Global Partners Q3 2025 Earnings Report

Global Partners EPS Results

• Actual EPS: $0.66
• Consensus EPS: $1.09
• Beat/Miss: Missed by -$0.43
• One Year Ago EPS: N/A

Global Partners Revenue Results

• Actual Revenue: $4.69 billion
• Expected Revenue: $7.21 billion
• Beat/Miss: Missed by -$2.52 billion
• YoY Revenue Growth: N/A

Global Partners Announcement Details

• Quarter: Q3 2025
• Date: 11/7/2025
• Time: Before Market Opens
• Conference Call Date: Friday, November 7, 2025
• Conference Call Time: 10:00AM ET

Global Partners (NYSE:GLP) is a publicly traded master limited partnership engaged in the wholesale distribution and retail marketing of petroleum products. The company sources refined petroleum products from major refineries and suppliers and transports them through an integrated network of pipelines, terminals and storage facilities. Global Partners focuses on delivering fuel and related services to commercial, industrial and residential customers, positioning itself as a key midstream and downstream energy operator in its core markets.

Through its extensive terminal network in the northeastern United States and eastern Canada, Global Partners supplies gasoline, diesel, home heating oil, kerosene, propane and biofuels to a broad customer base. The partnership also owns and operates a chain of branded gasoline stations and convenience stores, serving consumers under various regional banners. In addition, Global Partners’ marine division provides bunkering and marine fueling services in the Caribbean and along the East Coast, leveraging dedicated deepwater terminals and storage facilities.

Headquartered in Waltham, Massachusetts, Global Partners LP has grown its asset footprint over multiple decades to support a diverse set of customers, including municipalities, utilities, commercial fleets and end-use consumers. The partnership’s integrated model combines midstream logistics with retail marketing, enabling it to optimize supply, distribution and pricing across its operations. Global Partners continues to pursue strategic acquisitions and infrastructure investments to strengthen its presence in core markets and enhance service offerings.

Global Partners Q3 2025 Earnings Call Transcript

Key Takeaways

• Negative Sentiment: Earnings and cash flow declined year‑over‑year: Q3 net income fell to $29.0M (from $45.9M), adjusted EBITDA dropped to $98.8M (from $114.0M), and adjusted distributable cash flow decreased to $53.3M (from $71.6M).
• Positive Sentiment: Wholesale performance and expanded terminal network drove gains — wholesale product margin rose to $78.0M aided by terminal integration from Motiva/Gulf/ExxonMobil and improved gasoline marketing conditions, and the company also expanded bunkering into the Port of Houston.
• Positive Sentiment: The board raised the quarterly cash distribution to $0.7550 per unit ($3.02 annualized), marking the 16th consecutive quarterly increase and supported by trailing 12‑month coverage of 1.64x (1.5x after preferred distributions).
• Negative Sentiment: Leverage and ongoing capital needs remain material — funded debt/EBITDA was 3.6x at quarter end, revolver borrowings were significant (about $240.6M and $124.8M outstanding), and full‑year capex guidance totals roughly $85M–$105M (maintenance + expansion), creating cash demands despite lower interest expense.

Presentation

[Operator]

Hey, everyone, and welcome to the Global Partners' third quarter 2025 financial results conference call. Today's call is being recorded. All lines have been placed in a listen-only mode. 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 Romaine, and Chief Legal Officer and Secretary Mr. Sean Geary. At this time, I'd like to turn the floor over to Mr. Geary for opening remarks. Please go ahead, sir.

[Sean Geary, Chief Legal Officer and Secretary at Global Partners]

Good morning, everyone, and thank you for joining us. Today's call will include forward-looking statements within the meanings of federal securities laws, including projections or 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 which could cause actual results to differ materially as described in our filings with the Securities and Exchange Commission. Global Partners undertakes no obligation to revise or update any forward-looking statements. Now it's my pleasure to turn the call over to our President and Chief Executive Officer Eric Slifka.

[Eric Slifka, CEO at Global Partners]

Thank you, Sean. Good morning, everyone, and thank you for joining us. We performed well in the third quarter, consistent with our expectations, reflecting operational strength and disciplined execution across the organization. We experienced a strong performance in our wholesale segment in Q3, driven by favorable market conditions in gasoline and the continued optimization of our liquid energy terminal network. Over the past two years, we have significantly scaled our terminal assets, meaningfully enhancing our product distribution network and positioning Global Partners for long-term growth. This effort reflects our strategy of efficiently connecting liquid energy products with downstream markets, leveraging the integration of terminals acquired from Motiva, Gulf, and ExxonMobil. These assets continue to perform well, strengthening our supply chain flexibility, contributing to throughput growth, and enhancing our network. We're pleased that fuel margins have remained historically strong, even with the year-over-year decline.

[Eric Slifka, CEO at Global Partners]

Our retail network is a critical part of our strategy as we invest in, optimize, and upgrade our portfolio. Recently, we expanded our marine fuel supply operations into the Port of Houston. As a reminder, today, our bunkering business is centered in the Northeast, and now we have extended this business into the Gulf Coast. On the retail side, we're continuing to redefine the convenience store experience through our all-time fresh and newly reimagined Honey Farms Market brands. These brands embody our four pillars: community, hospitality, local, and fresh, while introducing chef-driven menus, clean label offerings, and hyper-local engagement. Through our new loyalty platform, Bee's Knees Benefits, we're creating a seamless, personalized experience designed to drive repeat business, build long-term loyalty, and strengthen the connection between our guests and our brands.

[Eric Slifka, CEO at Global Partners]

Turning to our distribution, in October, the board declared a quarterly cash distribution of $0.7550 per common unit or $3.02 on an annualized basis. This marked our 16th consecutive quarterly distribution increase. The distribution will be paid on November 14th to unit holders of record as of the close of business on November 10th. With that overview, I'll turn it over to Greg for the financial review. Greg.

[Gregory Hanson, CFO at Global Partners]

Thank you, Eric. Good morning, everyone. As I review the numbers, please note that all comparisons will be with the third quarter of 2024 unless otherwise noted. Net income for the third quarter was $29 million versus $45.9 million last year. I would note that last year's quarter had a $7.8 million one-time gain on asset sales that affected that number. EBITDA was $97.1 million for the third quarter, compared with $119.1 million. Adjusted EBITDA was $98.8 million versus $114 million. Distributable cash flow was $53 million compared to $71.1 million, while adjusted distributable cash flow was $53.3 million versus $71.6 million. Trailing 12-month distribution coverage remains strong as of September 30th, with 1.64x coverage or 1.5x after factoring in distributions to our preferred unit holders. Turning to our segment details, GDSO product margin decreased $18.8 million to $218.9 million.

[Gregory Hanson, CFO at Global Partners]

Product margin from gasoline distribution decreased $19.3 million to $144.8 million, primarily due to lower fuel margins compared with the same period in 2024. On a cents per gallon basis, fuel margins of $0.37 were down 7% from the previous year. In the third quarter of 2024, we experienced strong fuel margins, in part due to wholesale gasoline prices declining by $0.57 during the quarter. In comparison, in this year's third quarter, wholesale gasoline prices declined only $0.11. Stage and operations product margin, which includes convenience store and prepared food sales, sundries, and rental income, increased $0.5 million to $74.1 million, in part due to an increase in sundries. At quarter end, we had a portfolio of 1,540 sites, 49 fewer than the same period last year. The site count does not include the 67 locations we operate or supply under our Spring Partners retail joint venture.

[Gregory Hanson, CFO at Global Partners]

Looking at the wholesale segment, excuse me. Looking at the wholesale segment, third quarter product margin increased $6.9 million to $78 million. Product margin from gasoline and gasoline blend stocks increased $18.5 million to $61.5 million, primarily due to more favorable marketing conditions in gasoline and the expansion of our terminal network. Product margin from distillates and other oils decreased $11.6 million to $16.5 million, primarily due to less favorable marketing conditions in residual oil. Commercial segment product margin decreased $2.5 million to $7 million, in part due to less favorable marketing conditions in bunkering. Turning to expenses, operating expenses decreased $4.6 million to $132.5 million in the third quarter, primarily related to lower maintenance and repair expenses at our terminal operations. SG&A expense increased $5.8 million to $76.3 million, reflecting in part increases in wages and benefits and various other SG&A expenses.

[Gregory Hanson, CFO at Global Partners]

Interest expense was $33.3 million in the third quarter of 2025, down $1.8 million from last year, in part due to lower average balances on our credit facilities. CapEx in the third quarter was $19.7 million, consisting of $11.9 million of maintenance CapEx and $7.8 million of expansion CapEx, primarily related to investments in our gasoline stations and terminals. For the full year, we now anticipate maintenance capital expenditures of approximately $45 million-$55 million, while expansion capital expenditures, excluding acquisitions, are anticipated to be approximately $40 million-$50 million, relating primarily to investments in our gas station and terminal business. Our current CapEx estimates depend in part on the timing of completion of projects, availability of equipment and workforce, weather, and unanticipated events or opportunities requiring additional maintenance or investments.

[Gregory Hanson, CFO at Global Partners]

Turning to our balance sheet, as of September 30th, leverage as defined in our credit agreement as funded debt to EBITDA was 3.6x. We had $240.6 million outstanding on the working capital revolving credit facility and $124.8 million outstanding on the revolving credit facility. Looking ahead to our investor relations calendar, next month we'll be participating in two events: the BofA Securities 2025 Leverage Finance Conference and the Wells Fargo 24th Annual Energy and Power Symposium. Please contact our investor relations team if you'd like to schedule a meeting during the conference. Now, let me turn the call back to Eric for closing comments. Eric?

[Eric Slifka, CEO at Global Partners]

Thanks, Greg. We remain focused on capital discipline and operational efficiency, continuously seeking opportunities to drive sustainable returns and long-term value creation for our unit holders. Our scale, integrated operations, and talented team give us the flexibility to respond to market shifts and pursue growth opportunities that create lasting value for all of our stakeholders. Now, Greg, Mark, and I would be happy to take your questions. Operator, please open the line for the Q&A.

[Operator]

Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Thank you. Our first question comes from the line of Selman Akyol with Stifel. Please proceed with your question.

[Selman Akyol, Analyst at Stifel]

Thank you. Good morning.

[Eric Slifka, CEO at Global Partners]

Good morning, Selman.

[Selman Akyol, Analyst at Stifel]

Can you talk a little bit more about entering the bunkering market in Houston?

[Eric Slifka, CEO at Global Partners]

Yeah. I mean, we're already obviously in the business. We felt that there was an opportunity, and we feel like the assets that we've entered into there are differentiated versus our competition. We're already, like I said, in that business. We already have the customer list. We already have the know-how and the knowledge, and we think it's a good fit for the company.

[Selman Akyol, Analyst at Stifel]

Got it. When you say sort of differentiated offering, can you just explain that a little bit?

[Eric Slifka, CEO at Global Partners]

Yeah. Primarily just the location of the facilities and how we're going to go to market to supply that very busy quarter that is not always so easy to deliver fuel in.

[Selman Akyol, Analyst at Stifel]

You're on the Houston Ship Channel?

[Eric Slifka, CEO at Global Partners]

We're outside of it, yeah.

[Selman Akyol, Analyst at Stifel]

Just outside of it. Okay. Can you talk a little bit about the acquisition environment? You noted that store counts were lower relative to where you were third quarter last year. I'm just curious, is there more to go there, or do you think you can add stores from here? How should we be thinking about that?

[Gregory Hanson, CFO at Global Partners]

Yeah. Hey, Stifel. It's Greg Hanson. I can talk a little about the sites. I mean, I think we went through a pretty big optimization program on our sites last year. So year-over-year, in the last 12 months, we've sold 7 sites. We've converted 15 sites, and then we terminated some of our dealer relationships that were low margin. We continue to optimize. I think that said, there's probably not that big a runway right now on sort of site divestitures for us. I think we're pretty happy with our portfolio in general. It still looks a little, obviously, down year over year because last year was a big optimization period for us. We'll continue to, I think, move around the edges on that portfolio, but we're pretty happy where it is now.

[Gregory Hanson, CFO at Global Partners]

On the M&A side, I think overall, it was pretty quiet going into the fourth quarter on the retail M&A. I think we're seeing some signs of life and more deals that are out there on the fourth quarter on the retail side. On the terminal side, we continue to look at opportunities as we go through the year. I think that we have seen a pickup on the retail side.

[Selman Akyol, Analyst at Stifel]

Got it. Parkland, which is north of the Border, was recently acquired, but they have stores in the U.S. Do you face much competition from them?

[Gregory Hanson, CFO at Global Partners]

We do not. No. We're not in, none of our retail, the GDSO segment operates in their footprint as of today.

[Selman Akyol, Analyst at Stifel]

Got it. There have been reports of sort of the lower-end consumer being under pressure. I'm wondering if you're seeing that and if you have any thoughts going forward on that.

[Gregory Hanson, CFO at Global Partners]

Yeah. I mean, I think not unlike a lot of other retailers out there, we've definitely seen it this year. There's definitely pressure on lower-income. You see consumers trading down from more premium brands to more sub-generic brands. We continue to try and leverage our loyalty program that Eric mentioned earlier to grow promotions. I think, yeah, they've definitely been under pressure overall. That said, looking at the quarter, we were pretty happy with this summer, how the C-stores did. We were actually up year-over-year, and that's not even adjusting for a same site. That's just pure. We were down 16 company-operated sites year-over-year. To be above on the GDSO station operations is pretty good in our book. It was a decent, strong summer. Where we're located in the Northeast, I think, continues to be a trend to higher-income consumer.

[Gregory Hanson, CFO at Global Partners]

Overall, we're pretty happy with how this summer went on the C-store. Yeah, I would agree. I mean, I think it's pretty well recognized that the lower-end consumer continues to face pressure, but the higher-end consumer has been continuing to spend, which is good.

[Selman Akyol, Analyst at Stifel]

Got it. The last one for me, just how's labor going for you guys? Is it getting any easier?

[Gregory Hanson, CFO at Global Partners]

I would say the wage inflation has calmed down a little bit. Operating in a retail environment, you continue to face a lot of high turnover. Compared with the 2022 and 2023 timeframe, I think we're in a better place. I think what we're working on is trying to optimize around our labor hours and make sure we have the right associates in the right stores to optimize sales. We'll continue to work on that.

[Selman Akyol, Analyst at Stifel]

Got it. I guess what I was thinking about is, is it easier to get people now? Are you seeing more resumes, more people? I mean, resumes do strong at Border, but are you seeing more applicants, that kind of thing?

[Gregory Hanson, CFO at Global Partners]

Yeah. I think we are overall versus the last couple of years, definitely.

[Selman Akyol, Analyst at Stifel]

Okay. Thank you so much.

[Operator]

We have reached the end of the question-and-answer session. Mr. Slifka, I'd like to turn the floor back over to you for closing comments.

[Eric Slifka, CEO at Global Partners]

Thanks for joining us this morning. We look forward to keeping you updated on our progress. Everyone, have a great Thanksgiving.

[Operator]

Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a wonderful day.

Participants

Executives

• Gregory Hanson, CFO
• Eric Slifka, CEO
• Sean Geary, Chief Legal Officer and Secretary

Analysts

• Selman Akyol, Analyst at Stifel