Overview

• US convenience store and fuel wholesaler's Q1 adjusted EBITDA rose 65% yr/yr

• Net loss narrowed to $5.6 mln from $12.7 mln a year ago

• Company completed APC IPO, applied proceeds to reduce debt and accelerate dealer conversions

Outlook

• Arko maintains full-year 2026 Adjusted EBITDA guidance of $245 mln to $265 mln

• Company continues to target average retail fuel margin of 41.5 to 43.5 cents per gallon in 2026

• Arko expects channel optimization to deliver over $20 mln annualized operating income benefit at scale

Result Drivers

• FUEL MARGINS - Higher retail, wholesale, and fleet fuel margins, driven by market volatility, boosted fuel contribution

• DEALERIZATION - Conversion of retail stores to dealer locations reduced merchandise contribution and site operating expenses, while increasing wholesale operating income

• MERCHANDISE SALES MIX - Same-store merchandise sales excluding cigarettes increased 0.4%, offsetting declines in overall merchandise sales

Company press release: ID:nGNX7rXmr4

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil & gas refining and marketing peer group is "buy."

• Wall Street's median 12-month price target for Arko Corp. is $8.50, about 30.4% above its May 6 closing price of $6.52

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 44 three months ago

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