Sunoco Reports Q2 Earnings Decline, Raises Quarterly Dividend

Sunoco LP reported a 1.25% increase in its quarterly distribution and a 1% decline in revenue for Q2. The company's net income fell by 15% YoY. Sunoco LP also raised its quarterly dividend to $0.9088 per unit from $0.8976. The company completed its acquisition of Parkland Corporation in June, which was approved by Parkland shareholders.

DALLAS - Sunoco LP (NYSE: SUN) announced its second-quarter earnings on Wednesday, August 6th, revealing a mixed bag of results. The company's net income fell by 15% year-over-year (YoY) to $86 million, significantly missing analyst expectations of $501 million [1]. The adjusted earnings per share (EPS) came in at $0.33, well below the consensus estimate of $1.18. Revenue declined by 1% to $5.39 billion, falling short of the $5.86 billion consensus estimate [1].

Despite the earnings miss, Sunoco's adjusted EBITDA rose to $464 million, excluding one-time transaction-related expenses, up from $400 million in the second quarter of 2024 [1]. The company's fuel distribution segment saw a decline in profit per gallon, dropping to 10.5 cents compared to 11.8 cents in the prior-year period. However, the pipeline systems and terminals segments showed improved results, benefiting from the company's acquisition of NuStar last year [1].

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 [1]. The company's management reaffirmed its full-year 2025 adjusted EBITDA guidance of $1.90 billion to $1.95 billion, excluding one-time transaction-related expenses [1].

Sunoco completed its acquisition of Parkland Corporation in June, which was approved by Parkland shareholders. The merger remains on schedule and is expected to close in the fourth quarter of 2025 [1]. The company's shares fell 1.89% in pre-market trading following the announcement [1].

References:
[1] https://www.investing.com/news/earnings/sunoco-lp-misses-q2-earnings-estimates-as-profit-falls-sharply-93CH-4172978
[2] https://seekingalpha.com/news/4478639-sunoco-lp-q2-2025-earnings-preview