Ferrellgas Partners, L.P.

Adjusted EBITDA increased $9.1 million, or about 6%, to $166.1 million. Net earnings increased $3.3 million to $102.2 million. Overall gross profit was up $3 million, or about 1%, versus last year. Propane prices at Mont Belvieu were down roughly 22% year over year, which reduced revenue by about $28 million, but product cost fell by about $31 million. Management did not give next-quarter or full-year revenue/EPS guidance, but said winter is not over yet and the company is optimistic about third quarter results. It also said the board declared a cash distribution of $82.32 per Class B unit, or approximately $107 million aggregate, payable on or about March 13, 2026, and that all 1.3 million outstanding Class B units will be converted into Class A units at a 5-to-1 ratio after the distribution.

Tamria Zertuche framed the quarter as evidence of disciplined execution, customer growth, margin maintenance, and efficiency gains, saying these efforts are producing consistent profitability. She emphasized that the Class B conversion and distribution simplify the capital structure and lower cost of capital, which she said will unlock more growth initiatives. Her tone was upbeat and focused on the company’s ability to use its national footprint, safety investments, and winter readiness to perform in volatile weather.

Nick Heimer said gross profit improved even as revenue fell, because product costs declined more than propane prices, and he highlighted margin expansion and operating discipline. He cited adjusted EBITDA of $166.1 million, net earnings of $102.2 million, a $4.6 million decline in G&A expenses, and a $1.6 million reduction in operating lease expense after refinancing several operating leases into finance leases. He also said margin per gallon rose about 6% and operating income per gallon increased roughly 13% due to fewer unproductive deliveries and skipped stops.

Management said the Eddystone litigation is closed, with the final payment made in January and no further legal costs or outstanding Bridger-related litigation. On the CFO search, Tamria said it remains a priority and the company is taking its time to find the right fit, while Andy Safran continues advising on capital structure and investor relations. They also addressed near-term headwinds from Iran-related geopolitical risk and tariffs, saying positions taken in the first and second quarters to secure favorable pricing should help mitigate any unfavorable impact.