Global Partners NYSE: GLP reported a sharply higher first-quarter profit and cash flow, with management citing colder weather in the Northeast, stronger wholesale and commercial conditions, and improved fuel margins in its gasoline distribution and station operations business.
President and Chief Executive Officer Eric Slifka said the company “started 2026 with a strong Q1,” supported by its integrated liquid energy platform during what he described as 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,” Slifka said. “We do not rely on any single commodity, geography, or market dynamic to generate cash flow.”
Net Income, EBITDA and Cash Flow Rise
Chief Financial Officer Gregory B. Hanson said net income for the first quarter of 2026 was $70.1 million, up from $18.7 million in the first quarter of 2025. EBITDA increased to $142.1 million from $91.9 million, while adjusted EBITDA rose to $140.4 million from $91.3 million.
Distributable cash flow was $96.4 million, compared with $45.7 million a year earlier. Adjusted distributable cash flow was $96.8 million, up from $46.5 million. Hanson said Global Partners ended the quarter with distribution coverage of 1.96 times, or 1.9 times after including distributions to preferred unit holders.
Slifka said the board approved a quarterly cash distribution of $0.7650 per common unit, or $3.06 annualized, marking the company’s eighteenth consecutive quarterly increase. He said the distribution is scheduled to be paid May 15 to unit holders of record as of May 11.
Wholesale Segment Benefits From Market Conditions
Global Partners’ wholesale segment posted a first-quarter product margin increase of $60.5 million, reaching $154.1 million. Hanson said product margin from gasoline and gasoline blend stocks rose $44.1 million to $101.2 million, while product margin from distillates and other oils increased $16.4 million to $52.9 million.
Hanson attributed the wholesale improvement primarily to more favorable market conditions in gasoline and residual oil. He said the segment delivered strong results amid heightened commodity price volatility during the quarter.
However, Hanson also cautioned that current steep backwardation in the forward product pricing curve is expected to increase the cost of carrying hedged inventory in future periods. He said the company remains focused on disciplined inventory management.
During the question-and-answer portion of the call, Chief Operating Officer Mark Romaine said inventory management is part of Global Partners’ established playbook. In highly backwardated markets, he said the company can draw down inventories, capture additional margin and reduce the risk of holding inventory. In contango markets, by contrast, the company can build inventory.
“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,” Romaine said.
Fuel Margins Lift Station Operations Segment
In the gasoline distribution and station operations, or GDSO, segment, product margin increased $11.4 million to $199.3 million. Hanson said gasoline distribution product margin rose $10.9 million to $136.7 million, primarily due to higher fuel margins year over year.
On a cents-per-gallon basis, fuel margin increased to $0.41 in the first quarter of 2026 from $0.35 in the first quarter of 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.
Hanson said Global Partners ended the quarter with a GDSO portfolio of 1,513 fueling stations and convenience stores, excluding 68 sites under the company’s Spring Partners Retail joint venture.
Asked by Stifel Managing Director Selman Akyol whether higher fuel prices were changing customer behavior, Hanson said the company had not seen anything noticeable in the quarter through March, but noted that average fill-ups and average gallons per fill-up declined through March and April.
“Overall, the consumer continues to be pretty healthy,” Hanson said, adding that higher gasoline prices could affect share of wallet going forward. He said the company continues to use promotions and loyalty programs in its convenience stores to drive customer traffic.
Slifka said margins continued to show “historic resiliency,” and that volatility has created operational opportunities. He said product prices have been moving sharply on some days, requiring a high number of price changes.
“Somebody quoted me internally here, we’ve made the same amount of price changes already that we typically make in one year,” Slifka said, adding that the figure was in the tens of thousands.
Expenses, Capital Spending and Balance Sheet
Global Partners’ commercial segment product margin increased $4.6 million to $11.7 million, which Hanson said was primarily due to more favorable market conditions.
Operating expenses rose $2.5 million to $129.2 million, reflecting expenses associated with GDSO and terminal operations. SG&A increased by $25.6 million to $99.3 million, primarily due to higher performance-based incentive compensation expense. Hanson said SG&A expenses are expected to normalize in the remaining quarters of 2026.
Interest expense was $35.5 million, compared with $36 million in the same period of 2025. Hanson said capital expenditures were $31.9 million, consisting of $10 million of maintenance capital expenditures and $21.9 million of expansion capital expenditures, primarily related to investments in the gasoline station business.
For full-year 2026, Global Partners expects maintenance capital expenditures of $60 million to $70 million and expansion capital expenditures, excluding acquisitions, of $75 million to $85 million. Hanson said those estimates depend in part on project timing, equipment and labor availability, weather and unforeseen events or opportunities.
Hanson described the balance sheet as strong at March 31, with leverage, as defined in the company’s credit agreement, at 3.1 times funded debt to EBITDA. He said Global Partners had $408.3 million of borrowings outstanding on its working capital revolver and $103.5 million outstanding under its revolving credit facility.
Management Discusses Acquisitions and Supply Tightness
Asked about acquisitions in the current environment, Slifka said the company continues to look at available opportunities and seeks to be involved in active processes. He said seller expectations remain based more on cash flow and multiples, and that multiples are “still strong” and the market remains competitive.
Romaine also discussed fuel supply heading into the summer driving season. He said inventories are “pretty low,” noting robust exports from the Gulf, light gasoline imports into PADD 1 and aggressive inventory draws in the U.S. over the prior six to eight weeks.
Romaine said even if the current conflict were resolved quickly, damage to worldwide production and low inventories could have a lasting impact. He said the system would take time to recover, with Global Partners particularly focused on PADD 1 and, to a lesser extent, PADD 3.
Slifka added that it will be important to watch whether countries choose to build more secure crude or product inventories after the current period of volatility. He said such moves could put pressure on supply by showing up as increased demand.
In closing remarks, Slifka called the quarter “exceptional” and said the company is managing the remainder of the year with the same discipline while planning for a range of scenarios as the conflict evolves.
About Global Partners NYSE: GLP
Global Partners LP 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.
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