Global Partners Q2 Earnings Call Highlights

Global Partners NYSE: GLP reported higher second-quarter earnings and cash flow as stronger gasoline margins and favorable market conditions lifted results across its gasoline distribution, wholesale and commercial segments. Net income for the second quarter of 2026 rose to $71 million from $25.2 million a year earlier, while EBITDA increased to $146 million from $95.7 million. Adjusted EBITDA was $148.2 million, compared with $98.2 million in the prior-year quarter. “We delivered a strong second quarter with each of our operating segments contributing meaningfully and our teams executing at a high level across business,” President and Chief Executive Officer Eric Slifka said. He said the results demonstrated the value of the company’s integrated liquid-energy platform and its diversification across products, markets and customers. The gasoline distribution and station operations, or GDSO, segment posted a $37.3 million increase in product margin to $245.2 million. Gasoline distribution product margin rose $37.1 million to $175 million, primarily due to higher year-over-year fuel margins. On a cents-per-gallon basis, fuel margin increased to $0.50 in the quarter from $0.36 in the second quarter of 2025. Station operations product margin, including convenience-store and prepared-food sales, sundries and rental income, increased $0.2 million to $70.2 million. At quarter-end, Global Partners’ GDSO portfolio included 1,505 fueling stations and convenience stores, excluding 69 sites held through its Spring Partners Retail joint venture. The wholesale segment’s product margin increased $14.8 million to $106.5 million. Margin from gasoline and gasoline blend stocks climbed $19.6 million to $78.4 million, which Chief Financial Officer Gregory Hanson attributed to more favorable gasoline market conditions. Product margin from distillates and other oils declined $4.8 million to $28.1 million, primarily reflecting less favorable residual-oil market conditions. In the commercial segment, product margin rose $4.4 million to $10.5 million, primarily due to more favorable market conditions in the company’s bunkering business. Slifka said refined-product markets remained volatile during the quarter, with geopolitical developments contributing to elevated price swings, increased inventory risk and tight inventory levels. He said the company’s core business produces steady cash flow while its asset base can capture additional value during more dynamic market conditions. Hanson said Global Partners expects steep backwardation in forward product pricing curves to increase the cost of carrying its hedged inventory in future periods. The company remains focused on inventory discipline, segment growth and operating efficiency, he said. During the question-and-answer session, Chief Operating Officer Mark Romaine said inflation and higher prices appeared to be having so...