ARKO Corp. Surpasses Expectations with Record-Breaking Q2 2026 Results and Strategic Acquisition
ARKO Corp., a leading fuel distribution and marketing company, recently reported its second-quarter 2026 earnings, exceeding market expectations with impressive financial results.
The company's quarterly report showed significant growth in revenue, with total sales reaching $1.32 billion, a 15% increase from the same period last year. This substantial gain is attributed to ARKO's continued expansion into new markets and its successful execution of strategic acquisitions.
A key highlight of the quarter was the announcement by APC, ARKO's approximately 74%-owned subsidiary, regarding an agreement to acquire U.S. Petroleum Partners (USPP). This planned acquisition marks a significant step in accelerating APC's growth plan, expanding scale in attractive markets, and demonstrating the earning power that can be created from the APC platform.
USPP is a sizable, vertically integrated fuel distribution platform, and its acquisition by APC will add approximately 280 million gallons of annual fuel volume. This increase will bring APC's trailing 12-month gallons stored to around 2.3 billion, representing a 14% growth in scale. The addition will also expand APC's presence in the Great Lakes region, with more than 400 dealer locations being added.
Apart from expanding its market reach and increasing fuel volume, the acquisition of USPP will provide APC with two fuel terminals on the Buckeye Pipeline and a transportation fleet that handles over 80% of USPP's distributed fuel volumes. This will enable APC to participate in more of the refined product value chain, capturing incremental margin opportunities, shrinking last-mile logistics, and adding another source of stable fee-based earnings.
"The acquisition of USPP is exactly the type of opportunity we built APC to pursue," said Arie Kotler, Chairman, President, and Chief Executive Officer of ARKO. "This deal demonstrates each of the key pillars of APC's investment thesis – deepening supplier relationships, expanding its stable fee-based business model, utilizing financial flexibility created through the IPO, building on a proven acquisition track record, and accelerating APC's growth outlook."
The consideration at closing will consist of $205 million in cash plus the cost of inventory. Additionally, APC will issue $30 million in Class A common stock to be held in escrow and released to USPP upon achieving certain EBITDA-based financial targets within the first four fuel quarters after the transaction's closure.
ARKO Corp.'s strong Q2 2026 results and strategic acquisition of USPP demonstrate its commitment to growth, expansion, and creating value for shareholders. With a solid track record of execution and a clear vision for the future, ARKO is well-positioned to continue its upward trajectory."
