--- title: "Yesway Inc Posts Record Quarter, Lifts 2026 Outlook" type: "News" locale: "en" url: "https://longbridge.com/en/news/296662217.md" description: "Yesway Inc reported a record Q2 with adjusted EBITDA rising 35% to $71 million, driven by strong fuel margins and solid merchandise sales. The company lifted its full-year adjusted EBITDA outlook to $235-$245 million. While cash generation improved and debt was reduced, management cited risks from moderating fuel margins, rising credit card fees, and potential leverage increases for future acquisitions." datetime: "2026-08-22T00:28:32.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/296662217.md) - [en](https://longbridge.com/en/news/296662217.md) - [zh-HK](https://longbridge.com/zh-HK/news/296662217.md) generator: "portal-rs" --- # Yesway Inc Posts Record Quarter, Lifts 2026 Outlook Yesway Inc Class A ((YSWY)) has held its Q2 earnings call. Read on for the main highlights of the call. ### Summer Sale - Claim 70% Off TipRanks - Unlock powerful investing tools with TipRanks Premium to make smarter, more confident investment decisions - Subscribe to TipRanks Smart Investor Newsletter, and discover new investing opportunities with data-backed stock picks Yesway Inc Class A delivered a broadly upbeat earnings call, underscoring a record quarter powered by strong fuel margins and solid inside sales performance. Management highlighted robust cash generation and a raised EBITDA outlook, while acknowledging risks from moderating fuel margins, rising card fees and potentially higher leverage tied to future acquisitions. ## Record Quarter and Adjusted EBITDA Growth The second quarter marked the strongest in Yesway’s history, with adjusted EBITDA reaching $71 million, up 35% year over year. Management credited disciplined execution across both fuel and merchandise, as well as better productivity from newer stores, for the step-change in profitability. ## Exceptional Fuel Performance Fuel sales surged 52.7% to $673 million, with total fuel margin per gallon climbing 27.4% to $0.526. Same-store fuel gallons grew 1.4%, or 1.8% when excluding the 29 Iowa and Kansas stores slated for sale, showing volume resilience alongside unusually rich margins. ## Strong Inside Merchandise Results Inside merchandise sales rose to $240 million, a 4.4% year-over-year increase, while same-store sales edged up 1.2%, or 1.5% excluding the divested portfolio. Merchandise margin expanded roughly 50 basis points to 35.7%, reflecting targeted category management and pricing initiatives. ## Improved Profitability and Store Contribution Store contribution jumped 29.5% to $88 million, supported by higher fuel and merchandise margins. Net income climbed to $30 million from $24 million a year earlier, as operating leverage from new-store performance and margin expansion flowed through to the bottom line. ## Healthy Cash Generation and Deleveraging Progress Yesway closed the quarter with $82 million in cash, generating $57 million in operating cash flow versus $36 million in the prior year. The company reported $40 million of debt repaid through June 30, 2026 and $24 million in capital expenditures, signaling a focus on balance sheet strength alongside growth investment. ## Differentiated Diesel Strategy and Mix Advantage Diesel accounted for roughly 38% of Yesway’s fuel volume, well above the industry average of about 27%. Management emphasized that fleet drivers tend to spend more than three times as much inside the store, making diesel a key driver of both fuel margin resilience and cross-selling opportunities. ## Disciplined Growth Engine and Pipeline Operating 450 stores, Yesway has built 92 locations since 2020 and remains on track to open 6 to 8 stores in 2026. Expansion is concentrated in Arizona, Oklahoma, New Mexico and Texas, supporting a longer-term target of more than 130 new builds backed by what management described as a robust development pipeline. ## Raised Full-Year Guidance Reflecting second-quarter momentum, management lifted full-year adjusted EBITDA guidance to a range of $235 million to $245 million, up from $210 million to $220 million. The higher outlook underscores confidence in operational execution, even as fuel margins are expected to normalize from elevated levels. ## Modest Same-Store Traffic and Inside Comp Growth Despite healthy overall sales, same-store inside merchandise growth remained modest at 1.2%, or 1.5% excluding the Iowa and Kansas stores. Management noted slightly lower traffic in the quarter, though July brought sequential improvement, suggesting comps could gradually strengthen but remain measured. ## Dependence on Elevated Fuel Margins and Volatility Risk A significant portion of recent outperformance stemmed from fuel margins boosted by geopolitical price volatility, a factor management does not view as permanent. Executives expect margins to ease toward the low $0.40-per-gallon range in the second half, which could compress earnings if volatility fades. ## Portfolio Sale and Footprint Adjustment Yesway’s reported 450-store base still includes 29 Iowa and Kansas locations that are under contract to be sold by year-end. The divestiture is intended to sharpen operational focus, but it will trim the reported footprint and add noise to comparable metrics as those stores roll out of the portfolio. ## Rising Same-Store Operating Expenses Same-store operating expenses rose 4.8% year over year, with about 96% of the increase coming from higher credit card fees. Management flagged these fees as a persistent margin headwind, partially offsetting gains from fuel and merchandise and requiring continued cost discipline. ## Leverage and M&A Considerations Total debt, including financing obligations, stood at $618 million, and management indicated willingness to let leverage rise temporarily toward roughly 4 times EBITDA for attractive acquisitions. While this supports growth optionality, it also raises financial risk if post-deal deleveraging does not occur quickly. ## Limited Near-Term Store Openings in Quarter Only one new store opened in the second quarter, leaving the network at 450 sites and highlighting a measured approach to near-term expansion. With 6 to 8 openings targeted for 2026, investors should expect growth largely driven by margin management, productivity and selective M&A rather than rapid unit additions. ## Forward-Looking Guidance and Outlook Yesway’s updated 2026 guidance calls for adjusted EBITDA of $235 million to $245 million, same-store inside sales growth between 1.25% and 3.25% and capital spending of $85 million to $95 million. The company plans 6 to 8 new stores this year and assumes its 29-store sale closes and fuel margins settle in the low $0.40 range, with recent July trends suggesting some upside potential. Yesway’s earnings call painted a picture of a convenience retailer executing well on margins, cash generation and a distinctive diesel-led strategy. While normalization in fuel margins, rising card fees and leverage choices bear watching, the raised guidance and solid operational trends offer a constructive setup for investors tracking the company’s next phase of growth. ### Related Stocks - [YSWY.US](https://longbridge.com/en/quote/YSWY.US.md) ## Related News & Research - [Yesway to present at Goldman Sachs Global Consumer and Retail Conference](https://longbridge.com/en/news/297693314.md) - [Indonesia to maintain B50 fuel blend in 2027, uptake reaches 80%, official says](https://longbridge.com/en/news/297737015.md) - [NGIF Accelerator-run Industrial Fuel Compliance Fund wins registration under Canada Clean Fuel Regulations](https://longbridge.com/en/news/297682794.md) - [Diesel Cracks Hit Record Highs as Global Fuel Squeeze Deepens](https://longbridge.com/en/news/297772726.md) - [ROI-Asia's refined fuel imports hit post-war low, can the Middle East help?: Russell](https://longbridge.com/en/news/297574471.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**