Convenience store operator Arko reports Q2 net income rise
Overview
Arko Q2 net income rises to $20.1 mln from $14.1 mln yr-ago
Adjusted EBITDA of $76.9 mln beats analyst expectations, per LSEG data
Co converted 70 retail stores to dealer sites as part of transformation plan
Outlook
Company expects Q3 2025 Adjusted EBITDA between $70 mln and $80 mln
ARKO maintains full-year 2025 Adjusted EBITDA guidance of $233 mln to $253 mln
Company plans to convert more retail stores to dealer sites through 2026
Company expects over $20 mln annualized operating income benefit from channel optimization
Result Drivers
STORE CONVERSIONS - Conversion of 70 retail stores to dealer sites contributed to operating income benefits, per CEO Arie Kotler
NEW FORMAT STORES - Pilot program for new format stores aims to elevate customer experience and improve merchandise offerings
MACROECONOMIC CHALLENGES - Decline in same store sales attributed to inflation and elevated household debt impacting discretionary spending
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Net Income | $20.10 mln | ||
Q2 Adjusted EBITDA | Beat | $76.90 mln | $74 mln (3 Analysts) |
Q2 Dividend | $0.03 |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the oil & gas refining and marketing peer group is "buy"
Wall Street's median 12-month price target for Arko Corp. is $7.00, about 42% above its August 5 closing price of $4.06
The stock recently traded at 57 times the next 12-month earnings vs. a P/E of 212 three months ago
Press Release:
