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DALLAS - On Wednesday, Sunoco LP (NYSE:SUN) reported second-quarter earnings that fell significantly short of analyst expectations, with net income dropping to $86 million compared to $501 million in the same period last year.
The company’s shares fell 1.89% in pre-market trading following the announcement.
The fuel distributor and energy infrastructure company posted adjusted earnings per share of $0.33, well below the analyst estimate of $1.18. Revenue came in at $5.39 billion, missing the consensus estimate of $5.86 billion.
Despite the earnings miss, Sunoco’s adjusted EBITDA, excluding one-time transaction-related expenses, rose to $464 million from $400 million in the second quarter of 2024.
The company’s fuel distribution segment saw declining performance, with profit per gallon dropping to 10.5 cents compared to 11.8 cents in the prior-year period. Meanwhile, the pipeline systems and terminals segments showed improved results, benefiting from the company’s acquisition of NuStar last year.
Sunoco increased its quarterly distribution by 1.25% to $0.9088 per unit, marking the third consecutive quarterly increase. The company remains on track to meet its distribution growth target of at least 5% for 2025.
Management reaffirmed its full-year 2025 adjusted EBITDA guidance of $1.90 billion to $1.95 billion, excluding one-time transaction-related expenses. The company also noted that its pending merger with Parkland remains on schedule and is expected to close in the fourth quarter of 2025.
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