Sunoco LP reported third‑quarter 2025 results that delivered a net income of $137 million, a sharp rise from the $2 million earned in the same period a year earlier. Adjusted EBITDA reached $489 million, up from $456 million in Q3 2024, while distributable cash flow fell to $326 million from $349 million. The partnership increased its quarterly distribution to $0.9202 per unit, a 1.25 % lift that keeps the company on track for its 5 % annual distribution growth target.
Revenue for the quarter was $6.03 billion, beating the consensus estimate of $5.70 billion. However, earnings per share of $0.64 missed the analyst expectation of $1.78, a shortfall largely driven by a significant adverse swing in cash taxes and the impact of one‑time transaction costs associated with the recent Parkland acquisition. The revenue beat was supported by strong performance in the pipeline and terminal segments, while the fuel‑distribution segment saw margin compression due to lower profit per gallon.
Fuel‑distribution adjusted EBITDA declined to $232 million from $253 million, reflecting tighter margins as the segment faced competitive pricing and higher input costs. In contrast, pipeline systems generated $182 million in adjusted EBITDA, up from $136 million, and terminals added $75 million, up from $67 million. Throughput remained robust, with fuel distribution handling 2.3 billion gallons, pipeline throughput at 1.3 million barrels per day, and terminal throughput at 656 thousand barrels per day, underscoring the company’s diversified midstream footprint.
On the balance sheet, long‑term debt stood at $9.5 billion, giving a leverage ratio of 3.9× against adjusted EBITDA. Capital expenditures totaled $157 million, split between $115 million in growth capital and $42 million in maintenance. The completion of the $9 billion Parkland acquisition has expanded Sunoco’s fuel‑distribution network and is expected to generate $250 million in synergies by 2028, while management remains focused on returning leverage below 4× within the next year.
Joseph Kim, President and CEO, emphasized that the top priorities post‑acquisition are integration and deleveraging, noting that “we expect more than $250 million in synergies and are digging deep into every part of the acquired business.” Executive VP Karl Fails highlighted the company’s “strong fuel‑distribution growth driven by a good mix of new customers and bolt‑on M&A,” while CFO Scott Grischow noted that financing transactions executed in September delivered an additional $40 million in annual cash savings. Management guided for continued distribution growth and maintained confidence in the company’s ability to sustain cash‑flow generation while pursuing strategic acquisitions.
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