We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Sunoco LP (SUN) Down 1.3% Since Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for Sunoco LP (SUN - Free Report) . Shares have lost about 1.3% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Sunoco LP due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Sunoco LP reported first-quarter 2026 earnings of $2.85 per unit, up 135.5% from $1.21 a year ago. The bottom line topped the Zacks Consensus Estimate of $1.71 by 66.7%.
Total quarterly revenues of $10.7 billion surpassed the Zacks Consensus Estimate of $9.6 billion by 11.4%. The top line increased 106.4% from $5.3 billion reported in the year-ago quarter.
The strong quarterly results were driven by higher motor fuel sales volumes and increased motor fuel profit per gallon. Higher operating expenses partially offset the positives.
Distribution Hike
For the first quarter of 2026, the board of directors of Sunoco's general partner declared a distribution of 98.99 cents per unit or $3.9596 on an annualized basis, marking a sequential increase of 6.25% or a 10% increase from the prior-quarter figure of 89.76 cents per unit.
The distribution is expected to be paid on May 20, 2026, to unitholders of record as of May 8, 2026.
SUN Turns Inventory Actions Into a Meaningful Profit Tailwind
SUN reported net income of $644 million in the first quarter compared with $207 million in the year-ago quarter. Operating income increased to $866 million from $296 million.
During the quarter, the partnership’s pre-tax income increased by $102 million or 54 cents per common unit, due to a LIFO liquidation, driven by reduced fuel inventories.
Segmental Performance
Sunoco posts financial results under four reportable segments after the acquisition of Parkland Corporation: Fuel Distribution, Pipeline Systems, Terminals and Refinery.
Sunoco's Fuel Distribution Leads Scale-Driven Upside
Sunoco’s Fuel Distribution segment remained the earnings engine. Revenues from external customers in the segment were $10.20 billion for the first quarter compared with $4.9 billion in the year-ago period of 2025. Segment adjusted EBITDA was $529 million, higher than the prior-year quarter’s figure of $220 million.
The segment sold 3,796 million gallons of motor fuel, up from 2,087 million gallons recorded in the year-ago period. The motor fuel margin per gallon was 17 cents compared with 11.5 cents in the year-ago quarter.
SUN's Pipeline Systems Add Stability
Pipeline Systems generated $194 million of revenues from external customers in the quarter, higher than the prior year’s figure of $173 million. Segment adjusted EBITDA improved to $179 million from $172 million a year ago, driven by market demand and improved blending economics. The positives were partly offset by higher expenses.
Pipelines throughput was 1,291 thousand barrels per day, up from 1,258 thousand barrels per day recorded in the year-ago period.
SUN's Terminal Segment’s Performance
In Terminals, external revenues improved to $149 million from the year-ago figure of $103 million, driven by recently acquired assets. Segment adjusted EBITDA increased to $107 million from $66 million due to contributions from the Parkland and TanQuid acquisitions.
Throughput rose to 1,013 thousand barrels per day from 620 thousand barrels per day in the first quarter of 2025.
Sunoco's Refinery Shows Its Portfolio Role
External revenues for the segment were $146 million in the quarter. Segment adjusted EBITDA totaled $43 million, including a $10 million gain on sale of inventory.
Crude throughput averaged about 21 thousand barrels per day for the quarter. Meanwhile crude utilization was 38%.
Distributable Cash Flow of SUN
The adjusted distributable cash flow totaled $535 million, up from the year-ago level of $310 million.
Sunoco's Expenses & Capital Expenditure
The total cost of sales and operating expenses increased to $9.8 billion from $4.9 billion a year ago.
The partnership incurred capital expenditures of $199 million, comprising $106 million in growth capital and $93 million in maintenance capital.
Balance Sheet of SUN
As of March 31, 2026, Sunoco had cash and cash equivalents of $718 million and net long-term debt of $13.9 billion. Meanwhile, liquidity was $2.22 billion available under the revolving credit facility, while leverage was around 4.0X.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, Sunoco LP has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Interestingly, Sunoco LP has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Why Is Sunoco LP (SUN) Down 1.3% Since Last Earnings Report?
It has been about a month since the last earnings report for Sunoco LP (SUN - Free Report) . Shares have lost about 1.3% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Sunoco LP due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Sunoco Q1 Earnings & Revenues Beat Estimateson Higher Sales Volume
Sunoco LP reported first-quarter 2026 earnings of $2.85 per unit, up 135.5% from $1.21 a year ago. The bottom line topped the Zacks Consensus Estimate of $1.71 by 66.7%.
Total quarterly revenues of $10.7 billion surpassed the Zacks Consensus Estimate of $9.6 billion by 11.4%. The top line increased 106.4% from $5.3 billion reported in the year-ago quarter.
The strong quarterly results were driven by higher motor fuel sales volumes and increased motor fuel profit per gallon. Higher operating expenses partially offset the positives.
Distribution Hike
For the first quarter of 2026, the board of directors of Sunoco's general partner declared a distribution of 98.99 cents per unit or $3.9596 on an annualized basis, marking a sequential increase of 6.25% or a 10% increase from the prior-quarter figure of 89.76 cents per unit.
The distribution is expected to be paid on May 20, 2026, to unitholders of record as of May 8, 2026.
SUN Turns Inventory Actions Into a Meaningful Profit Tailwind
SUN reported net income of $644 million in the first quarter compared with $207 million in the year-ago quarter. Operating income increased to $866 million from $296 million.
During the quarter, the partnership’s pre-tax income increased by $102 million or 54 cents per common unit, due to a LIFO liquidation, driven by reduced fuel inventories.
Segmental Performance
Sunoco posts financial results under four reportable segments after the acquisition of Parkland Corporation: Fuel Distribution, Pipeline Systems, Terminals and Refinery.
Sunoco's Fuel Distribution Leads Scale-Driven Upside
Sunoco’s Fuel Distribution segment remained the earnings engine. Revenues from external customers in the segment were $10.20 billion for the first quarter compared with $4.9 billion in the year-ago period of 2025. Segment adjusted EBITDA was $529 million, higher than the prior-year quarter’s figure of $220 million.
The segment sold 3,796 million gallons of motor fuel, up from 2,087 million gallons recorded in the year-ago period. The motor fuel margin per gallon was 17 cents compared with 11.5 cents in the year-ago quarter.
SUN's Pipeline Systems Add Stability
Pipeline Systems generated $194 million of revenues from external customers in the quarter, higher than the prior year’s figure of $173 million. Segment adjusted EBITDA improved to $179 million from $172 million a year ago, driven by market demand and improved blending economics. The positives were partly offset by higher expenses.
Pipelines throughput was 1,291 thousand barrels per day, up from 1,258 thousand barrels per day recorded in the year-ago period.
SUN's Terminal Segment’s Performance
In Terminals, external revenues improved to $149 million from the year-ago figure of $103 million, driven by recently acquired assets. Segment adjusted EBITDA increased to $107 million from $66 million due to contributions from the Parkland and TanQuid acquisitions.
Throughput rose to 1,013 thousand barrels per day from 620 thousand barrels per day in the first quarter of 2025.
Sunoco's Refinery Shows Its Portfolio Role
External revenues for the segment were $146 million in the quarter. Segment adjusted EBITDA totaled $43 million, including a $10 million gain on sale of inventory.
Crude throughput averaged about 21 thousand barrels per day for the quarter. Meanwhile crude utilization was 38%.
Distributable Cash Flow of SUN
The adjusted distributable cash flow totaled $535 million, up from the year-ago level of $310 million.
Sunoco's Expenses & Capital Expenditure
The total cost of sales and operating expenses increased to $9.8 billion from $4.9 billion a year ago.
The partnership incurred capital expenditures of $199 million, comprising $106 million in growth capital and $93 million in maintenance capital.
Balance Sheet of SUN
As of March 31, 2026, Sunoco had cash and cash equivalents of $718 million and net long-term debt of $13.9 billion. Meanwhile, liquidity was $2.22 billion available under the revolving credit facility, while leverage was around 4.0X.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, Sunoco LP has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Interestingly, Sunoco LP has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.