Sunoco (SUN) Q1 2026 earnings summary

Executive summary

• Achieved strong Q1 2026 results with net income of $644 million, up 211% year-over-year, and Adjusted EBITDA of $867 million, excluding one-time transaction expenses and a $102 million gain from inventory sales.

• Closed the TanQuid acquisition, expanding terminal operations in Germany and Poland and making the company Germany's largest independent terminal operator.

• Increased quarterly distribution by 6.25%, marking the sixth consecutive quarterly increase and over 10% growth year-over-year.

• Maintained a robust balance sheet with $2.2 billion in liquidity and leverage at approximately 4x, aligned with long-term targets.

• Revenue for Q1 2026 reached $10.69 billion, a 106% increase compared to Q1 2025, with significant growth in fuel and non-fuel sales.

Financial highlights

• Adjusted EBITDA reached $867 million, up from $458 million year-over-year, excluding $90 million in transaction expenses.

• Distributable cash flow as adjusted was $535 million for the quarter, up from $310 million.

• Distribution per common unit increased to $0.9899, up from $0.8976 year-over-year.

• Operating income for Q1 2026 was $866 million, up from $296 million in Q1 2025.

• Trailing 12-month coverage ratio stood at 1.9x.

Outlook and guidance

• Expectation for the TanQuid acquisition to be immediately accretive to distributable cash flow per unit in 2026.

• Targeting a multi-year distribution growth rate of at least 5%.

• Maintenance capital expenditures for 2026 are expected to be $400–$450 million, with growth capital at least $600 million.

• Confident in delivering full-year EBITDA guidance, even excluding the one-time inventory gain.

• On track to complete over $500 million in bolt-on acquisitions in 2026.