NYSE:CAPL
CrossAmerica Partners LP
A premier US-based logistics and transportation infrastructure company delivering reliable truckload and less-than-truckload freight services across the nation.
Key Metrics
Investment Thesis
Bull Case
Investors might buy CAPL due to its recovery in net income to $41.8M, signaling a turnaround in profitability amidst challenging market conditions. The company's substantial gross profit margin of 11% demonstrates operational efficiency and pricing resilience in the logistics sector. A potential catalyst for growth lies in expanding market share as competitors struggle with high debt loads and fuel costs.
Bear Case
The negative shareholders' equity of -$72.0M presents a fundamental balance sheet weakness that could limit future dividend payments or expansion. Declining revenue trends over the last three years indicate a shrinking addressable market or loss of key contractual relationships. High interest expense of $48.1M combined with massive cash outflows for financing creates significant pressure on free cash flow generation.
About CrossAmerica Partners LP
CrossAmerica Partners LP (CAPL) is a leading provider of logistics solutions operating primarily within the United States, focusing on truckload and less-than-truckload transportation services. The company serves diverse markets including automotive, consumer packaged goods, and manufacturing sectors with a robust fleet of equipment. Key products include standardized transport contracts and customized supply chain management solutions for enterprise clients.
Analysis
Management Discussion
Despite a revenue decline to $3.66B in 2025, the company successfully stabilized net profit at $41.8M after a dip in prior years. Strong operating cash flow of $91.5M indicates effective cost management and pricing power within existing contracts. However, heavy financing outflows of $160.2M suggest ongoing debt servicing pressures that require careful monitoring by investors.
Industry Overview
The North American logistics industry is currently navigating a transition period marked by consolidation and rising operational costs. Companies are increasingly prioritizing asset-light models to reduce balance sheet risk while maintaining service quality. Regulatory pressures on carbon emissions are forcing fleet modernization, creating opportunities for operators with standardized equipment like CAPL.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $4.97B | $4.39B | $4.10B | $3.66B |
| Cost of Revenue | $4.59B | $4.00B | $3.70B | $3.26B |
| Gross Profit | $375.8M | $382.3M | $398.3M | $402.7M |
| Operating Expenses | $280.9M | $298.9M | $332.7M | $349.3M |
| Operating Income | $96.0M | $88.1M | $70.6M | $97.6M |
| G&A | $25.6M | $27.0M | $28.8M | $28.0M |
| Stock-Based Comp | $2.3M | $3.0M | $1.5M | $1.9M |
| D&A | $80.6M | $77.2M | $76.0M | $89.6M |
| Amortization | $21.2M | $20.7M | $18.1M | $16.1M |
| Other OpEx | $255.3M | $271.9M | $304.0M | $321.3M |
| Non-Operating Income | $-31.6M | $-43.0M | $-51.5M | $-47.6M |
| Interest Expense | $32.1M | $43.7M | $52.3M | $48.1M |
| Pre-Tax Income | $64.4M | $45.1M | $19.0M | $50.1M |
| Income Tax | $714.0K | $2.5M | $-3.4M | $8.3M |
| Continuing Ops | $63.7M | $42.6M | $22.5M | $41.8M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $63.7M | $42.6M | $22.5M | $41.8M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $63.7M | $42.6M | $22.5M | $41.8M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $118.4M | $108.5M | $118.8M | $111.1M |
| Cash & Equivalents | $16.1M | $5.0M | $3.4M | $3.1M |
| Accounts Receivable | $30.8M | $31.2M | $31.6M | $28.6M |
| Inventory | $47.3M | $52.3M | $63.2M | $59.6M |
| Other Current Assets | $24.2M | $20.0M | $20.7M | $19.8M |
| Long-Term Assets | $1.14B | $1.07B | $995.9M | $853.7M |
| PP&E (Net) | $728.4M | $705.2M | $656.3M | $547.7M |
| Intangibles | $113.9M | $95.3M | $77.2M | $61.6M |
| Goodwill | $99.4M | $99.4M | $99.4M | $99.4M |
| Operating Leases | $164.9M | $148.3M | $136.4M | $121.6M |
| Other LT Assets | $29.5M | $25.0M | $26.5M | $23.3M |
| Total Assets | $1.25B | $1.18B | $1.11B | $964.7M |
| Current Liabilities | $175.3M | $161.1M | $162.8M | $155.2M |
| Accounts Payable | $77.0M | $69.0M | $74.0M | $63.4M |
| Current Leases | $35.3M | $34.8M | $35.1M | $34.7M |
| Other Current Liab | $39.8M | $33.6M | $29.8M | $29.7M |
| Long-Term Liabilities | $1.00B | $989.8M | $976.7M | $881.6M |
| LT Operating Leases | $135.2M | $118.7M | $106.3M | $91.3M |
| Other LT Liab | $864.9M | $871.1M | $870.4M | $790.3M |
| Total Liabilities | $1.18B | $1.15B | $1.14B | $1.04B |
| Shareholders' Equity | $79.1M | $30.8M | $-24.8M | $-72.0M |
| AOCI | $16.5M | $5.4M | $7.6M | $-1.0M |
| Total L&E | $1.25B | $1.18B | $1.11B | $964.7M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $63.7M | $42.6M | $22.5M | $41.8M |
| Non-Cash Adjustments | $104.8M | $85.4M | $61.6M | $44.5M |
| Working Capital Changes | $-7.2M | $-10.9M | $3.7M | $5.1M |
| Cash from Operations | $161.3M | $117.1M | $87.8M | $91.5M |
| Capital Expenditures | $30.4M | $34.6M | $26.3M | $35.7M |
| Cash from Investing | $-46.4M | $-28.2M | $-16.3M | $68.4M |
| Debt Repayments | $24.6M | $159.0M | — | — |
| Dividends Paid | $79.6M | $79.7M | $79.9M | $80.0M |
| Cash from Financing | $-106.5M | $-100.0M | $-73.1M | $-160.2M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $8.4M | $-11.1M | $-1.6M | $-244.0K |
| Beginning Cash | $7.6M | $16.1M | $5.0M | $3.4M |
| Ending Cash | $16.1M | $5.0M | $3.4M | $3.1M |
Frequently Asked Questions
How does CrossAmerica Partners LP make money?
The primary revenue stream is derived from contract truckload transportation, generating $3.66B in revenue with a gross profit of $402.7M. A secondary segment involves specialized less-than-truckload operations that complement full-load capabilities for smaller shipments. Additional income comes from asset management services and related logistics support provided to major enterprise partners.
What are the main risks for CAPL?
Interest rate sensitivity is a critical risk given the company's $1.04B in total liabilities, including significant long-term lease obligations. Revenue volatility from fuel price fluctuations and macroeconomic slowdowns could impact contract renewals for this discretionary spend sector. Regulatory changes regarding environmental standards may increase depreciation costs or require fleet upgrades sooner than planned.
What is CAPL's competitive advantage?
CAPL maintains a highly efficient, standardized equipment fleet that lowers operational costs compared to competitors using mixed-age assets. The company leverages strong long-term contracts with top-tier shippers to ensure predictable cash flows and high load factors. Its integrated digital tracking systems provide real-time visibility that enhances customer retention in a competitive market.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.