GLP Q2 2026 Earnings Call Summary

1Key Financial Results and Metrics

Net Income:: $71 million, up from $25.2 million in Q2 2025.

EBITDA:: $146 million, compared to $95.7 million in the prior year.

Adjusted EBITDA:: $148.2 million, up from $98.2 million.

Distributable Cash Flow (DCF):: $92.6 million, increased from $52 million; adjusted DCF was $92.5 million versus $52.3 million.

Distribution:: Quarterly cash distribution of $0.78 per common unit, annualized at $3.12, to be paid on August 14, 2026.

Distribution Coverage:: Healthy coverage ratio of 2.25x (2.19x including preferred unitholder distributions).

Operating Expenses:: Increased by $1.1 million to $136.8 million; SG&A rose by $8.3 million to $83 million.

CapEx:: Total of $35 million, with maintenance CapEx at $15.9 million and expansion CapEx at $19.1 million.

2Strategic Updates and Business Highlights

The company reported strong performance across all operating segments, particularly in gasoline distribution and wholesale segments, driven by improved fuel margins.

The gasoline distribution segment's product margin rose by $37.3 million to $245.2 million, with a notable increase in fuel margin per gallon.

The wholesale segment's product margin increased by $14.8 million to $106.5 million, reflecting favorable market conditions.

The company redeemed all outstanding Series B fixed-rate preferred units, simplifying its capital structure and enhancing financial flexibility.

3Forward Guidance and Outlook

GLP remains focused on disciplined inventory management and efficient operations amid volatile refined product markets.

The company anticipates that the current steep backwardation in the forward product pricing curve may increase the cost of carrying hedged inventory in future periods.

For 2026, GLP expects maintenance CapEx between $60 million to $70 million and expansion CapEx (excluding acquisitions) between $75 million to $85 million.

4Bad News, Challenges, or Points of Concern

The refined product markets are experiencing volatility, with geopolitical factors contributing to price swings and increased inventory risk.

Operating expenses have risen, particularly in SG&A, which may impact profitability if not managed effectively.

There are concerns regarding consumer behavior, with slight decreases in the average size of fuel purchases attributed to inflation and higher prices, although this has not yet had a significant impact on overall sales.

5Notable Q&A Insights

Management noted a slight impact from inflation on consumer behavior, with average fill-up sizes decreasing, but overall store sales remain strong.

The decision to redeem preferred units was driven by favorable cost of capital conditions and significant excess cash flow, simplifying the capital structure.

The M&A environment is active, with management expressing readiness to pursue acquisitions that complement their existing asset base, indicating a strategic focus on growth through targeted investments.