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    GLP
    Earnings call· Jun 2026(Q2 FY26)

    GLOBAL PARTNERS Q2 FY26 earnings call GLP

    Aug 7, 2026 Source

    Executive summary

    Global Partners Q2 FY26 — Strong Segment Contributions Drive Robust Financials

    Global Partners delivered a strong second quarter, leveraging its diversified and integrated liquid energy platform to capture value across dynamic market conditions. The company's core business provides predictable cash flow, complemented by its ability to capitalize on market volatility. Management remains focused on disciplined capital allocation and enhancing shareholder returns, as evidenced by the recent redemption of Series B preferred units.

    Highlights

    5

    • Net income increased to $71 million in Q2 FY26 from $25.2 million in Q2 FY25.

    • Adjusted EBITDA rose to $148.2 million, up from $98.2 million in the prior year period.

    • Adjusted Distributable Cash Flow (DCF) reached $92.5 million, compared to $52.3 million in Q2 FY25.

    • Gasoline Distribution Station Operations (GDSO) fuel margin increased by 14 cents to 50 cents per gallon.

    • Healthy distribution coverage maintained at 2.25 times, or 2.19 times including preferred unit holders.

    Concerns

    3

    • Refined product markets remain volatile due to geopolitical developments, contributing to 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 a slight decrease in average fill-up size and a trend towards lower octane gasoline due to inflation and higher prices, though not materially impacting overall sales.

    Guidance & targets

    2
    CategoryTargetConfidence
    Full-year 2026 Maintenance Capital Expenditure
    $60 million to $70 million
    medium materiality
    High
    Full-year 2026 Expansion Capital Expenditure (excluding acquisitions)
    $75 million to $85 million
    medium materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Gasoline Distribution Station Operations (GDSO)
    Benefited from improved fuel margins, primarily reflecting higher fuel margins year over year. Station operations product margin, including convenience store and prepared food sales, sundries, and rental income, also saw a slight increase.
    Product margin increase: $37.3 millionGasoline distribution product margin: $175 millionGasoline distribution product margin increase: $37.1 millionFuel margin: 50 cents/gallonFuel margin increase: 14 cents/gallonStation operations product margin: $70.2 millionStation operations product margin increase: $0.2 millionNumber of sites: 1,505
    		———$245.2 million
    Wholesale
    Product margin increased primarily due to more favorable market conditions in gasoline. This was partially offset by less favorable market conditions in residual oil, impacting distillates and other oils product margin.
    Product margin increase: $14.8 millionGasoline and gasoline blend stocks product margin: $78.4 millionGasoline and gasoline blend stocks product margin increase: $19.6 millionDistillates and other oils product margin: $28.1 millionDistillates and other oils product margin decrease: $4.8 million
    		———$106.5 million
    Commercial
    Product margin increased, primarily reflecting more favorable market conditions in the bunkering group.
    Product margin increase: $4.4 million
    		———$10.5 million

    Operational metrics

    10
    Adjusted EBITDA
    $148.2 millionvs $98.2 million in Q2 FY25
    Q2 FY26

    Reported adjusted EBITDA for the second quarter.

    Operating expenses
    $136.8 millionup $1.1 million
    Q2 FY26

    Reflecting higher expenses associated with GDSO operations, offset by lower terminal operations expenses.

    Selling, General & Administrative (SG&A) expenses
    $83 millionup $8.3 million
    Q2 FY26

    Primarily due to increased discretionary incentive compensation, wages and benefits, and other expenses, partially offset by a decrease in professional fees.

    Interest expense
    $33.1 milliondown $1.4 million
    Q2 FY26

    Partly due to lower average balances on credit facilities.

    Maintenance Capital Expenditure
    $15.9 million
    Q2 FY26

    Actual maintenance capex for the second quarter.

    Expansion Capital Expenditure
    $19.1 million
    Q2 FY26

    Actual expansion capex for the second quarter, primarily related to investments in the gasoline station business.

    Leverage (funded debt to EBITDA)
    2.85 times
    Q2 FY26

    Leverage as defined in the credit agreement, as of June 30th.

    Working Capital Revolving Credit Facility Outstanding
    $174.6 million
    Q2 FY26

    Amount outstanding on the working capital revolving credit facility as of quarter end.

    Revolving Credit Facility Outstanding
    $103.5 million
    Q2 FY26

    Amount outstanding on the revolving credit facility as of quarter end.

    Series B Fixed Rate Preferred Units Redemption
    All outstanding units
    July 30th, 2026

    Accretive transaction to simplify capital structure and enhance financial flexibility.

    Industry KPIs

    2
    MetricValueDetails
    FCF shareholder distributions$0.78USD/unit
    Distributable cash flow per unit share92.6 million (DCF), 92.5 million (Adjusted DCF)USD

    Risks & headwinds

    3
    Refined product market volatilityOngoing

    Elevated price swings, increased inventory risk, tight inventory levels

    Mitigation: Diversified integrated liquid energy platform, disciplined framework for managing exposures.

    Increased cost of carrying hedged inventoryFuture periods

    Steep backwardation in forward product pricing curve

    Mitigation: Focused on disciplined inventory management.

    Consumer behavior shift due to inflationQ2 FY26, continuing into Q3 FY26

    Average fill-up size down a little, trading down from I 93 octane to 87 octane

    Mitigation: Not considered material, but company monitors trends.

    What to watch in Q3 FY26

    4

    Consumer behavior impact on fuel sales

    next quarter
    CurrentSlight decrease in fill-up size, shift to lower octane
    TargetStabilization or improvement in average fill-up size and octane mix

    Why it matters

    Indicates consumer discretionary spending and potential for margin pressure or volume changes in the GDSO segment.

    I don't think you're seeing anything that's real different here as we enter into, or as we sit in the middle of Q3, I don't think we see anything different than we've seen for the better part of the year.

    Q&A highlights

    3

    Are higher prices affecting consumer purchases at gas stations, specifically average fill-up size and octane choice, and has this trend continued into Q3?

    Management noted a slight impact from inflation, with average fill-up sizes down a bit and some customers trading down to lower octane. C-store sales are good, though transactions may be slightly down. This trend has continued into Q3.

    “I think we're seeing a little bit of that we're seeing a little bit of impact from from you know inflation higher prices I think weeds with that shows up is- the you know the average size of the fill up is probably down a little bit I'm but I wouldn't say you know in a material fashion and that's trading you know that could be trading also trading down from I 93 octane to 87 octane from a store standpoint.”

    asked by Gregg Brody · answered by Mark Romaine

    2 min read5 chapters

    Detailed Narrative

    01

    Integrated Liquid Energy Platform Strength

    Global Partners highlighted the strength of its integrated liquid energy platform, which allows the company to capture value across diverse products, markets, and customers. This diversification is a competitive advantage, enabling strong performance even in changing market conditions. The core business provides predictable cash flow, while the company actively pursues additional value from dynamic markets within a disciplined framework.

    02

    Robust Segment Performance

    All operating segments contributed meaningfully to the strong second-quarter results. The Gasoline Distribution Station Operations (GDSO) segment benefited from improved fuel margins, with a 14 cents per gallon increase to 50 cents. The Wholesale and Commercial segments also delivered positive year-over-year growth, reinforcing the resiliency of the company's model and the value of its diversified asset portfolio.

    03

    Capital Allocation and Balance Sheet Management

    The company maintains a strong balance sheet, with leverage (funded debt to EBITDA) at 2.85 times as of June 30th, 2026, and ample excess capacity in its credit facility. Management emphasized its focus on investing thoughtfully in the business and allocating capital to the highest return opportunities. A significant capital structure simplification occurred with the redemption of all outstanding Series B fixed rate preferred units on July 30th, an accretive transaction given the 9.5% fixed rate.

    04

    Market Dynamics and Inventory Management

    Refined product markets continue to experience volatility, driven by geopolitical developments leading to elevated price swings, increased inventory risk, and tight inventory levels. The company noted that the current steep backwardation in the forward product pricing curve is expected to increase the cost of carrying its hedged inventory in future periods. Global Partners remains focused on disciplined inventory management to navigate these conditions.

    05

    Consumer Behavior Observations

    While not materially impacting overall sales, the company observed some shifts in consumer behavior due to inflation and higher prices. This includes a slight decrease in the average size of fill-ups and a trend of customers trading down from higher-octane (I 93) to lower-octane (87) gasoline. Convenience store sales remain strong, though transaction volumes may be slightly down.

    AI-generated summary of the company’s earnings call. Not investment advice.