Casey's Delivers Impressive Financial Surge in H1 FY2026 with Robust Growth Across Key Metrics

Casey’s General Stores, Inc. (Nasdaq: CASY), a major convenience store operator across the United States, disclosed its latest financial performance today, revealing results that far exceeded previous benchmarks for the first half of fiscal 2026 ending October 31, 2025.

Double-Digit Earnings Growth Powers Forward Momentum

The latest reporting period showcases remarkable profitability expansion. Diluted earnings per share reached $5.53, marking a substantial 14.0% increase compared to the prior year period. This translates to net income of $206.3 million, representing the same 14.0% growth trajectory. Operating performance proved even more compelling, with EBITDA climbing to $410.1 million—a 17.5% year-over-year improvement that signals operational leverage is accelerating across the enterprise.

Inside Sales Momentum Sustains Competitive Edge

The convenience retail segment continues demonstrating resilience and customer traction. Same-store inside sales expanded 3.3% versus the comparable period, with an impressive 7.5% growth when measured on a two-year stacked basis. This sustained acceleration underscores the effectiveness of Casey’s prepared foods strategy and value positioning with consumers.

Gross profit within the inside category surged 13.5% to $703.4 million. The inside margin maintained a healthy 42.4%, up approximately 20 basis points from the prior year quarter, benefitting from a favorable product mix that skewed toward higher-margin prepared food and dispensed beverage offerings. These categories—featuring whole pizzas, hot sandwiches, and specialty non-alcoholic beverages—particularly resonated with customers, driving the strong same-store sales performance.

Breaking down the inside portfolio:

• Prepared food and dispensed beverage same-store sales increased 4.8%, with margins holding steady at 58.6%
• Grocery and general merchandise same-store sales grew 2.7%, with margins improving to 36.0%

Fuel Segment Achieves Rare Combination of Volume and Margin Growth

The fuel category delivered an exceptional quarter by achieving simultaneous growth in both volume and profitability per gallon—a rare occurrence in the convenience retail energy sector.

Same-store fuel gallons sold increased 0.8% year-over-year, a notable achievement given typical industry headwinds. The fuel margin expanded to 41.6 cents per gallon, up 140 basis points from 40.2 cents in the prior year period. Total fuel gross profit increased 20.9% to $377.4 million.

On a consolidated basis, total fuel gallons sold reached 906.7 million for the quarter, reflecting 16.8% growth driven by both the company’s store count expansion (236 additional locations) and the positive same-store gallon performance. The company also monetized $7.2 million in renewable fuel credits during the period, up $2.3 million from the prior year quarter.

Operating Leverage Pressured but Manageable Amid Expansion

Operating expenses totaled $711.6 million for the quarter, up 16.7% year-over-year. Approximately 10.5 percentage points of this increase related directly to operating the 236 additional stores. Same-store operating expenses (excluding credit card fees) increased 4.5%, with contributions from labor cost inflation accounting for roughly 2 percentage points and enhanced incentive accruals for strong performance representing approximately 1 percentage point. Credit card fees increased to $71.5 million as transaction volumes expanded.

Expansion Strategy in Full Execution

Casey’s aggressively executed its growth strategy during the first half of fiscal 2026. The company opened 16 new stores through construction and completed 26 acquisitions. One prior acquisition was opened during the period, while one acquisition remained in the pipeline unopened. Against these additions, the company closed or divested 25 locations.

Net store count grew to 2,921 units as of October 31, 2025, representing a substantial 9% increase compared to the prior year—nearly 236 additional stores. This expansion positions the company on track to add approximately 80 stores during the full fiscal year through a combination of acquisitions and new construction, with the three-year strategic plan targeting approximately 500 new units total.

Financial Fortress Supports Continued Growth

The company maintains a robust liquidity position of approximately $1.4 billion, consisting of $492 million in cash and cash equivalents alongside $900 million in available borrowing capacity. This financial flexibility provides substantial resources for continuing the expansion agenda.

During the quarter, the company repurchased approximately $31 million in shares. The repurchase authorization maintains approximately $233 million of capacity for future buybacks.

The board approved a quarterly dividend of $0.57 per share, payable February 13, 2026, to shareholders of record on February 1, 2026.

Updated Guidance Reflects Confidence in Sustained Performance

Based on strong year-to-date financial performance, Casey’s updated its fiscal 2026 outlook. Management now expects EBITDA growth of 15% to 17% for the full year. Inside same-store sales are expected to increase 3% to 4%, with inside margins projected at 41% to 42%. The tax rate outlook was refined to 24% to 25%.

Management maintained expectations for other metrics, including:

• Same-store fuel gallons sold expected to range from negative 1% to positive 1%
• Total operating expenses anticipated to increase 8% to 10%
• Store opening target of at least 80 new locations
• Net interest expense projected at approximately $110 million
• Depreciation and amortization expected near $450 million
• Capital expenditure plan targeting approximately $600 million for property and equipment

Six-Month Performance Sustains Strong Trajectory

Over the first six months of fiscal 2026, net income reached $421.7 million, up 14.0% from $361.1 million in the prior year period. Diluted earnings per share expanded to $11.29 from $9.68. EBITDA climbed to $824.4 million from $694.7 million, representing 18.7% growth.

Inside same-store sales for the six-month period grew 3.7% with a 3.1% comparable in the prior year. Inside margin measured 42.2%, compared to 41.9% in the prior year period. Inside gross profit expanded 14.1% to $1.4 billion.

Same-store fuel gallons increased 1.2% for the half-year period. Fuel margin improved to 41.3 cents per gallon versus 40.5 cents. Fuel gross profit expanded 19.8% to $750.9 million.

CEO Darren Rebelez commented on the results: “The exceptional financial outcomes reflect strong execution of our strategic plan across all dimensions. Our prepared foods and value offerings continue resonating with customer demand. On the fuel side, our team successfully grew same-store gallons while expanding margins—a testament to excellent merchandising and pricing execution. Combined with our robust store growth of nearly 9% year-over-year, these results demonstrate Casey’s competitive positioning and operational excellence.”

The company will host a conference call discussing these results on December 10, 2025, at 7:30 a.m. CDT, with live webcast access available on caseys.com/investor-relations. A replay will be archived for one year.