CASY Reports Strong Q1 2026 Profit Growth

Casey's (CASY.US) reported strong financial results for the first quarter of fiscal 2026, with net income increasing significantly to $215,355 thousand USD, up 19.5% from $180,198 thousand USD in the same period last year. Diluted earnings per common share also saw a substantial rise to $5.77 USD, a 19.5% increase from $4.83 USD in the prior year quarter. Total revenue for the quarter reached $4,567,106 thousand USD, up 11.5% compared to $4,097,737 thousand USD in Q1 2025, surpassing analyst estimates of $4,479,647 thousand USD.

Key Business Drivers

The increase in total revenue was primarily driven by the Fikes acquisition, which added 198 convenience stores and a wholesale fuel network. Prepared food and dispensed beverage revenue increased 13.2% due to a 5.6% increase in same-store sales, driven by strong sales of whole pizzas and bakery items. Grocery and general merchandise revenue also rose 14.6%, with a 3.8% increase in same-store sales attributed to non-alcoholic beverages.

Retail fuel revenue saw a 7.0% increase, primarily from an 18.0% increase in the number of gallons sold, despite a 9.4% decrease in the average retail price per gallon. Revenue less cost of goods sold (exclusive of depreciation and amortization) improved across segments, with fuel revenue less cost of goods sold reaching 13.7% of fuel revenue, up from 12.3% in the prior year.

Operational Performance

Operating expenses increased 14.6% to $698,176 thousand USD, with approximately 10% of this increase attributed to operating 221 more stores than the comparable period last year. Same-store employee expense contributed approximately 1.5% to the increase, partially offset by a reduction in same-store labor hours.

Depreciation and amortization expense rose 15.4% to $108,963 thousand USD, also mainly due to the increased number of operating stores. Interest, net, saw a significant increase of 90.9% to $26,850 thousand USD, primarily due to the issuance of incremental debt to fund the Fikes acquisition in the prior year.

EBITDA Performance and Liquidity

EBITDA for the three months ended July 31, 2025, increased 19.8% to $414,270 thousand USD compared to $345,782 thousand USD in the prior year period. This growth was primarily due to higher profitability in both in-store sales and fuel, partially offset by increased operating expenses.

The company's liquidity position remains strong, with net cash provided by operating activities increasing $91,063 thousand USD to $372,417 thousand USD. This was driven by improved revenue less cost of goods sold and favorable timing of inventory purchases and accounts payable. Management believes that existing cash, combined with the Revolving Facility and Bank Line, will adequately cover working capital needs and future capital expenditures for growth and store improvements.