Sunoco Q4 Earnings & Revenues Miss Estimates on Higher Expenses

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

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. Higher motor fuel volumes and increased motor fuel profit per gallon partially offset the negatives.

Sunoco LP Price, Consensus and EPS Surprise

Sunoco LP price-consensus-eps-surprise-chart | Sunoco LP Quote

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, 2026, to unitholders of record as of Feb. 6, 2026.

Segmental Performance

Sunoco posts financial results under four reportable segments after the acquisition of Parkland Corporation — 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 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 totaled $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 projected its full-year 2026 adjusted EBITDA in the range of $3.1- $3.3 billion. Growth capital expenditures for the year are expected to be at least $600 million, while maintenance capital expenditures are anticipated to be in the range of $400-$450 million. For 2026, the partnership aims to meet its distribution growth target of at least 5%.

SUN’s Zacks Rank and Key Picks

SUN currently carries a Zacks Rank #3 (Hold).

Some top-ranked stocks from the energy sector are Archrock Inc. AROC, Oceaneering International OII and W&T Offshore WTI. While Archrock sports a Zacks Rank #1 (Strong Buy), Oceaneering and W&T Offshore carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues. With natural gas playing an increasingly important role in the energy transition journey, AROC is expected to witness sustained demand for its services.

Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.

W&T Offshore benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability and significant untapped reserves. The company’s recent acquisition of six shallow-water fields in the Gulf of America boosts its production prospects in the future, which is expected to enhance its revenues.

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