Summary of Global Partners LP Q4 2025 Earnings Call

1Key Financial Results and Metrics

Adjusted EBITDA: $94.8 million, down from $97.8 million in Q4 2024.

Net Income: $25.1 million, compared to $23.9 million in the prior year.

Distributable Cash Flow (DCF): $38.4 million, down from $45.7 million; adjusted DCF was $38.8 million versus $46.1 million.

Distribution Coverage: Solid at 1.56x (1.5x including preferred unitholders).

GDSO Product Margin: Increased by $17.7 million to $231.3 million, driven by higher fuel margins.

Wholesale Segment Product Margin: Decreased by $21.5 million to $58.3 million due to less favorable market conditions.

2Strategic Updates and Business Highlights

The company reported higher volumes across its terminal and wholesale network, with a double-digit increase in wholesale segment product margin.

Successful acquisition of the Providence terminal, which has exceeded expectations and enhanced service capabilities in key Northeastern markets.

Expansion into the Houston bunkering market, leveraging leased barges and terminals to minimize capital expenditure.

Continued investment in data and analytics infrastructure to improve operational visibility and decision-making.

Ongoing site optimization efforts, with a focus on efficiency across locations.

3Forward Guidance and Outlook

Maintenance CapEx for 2026 is expected to be between $60 million and $70 million, with expansion CapEx projected at $75 million to $85 million, excluding acquisitions.

The company is optimistic about its ability to manage through uneven markets and capitalize on growth opportunities, particularly in the Houston market.

Early-year cold weather conditions in the Northeast are anticipated to support strong wholesale fuel demand.

4Bad News, Challenges, or Points of Concern

Decline in volumes and lower station operations contribution due to site optimization efforts and reduced company-operated site count.

Wholesale segment product margins were negatively impacted by less favorable market conditions, particularly in gasoline and distillates.

Increased SG&A expenses attributed to investments in data analytics and labor, which could pressure margins in the short term.

5Notable Q&A Insights

Site optimization is an ongoing process, with no definitive completion date, as the company seeks continuous efficiency improvements.

Capital expenditures will focus on terminal expansions and GDSO projects, with a conservative approach to maintenance spending.

The management acknowledged the volatility in market conditions but noted that favorable weather in early 2026 could provide a tailwind for the wholesale segment.

The investment in data analytics aims to generate both cost savings and enhance decision-making capabilities, though it has led to increased SG&A costs in the near term. Overall, Global Partners LP demonstrated resilience in its financial performance despite some challenges, with a clear strategy focused on growth and efficiency. The outlook remains positive, supported by a strong balance sheet and ongoing investments in key areas.