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Mar 31
Sunoco Q1 2025 Earnings Report
Sunoco reported solid results with strong earnings and increased distribution, despite a year-over-year decline in net income.
Key Takeaways
Sunoco LP delivered robust Q1 2025 results, achieving $207 million in net income and $458 million in adjusted EBITDA, supported by strong performance across all segments and continued growth through strategic acquisitions.
Net income for Q1 2025 was $207 million, down from $230 million in Q1 2024.
Adjusted EBITDA reached $458 million, a substantial increase from $242 million in the prior year.
Fuel Distribution segment sold 2.087 billion gallons with a profit margin of 11.5 cents per gallon.
Announced acquisitions of Parkland Corporation and TanQuid to expand geographic footprint and revenue streams.
Sunoco
Sunoco
Sunoco Revenue by Segment
Revenue by Segment
Fuel Distribution Revenue
CapyFin.comPipeline Systems Revenue
CapyFin.comTerminals Revenue
CapyFin.com Forward Guidance
Management expects continued distribution growth and successful integration of recent acquisitions, supporting strong long-term performance.
Positive Outlook
- Quarterly distribution increased by 1.25%, second consecutive quarterly increase.
- On track for at least 5% distribution growth in 2025.
- Acquisition of Parkland expected to be immediately accretive.
- Acquisition of TanQuid expands European terminal footprint.
- Strong cash flow generation with $310M in distributable cash flow.
Challenges Ahead
- Net income declined year-over-year from $230M to $207M.
- Volume of fuel sold slightly decreased due to West Texas asset sale.
- Lease profit dropped by $9M YoY due to West Texas divestiture.
- Ongoing debt obligations include $7.7B in long-term debt.
- Interest expense increased significantly YoY ($121M vs $63M).
Revenue & Expenses
Visualization of income flow from segment revenue to net income