Global Partners Q1 2026 Earnings Report

Global Partners EPS Results

• Actual EPS: $1.85
• Consensus EPS: $0.33
• Beat/Miss: Beat by +$1.52
• One Year Ago EPS: N/A

Global Partners Revenue Results

• Actual Revenue: $5.32 billion
• Expected Revenue: $6.98 billion
• Beat/Miss: Missed by -$1.65 billion
• YoY Revenue Growth: N/A

Global Partners Announcement Details

• Quarter: Q1 2026
• Date: 5/8/2026
• Time: Before Market Opens
• Conference Call Date: Friday, May 8, 2026
• 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 Q1 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Strong Q1 financials: Net income rose to $70.1M (vs. $18.7M), adjusted EBITDA was $140.4M (vs. $91.3M), and adjusted distributable cash flow was $96.8M (vs. $46.5M), driving materially higher cash generation year-over-year.
• Positive Sentiment: Board approved a quarterly cash distribution of $0.7650 per common unit (annualized $3.06), the eighteenth consecutive quarterly increase, with distribution coverage of 1.96x (1.9x including preferred holders).
• Positive Sentiment: Segment strength: GDSO product margin increased to $199.3M (gasoline margin up $0.06/gal to $0.41) and wholesale product margin rose to $154.1M, driven by favorable market conditions across gasoline and distillates.
• Negative Sentiment: Market risks: steep backwardation in forward curves will raise the cost of carrying hedged inventory, prompting the company to draw down and tightly manage inventories to mitigate higher carrying costs and exposure.
• Neutral Sentiment: Capital allocation and balance sheet: 2026 guidance calls for $60–70M maintenance CapEx and $75–85M expansion CapEx (ex‑acquisitions); leverage was 3.1x funded debt/EBITDA at quarter end with ample revolver capacity.

Presentation

[Operator]

Good day, everyone, welcome to the Global Partners Q1 2026 financial results conference call. Today's call is being recorded. With us from Global Partners are President and Chief Executive Officer, Mr. Eric Slifka, Chief Financial Officer, Mr. Gregory B. Hanson, Chief Operating Officer, Mr. Mark Romaine, 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.

[Kristin Seabrook, Chief Legal Officer at Global Partners]

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, 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?

[Eric Slifka, President and CEO at Global Partners]

Thank you, Kristin. Good morning, everyone, and thank you for joining us on today's earnings call. We started 2026 with a strong Q1, driven by solid execution across our operating segments and supported by the continued strength of our integrated liquid energy platform in a dynamic commodity environment marked by heightened geopolitical tension and global supply disruptions. Our business is built to perform across a wide range of market conditions, given the current volatility, we remain focused on managing risks and opportunities while continuing to optimize our asset base to enhance returns. Our results this quarter were driven by a colder than normal winter in the Northeast and more favorable market conditions in wholesale and commercial, along with improved fuel margins in our gasoline distribution and station operations segment. Importantly, these results reinforce the resiliency of our model.

[Eric Slifka, President and CEO at Global Partners]

We do not rely on any single commodity, geography, or market dynamic to generate cash flow. Instead, we manage a diversified portfolio of assets and adjust our operating approach to reflect the conditions in front of us. That flexibility remains a core strength of Global. Whether markets are volatile or more stable, our focus is the same: disciplined execution, prudent capital allocation, and maintaining a strong balance sheet to support long-term value creation for our unit holders. Turning briefly to our distribution, last month our board approved a quarterly cash distribution of $0.7650 per common unit or $3.06 on an annualized basis. This marks our eighteenth consecutive quarterly increase, supported by healthy coverage and the cash-generating capacity of our business. The distribution will be paid on May fifteenth to unit holders of record as of May 11th.

[Eric Slifka, President and CEO at Global Partners]

Now let me turn the call over to Gregory for the financial review. Gregory?

[Gregory B. Hanson, CFO at Global Partners]

Thank you, Eric. Good morning, everyone. As we review the numbers, unless otherwise noted, all comparisons will be with the Q1 of 2025. Net income in the Q1 of 2026 was $70.1 million versus $18.7 million. EBITDA was $142.1 million in the Q1 versus $91.9 million in 2025. Adjusted EBITDA was $140.4 million in 2026, compared with $91.3 million. Distributable cash flow was $96.4 million in the Q1 of 2026, compared with $45.7 million. Adjusted DCF was $96.8 million versus $46.5 million. We maintained healthy distribution coverage at the quarter end of 1.96 times or 1.9 times after including distributions to our preferred unit holders. Moving to our segment details, GDSO segment product margin increased $11.4 million in the quarter to $199.3 million.

[Gregory B. Hanson, CFO at Global Partners]

Product margin from gasoline distribution increased $10.9 million to $136.7 million, primarily reflecting higher fuel margins year-over-year. On a cents per gallon basis, fuel margin increased by $0.06 to $0.41 in Q1 2026 from $0.35 in Q1 2025. Station operations product margin, which includes convenience store and prepared food sales, sundries, and rental income, increased $0.5 million to $62.6 million in the Q1 of 2026. Quarter-end, our GDSO portfolio of fueling stations and C-stores consisted of 1,513 sites, exclusive of the 68 sites under our Spring Partners Retail joint venture. Turning to our wholesale segment, first quarter product margin increased $60.5 million to $154.1 million.

[Gregory B. Hanson, CFO at Global Partners]

Product margin from gasoline and gasoline blend stocks increased $44.1 million to $101.2 million, and product margin from distillates and other oils increased $16.4 million to $52.9 million. These increases in our wholesale segment product margin are primarily due to more favorable market conditions in gasoline and residual oil. We are pleased with the performance of the wholesale segment, which delivered strong results in the heightened commodity price volatility during the quarter. We do expect the current steep backwardation in the forward product pricing curve to increase the cost of carrying our hedged inventory in future periods, and we remain focused on disciplined inventory management. In our commercial segment, product margin increased $4.6 million to $11.7 million, primarily due to more favorable market conditions.

[Gregory B. Hanson, CFO at Global Partners]

Operating expenses increased $2.5 million in the Q1 to $129.2 million, reflecting expenses associated with our GDSO and terminal operations. SG&A increased to $25.6 million to $99.3 million, primarily reflecting higher performance-based incentive compensation expense. We expect SG&A expenses to normalize in the remaining quarter of 2026. Interest expense was $35.5 million compared with $36 million in the same period of 2025. CapEx in the Q4 was $31.9 million, consisting of maintenance CapEx of $10 million and expansion CapEx of $21.9 million, primarily related to investments in our gasoline station business. For full year 2026, we expect maintenance CapEx in the range of $60 million to $70 million and expansion CapEx, excluding acquisitions, in the range of $75 million to $85 million.

[Gregory B. Hanson, CFO at Global Partners]

Our current CapEx estimates depend in part on the timing of project completions, the availability of equipment and labor, weather, and any unforeseen events or opportunities that require additional maintenance or investment. Our balance sheet remains strong at March 31st, with leverage as defined in our credit agreement as funded debt to EBITDA at 3.1x an ample excess capacity in our credit facility. As of March 31st, we had $408.3 million borrowings outstanding on our working capital revolver and $103.5 million outstanding in our revolving credit facility. On our IR calendar this month, we'll be participating in the 23rd Annual Energy Infrastructure CEO & Investor Conference. For those of you participating, we look forward to seeing you. Let me turn the call back to Eric for his closing comments. Eric?

[Eric Slifka, President and CEO at Global Partners]

Thank you, Gregory. We delivered an exceptional quarter, and the entire Global Partners team executed at a high level across all segments. We also recognize that a portion of these results reflect market conditions shaped by the ongoing conflict, which continues to drive volatility across global energy markets. We are managing the remainder of the year with the same discipline that drove this quarter while planning for a range of scenarios as the conflict evolves. With that, Gregory, Mark, and I will be happy to take your questions. Operator, please open the line for Q&A.

[Operator]

Thank you. Thank you. Our first question comes from the line of Selman Akyol with Stifel. Please proceed with your question.

[Selman Akyol, Managing Director at Stifel]

Thank you. First of all, congratulations on very nice results. That was very impressive.

[Eric Slifka, President and CEO at Global Partners]

Thank you, Selman.

[Selman Akyol, Managing Director at Stifel]

Let me ask you this. Are you seeing any changes in customer patterns, any signs of demand destruction at all given the higher fuel prices yet?

[Gregory B. Hanson, CFO at Global Partners]

Yeah, I mean, nothing noticeable in the quarter in March. You know, obviously one thing we track is average fill-ups and average gallons per fill-up, and we have seen some decline in that through March and April. Overall, I mean, the consumer continues to be pretty healthy. I do think obviously that, you know, higher gasoline prices will impact the share of wallet going forward. It's something we continue to lean in on promotions and loyalty on our in our C-store to drive customers into our stores. You know, depending on how long this prolong goes on, it could have a further impact on potential demand at the pump.

[Selman Akyol, Managing Director at Stifel]

Got it. You know, nice uptick year-over-year in your fuel gallons, CPG. How's that going and given the volatility and I'm really kind of thinking, you know, March you had 1 month of the volatility, but, you know, you've seen certainly more of that in as we've gone into the second quarter. I'm just kinda wondering how CPG's holding up?

[Eric Slifka, President and CEO at Global Partners]

Yeah, Selman, it's Eric. Margins continue to show the same historic resiliency that they have. If there is a decline in volume, you know, margins historically have expanded, right? I, you know, I think that that is gonna hold true, and I think that that's what we're seeing now. Generally too, there's a lot of price volatility in the market, and so you're waking up, you know, certain days and the product prices are moving $0.15, $0.20, $0.30. To me, that volatility represents an opportunity. The amount of price changes that we're making, somebody quoted me internally here, we've made the same amount of price changes already that we typically make in one year.

[Selman Akyol, Managing Director at Stifel]

Wow.

[Eric Slifka, President and CEO at Global Partners]

That's in the tens of thousands.

[Selman Akyol, Managing Director at Stifel]

Wow, that's quite a stat. Thank you for sharing that.

[Eric Slifka, President and CEO at Global Partners]

Yeah.

[Selman Akyol, Managing Director at Stifel]

In this environment, how do you think about acquisitions? Are they easier? Is it you'd rather pause and see how things shake out? Is there anything that's changing at this point?

[Eric Slifka, President and CEO at Global Partners]

I mean, we continue to look at everything that's out there. We're trying to be involved in every process that is out there. It'll be interesting to sort of see if anything or what gets done or what gets sold.

[Selman Akyol, Managing Director at Stifel]

Gotcha. Are you seeing sellers' expectations come in at all?

[Eric Slifka, President and CEO at Global Partners]

you know, it's interesting. It's based more on cash flow and multiples, right?

[Eric Slifka, President and CEO at Global Partners]

multiples are still strong, right?

[Selman Akyol, Managing Director at Stifel]

Got it. Yeah.

[Eric Slifka, President and CEO at Global Partners]

it's competitive.

[Selman Akyol, Managing Director at Stifel]

Gotcha. You guys referenced sort of the higher carrying costs for inventories, like, at wholesale. I guess just in general. Is there any thoughts of carrying lower inventories given the carrying costs, or is that just cost of doing business and we're not having problem getting any product, so we'll keep inventories robust?

[Mark Romaine, COO at Global Partners]

Yeah. Hey, Selman. Good morning, it's Mark.

[Selman Akyol, Managing Director at Stifel]

Good morning.

[Mark Romaine, COO at Global Partners]

That's actually, you know, and something that we've done historically. It's part of our playbook, and it does kind of highlight the benefit or the value of the storage capacity that we have, and we can tailor our inventory levels based on market conditions. As you might expect, when markets get extremely backwards, we're able to reduce inventories down significantly during that run up, capture additional margin, and then mitigate some of the risk associated with holding inventory. We're at a point now where we're, you know, we've drawn down inventories in this environment. We'll continue to manage them tightly. You know, on the flip side, if a market's contango, obviously we're building inventory.

[Mark Romaine, COO at Global Partners]

That is a key risk mitigation lever that we're able to pull and really kind of tailor to the market conditions of the current environment.

[Selman Akyol, Managing Director at Stifel]

Got it. Thank you for that. Let me just ask you one macro question, and I don't know if it's unanswerable or not, but So we're getting ready to go into this, the driving season, the summer driving season, sort of peak demand. U.S. has been selling down. You know, we've our exports are pretty robust. Do you think there's supply tightness out there, you know, as we get into the summer at all? Do you have any thoughts on kind of what that's gonna look like, this summer, just in general with everything going on?

[Mark Romaine, COO at Global Partners]

Yeah. It's Mark again, Selman Akyol. I think, you know, if you look at inventories, and we just had this conversation yesterday, they're pretty low. You know, we've got a lot of exports leaving the Gulf, maybe some leaving New York. Imports for gasoline into PADD 1 have been very light. We've been drawing, you know, the U.S. has been drawing inventories pretty aggressively over the last, call it 6 weeks, maybe eight weeks. We're at a pretty low level heading into a key driving season. You know, some of it will depend on how long the current situation goes on.

[Mark Romaine, COO at Global Partners]

Even if the conflict is resolved tomorrow, there's been a lot of damage done to worldwide to production and inventories are at a pretty low level across the board. It'll be interesting to see how that plays out. You know, I don't think an end to the war is gonna solve the problem immediately. The system's gonna take time. When I say system, I mean worldwide, but we're obviously specifically focused on PADD 1, and to a lesser degree, PADD 3. You know, I think you're gonna have some lasting impact to that, and we'll see how it plays out. There is some underlying fundamental strength in the market that I think we're gonna see play out for, you know, I might say through, at least through the end of the year.

[Eric Slifka, President and CEO at Global Partners]

It's Selman. It's Eric. I just wanna add one, I wanna add one other thing. It'll be interesting to see how countries position themselves vis-a-vis inventory and storage for moments like this, and if a lot of other countries look at storing crude or products in caverns or throughout the country and make sure that they have product on-hand and how that plays out into price.

[Selman Akyol, Managing Director at Stifel]

Yeah. We've already seen comments.

[Eric Slifka, President and CEO at Global Partners]

Yeah. That's a big macro point, right?

[Selman Akyol, Managing Director at Stifel]

Yeah

[Eric Slifka, President and CEO at Global Partners]

even if everything came back, it's just not, it's not gonna be the same as it was before, right? It'll be different. If, and if countries go and decide they want to build secure inventory that they can use in a market like this, you know, that's gonna put pressure on supply, 'cause it's gonna show up as increased demand.

[Selman Akyol, Managing Director at Stifel]

Yeah. We've already seen comments coming out of Australia for that. All right. Well, guys, again, very nice quarter, and I'll leave it there. Thank you for your time.

[Mark Romaine, COO at Global Partners]

Perfect.

[Eric Slifka, President and CEO at Global Partners]

Thanks, Selman.

[Operator]

Thank you. I will now turn the call back to Mr. Slifka for closing comments.

[Eric Slifka, President and CEO at Global Partners]

Thank you for joining us this morning. We look forward to keeping you updated on our progress. Thanks, everyone.

[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

• Eric Slifka, President and CEO
• Gregory B. Hanson, CFO
• Kristin Seabrook, Chief Legal Officer
• Mark Romaine, COO

Analysts

• Selman Akyol, Managing Director at Stifel