Arko Q2 net income falls on higher costs, soft demand

Arko reaffirmed its 2026 adjusted EBITDA guidance of $245 million to $265 million.

The company also raised its 2026 average annual retail fuel margin outlook to 45.5-47.5 cents per gallon.

Arko said the challenging consumer environment and higher fuel prices are impacting demand. It also announced the acquisition of US Petroleum Partners to expand its fuel distribution platform.

Arko said second-quarter net income declined year over year, and adjusted EBITDA missed two analyst estimates as higher operating expenses weighed on results.

Result drivers

• Higher operating expenses — The company said increased retail same-store operating expenses, mainly higher credit card fees tied to elevated fuel prices, weighed on results.
• Store conversions — Declines in merchandise and fuel contribution were primarily due to retail stores closed or converted to dealer locations.
• Soft consumer demand — The company said consumer demand softened in the quarter as sustained higher fuel prices pressured household budgets.