Q2 2026 Global Partners LP Earnings Call Transcript
Key Points
- Strong second quarter results with net income of $71 million, up from $25.2 million year-over-year, and adjusted EBITDA of $148.2 million, up from $98.2 million.
- Gasoline distribution and station operations (GDSO) segment saw product margin increase by $37.3 million to $245.2 million, driven by higher fuel margins (up $0.14 per gallon to $0.50).
- Wholesale segment product margin increased by $14.8 million to $106.5 million, benefiting from more favorable gasoline market conditions.
- Commercial segment product margin grew by $4.4 million to $10.5 million, reflecting improved bunkering market conditions.
- Healthy distribution coverage of 2.25 times (2.19 times after preferred distributions) and a strong balance sheet with leverage at 2.85 times and ample credit facility capacity.
- Redeemed all outstanding Series B preferred units (9.5% fixed rate) on July 30, an accretive move that simplifies the capital structure and enhances financial flexibility.
- Refined product markets remain volatile with geopolitical developments causing elevated price swings, increased inventory risk, and tight inventory levels.
- Steep backwardation in the forward product pricing curve is expected to increase the cost of carrying hedged inventory in future periods.
- Consumer behavior shows slight impact from inflation and higher prices, with average fill-up size down and some trading down from 93 to 87 octane, though not material.
- Station operations product margin was nearly flat, increasing only $0.2 million to $70.2 million, indicating limited growth in that area.
- SG&A expenses increased by $8.3 million to $83 million, primarily due to higher discretionary incentive compensation and wages and benefits.
- Wholesale segment product margin from distillates and other oils decreased by $4.8 million to $28.1 million due to less favorable residual oil market conditions.
Good day, everyone, and welcome to the Global Partners Second Quarter 2026 Financial Results Conference Call. (Operator Instructions)
With us from Global Partners are President and Chief Executive Officer, Mr. Eric Slifka, Chief Financial Officer, Mr. Gregory Hanson, Chief Operating Officer, Mr. Mark Romain, and Chief Legal Officer, Ms. Kristin Seabrook. At this time, I would like to turn the call over to Ms. Seabrook for opening remarks. Please go ahead.
Good morning, everyone, and thank you for joining us. Today's call will include forward-looking statements within the meaning of federal security laws, including projections and expectations concerning the future financial and operational performance of global partners. No assurances can be given that these projections will be attained or that these expectations will be met.
Our assumptions and future performance are subject to a wide range of business risks, uncertainties, and factors, including supply and demand,
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