Annual report [Section 13 and 15(d), not S-K Item 405]

Segment Reporting

v3.25.4
Segment Reporting
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment Reporting

24. Segment Reporting

The reportable segments were determined based on information reviewed by the Company’s chief operating decision maker (“CODM”) for operational decision-making purposes, and the segment information is prepared on the same basis that the CODM reviews such financial information. The Company’s reportable segments are retail, wholesale, fleet fueling and GPMP. Arie Kotler, the Company’s Chairman of the Board, President and Chief Executive Officer, is the CODM. The CODM utilizes operating income from each segment to assess its operating performance and to make decisions about allocating resources to each segment. In reviewing segment operating income each month, the CODM compares actual results to budgets and prior-year performance. Based on this analysis, the CODM allocates incremental capital spending and prioritizes strategic and business development initiatives across the segments. The CODM also uses this measure to make decisions on budgets, acquisitions, growth capital expenditures, and management compensation.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies except that rent expenses for each segment are recognized and measured on the basis of cash payments.

The retail segment includes the operation of a chain of retail stores, which includes convenience stores selling fuel products and other merchandise to retail customers. At its retail convenience stores, the Company owns the merchandise and fuel inventory and employs personnel to manage the store.

The wholesale segment supplies fuel to dealers, sub-wholesalers and bulk and spot purchasers, on either a cost plus or consignment basis. For consignment arrangements, the Company retains ownership of the fuel inventory at the site, is responsible for the pricing of the fuel to the end consumer and shares the gross profit generated from the sale of fuel with the consignment dealers. For cost plus arrangements, the Company sells fuel to dealers and bulk and spot purchasers on a fixed-fee basis. The sales price is determined according to the terms of the relevant agreement, which typically reflects the Company’s total fuel costs plus the cost of transportation, taxes and a fixed margin, with the Company generally retaining any prompt pay discounts and rebates.

The fleet fueling segment includes the operation of proprietary and third-party cardlock locations (unstaffed fueling locations), and commissions from the sales of fuel using proprietary fuel cards that provide customers access to a nationwide network of fueling sites.

The GPMP segment primarily includes inter-segment sale and supply of fuel to substantially all of GPM’s sites that sell fuel in the retail and wholesale segments, at GPMP’s cost of fuel (including taxes and transportation) plus a fixed margin (through December 31, 2025, 5.0 cents per gallon; 6.0 cents per gallon thereafter), and charges an inter-segment fixed fee primarily to sites in the fleet fueling segment which are not supplied by the GPMP segment (through December 31, 2025, 5.0 cents per gallon; 6.0 cents per gallon thereafter).

The “All Other” segment includes the results of non-reportable segments that do not meet both quantitative and qualitative criteria as defined under ASC 280, Segment Reporting.

The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Inter-segment expenses were included within the amounts shown; however, the fuel costs in the retail, wholesale and fleet fueling segments exclude the estimated fixed margin or fixed fee paid to the GPMP segment for the cost of fuel.

The majority of general and administrative expenses, depreciation and amortization, net other expenses, net interest and other financial expenses, income taxes and minor other income items are not allocated to the segments. Other segment expenses include utilities, telephone, upkeep and taxes, insurance, supplies, advertising, and certain other expenses. Other segment expenses in the GPMP segment also include general and administrative expenses, depreciation and amortization, and other income, net.

With the exception of goodwill, assets and liabilities relevant to the reportable segments are generally not assigned to any particular segment, but rather, managed and reviewed by the CODM at the consolidated level. All reportable segment revenues were generated from sites within the U.S. and substantially all of the Company’s assets were within the U.S. No external customer represented more than 10% of revenues.

Inter-segment transactions primarily included the sale of fuel to substantially all of the Company’s sites that sell fuel (both in the retail and wholesale segments) and fixed fee charges primarily to sites that sell fuel in the fleet fueling segment which are not supplied by the GPMP segment. The effect of these inter-segment transactions was eliminated in the consolidated financial statements.

 

 

Year Ended December 31, 2025

 

Retail

 

 

Wholesale

 

 

Fleet Fueling

 

 

GPMP

 

 

All Other

 

 

Total

 

 

 

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

2,835,661

 

 

$

2,700,838

 

 

$

474,796

 

 

$

849

 

 

$

26,790

 

 

$

6,038,934

 

Merchandise revenue

 

 

1,482,454

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,482,454

 

Other revenues, net

 

 

59,020

 

 

 

52,270

 

 

 

8,983

 

 

 

727

 

 

 

1,083

 

 

 

122,083

 

Total revenues from external customers

 

$

4,377,135

 

 

$

2,753,108

 

 

$

483,779

 

 

$

1,576

 

 

$

27,873

 

 

$

7,643,471

 

Inter-segment revenues

 

$

—

 

 

$

—

 

 

$

—

 

 

$

4,846,708

 

 

$

21,726

 

 

$

4,868,434

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel costs

 

$

2,440,953

 

 

$

2,606,306

 

 

$

409,063

 

 

$

4,744,771

 

 

 

 

 

 

 

Merchandise costs

 

 

982,673

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and wages

 

 

273,469

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit card fees

 

 

81,062

 

 

 

6,900

 

 

 

4,409

 

 

 

 

 

 

 

 

 

 

Rent

 

 

130,839

 

 

 

40,914

 

 

 

11,529

 

 

 

 

 

 

 

 

 

 

Repairs and maintenance

 

 

57,925

 

 

 

4,399

 

 

 

4,180

 

 

 

 

 

 

 

 

 

 

Other segment expenses

 

 

141,849

 

 

 

5,193

 

 

 

6,002

 

 

 

10,603

 

 

 

49,651

 

 

 

 

Operating income (loss) from segments

 

$

268,365

 

 

$

89,396

 

 

$

48,596

 

 

$

92,910

 

 

$

(52

)

 

$

499,215

 

Interest and other financial expenses, net

 

 

 

 

 

 

 

 

 

 

$

(30,944

)

 

 

 

 

$

(30,944

)

Income from equity investment

 

 

 

 

 

 

 

 

 

 

 

 

 

$

108

 

 

$

108

 

 

Year Ended December 31, 2024

 

Retail

 

 

Wholesale

 

 

Fleet Fueling

 

 

GPMP

 

 

All Other

 

 

Total

 

 

 

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

3,509,935

 

 

$

2,799,869

 

 

$

515,462

 

 

$

3,624

 

 

$

30,029

 

 

$

6,858,919

 

Merchandise revenue

 

 

1,767,345

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,767,345

 

Other revenues, net

 

 

65,264

 

 

 

29,140

 

 

 

9,135

 

 

 

838

 

 

 

1,321

 

 

 

105,698

 

Total revenues from external customers

 

$

5,342,544

 

 

$

2,829,009

 

 

$

524,597

 

 

$

4,462

 

 

$

31,350

 

 

$

8,731,962

 

Inter-segment revenues

 

$

—

 

 

$

—

 

 

$

—

 

 

$

5,618,624

 

 

$

20,396

 

 

$

5,639,020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel costs

 

$

3,081,719

 

 

$

2,709,519

 

 

$

451,173

 

 

$

5,513,092

 

 

 

 

 

 

 

Merchandise costs

 

 

1,187,776

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and wages

 

 

326,987

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit card fees

 

 

92,977

 

 

 

7,651

 

 

 

4,249

 

 

 

 

 

 

 

 

 

 

Rent

 

 

142,781

 

 

 

24,705

 

 

 

11,204

 

 

 

 

 

 

 

 

 

 

Repairs and maintenance

 

 

63,217

 

 

 

3,156

 

 

 

4,201

 

 

 

 

 

 

 

 

 

 

Other segment expenses

 

 

164,683

 

 

 

4,167

 

 

 

5,263

 

 

 

10,956

 

 

 

52,195

 

 

 

 

Operating income (loss) from segments

 

$

282,404

 

 

$

79,811

 

 

$

48,507

 

 

$

99,038

 

 

$

(449

)

 

$

509,311

 

Interest and other financial expenses, net

 

 

 

 

 

 

 

 

 

 

$

(31,698

)

 

 

 

 

$

(31,698

)

Income from equity investment

 

 

 

 

 

 

 

 

 

 

 

 

 

$

124

 

 

$

124

 

 

Year Ended December 31, 2023

 

Retail

 

 

Wholesale

 

 

Fleet Fueling

 

 

GPMP

 

 

All Other

 

 

Total

 

 

 

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

3,858,777

 

 

$

3,039,904

 

 

$

530,937

 

 

$

3,681

 

 

$

31,073

 

 

$

7,464,372

 

Merchandise revenue

 

 

1,838,001

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,838,001

 

Other revenues, net

 

 

74,406

 

 

 

25,775

 

 

 

7,818

 

 

 

939

 

 

 

1,420

 

 

 

110,358

 

Total revenues from external customers

 

$

5,771,184

 

 

$

3,065,679

 

 

$

538,755

 

 

$

4,620

 

 

$

32,493

 

 

$

9,412,731

 

Inter-segment revenues

 

$

—

 

 

$

—

 

 

$

—

 

 

$

6,208,314

 

 

$

19,643

 

 

$

6,227,957

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel costs

 

$

3,423,455

 

 

$

2,946,996

 

 

$

475,037

 

 

$

6,100,559

 

 

 

 

 

 

 

Merchandise costs

 

 

1,252,879

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and wages

 

 

325,920

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit card fees

 

 

95,833

 

 

 

9,398

 

 

 

3,997

 

 

 

 

 

 

 

 

 

 

Rent

 

 

137,647

 

 

 

22,124

 

 

 

10,172

 

 

 

 

 

 

 

 

 

 

Repairs and maintenance

 

 

59,324

 

 

 

3,309

 

 

 

3,690

 

 

 

 

 

 

 

 

 

 

Other segment expenses

 

 

160,724

 

 

 

4,872

 

 

 

4,439

 

 

 

9,929

 

 

 

51,303

 

 

 

 

Operating income from segments

 

$

315,402

 

 

$

78,980

 

 

$

41,420

 

 

$

102,446

 

 

$

833

 

 

$

539,081

 

Interest and other financial expenses, net

 

 

 

 

 

 

 

 

 

 

$

(29,487

)

 

 

 

 

$

(29,487

)

Loss from equity investment

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(39

)

 

$

(39

)

 

A reconciliation of operating income from reportable segments to consolidated income before income taxes on the consolidated statements of operations was as follows:

 

 

 

For the Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Operating income from reportable segments

 

$

499,267

 

 

$

509,760

 

 

$

538,248

 

All other operating (loss) income

 

 

(52

)

 

 

(449

)

 

 

833

 

Intercompany charges by GPMP 1

 

 

(102,784

)

 

 

(109,201

)

 

 

(111,729

)

Interest and other financial expenses, net

 

 

(30,944

)

 

 

(31,698

)

 

 

(29,487

)

Amounts not allocated to segments:

 

 

 

 

 

 

 

 

 

Site operating expenses

 

 

(11,531

)

 

 

(13,848

)

 

 

(13,647

)

General and administrative expenses

 

 

(162,467

)

 

 

(159,335

)

 

 

(162,132

)

Depreciation and amortization

 

 

(127,092

)

 

 

(125,043

)

 

 

(120,232

)

Other income (expenses), net

 

 

6,961

 

 

 

(7,858

)

 

 

(13,327

)

Interest and other financial expenses, net

 

 

(42,380

)

 

 

(35,463

)

 

 

(41,756

)

Income before income taxes

 

$

28,978

 

 

$

26,865

 

 

$

46,771

 

1 Represents the estimated fixed margin or fixed fee (through December 31, 2025, 5.0 cents per gallon) paid to the GPMP segment for the cost

of fuel and recorded by the GPMP segment as inter-segment revenues.