ARKO Petroleum Corp "1Q26 Earnings Review - Stronger Margins..."

Research evidence excerpt

ARKO Petroleum Corp "1Q26 Earnings Review - Stronger Margins..."

Global Research

12 May 2026ab

ARKO Petroleum Corp Equities

United States1Q26 Earnings Review - Stronger Margins

Keep APC In The Driver's Seat Oil Companies, Secondary

12-month rating Buy

12m price target US$22.00Reiterate Buy Rating

We reiterate our Buy rating on APC coming out of the 1Q26 update. APC reported an

earnings beat, as stronger margins more than offset weather-driven volume headwinds. Price (11 May 2026) US$20.09

Fuel costs are elevated currently, however APC is not currently seeing signs of demand RIC: APC.O BBG: APC US

destruction. While this may change if pump prices remain at or above current levels

heading into the summer, APC remains well-positioned from an earnings perspective, as Trading data and key metrics

prompt-pay discounts offset up to ~10-12% of demand destruction related volume 52-wk range US$20.09-17.34

headwinds. APC also remains on track to add 20 NTI Fleet Fueling stores, which should Market cap. US$0.96b

drive further improvements to APC's margin profile. Our positive outlook continues to Shares o/s 47.6m (COM)

be driven by this margin improvement, along with long-term volume growth, a leading Free float 24%

dividend yield, and B/S strength. Avg. daily volume ('000) 49.5

Avg. daily value (m) US$0.9

Key Takeaways from APC's 1Q26 Update Common s/h equity (12/26E) US$0.23b

1Q26 Results. After segment-level operational details were pre-released with P/BV (12/26E) 4.1x

ARKO earnings last week, APC's earnings came in ahead of expectations. This was Net debt to EBITDA (12/26E) 2.3x

driven by improving margins in each unit offsetting volumes coming in below

expectations. EPS (UBS, diluted) (USD)

12/26E

Demand Destruction. Amidst the ongoing Middle East conflict, U.S.