ARKO Corp. announced its financial results for the fourth quarter and full year ended December 31, 2024, highlighting efforts to navigate a challenging macroeconomic environment. For Q4 2024, merchandise contribution decreased by $11.9 million, or 8.1%, while retail fuel contribution fell by $9.1 million to $100.2 million, primarily due to gallon demand declines. Despite these decreases, merchandise margin increased to 33.0% and convenience store operating expenses decreased by $13.0 million, or 6.5%, reflecting cost management and the impact of store conversions.
For the full year 2024, merchandise contribution decreased by $5.6 million, or 0.9%, and fuel contribution decreased by $7.1 million, or 1.6%. However, merchandise margin improved to 32.8% from 31.8% in 2023, and same-store fuel margin per gallon increased to 39.7 cents. The wholesale segment's operating income increased by $0.8 million, and the fleet fueling segment's fuel contribution rose by $8.4 million, driven by higher volumes and acquisitions.
As of December 31, 2024, ARKO reported total liquidity of approximately $841 million, including $262 million in cash and $579 million in credit availability. The company declared a quarterly dividend of $0.03 per share and had $25.7 million remaining under its share repurchase program. Looking ahead, ARKO expects first quarter 2025 Adjusted EBITDA to range between $27 million and $33 million, and maintained its full-year 2025 Adjusted EBITDA guidance between $233 million and $253 million.
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