It has been about a month since the last earnings report for Sunoco LP (SUN Quick QuoteSUN - Free Report) . Shares have added about 4.2% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Sunoco LP due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Sunoco LP before we dive into how investors and analysts have reacted as of late.

Sunoco Q2 Earnings Miss Estimates

Sunoco reported second-quarter 2026 earnings of 94 cents per unit, skyrocketing 184.8% from 33 cents a year ago. However, the bottom line missed the Zacks Consensus Estimate of $2.68 by 64.9%.

Quarterly revenues soared 164.5% to $14.26 billion from $5.39 billion in the prior-year quarter. The top line surpassed the consensus estimate of $10.15 billion by 40.5%.

Top-line growth was driven by acquired operations, higher fuel volumes and stronger fuel margins.

SUN sold 4.13 billion gallons of motor fuel at a profit of 17.1 cents per gallon.

SUN's Revenues Surge Reflects Expanded Scale

Net income increased to $283 million from $86 million in the prior-year quarter. Operating income advanced 187.2% to $583 million, as the Parkland acquisition and other acquired assets expanded the partnership’s operating footprint.

The benefits were accompanied by a sharp increase in costs. Total cost of sales and operating expenses rose 163.6% to $13.68 billion from $5.19 billion a year ago. Cost of sales reached $12.80 billion, higher than the $4.82 billion recorded a year earlier, while operating expenses increased to $381 million from $145 million.

Sunoco's Fuel Distribution Powers Growth

The Fuel Distribution segment remained the largest earnings contributor. Segment adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 144.7% to $504 million from $206 million in the year-ago quarter. Excluding $12 million of transaction-related expenses, adjusted EBITDA totaled $516 million.

Motor fuel volumes increased 88.5% to 4.13 billion gallons due to the Parkland acquisition. Fuel profit rose to $686 million from $191 million, supported by the increase in motor fuel profit per gallon from 10.5 cents to 17.1 cents. Non-fuel profit reached $162 million from $41 million, while lease profit was $43 million compared with $30 million in the prior-year quarter.

SUN's Midstream Assets Add Stability

Pipeline Systems adjusted EBITDA improved 7.3% to $190 million from $177 million in the year-ago quarter. Throughput averaged 1.35 million barrels per day (MMBbl/d), up from 1.23 MMBbl/d a year earlier. The increase reflected stronger market demand, new business and contributions from the ET-S Permian investment. The positives were partially offset by an increase in expenses driven by higher maintenance costs, utility costs and corporate allocations.

The Terminals segment generated adjusted EBITDA of $113 million, up 59.2% from $71 million. Excluding transaction-related expenses, adjusted EBITDA was $115 million. Throughput increased 51.7% to 1.07 million barrels per day, driven by the Parkland and TanQuid acquisitions and customer growth.

Sunoco's Refinery Delivers Strong Upside

The Refinery segment contributed adjusted EBITDA of $175 million. Composite utilization was 103%, while crude utilization reached 97%. Crude throughput averaged 54,000 barrels per day, supplemented by 3,000 barrels per day of bio-feedstock throughput.

Management credited the Burnaby refinery’s performance to strong refining margins, improved reliability and disciplined operating costs. Refining margin exceeded $40 per barrel, while operating expenses remained below $10 per barrel. The facility benefited from a completed turnaround and favorable market conditions.

Sunoco’s Cash Flow & Distribution

Adjusted EBITDA totaled $982 million, up 116.3% year over year. Excluding $14 million of transaction-related expenses, adjusted EBITDA was $996 million. Distributable cash flow, as adjusted, more than doubled to $608 million from $300 million.

Capital expenditure totaled $202 million, including $125 million for growth projects and $77 million for maintenance.

The partnership declared a quarterly distribution of $1.0023 per unit, up 1.25% sequentially and more than 10% year over year. The increase marked SUN’s seventh consecutive quarterly distribution hike and was consistent with its multi-year target of at least 5% annual distribution growth.

SUN Maintains Balance Sheet Flexibility

As of June 30, 2026, Sunoco had cash and cash equivalents of $773 million, and net long-term debt of $13.31 billion. SUN ended the quarter with $2.3 billion available under its revolving credit facility and a leverage ratio of 3.7X, below its long-term target of 4X.

Sunoco Raises 2026 Guidance on Broad-Based Strength

SUN increased its 2026 adjusted EBITDA guidance by $400 million to $3.5-$3.7 billion. Management expects all four operating segments to continue performing well during the second half of the year.

The range primarily reflects uncertainty regarding refining margins. Management used forward refining crack spreads as a starting point but noted that the Fuel Distribution, Pipeline Systems and Terminals businesses offer greater earnings visibility. Contributions and synergies from the Parkland acquisition are running ahead of schedule.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in fresh estimates.

The consensus estimate has shifted 16.56% due to these changes.

VGM Scores

Currently, Sunoco LP has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock was allocated a score 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 trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Sunoco LP has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.