Sunoco LP Investor Relations: Q3 2025 Delivers Strong Financial Performance Amid Strategic Expansion

Sunoco LP (NYSE: SUN) released its third quarter 2025 results on November 5, 2025, showcasing robust operational momentum and strategic acquisitions that are reshaping the energy infrastructure landscape.

Financial Performance Highlights

The partnership delivered solid profitability in the third quarter, generating net income of $137 million, a significant jump from $2 million in the same period last year. More importantly for unitholders, the company achieved Adjusted EBITDA of $496 million (excluding one-time transaction costs), up from $470 million in Q3 2024. This performance underscores management’s ability to drive operational efficiency despite a dynamic market environment.

Distributable Cash Flow, as adjusted, reached $326 million for the quarter, demonstrating the partnership’s cash generation capability. While this figure dipped slightly from the $349 million recorded in Q3 2024, the underlying metrics reveal a business in transition—successfully integrating acquisitions while maintaining core profitability.

Distribution Growth Trajectory

SUN’s commitment to returning value to common unitholders remains evident through its consistent distribution increases. On October 20, 2025, the Board declared a quarterly distribution of $0.9202 per unit, representing a 1.25% increase from the prior quarter. This marks the fourth consecutive quarterly hike, with the company maintaining its full-year target of at least 5% distribution growth for 2025.

Since 2022, the partnership has grown distributions by approximately 11%, validating its capital allocation discipline. The trailing 12-month distribution coverage ratio stands at a healthy 1.8 times, indicating adequate cash flow to support both distributions and reinvestment.

Fortress Balance Sheet and Leverage Management

Financial fortress credentials remain intact. As of September 30, 2025, SUN maintained long-term debt of $9.5 billion with $1.5 billion in available liquidity on its revolving credit facility. The leverage ratio, calculated as net debt to Adjusted EBITDA, stood at 3.9 times—a manageable level that provides flexibility for continued growth investments.

This balanced leverage profile reflects strategic discipline in using debt to fund acquisitions while preserving financial flexibility. The company’s revolving credit facility remains well-positioned to support operational needs and strategic opportunities.

Business Segment Performance

Fuel Distribution Division: The segment remains the largest contributor, generating Adjusted EBITDA of $232 million in Q3 2025. Despite this representing a decline from $253 million in Q3 2024, the segment moved 2.3 billion gallons of fuel during the quarter, benefiting from acquisition-related volume additions. Fuel margin held steady at 10.7 cents per gallon, reflecting competitive market dynamics. The integration of recently acquired operations, including the Parkland acquisition completed during the period, is progressing as planned.

Pipeline Systems: This segment demonstrated impressive growth, posting Adjusted EBITDA of $182 million versus $136 million year-over-year. The performance reflects recovery from refinery turnarounds that impacted the prior year, combined with strong overall system demand. Throughput volumes averaged 1.3 million barrels per day, up from 1.165 million barrels daily in Q3 2024. The partnership’s proportionate share of ET-S Permian operations also contributed to the upside.

Terminals Operations: The terminals segment recorded Adjusted EBITDA of $75 million, up from $67 million in the prior year quarter. Throughput volumes averaged 656 thousand barrels per day, slightly below the prior year’s 694 thousand barrels daily due to lower trading activity and customer transitions. However, margin expansion from transmix activities and the ongoing benefit of the Portland terminal acquisition (which closed in August 2024) supported the year-over-year improvement.

Capital Deployment and Future Growth

Total capital expenditures for Q3 2025 reached $157 million, comprising $115 million in growth capital and $42 million in maintenance capital. This investment cadence reflects management’s commitment to organic growth while maintaining asset integrity. Notably, the company incurred $7 million in one-time transaction-related expenses during the quarter.

Strategic M&A remains a priority. The company successfully closed the Parkland Corporation acquisition and expects to complete the TanQuid acquisition during the fourth quarter of 2025, further diversifying and strengthening the partnership’s market position.

Operational Scale and Geographic Reach

Sunoco LP operates across 32 countries and territories spanning North America, the Greater Caribbean, and Europe. The midstream infrastructure encompasses approximately 14,000 miles of pipeline and over 160 terminals. The fuel distribution network supplies over 15 billion gallons annually to roughly 11,000 Sunoco and partner-branded retail locations, plus independent dealers and commercial customers.

Investor Takeaway

Q3 2025 results reflect a partnership successfully executing on growth initiatives while maintaining financial discipline. The combination of increased distributions, strong leverage management, and robust segment-level performance—particularly in Pipeline Systems—positions Sunoco LP favorably for continued value creation. With the TanQuid acquisition on the horizon and full-year distribution growth tracking toward the 5% target, SUN demonstrates why it remains an attractive vehicle for yield-focused and growth-oriented energy infrastructure investors.