Executive Summary
Caseys General Stores delivered a strong top-line quarter in Q3 FY2025, reflecting 17.3% year-over-year revenue growth to $3.903 billion driven by both inside sales and fuel gallons sold, and a broad store count expansion that contributed to volume gains. EBITDA rose 11% year over year to $242.4 million, underscoring operating discipline and stronger store penetration despite a challenging margin mix from the recent CEFCO integration and a transient fuel-price headwind. Net income was flat at $87.1 million, with diluted EPS at $2.33 and basic EPS at $2.35, reflecting the large-scale Fikes acquisition completed in the period and related one-time integration costs. Management reiterated a disciplined three-year plan focused on accelerating the food business, accelerating unit growth, and improving operating efficiency, with FY2025 EBITDA guidance raised to about an 11% increase and capex forecast around $500 million. The Fikes merger remains a meaningful catalyst for growth but introduces near-term margin dilution and higher depreciation and interest costs; synergies are expected to total roughly $45 million over three to four years, with approximately 40% of savings from food-related initiatives. The company also signaled continued testing (e.g., Des Moines wings, coffee program) and ongoing private-label tiering as operating levers. While February weather created a temporary pullback in same-store sales, March activity appears to be normalizing, suggesting weather-driven volatility rather than a fundamental demand pullback. The liquidity position remains robust, with roughly $1.3 billion of available liquidity and a net debt-to-EBITDA around 2.1x, keeping CASY on track to reach its targeted leverage near 2x by year-end.
Key Performance Indicators
Key Insights
Revenue: $3.903B in Q3 2025, up 17.3% YoY; QoQ: -1.1% (Q2 2025 revenue was $3.947B). Gross profit: $912.6M, up 16.0% YoY; QoQ: -4.8%. EBITDA: $242.4M, +11.4% YoY. Operating income: $137.2M, margin 3.51% (operating margin YoY +6.61%, QoQ -45.63% due to one-time costs and mix). Net income: $87.1M, 2.23% net margin; YoY +0.19%, QoQ -51.86%. Diluted EPS: $2.33; EPS (undiluted) $2.35; YoY EPS growth +0.43%, QoQ -51.75%. Free cash flow: $90.7M; operating cash flow: $204.9M. Cash at period-end: $394.8M...
Financial Highlights
Revenue: $3.903B in Q3 2025, up 17.3% YoY; QoQ: -1.1% (Q2 2025 revenue was $3.947B). Gross profit: $912.6M, up 16.0% YoY; QoQ: -4.8%. EBITDA: $242.4M, +11.4% YoY. Operating income: $137.2M, margin 3.51% (operating margin YoY +6.61%, QoQ -45.63% due to one-time costs and mix). Net income: $87.1M, 2.23% net margin; YoY +0.19%, QoQ -51.86%. Diluted EPS: $2.33; EPS (undiluted) $2.35; YoY EPS growth +0.43%, QoQ -51.75%. Free cash flow: $90.7M; operating cash flow: $204.9M. Cash at period-end: $394.8M. Total debt: $3.1199B; net debt: $2.7251B; leverage ~2.1x. Cash conversion cycle (CCC) ~1.10 days; current ratio 0.92; quick ratio 0.52. Buybacks/dividends: dividend maintained at $0.50/share. FY2025 guidance updated to EBITDA up ~11% with capex of ~$500M. Fuel margins: ~36.4 cents/gal; internal margins affected by the addition of lower-margin CEFCO stores. Inside store margin 40.9%; prepared foods and dispensed beverages margin 57.8%; grocery/general merchandise margin 34.2%. Guidanced impact: Q4 expected to be affected by Fikes-related costs and margins but not by same-store sales.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
3.90B |
17.25% |
-1.09% |
| Gross Profit |
912.57M |
16.03% |
-4.80% |
| Operating Income |
137.17M |
6.61% |
-45.63% |
| Net Income |
87.10M |
0.19% |
-51.86% |
| EPS |
2.35 |
0.43% |
-51.75% |
Key Financial Ratios
operatingProfitMargin
3.51%
operatingCashFlowPerShare
$5.52
freeCashFlowPerShare
$2.44
dividendPayoutRatio
21.3%
Management Commentary
Management themes from the earnings call:
- Strategy and growth pillars: Darren Rebelez emphasized the three-year plan: accelerate the food business, accelerate unit growth, and improve operating efficiency, noting continued focus on innovative prepared foods and higher-margin SKUs. “The first pillar of our three-year strategic plan is to accelerate the food business.”
- Fikes integration and synergies: Steve Bramlage reaffirmed synergy targets: “over three to four years, we think we can achieve $45 million of synergies,” with roughly 40% of those from food-related improvements and early progress on fuel and overhead synergies in the near term.
- Margin dynamics and CEFCO impact: The team highlighted that margins were under pressure due to the CEFCO acquisition and a promotional coffee initiative, with prepared foods margin down 180 bps YoY, and fuel margin modestly down to 36.4 cents/gal, largely attributed to the CEFCO mix.
- Weather-driven volatility and consumer environment: Darren noted February weather as a key headwind affecting same-store sales; management expects normalization as weather improves. They underscored Casey’s resilience in recessions due to value-focused offerings and non-discretionary product mix.
- Wings and coffee pilots: The Des Moines wings test and a refreshed coffee program showed early favorable feedback and unit growth, with plans to potentially expand wings beyond Des Moines depending on results.
- Balance sheet and capital allocation: The company highlighted liquidity of about $1.3B, a 2.1x net debt-to-EBITDA leverage, and ongoing commitment to a $500M capex plan, while maintaining the quarterly dividend.
We integrated the largest transaction in the company's history, while also producing outstanding results.
— Darren Rebelez
Over three to four years, we think we can achieve $45 million of synergies.
— Steve Bramlage
Forward Guidance
Management raised FY2025 EBITDA guidance to an increase of approximately 11% and anticipates capex of around $500 million. The upcoming fourth quarter is expected to be impacted by the Fikes transaction on total results (notably inside and fuel margins and higher operating expenses) but is not expected to affect same-store sales. The company continues to anticipate mid-to-late-stage synergies from Fikes, with 3–4 year horizon for the full $45 million target, and emphasizes continued store growth (NTI and M&A) to hit a balanced growth trajectory. External risks include macroeconomic volatility and fuel price fluctuations, but Casey’s unique value proposition and store-level merchandising resilience suggest continued operating leverage from scale, procurement, and product mix optimization. Investors should monitor: (1) pace of Fikes integration and execution of margin-centric menus and contract migrations, (2) fuel margin sensitivity to crude and wholesale dynamics, (3) weather-driven demand variability, and (4) the progression of Wings and Coffee pilots into broader rollouts.