Casey's Announces First Quarter Results

ANKENY, Iowa--( BUSINESS WIRE)--Casey’s General Stores, Inc. ("Casey's" or the "Company") (Nasdaq: CASY) one of the leading convenience store chains in the United States, today announced financial results for the three months ended July 31, 2025.

First Quarter Key Highlights

"Casey's delivered an excellent first quarter highlighted by strong sales growth both inside and outside the store,” said Darren Rebelez, Chairman, President and CEO. “Our inside same-store sales were driven by positive traffic growth due to our summer merchandising plan as well as our team's outstanding execution, demonstrating our ability to serve our guests efficiently at a high level. Our fuel team did a tremendous job achieving same-store gallon growth while maintaining a healthy fuel margin. Overall, robust same-store sales combined with operating over 200 more stores than the prior year has led to outstanding financial results across the business."

Earnings

Three Months Ended July 31,

2025

2024

Net income (in thousands)

215,355

180,198

Diluted earnings per share

5.77

4.83

EBITDA (in thousands)

414,270

345,782

For the quarter, net income, diluted EPS, and EBITDA were up compared to the same period a year ago due to higher inside and fuel gross profit, partially offset by higher operating expenses, primarily due to operating 221 additional stores.

1 EBITDA is reconciled to net income below.

Inside

Three Months Ended July 31,

2025

2024

Inside sales (in thousands)

1,683,817

1,474,107

Inside same-store sales

4.3

2.3

Grocery and general merchandise same-store sales

3.8

1.6

Prepared food and dispensed beverage same-store sales

5.6

4.4

Inside gross profit (in thousands)

705,466

614,322

Inside margin

41.9

41.7

Grocery and general merchandise margin

35.9

35.4

Prepared food and dispensed beverage margin

58.0

58.3

Total inside sales for the quarter were up 14.2% compared to the prior year. Same-store inside sales were driven by strong performance in the prepared food and dispensed beverage category, including whole pizzas and bakery as well as non-alcoholic beverages in the grocery and general merchandise category. Inside margin was up approximately 20 basis points compared to the same quarter a year ago, benefitting from a favorable product mix shift.

Fuel 2

Three Months Ended July 31,

2025

2024

Fuel gallons sold (in thousands)

911,780

772,536

Same-store gallons sold

1.7

0.7

Fuel gross profit (in thousands)

373,554

314,548

Fuel margin (cents per gallon, excluding credit card fees)

41.0

40.7

For the quarter, total fuel gallons sold increased 18.0% compared to the prior year due to the store count increase as well as same-store gallons which were up versus the prior year. The Company’s total fuel gross profit was up 18.8% versus the prior year, with an increase in gallons sold as well as fuel margin. The Company sold $6.7 million in renewable fuel credits (RINs) in the quarter, an increase of $1.9 million from the same quarter in the prior year.

Operating Expenses

Three Months Ended July 31,

2025

2024

Operating expenses (in thousands)

698,176

609,474

Credit card fees (in thousands)

71,704

63,809

Same-store operating expenses excluding credit card fees

3.0

0.7

Operating expenses increased 14.6% during the first quarter. Operating 221 more stores than prior year accounted for approximately 10% of the increase. Same-store employee expense contributed to approximately 1.5% of the increase, as the increases in labor rates were partially offset by a reduction in same-store labor hours.

2 Fuel category does not include wholesale fuel nor terminal activity, which is included in Other.

Expansion

Store Count

April 30, 2025

2,904

New store construction

Acquisitions

Prior acquisitions opened

Closed or divested

(17

)

July 31, 2025

2,895

Liquidity

At July 31, 2025, the Company had approximately $1.4 billion in available liquidity, consisting of approximately $458 million in cash and cash equivalents on hand and approximately $900 million in available borrowing capacity on existing lines of credit.

Share Repurchase

During the quarter, the Company repurchased approximately $31 million of shares. The Company has approximately $264 million remaining under its existing share repurchase authorization.

Dividend

At its September meeting, the Board of Directors approved a quarterly dividend of $0.57 per share. The dividend is payable November 14, 2025, to shareholders of record on November 1, 2025.

Fiscal 2026 Outlook

The Company's fiscal 2026 outlook previously disclosed remains unchanged. Casey's expects the following performance during fiscal 2026. The Company expects EBITDA to increase 10% to 12%. The Company expects inside same-store sales to increase 2% to 5% and inside margin of approximately 41%. The Company expects same-store fuel gallons sold to be negative 1% to positive 1%. Total operating expenses are expected to increase approximately 8% to 10%. The Company expects to open at least 80 stores in fiscal 2026, through a mix of M&A and new store construction, bringing the three-year strategic plan period total to approximately 500 stores. Net interest expense is expected to be approximately $110 million. Depreciation and amortization is expected to be approximately $450 million and the purchase of property and equipment is expected to be approximately $600 million. The tax rate is expected to be approximately 24% to 26% for the year.

Casey’s General Stores, Inc. and Subsidiaries

Condensed Consolidated Statements of Income

(Amounts in thousands, except share and per share amounts)

(Unaudited)

Three Months Ended July 31,

2025

2024

Total revenue

4,567,106

4,097,737

Cost of goods sold (exclusive of depreciation and amortization, shown separately below)

3,454,660

3,142,481

Operating expenses

698,176

609,474

Depreciation and amortization

108,963

94,409

Interest, net

26,850

14,067

Income before income taxes

278,457

237,306

Federal and state income taxes

63,102

57,108

Net income

215,355

180,198

Net income per common share

Basic

5.80

4.86

Diluted

5.77

4.83

Basic weighted average shares

37,148,383

37,087,231

Plus dilutive effect of share-based compensation

203,697

190,463

Diluted weighted average shares

37,352,080

37,277,694

Casey’s General Stores, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)

July 31, 2025

April 30, 2025

Assets

Current assets

Cash and cash equivalents

458,073

326,662

Receivables

195,485

180,746

Inventories

478,880

480,034

Prepaid and other current assets

44,681

24,641

Income taxes receivable

—

770

Total current assets

1,177,119

1,012,853

Operating lease right-of-use assets, net

400,712

417,046

Other assets, net of amortization

118,569

120,082

Goodwill

1,245,976

1,244,893

Property and equipment, net of accumulated depreciation of $3,212,598 at July 31, 2025 and $3,122,203 at April 30, 2025

5,428,633

5,413,244

Total assets

8,371,009

8,208,118

Liabilities and Shareholders’ Equity

Current liabilities

Current maturities of long-term debt and finance lease obligations

98,089

94,925

Accounts payable

673,944

620,447

Accrued expenses and current portion of operating lease liabilities

361,268

386,321

Income taxes payable

4,746

—

Total current liabilities

1,138,047

1,101,693

Long-term debt and finance lease obligations, net of current maturities

2,373,058

2,413,620

Deferred income taxes

694,362

646,905

Operating lease liabilities, net of current portion

419,670

434,707

Insurance accruals, net of current portion

33,887

33,143

Other long-term liabilities

71,307

69,380

Total liabilities

4,730,331

4,699,448

Total shareholders’ equity

3,640,678

3,508,670

Total liabilities and shareholders’ equity

8,371,009

8,208,118

Casey’s General Stores, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Dollars in thousands)

(Unaudited)

Three Months Ended July 31,

2025

2024

Cash flows from operating activities:

Net income

215,355

180,198

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

108,963

94,409

Amortization of debt issuance costs

516

278

Change in excess replacement cost over LIFO inventory valuation

8,327

2,431

Share-based compensation

15,221

11,036

Loss on disposal of assets and impairment charges

561

2,475

Deferred income taxes

47,457

7,114

Changes in assets and liabilities:

Receivables

(15,873

)

(13,133

)

Inventories

(6,868

)

(25,378

)

Prepaid and other current assets

(20,040

)

(7,280

)

Accounts payable

35,019

17,431

Accrued expenses

(25,729

)

(38,750

)

Income taxes

5,595

49,994

Other, net

3,913

529

Net cash provided by operating activities

372,417

281,354

Cash flows from investing activities:

Purchase of property and equipment

(110,046

)

(100,564

)

Payments for acquisition of businesses, net of cash acquired

(9,495

)

(18,113

)

Proceeds from sales of assets

17,499

6,688

Net cash used in investing activities

(102,042

)

(111,989

)

Cash flows from financing activities:

Payments of long-term debt and finance lease obligations

(42,163

)

(29,316

)

Payments of cash dividends

(19,655

)

(16,611

)

Repurchase of common stock and payment of related excise taxes

(31,251

)

—

Tax withholdings on employee share-based awards

(45,895

)

(24,932

)

Net cash used in financing activities

(138,964

)

(70,859

)

Net increase in cash and cash equivalents

131,411

98,506

Cash and cash equivalents at beginning of the period

326,662

206,482

Cash and cash equivalents at end of the period

458,073

304,988

SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION

Three Months Ended July 31,

2025

2024

Cash paid during the period for:

Interest, net of amount capitalized

26,896

11,845

Income taxes, net

10,050

—

Noncash activities:

Purchased property and equipment in accounts payable

64,905

55,768

Right-of-use assets obtained in exchange for new finance lease liabilities

4,448

221

Summary by Category (Amounts in thousands)

Three Months Ended July 31, 2025

Prepared Food & Dispensed Beverage

Grocery & General

Merchandise

Fuel

Other

Total

Revenue

458,434

1,225,383

2,733,659

149,630

4,567,106

Gross profit

265,983

439,483

373,554

33,426

1,112,446

58.0

35.9

13.7

22.3

24.4

Fuel gallons sold

911,780

Three Months Ended July 31, 2024

Revenue

405,129

1,068,978

2,555,642

67,988

4,097,737

Gross profit

236,041

378,281

314,548

26,386

955,256

58.3

35.4

12.3

38.8

23.3

Fuel gallons sold

772,536

Prepared Food & Dispensed Beverage

Same-store Sales

Margin

Fiscal

Year

Fiscal

Year

F2026

5.6

F2026

58.0

F2025

4.4

5.2

4.7

1.5

3.5

F2025

58.3

58.7

57.8

58.2

F2024

5.9

6.1

7.5

8.8

6.8

F2024

58.2

59.0

59.6

58.1

58.7

Grocery & General Merchandise

Same-store Sales

Margin

Fiscal

Year

Fiscal

Year

F2026

3.8

F2026

35.9

F2025

1.6

3.6

3.3

1.8

2.3

F2025

35.4

35.6

34.2

34.8

35.0

F2024

5.2

1.7

2.8

4.3

3.5

F2024

34.1

34.0

33.9

34.4

34.1

Fuel Gallons

Fuel Margin

Same-store Sales

(Cents per gallon, excluding credit card fees)

Fiscal

Year

Fiscal

Year

F2026

1.7

F2026

41.0

F2025

0.7

(0.6

1.8

0.1

F2025

40.7

40.2

36.4

37.6

38.7

F2024

0.4

—

(0.4

)

0.9

0.1

F2024

41.6

42.3

37.3

36.5

39.5

RECONCILIATION OF NET INCOME TO EBITDA

We define EBITDA as net income before net interest expense, income taxes, depreciation and amortization. EBITDA is not considered to be a GAAP measure, and should not be considered as a substitute for net income, cash flows from operating activities or other income or cash flow statement data. This measure has limitations as an analytical tool, and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. We strongly encourage investors to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.

We believe EBITDA is useful to investors in evaluating our operating performance because securities analysts and other interested parties use this calculation as a measure of financial performance and debt service capabilities, and it is regularly used by management for internal purposes including our capital budgeting process, evaluating acquisition targets, assessing performance, and awarding incentive compensation.

Because non-GAAP financial measures are not standardized, EBITDA, as defined by us, may not be comparable to similarly titled measures reported by other companies. It therefore may not be possible to compare our use of this non-GAAP financial measure with those used by other companies.

The following table contains a reconciliation of net income to EBITDA for the three months ended July 31, 2025 and 2024:

(in thousands)

Three Months Ended July 31,

2025

2024

Net income

215,355

180,198

Interest, net

26,850

14,067

Federal and state income taxes

63,102

57,108

Depreciation and amortization

108,963

94,409

EBITDA

414,270

345,782

NOTES:

This release contains statements that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including those related to the potential impact the Fikes transaction, expectations for future periods, possible or assumed future results of operations, financial conditions, liquidity and related sources or needs, business and/or integration strategies, plans and synergies, supply chain, growth opportunities, and performance at our stores. There are a number of known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from any results expressed or implied by these forward-looking statements, including but not limited to the execution of our strategic plan, the integration and financial performance of acquired stores, wholesale fuel, inventory and ingredient costs, distribution challenges and disruptions, the impact and duration of conflicts in oil producing regions or other geopolitical disruptions, as well as other risks, uncertainties and factors which are described in the Company’s most recent annual report on Form 10-K and quarterly reports on Form 10-Q, as filed with the Securities and Exchange Commission and available on our website. Any forward-looking statements contained in this release represent our current views as of the date of this release with respect to future events, and Casey’s disclaims any intention or obligation to update or revise any forward-looking statements in the release whether as a result of new information, future events, or otherwise.

Corporate information is available at this website: https://www.caseys.com. Earnings will be reported during a conference call on September 9, 2025. The call will be broadcast live over the Internet at 7:30 a.m. CDT. To access the call, go to the Events and Presentations section of our website at https://investor.caseys.com/events-presentations. No access code is required. A webcast replay of the call will remain available in an archived format on the Events and Presentations section of our website at https://investor.caseys.com/events-presentations for one year after the call.

CASY-IR