 million a year earlier.

The company said the lift reflects year-to-date performance, its outlook for the balance of the year and the expected closing of a pending acquisition of U.S. Petroleum Partners, LLC. It had reaffirmed full-year guidance with its second-quarter results.

Net income for the quarter ended September 30, 2026 was $13.3 million, or $0.28 a share, compared with $10.1 million, or $0.29 a share, a year earlier. Diluted earnings per share declined on a higher share count.

Total revenues were $1.889 billion. Fuel revenue was $1.147 billion and related-party fuel revenue was $718.4 million. Operating income was $25.2 million.

Wholesale remained the largest operating thread. Fuel gallons sold at fuel supply locations fell to 211.6 million from 220.2 million a year earlier, and consignment gallons fell to 37.6 million from 40.2 million. Fuel contribution still rose $1.7 million, to $15.3 million at fuel supply locations and $11.4 million at consignment agent locations.

Fuel margin per gallon at fuel supply locations increased to 7.2 cents from 6.3 cents, and at consignment agent locations to 30.5 cents from 27.7 cents. The company attributed both increases primarily to higher prompt-pay discounts related to higher fuel costs.

Wholesale operating income increased $1.7 million versus the year-ago quarter. The company said the gain came primarily from additional operating income at ARKO Retail Sites converted to dealer locations, partially offset by reduced operating income at comparable wholesale sites.

Seventeen ARKO Parent retail sites were converted to dealer locations in the third quarter, bringing cumulative conversions since the 2024 program inception to 488. ARKO Parent has an aggregate of approximately 55 additional sites committed under letter of intent, under contract or already converted since quarter end. The company said it expects ARKO Parent to continue converting a meaningful number of additional stores and to be largely complete by the end of 2027. Wholesale site count ended at 2,124.

Fleet fueling contributed a smaller lift. Fuel contribution increased $0.9 million year over year, to $16.8 million at proprietary cardlocks and $0.8 million at third-party cardlocks. Fuel margin per gallon at proprietary cardlocks rose to 51.6 cents from 48.9 cents, and at third-party cardlocks to 21.5 cents from 15.3 cents. The company tied the contribution increases primarily to fuel-market volatility from the geopolitical environment. Fleet site count ended at 294. Five new fleet locations opened in the first nine months of 2026 and two more were added in October; 16 further locations are in planning.

In the GPMP segment, related-party fuel gallons fell to 191.4 million from 223.8 million. Related-party fuel revenue rose $109.4 million, or 18.0%, which the company said resulted primarily from a higher average fuel price, partially offset by a 32.4 million-gallon, or 14.5%, decline in gallons sold. Related-party fuel contribution was $11.5 million, with fuel margin per gallon at related-party locations rising to 6.0 cents from 5.0 cents. Inter-segment gallons sold rose to 283.4 million from 255.4 million as converted retail sites moved into wholesale. Related-party site count ended at 1,016.

Net cash provided by operating activities was $21.6 million. Discretionary Cash Flow rose to $32.3 million from $26.5 million a year earlier. Maintenance capital expenditures were $2.1 million and growth capital expenditures $9.5 million.

On August 4, 2026, APC entered an asset purchase agreement to acquire USPP, a vertically integrated fuel supply and distribution platform in the Great Lakes region. The company said the deal is expected to add about 280 million gallons of annual fuel volume, or about 14% of trailing 12-month fuel volume through September 30, 2026, across about 400 dealer locations, and to contribute approximately $30 million of annualized Adjusted EBITDA. Consideration is $205 million in cash plus inventory, plus $30 million of APC Class A stock held in escrow and released to the seller subject to the acquired business achieving certain EBITDA-based financial targets in the first four full quarters after closing. Closing is expected in the fourth quarter of 2026.

Total liquidity was about $715 million at September 30, 2026, consisting of about $10 million of cash and about $705 million of credit-line availability. Total debt, net was about $189 million and Net Debt about $338 million. The board declared a quarterly dividend of $0.50 a share, payable November 30, 2026, consistent with an expected annual rate of $2.00 a share.