Ferrellgas Partners, L.P. Reports First Quarter Fiscal Year 2026 Results

Core Insights - Ferrellgas Partners, L.P. reported a strong start to fiscal 2026, with operational improvements and successful refinancing efforts contributing to a positive outlook for the winter heating season and the full fiscal year [2][3] Financial Highlights - The company completed financing transactions in October 2025, including redeeming $650 million of Senior Notes due 2026 and issuing $650 million of new Senior Notes due 2031, which strengthened its balance sheet [3] - Revenue for the first fiscal quarter decreased by $8.9 million, or 2%, to $355.2 million, while gross profit remained flat at $195.2 million [4][17] - Adjusted EBITDA decreased by $6.5 million, or 18%, to $29.3 million compared to the prior year quarter, primarily due to increased operating and administrative expenses [5][19] Operational Highlights - Retail sales increased by $0.7 million, driven by a $2.8 million rise in sales to residential and agricultural customers, despite a decrease in wholesale sales due to the absence of significant weather events [4][10] - The retail business experienced a 37% increase in temporary heat tank sets compared to the prior year, indicating strong customer demand [9] - The wholesale business normalized due to a lack of storm-related demand, but the company maintained profitability through disciplined management of production and logistics costs [10] Balance Sheet Overview - As of October 31, 2025, total assets were $1.38 billion, a decrease from $1.42 billion at the end of the previous fiscal year [29] - Current liabilities decreased significantly from $914.5 million to $289.0 million, reflecting improved financial flexibility [29] - Long-term debt increased to $1.45 billion from $815.5 million, indicating a strategic shift in financing [29] Customer and Market Strategy - The company focused on enhancing customer service and retention, particularly in the North Central, Northeast, and Pacific regions, through investments in customer service representatives [9] - Strategic outbound calling campaigns were implemented to capture on-demand customers in preparation for the winter season [9][11]