Casey’s General Stores, a prominent U.S. convenience store chain, reported its third-quarter results for fiscal year 2025, ending January 31, 2025. The company demonstrated stable performance, with net income unchanged from the prior year at $87 million, resulting in diluted earnings per share (EPS) of $2.33, also flat year-over-year. EBITDA increased by 11.4% to $242.4 million compared to the previous year.

Total revenue for the quarter reached $3.9 billion, reflecting a 17.3% increase or $574 million from the same period in the prior year. This growth was driven by a rise in inside sales, which amounted to $1.4 billion, up 15.3%, and fuel sales which increased by $315 million, a 20.4% rise attributed to greater fuel gallons sold. Same-store inside sales increased by 3.7%, with a two-year stack growth of 8%.

The fuel segment’s same-store gallons sold grew by 1.8%, with a fuel margin of $0.364 per gallon. Overall, total fuel gross profit increased by 17.4% to $302.1 million. Operating expenses rose by 17.8% to $670.2 million due to an increase in operating stores, now totaling approximately 2,893, and incurred integration costs related to the Fikes acquisition.

Casey’s inside gross profit for the quarter was $573.1 million, a rise of 14.3%, with inside margin reported at 40.9%, down 40 basis points year-over-year. Prepared food and dispensed beverages maintained strong sales, with same-store sales growth of 4.7% and a gross profit margin of 57.8%, though this represented a year-over-year decline of 180 basis points. Grocery and general merchandise same-store sales were up 3.3% with a gross profit margin of 34.2%, reflecting a 40 basis point improvement from the prior year.

The company confirmed a quarterly dividend of $0.50 per share and projected an 11% EBITDA increase for the full fiscal year 2025, alongside a planned capital expenditure of approximately $500 million. The liquidity position remained strong with total available liquidity reported at $1.3 billion. With respect to the guidance issued, Casey’s expects same-store inside sales to increase by approximately 3% to 5% and same-store fuel gallons to reflect mixed results from negative 1% to positive 1%.

Operating cash flows yielded $205 million for the quarter, allowing for a significant free cash flow of $91 million, in contrast to a $27 million usage in the prior year. Overall, Casey’s demonstrated stable financial performance amid integration activities and expansion efforts, while navigating operational challenges associated with its growth strategy.