Global Partners (NYSE:GLP) executives pointed to higher volumes across the company’s terminal and wholesale network in 2025 and said investments in its integrated supply, logistics, and retail platform helped support performance despite uneven market conditions across segments.
On its fourth-quarter and full-year 2025 earnings call, President and CEO Eric Slifka said the company’s results reflected “disciplined execution” of a strategy built over many years, emphasizing the benefits of a diversified model spanning supply, terminals, wholesale distribution, bunkering, and retail operations. He also highlighted continued portfolio optimization and a quarterly distribution increase.
Management highlights strategic investments and acquisitions
Among key developments discussed on the call:
- East Providence Terminal: Slifka said 2025 marked the first full year of ownership and that the terminal “already exceeded our expectations,” expanding storage, marine, and truck rack capabilities and strengthening the company’s Northeast service footprint.
- Houston market entry in bunkering: The company expanded into Houston through a lease at the Texas City Terminal, which management described as a platform for future growth.
- Data and analytics upgrades: Management said it strengthened its data and analytics infrastructure to improve operational visibility and decision-making.
- Retail portfolio actions: Slifka said the company divested non-strategic retail locations and converted sites to “higher value formats,” aiming to improve portfolio quality and consistency.
In the question-and-answer session, Slifka described site optimization as an ongoing effort rather than a completed initiative, saying the company continues to evaluate how to run locations as efficiently as possible.
Fourth-quarter results: EBITDA down slightly as market conditions shifted
Chief Financial Officer Gregory Hanson said fourth-quarter 2025 adjusted EBITDA was $94.8 million, compared with $97.8 million in the fourth quarter of 2024. Net income rose to $25.1 million from $23.9 million. Distributable cash flow (DCF) fell to $38.4 million from $45.7 million, while adjusted DCF declined to $38.8 million from $46.1 million.
Hanson attributed the year-over-year variance primarily to “less favorable market conditions” in the wholesale and commercial segments, partially offset by a stronger fuel-margin environment in the company’s gasoline distribution and station operations (GDSO) segment.
He said distribution coverage was 1.56x as of Dec. 31, or 1.5x after including distributions to preferred unitholders.
Segment performance: GDSO margin up; wholesale and commercial pressured
Hanson said GDSO product margin increased $17.7 million year over year to $231.3 million in the quarter. Gasoline distribution product margin increased $19.9 million to $165.6 million, driven primarily by higher fuel margins. On a cents-per-gallon basis, fuel margins increased by $0.09 to $0.45 in the fourth quarter of 2025 from $0.36 in the prior-year quarter, which Hanson said reflected favorable volatility in RBOB prices.
Station operations product margin, which includes convenience store and prepared food sales, sundries, and rental income, decreased by $2.2 million to $65.7 million, due in part to a lower company-operated site count tied to sales and conversions. Hanson said the year-end GDSO portfolio totaled 1,524 fueling stations and convenience stores, and the company also operates or supplies 67 sites through its Spring Partners retail joint venture.
In wholesale, fourth-quarter product margin decreased $21.5 million to $58.3 million. Hanson said product margin from gasoline and blend stocks fell $10.5 million to $28.1 million, while distillates and other oils declined $11.0 million to $30.2 million, both due to less favorable market conditions.
In the commercial segment, product margin decreased $2.6 million to $6.0 million, which Hanson attributed primarily to less favorable market conditions in bunkering.
Expenses, capital spending, and balance sheet details
Operating expenses decreased $3.5 million to $124.6 million in the quarter, while SG&A increased $1.5 million to $80.9 million. During the Q&A, management said some of the SG&A increase in 2025 related to labor and software licensing expenses tied to its data and analytics work.
Interest expense was $33.3 million, down from $34.4 million in the prior-year quarter.
Fourth-quarter capital expenditures were $38.8 million, including $22.6 million of maintenance capex and $16.2 million of expansion capex, primarily for the terminal and gas station businesses. For full-year 2025, Hanson reported maintenance capex of $54.0 million and expansion capex of $37.5 million.
For full-year 2026, the company expects:
- Maintenance capex: $60 million to $70 million
- Expansion capex (excluding acquisitions): $75 million to $85 million
In response to a question on capex allocation, Hanson said maintenance spending was expected to be slightly higher year over year, primarily tied to terminals acquired over the last couple of years. On expansion capex, he cited three “raze and rebuilds” on the GDSO side and described potential spending on terminal projects to expand throughput and logistics capabilities, noting timing uncertainty due to permitting and contracts.
Regarding Houston bunkering, Slifka said the company believes it has found a niche location and is positioned to meet market needs. Hanson added the expansion is “pretty capex light,” relying on leased barges and leased terminals, and said capex opportunities in Texas are more related to other terminals in the state acquired through the Motiva acquisition.
On the balance sheet, Hanson said leverage as defined in the company’s credit agreement was 3.59x funded debt to EBITDA at year-end, with “ample excess capacity” in credit facilities. As of Dec. 31, the company had $226.1 million of borrowings outstanding on its working capital revolver and $103.5 million outstanding on its $500 million revolving credit facility.
Distribution increase and early 2026 demand commentary
Slifka said the board approved a quarterly cash distribution of $0.76 per common unit, marking the company’s 17th consecutive increase. The distribution was paid Feb. 13 to unitholders of record as of Feb. 9.
Looking ahead, Slifka said the company is “built for durability,” citing its integrated footprint, scale, and disciplined capital approach. Management also noted that early-year cold weather in the Northeast supported solid wholesale fuel demand. Hanson said the latter half of January into February produced “extremely cold” conditions and more heating degree days, which he described as historically helpful for the company’s rack wholesale business and a “decent tailwind” to start the year, while stopping short of providing guidance.
About Global Partners (NYSE:GLP)
Global Partners LP is a publicly traded master limited partnership engaged in the wholesale distribution and retail marketing of petroleum products. The company sources refined petroleum products from major refineries and suppliers and transports them through an integrated network of pipelines, terminals and storage facilities. Global Partners focuses on delivering fuel and related services to commercial, industrial and residential customers, positioning itself as a key midstream and downstream energy operator in its core markets.
Through its extensive terminal network in the northeastern United States and eastern Canada, Global Partners supplies gasoline, diesel, home heating oil, kerosene, propane and biofuels to a broad customer base.
