Global Partners LP(US:GLP)2026-02-27 16:02Financial Data and Key Metrics Changes - Adjusted EBITDA for Q4 2025 was $94.8 million, down from $97.8 million in Q4 2024 [8] - Net income for Q4 increased to $25.1 million from $23.9 million [8] - Distributable Cash Flow for Q4 was $38.4 million, compared to $45.7 million in the previous year [8] - Distribution coverage remained solid at 1.56x as of December 31 [9] Business Line Data and Key Metrics Changes - GDSO product margin increased by $17.7 million to $231.3 million in Q4 2025 [9] - Gasoline distribution product margin rose by $19.9 million to $165.6 million, driven by higher fuel margins [9] - Station operations product margin decreased by $2.2 million to $65.7 million due to a lower site count [10] - Wholesale segment product margin decreased by $21.5 million to $58.3 million, reflecting less favorable market conditions [11] Market Data and Key Metrics Changes - Fuel margins increased by $0.09 to $0.45 per gallon in Q4 2025, compared to $0.36 in Q4 2024 [9] - The commercial segment product margin decreased by $2.6 million to $6 million, primarily due to unfavorable market conditions in bunkering [11] Company Strategy and Development Direction - The company focuses on acquiring strategic assets, investing in its existing network, and optimizing its portfolio [4] - Expansion into the Houston market for bunkering is seen as a growth opportunity [5] - Continuous optimization of operations is a priority to enhance efficiency and performance [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage through uneven markets and capitalize on growth opportunities [14] - The company is well-positioned to meet increased wholesale fuel demand due to favorable weather conditions in early 2026 [14] Other Important Information - The board approved a quarterly cash distribution of $0.76 per common unit, marking the 17th consecutive increase [8] - Full-year 2025 maintenance CapEx was $54 million, with expectations for 2026 maintenance CapEx in the range of $60 million to $70 million [12] Q&A Session Summary Question: Is the site optimization process completed? - Management indicated that site optimization is an ongoing process aimed at achieving operational efficiency [16] Question: Can you break down the CapEx between terminals and GDSO? - Management noted that maintenance CapEx is expected to increase slightly due to terminal acquisitions, with significant expansion CapEx planned for terminal capabilities [17][18] Question: What are the growth prospects in the Houston bunkering market? - Management highlighted a niche opportunity in Houston, with a focus on leased assets to minimize CapEx [20] Question: How does data analytics contribute to cost savings? - Management explained that data analytics is expected to enhance operational efficiencies and decision-making, with potential cost savings in the future [21][24] Question: What is the outlook for Q1 given favorable weather conditions? - Management acknowledged that cold weather in the Northeast is expected to provide a tailwind for the wholesale segment [25]