Casey's Q4 Earnings Show Record Fiscal Year

Casey's Q4 earnings on June 9, 2026, closed a record fiscal 2026. The company raised its dividend and expanded share repurchases, while secondary analysis highlighted premium market multiples.

Record Quarter and Fiscal Year Results

The company reported diluted earnings per share of $4.37, net income of $163 million, and EBITDA of $350 million for the quarter ended April 30, 2026, each rising sharply year over year. These gains reflected margin improvements inside stores and stronger fuel profitability.

Inside same-store sales increased 5.5% year over year and 7.4% on a two-year basis. Total inside gross profit reached $643 million, up 10.5%, while inside margin expanded about 120 basis points to 42.4%, driven by cost-of-goods management, reduced waste, and a shift toward higher-margin items. The results underscore the payoff from the company’s focus on prepared foods and dispensed beverages.

Fuel volumes and margins also improved. Same-store gallons rose 1.5%, and fuel margin averaged 46.9 cents per gallon, lifting fuel gross profit 29.1% to $397 million. Executives attributed the quarter’s earnings gains primarily to higher inside and fuel gross profit, partially offset by increased operating expenses.

For the full fiscal year ended April 30, 2026, diluted EPS rose to $19.16, net income to $714 million, and EBITDA to nearly $1.5 billion. The company ended the year with 2,944 locations and was added to the S&P 500. President and Chief Executive Darren Rebelez said the company "closed out the three-year strategic plan on an extremely high note."

Full-year inside sales grew 4.2%, or 7.0% on a two-year basis, led by prepared foods, dispensed beverages, and non-alcoholic grocery items—categories central to margin expansion. Same-store labor hours were slightly favorable for the year, supporting productivity gains and operating leverage.

Capital Returns and Fiscal 2027 Outlook

The board raised the quarterly dividend 14% to $0.65 per share, marking the 27th consecutive annual increase, payable August 14, 2026, to shareholders of record August 1. Management framed the increase as part of a broader program to return cash while investing in growth.

The board also expanded share-repurchase authorization to up to $1 billion from $400 million. The company cited roughly $1.4 billion of liquidity to support growth and capital returns, providing flexibility to fund store expansion and shareholder distributions.

For fiscal 2027, Casey’s targets EBITDA growth of 8% to 10% versus the prior year, inside same-store sales growth of 2% to 5%, and inside margin remaining above 42%. Fuel same-store gallons are projected between –1% and +1%, with operating expenses rising 5% to 7%. The company plans to open at least 120 new stores and spend about $800 million on capital expenditures, with an effective tax rate near 24% to 26%. This guidance assumes continued execution of the prepared-foods strategy, integration and expansion of recent acquisitions, and fuel margins within the stated range. Analysts note the plan implies moderation from the acquisition-boosted growth rates of the prior year.

Secondary analysis places Casey’s forward price-to-earnings ratio near 41 times and enterprise value to EBITDA around 20.9 times, well above many peers. Commentary cautions that future returns may depend on gas-price dynamics, framing tradeoffs in management’s capital allocation between reinvestment and buybacks.