Sunoco LP (SUN) Up 7.7% Since Last Earnings Report: Can It Continue?

It has been about a month since the last earnings report for Sunoco LP (SUN). Shares have added about 7.7% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Sunoco LP due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Sunoco Q4 Earnings & Revenues Miss Estimates

Sunoco LP reported fourth-quarter 2025 earnings of 9 cents per unit, which missed the Zacks Consensus Estimate of $1.64. The bottom line also declined from the year-ago quarter’s level of 75 cents per unit.

Total quarterly revenues of $8.6 billion missed the Zacks Consensus Estimate of $9.4 billion. The top line increased from $5.3 billion reported in the year-ago quarter.

The weaker-than-expected quarterly results can be attributed to higher total cost of sales and operating expenses. However, higher motor fuel volumes and increased motor fuel profit per gallon, partially offset the negatives.

Distribution Hike

For the fourth quarter of 2025, the board of directors of Sunoco's general partner declared a distribution of $0.9317 per unit, or $3.7268 on an annualized basis, marking a sequential increase of 1.25%.

The distribution will be paid on Feb. 19, 2025, to unitholders of record as of Feb. 6, 2025.

Segmental Performance

Sunoco posts financial results under four reportable segments — Fuel Distribution, Pipeline Systems, Terminals and Refinery.

Fuel Distribution: Adjusted EBITDA in the segment came in at $332 million, up from $192 million in the comparable period of 2024. The segment was aided by an increase in profit per gallon sold, mainly due to the Parkland acquisition and higher volumes sold.

Pipeline Systems: The unit reported adjusted EBITDA of $187 million, slightly down from $188 million in the year-ago quarter. An increase in operating costs and refinery turnarounds during the quarter affected the segment’s performance.

Terminals: The segment reported adjusted EBITDA of $87 million, up from $59 million reported in the corresponding period of 2024. The rise can be attributed primarily to the Parkland acquisition. An increase in customer activity in Europe and favorable margins from transmix activities also benefited the segment. Throughput volumes for the segment came in at 715 thousand barrels per day, compared with 593 thousand barrels per day in the fourth quarter of 2024.

Refinery: Adjusted EBITDA in the segment came in at $40 million. Crude throughput volumes averaged 49 thousand barrels per day.

In terms of motor fuel volume, the partnership sold 3.3 billion gallons of fuel in the reported quarter. Motor fuel gross profit per gallon was 17.7 cents compared with the year-ago level of 10.6 cents.

For the quarter that ended on Dec. 31, 2025, the net income was $97 million compared with $141 million in the fourth quarter of 2024.

Distributable Cash Flow

The adjusted distributable cash flow totaled $442 million, up from the year-ago level of $261 million.

Expenses & Capital Expenditure

The total cost of sales and operating expenses increased to $8.4 billion from $5 billion a year ago.

The partnership incurred a capital expenditure of $233 million, comprising $130 million in growth capital and $103 million in maintenance capital.

Balance Sheet

As of Dec. 31, 2025, Sunoco had cash and cash equivalents of $891 million and a net long-term debt of $13.4 billion.

Outlook

Sunoco has projected its full-year 2026 adjusted EBITDA to be in the range of $3.1- $3.3 billion. Growth capital expenditures for the year is expected to be at least $600 million, while maintenance capital expenditures to be in the range of $400- $450 million. For 2026, the partnership aims to meet its distribution growth target of at least 5%.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates revision.

VGM Scores

Currently, Sunoco LP has a nice Growth Score of B, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a score of B on the value side, putting it in the second quintile for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Sunoco LP has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

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This article originally published on Zacks Investment Research (zacks.com).

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