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

Core Insights - Ferrellgas Partners, L.P. reported strong financial results for the second fiscal quarter of 2026, driven by effective preparation and adaptability in response to varying weather conditions [2][3]. Financial Highlights - Gross profit increased by $3.0 million, or approximately 1%, compared to the prior-year period [3]. - Average propane prices declined by 21.7% in the second quarter of fiscal 2026 compared to the prior-year period [3]. - Revenue decreased by $28.4 million, or approximately 4%, but was offset by a $31.3 million, or approximately 10%, reduction in cost of product [3]. - Net earnings attributable to the Company rose by $3.3 million, or approximately 3%, to $102.2 million in the second quarter of fiscal 2026 [3]. - Adjusted EBITDA increased by $9.1 million, or approximately 6%, to $166.1 million compared to $157.0 million in the prior year [4]. Operational Highlights - The Company upgraded its supply infrastructure to enhance inventory visibility and predictive analytics, which helped meet elevated customer demand [6]. - Average temperatures in the western half of the country were 16% warmer than normal and 27% warmer than the prior year quarter, impacting demand [6]. - The retail business saw a $7.1 million, or approximately 3%, increase in gross profit, while wholesale performance was softer due to the absence of hurricane-related events [5]. Customer and Sales Performance - Retail teams achieved a 7.2% increase in tank sets across all customer segments, with a 3.4% increase in residential conversion rates [7]. - The Company transitioned 0.9% of its existing Will Call network to Auto Fill delivery, improving route density and efficiency [7]. - The National Sales team secured six new national account customers during the quarter [7]. Community Engagement - The Company donated filled propane tanks during Winter Storm Fern to various charities, supporting communities affected by power outages [9]. Cash Distribution and Unit Conversion - The board declared a cash distribution of $82.32 per Class B Unit, totaling approximately $107.0 million, payable on March 13, 2026 [11]. - The Company plans to convert all 1.3 million outstanding Class B Units into Class A Units shortly after the distribution payment [12].