Global Partners LP(GLP) - 2025 Q2 - Quarterly Results

Overview of Second Quarter 2025 Performance CEO Commentary The CEO highlighted solid year-over-year growth in earnings and cash flow for the first half of 2025, attributing it to a diversified asset base and disciplined execution First Half 2025 Year-over-Year Growth | Metric | YoY Growth | | :--- | :--- | | Net Income | 8% | | Adjusted EBITDA | 7% | | Adjusted DCF | 9% | - The company is pleased with the second-quarter performance of its retail, terminal, and wholesale liquid energy portfolio[4] - The strategic acquisition of key terminals has expanded the company's reach and enhanced its market presence[4] Financial Highlights Global Partners reported a decline in key profitability metrics for the second quarter of 2025 compared to the same period in 2024, impacted by a $2.8 million loss on the early extinguishment of debt Q2 2025 vs. Q2 2024 Financial Metrics (in millions, except per unit data) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Income | $25.2 | $46.1 | | Diluted EPS | $0.55 | $1.10 | | EBITDA | $95.7 | $118.8 | | Adjusted EBITDA | $98.2 | $121.1 | | Distributable Cash Flow (DCF) | $52.0 | $73.1 | | Adjusted DCF | $52.3 | $74.2 | | Gross Profit | $272.4 | $287.9 | - All reported non-GAAP financial measures for Q2 2025 include a $2.8 million loss on the early extinguishment of debt related to the redemption of the Partnership's 7.00% senior notes due 2027[7] Segment Performance In Q2 2025, the Wholesale segment's product margin remained stable, while the GDSO segment saw a decrease due to lower site count, with overall sales increasing to $4.6 billion driven by Wholesale volume Q2 2025 vs. Q2 2024 Product Margin by Segment (in millions) | Segment | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | GDSO | $207.9 | $221.5 | | Wholesale | $91.7 | $91.9 | | Commercial | $6.1 | $6.2 | Q2 2025 vs. Q2 2024 Sales and Volume by Segment | Segment | Sales (Q2 2025) | Sales (Q2 2024) | Volume (Q2 2025) | Volume (Q2 2024) | | :--- | :--- | :--- | :--- | :--- | | Wholesale | $3.1B | $2.6B | 1.5B gal | 1.1B gal | | GDSO | $1.2B | $1.5B | 382.4M gal | 407.0M gal | | Commercial | $275.8M | $280.9M | 141.9M gal | 119.5M gal | | Total | $4.6B | $4.4B | 2.0B gal | 1.6B gal | - The decline in GDSO product margin from both gasoline distribution and station operations was partly attributed to a decreased site count year-over-year[10] Recent Developments The company completed a $450 million senior unsecured notes offering due 2033 to refinance debt and announced a quarterly cash distribution of $0.7500 per common unit - Completed an upsized private offering of $450 million of 7.125% senior unsecured notes due 2033[15] - Net proceeds were used to purchase outstanding $400 million 7.00% senior notes due 2027 and to repay a portion of borrowings under its credit agreement[15] - Announced a quarterly cash distribution of $0.7500 per common unit ($3.00 annualized), payable on August 14, 2025[15] Financial Statements Consolidated Statements of Operations For Q2 2025, Global Partners reported total sales of $4.63 billion and net income of $25.2 million, a decrease from $46.1 million in Q2 2024, while six-month net income increased to $43.9 million Income Statement Highlights (in thousands, except per unit data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Sales | $4,626,925 | $4,409,698 | $9,219,122 | $8,555,090 | | Gross Profit | $272,362 | $287,884 | $527,603 | $503,019 | | Operating Income | $60,066 | $83,869 | $115,953 | $109,705 | | Net Income | $25,210 | $46,149 | $43,894 | $40,547 | | Diluted Net Income per Unit | $0.55 | $1.10 | $0.92 | $0.73 | Consolidated Balance Sheets As of June 30, 2025, Global Partners had total assets of $3.78 billion and total liabilities of $3.10 billion, with cash and cash equivalents increasing to $16.1 million Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $16,097 | $8,208 | | Total current assets | $1,215,163 | $1,207,380 | | Total assets | $3,784,338 | $3,788,198 | | Total current liabilities | $1,027,264 | $1,000,121 | | Senior notes | $1,270,916 | $1,186,723 | | Total liabilities | $3,098,033 | $3,071,585 | | Partners' equity | $686,305 | $716,613 | Non-GAAP Financial Measures and Reconciliations Explanation of Non-GAAP Measures The company uses non-GAAP measures like Product Margin, EBITDA, Adjusted EBITDA, DCF, and Adjusted DCF to evaluate core profitability, operational performance, and cash generation for distributions and debt service - Product Margin (product sales minus product costs) is used to measure the core profitability of operations[19] - EBITDA and Adjusted EBITDA are used to assess financial performance, ability to generate cash, and compliance with debt covenants[20][23] - Distributable Cash Flow (DCF) and Adjusted DCF serve as indicators of the company's success in providing a cash return to limited partners[21][24] Financial Reconciliations The report provides detailed reconciliations, showing Q2 2025 gross profit of $272.4 million reconciled to a combined product margin of $305.7 million, and net income of $25.2 million reconciled to Adjusted EBITDA of $98.2 million and Adjusted DCF of $52.3 million Q2 2025 Reconciliations (in thousands) | Reconciliation | Starting Value (GAAP) | Ending Value (Non-GAAP) | | :--- | :--- | :--- | | Gross Profit to Product Margin | $272,362 | $305,725 | | Net Income to Adjusted EBITDA | $25,210 | $98,158 | | Net Income to Adjusted DCF | $25,210 | $52,281 | - EBITDA, adjusted EBITDA, DCF and adjusted DCF for Q2 2025 all include a loss on early extinguishment of debt of $2.8 million[32] Other Information About Global Partners LP Global Partners LP is a Fortune 500 master limited partnership operating 54 liquid energy terminals and approximately 1,700 retail locations across the Northeast, Mid-Atlantic, and Texas, trading on the NYSE under the ticker symbol "GLP" - A Fortune 500 company operating 54 liquid energy terminals and approximately 1,700 retail locations[17] - Distributes gasoline, distillates, residual oil, and renewable fuels to wholesale, retail, and commercial customers[17] - Trades on the New York Stock Exchange as a master limited partnership under the ticker symbol "GLP"[18] Forward-Looking Statements This section contains a standard safe harbor statement, cautioning readers that forward-looking statements are based on current expectations and are subject to significant risks and uncertainties - The press release contains forward-looking statements based on current expectations, which are not guarantees of future performance[26] - Readers are cautioned about significant risks and uncertainties and are directed to the Partnership's SEC filings (Form 10-K, 10-Q, 8-K) for more details[26][27]