CrossAmerica Cuts Debt to $692.3M After $100M Asset Sales, Posts 22% EBITDA Growth
Retail gross profit climbed 10% to $82.9 million and Adjusted EBITDA rose 22% to $43.4 million while cash flow grew to $28.5 million and coverage reached 1.43x as expenses fell $2 million. CrossAmerica used $100M of asset sales to cut debt to $692.3 million, lowering leverage to 3.51x.
1. Q4 Segment Performance
The retail segment gross profit increased 10% to $82.9 million from $75.1 million, driven primarily by a 19% rise in motor fuel margin to 44.9 cents per gallon despite an 8% same-store volume decline. Merchandise gross profit grew 3% to $28.8 million on higher margins, while wholesale gross profit declined 7% to $24.2 million as volumes fell 6%, offset by a 13% fuel margin improvement to 9.3 cents per gallon.
2. Deleveraging and Balance Sheet
CrossAmerica generated over $100 million from asset sales in 2025, using proceeds to reduce its credit facility balance to $692.3 million. This real estate optimization lowered leverage to 3.51x and reduced cash interest expense as the partnership rationalized its site portfolio.
3. Cash Flow and Distribution
Adjusted EBITDA rose 22% year over year to $43.4 million, and distributable cash flow increased to $28.5 million from $21.1 million. The distribution coverage ratio improved to 1.43x, supporting a quarterly distribution of $0.525 per unit and marking the fifth consecutive quarter of declining operating expenses.