Casey's expands buyback to $1B, raises dividend 14%, posts 31% EPS growth in FY2026

The Board increased the company's share repurchase authorization by $600 million, bringing the total authorization to $1 billion. The authorization has no expiration date and may be suspended, amended, or discontinued at any time. Repurchases may occur in the open market, through private transactions, or otherwise, with timing and volume dependent on market conditions, corporate considerations, business opportunities, debt agreements, and regulatory requirements.

The company amended its bylaws to permit shareholders holding at least 25% of voting power to call special meetings, subject to procedural requirements. This governance change gives large shareholders a formal mechanism to convene meetings outside the regular annual cycle, potentially to address urgent matters or propose actions the board has not initiated.

The Compensation Committee authorized annual bonus payments to the five named executive officers at 161% of target based on fiscal 2026 performance. The CEO received $3.26 million, the CFO and COO each received $1.30 million, and the CMO and CHRO received $749k and $700k respectively. The above-target payout indicates strong company performance against the fiscal year metrics.

The Committee granted fiscal 2027 equity awards to executives with the CEO receiving a $10.15 million target award and other NEOs receiving awards ranging from 275% to 350% of base salary. The awards are split 25% time-based RSUs, 37.5% ROIC-based PSUs, and 37.5% EBITDA-based PSUs. The PSUs include a TSR modifier that can adjust final payouts by plus or minus 25% based on relative performance, potentially reaching 250% of target at maximum.

Casey's reported Q4 diluted EPS of $4.37 (up 66.2% year-over-year) and full-year FY2026 diluted EPS of $19.16 (up 30.9%). Net income for the quarter was $162.7 million and $714.4 million for the full year. EBITDA reached $350.3 million for Q4 and nearly $1.5 billion for the year. The strong performance was driven by higher inside and fuel gross profit, with inside same-store sales up 5.5% in Q4 and 4.2% for the year, and fuel gross profit up 29.1% in Q4 and 21% for the year.

The Board authorized an expansion of the share repurchase program to a total of $1 billion on June 4, 2026, with $1 billion remaining under the updated authorization. During Q4, the company repurchased approximately $63 million of shares. The expanded authorization provides significant capacity for additional capital returns to shareholders.

For FY2027, Casey's expects inside same-store sales growth of 2% to 5% with inside margin above 42%, same-store fuel gallons of -1% to +1%, operating expense growth of 5% to 7%, and EBITDA growth of 8% to 10%. The company plans to open at least 120 stores through M&A and new construction. Capital expenditures are expected at approximately $800 million, with net interest expense of $95 million, depreciation and amortization of $490 million, and a tax rate of 24% to 26%.

Casey's was added to the S&P 500 Index during fiscal 2026 in recognition of its consistent financial performance and company growth. This milestone increases the company's visibility among institutional investors and typically results in index fund purchases of the stock.