ARKO Petroleum Corp. (APC)

Price$18.92Cached quoteAs of 2026-09-13 21:45 UTC

AI: Fair-priced

Valuation is moderate, but depends on management's narrower leverage measureAt $18.60 and approximately 47.57 million economic Class A and Class B shares outstanding, APC has an implied equity value near $885 million.

Using company-defined June Net Debt of $324.2 million gives enterprise value near $1.21 billion, or about 7.8x reaffirmed 2026 Adjusted EBITDA guidance of $156 million. The supplied broader balance-sheet figures show $783.4 million of total debt and lease-related obligations and $768.8 million of broad net debt, highlighting that reported leverage varies materially by definition. FY2025 revenue was $5.581 billion, EBITDA $139.2 million and net income $32.7 million. The earnings multiple is reasonable for a largely fixed-margin fuel distributor, but acquisition leverage, parent concentration and thin underlying margins support a Fair-priced verdict.

Fuel-distribution economics matter more than headline revenueARKO Petroleum is primarily a wholesale and fleet-fueling distributor rather than a conventional convenience-store retailer, so gallons, per-gallon contribution and fee-based earnings are more informative than fuel revenue distorted by commodity prices.

Q2 revenue was $1.839 billion, operating income $23.5 million, EBITDA $38.2 million and net income $12.2 million. Adjusted EBITDA was $39.8 million, up from $38.3 million a year earlier. Wholesale fuel-supply margin improved to 7.6 cents per gallon from 6.3 cents, while consignment-agent margin fell to 29.1 cents from 30.6 cents as falling market prices compressed inventory economics. Related-party volumes declined 15.1%, partly because parent ARKO Corp. continues converting retail stores to dealer-operated locations, shifting economics toward APC's wholesale segment.

Cash generation supports a high dividend, but coverage is not wideThe current $0.50 quarterly dividend annualizes to $2.00 per share, a yield of about 10.8% at the current price, against 2026 Discretionary Cash Flow guidance of approximately $110 million.

Across roughly 47.57 million economic shares, the annualized dividend requires about $95 million of cash, equivalent to approximately 86% of the stated Discretionary Cash Flow target. Q2 operating cash flow was $10.4 million versus $23.2 million a year earlier, while Discretionary Cash Flow increased to $27.1 million. FY2025 operating cash flow was $79.6 million. The company's non-GAAP Discretionary Cash Flow removes working-capital fluctuations and therefore should not be viewed as identical to free cash flow. Dividend sustainability depends on fuel margins, debt service, capital spending and successful execution of planned growth investments.

USPP acquisition can improve scale and vertical integration but raises financingThe pending U.S. Petroleum Partners transaction would add more than 400 wholesale locations, approximately 280 million annual gallons, two Great Lakes fuel terminals and a transportation fleet.

Management expects roughly $30 million of annual Adjusted EBITDA and approximately 14% higher fuel volumes after closing. Consideration includes $205 million cash plus inventory and $30 million of APC shares subject to EBITDA-based earn-out conditions; the cash portion is expected to be funded with existing credit lines. Management estimates pro forma Net Debt to Adjusted EBITDA of 3.0x-3.5x versus 2.2x at June. Risks include financing costs, integration, fuel-volume weakness, commodity-driven margin volatility, customer and supplier concentration, parent-company dependence and dilution from acquisition shares. ARKO Corp. owns 35 million Class B shares and controls about 93.3% of voting power.

AI: News

USPP deal is the largest new growth catalyst after the IPOAPC agreed in August to acquire U.S. Petroleum Partners, materially expanding its Great Lakes wholesale, terminal and transportation footprint.

USPP distributes approximately 280 million gallons annually to more than 400 dealer locations and operates terminals in Novi, Michigan and Toledo, Ohio connected to the Buckeye Pipeline. The transaction is expected to add about $30 million of annual Adjusted EBITDA, although this is management guidance rather than realized earnings. Closing remains subject to customary conditions and regulatory clearance. Equity consideration and potential additional earn-out shares create dilution, while debt financing will push leverage higher.

Q2 results reaffirmed 2026 guidance and the $0.50 quarterly dividendThe latest material earnings release reported higher net income and Adjusted EBITDA despite weaker volumes in portions of the fuel network.

Q2 net income rose to $12.2 million from $10.0 million, Adjusted EBITDA increased to $39.8 million and Discretionary Cash Flow rose to $27.1 million. APC reaffirmed approximately $156 million of full-year Adjusted EBITDA and $110 million of Discretionary Cash Flow. It also declared a $0.50 quarterly dividend and continued organic expansion, with 471 parent retail sites converted to dealer locations since the program began and 20 fleet-fueling openings targeted for 2026. The company's August 31 investor presentation was the latest listed corporate presentation as of September 17.

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Revenue

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2025

Net income

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2023

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2025

Free cash flow

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Total cash / debt

CashTotal debt

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Financial statements

	2025	2024	2023	2022
Revenue	$5.58B	$6.37B	$6.97B	$7.09B
Operating expenses	$45.9M	$42.8M	$44.7M	$33.1M
Operating income	$83.9M	$92.0M	$89.5M	$92.8M
Operating margin	1.50%	1.44%	1.28%	1.31%
EBITDA	$139.2M	$141.8M	$133.7M	$125.4M
EBITDA margin	2.49%	2.23%	1.92%	1.77%
Net income	$32.7M	$40.2M	$41.6M	$59.1M
Net profit margin	0.59%	0.63%	0.60%	0.83%
Basic EPSper basic share	$0.71	$0.87	$0.90	$1.28
Diluted EPSper diluted share	$0.71	$0.87	$0.90	$1.28

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 20 reported holders of APC
Holder	Shares held
Blackstone Inc.	2.65M
COHEN & STEERS, INC.	1.09M
Invesco Ltd.	1.01M
BlackRock, Inc.	830K
CIBC Bancorp USA Inc.	625.91K
Brookfield Corp /ON/	625.1K
VANGUARD CAPITAL MANAGEMENT LLC	502.22K
TEACHER RETIREMENT SYSTEM OF TEXAS	500K
EAGLE GLOBAL ADVISORS LLC	414.41K
RAYMOND JAMES FINANCIAL INC	336.08K
TWO SIGMA INVESTMENTS, LP	322.42K
GEODE CAPITAL MANAGEMENT, LLC	302.66K
CUSHING ASSET MANAGEMENT, LP dba NXG INVESTMENT MANAGEMENT	300K
CITADEL ADVISORS LLC	242.93K
UBS Group AG	201.71K
MORGAN STANLEY	178.12K
RENAISSANCE TECHNOLOGIES LLC	174.5K
Russell Investments Group, Ltd.	161.93K
Pinnacle Holdings, LLC	156.98K
STATE STREET CORP	134.52K

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys2$2.13M disclosed value

Sells (SEC code S)1$475.0K disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Mar 3, 2026Form 4	Blackstone Group Management L.L.C. +4TenPercentOwner	SellClass A Common Stock · indirect	25.0K	$19.00	$475.0K	125.0K
Feb 13, 2026Form 4	FRIEDMAN AVRAM ZDirector	BuyClass A, Common Stock, par value $0.0001 per share	20.0K	$18.00	$360.0K	20.0K
Feb 12, 2026Form 4	Blackstone Group Management L.L.C. +4TenPercentOwner	BuyClass A Common Stock · indirect	100.0K	$17.66	$1.77M	150.0K

Review ownership filings at SEC.gov ↗

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ARKO Petroleum Corp. (APC)

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