Sunoco reports surge in Q2 2026 earnings and raises full-year guidance
Dallas-based fuel distributor Sunoco LP and SunocoCorp LLC have released strong second-quarter financial and operating results for the period ended June 30, 2026, driven by higher fuel distribution earnings and solid operational throughput across its segments.
The partnership reported a net income of $283 million for the second quarter of 2026, marking a significant increase compared to $86 million in the second quarter of 2025. Total adjusted EBITDA for the quarter reached $982 million, up from $454 million during the same period last year. Excluding one-time transaction-related expenses, adjusted EBITDA stood at $996 million. Distributable cash flow, as adjusted, expanded to $608 million compared to $300 million in the second quarter of 2025.
Following the second-quarter results, the partnership raised its full-year 2026 adjusted EBITDA guidance by $400 million, bringing the updated target range to between $3.5 billion and $3.7 billion.
Operational performance across business segments
Sunoco's core fuel distribution segment recorded adjusted EBITDA of $504 million for the quarter, compared to $206 million in the second quarter of 2025. The segment sold approximately 4.1 billion gallons of fuel in the second quarter, achieving a fuel margin of 17.1 cents per gallon across all gallons sold.
The pipeline systems segment generated $190 million in adjusted EBITDA, compared to $177 million in the prior-year period, averaging throughput volumes of roughly 1.3 million barrels per day. The terminals segment saw adjusted EBITDA rise to $113 million from $71 million in the second quarter of 2025, with throughput volumes averaging approximately 1.1 million barrels per day. Additionally, the Refinery segment contributed $175 million in Adjusted EBITDA, with throughput volumes averaging about 57 thousand barrels per day.
One-time transaction-related expenses impacted Adjusted EBITDA figures across several units during the quarter, including $12 million in Fuel Distribution and $2 million in Terminals, totalling $14 million overall.
Capital allocation, distribution and liquidity
On July 27, 2026, Sunoco declared a second-quarter distribution of $1.0023 per unit, or $4.0092 per unit on an annualized basis. This payout represents a 1.25 per cent increase from the first quarter of 2026 and an increase of more than 10 per cent compared to the second quarter of 2025. The announcement marks the partnership's seventh consecutive quarterly distribution increase, aligning with its capital allocation strategy to maintain a multi-year distribution growth rate of at least 5 per cent. The distribution will be paid on Aug. 19, 2026, to security holders of record as of Aug. 7, 2026.
As of June 30, 2026, Sunoco maintained long-term debt of approximately $13.3 billion, with roughly $2.3 billion in remaining liquidity on its revolving credit facility. The partnership reported a leverage ratio of net debt to adjusted EBITDA of approximately 3.7 times at quarter-end. Total capital expenditures for the quarter reached $202 million, comprising $125 million in growth capital and $77 million in maintenance capital, which includes the partnership's proportionate share of capital expenditures related to its joint ventures with energy transfer.
SunocoCorp LLC, which owns a limited partner interest in Sunoco LP, consolidates the partnership's financial results into its balance sheets and statements of operations.
