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.
Fuel margins drive segment gains
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.
Volatile market backdrop and consumer trends
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 some limited impact on customer behavior. The average fuel purchase size was “probably down a little bit,” he said, though not materially. Romaine said some consumers could be trading down from 93-octane gasoline to 87-octane gasoline.
Store sales remained “pretty good,” Romaine said, while transaction counts may be down slightly. He added that the company had not observed a material change in customer behavior through the middle of the third quarter compared with trends seen for most of the year.
Cash flow, distribution and capital spending
Distributed cash flow increased to $92.6 million from $52 million in the prior-year period. Adjusted distributed cash flow was $92.5 million, up from $52.3 million. Distribution coverage stood at 2.25 times at the end of the quarter, or 2.19 times after including distributions to preferred unitholders.
The board approved a quarterly cash distribution of $0.78 per common unit, equivalent to $3.12 on an annualized basis. The distribution is scheduled to be paid Aug. 14 to unitholders of record as of Aug. 12.
Operating expenses rose $1.1 million to $136.8 million, reflecting higher GDSO expenses that were partly offset by lower terminal-operating expenses. Selling, general and administrative expense increased $8.3 million to $83 million, driven primarily by higher discretionary incentive compensation, wages, benefits and other expenses, partially offset by lower professional fees.
Interest expense declined $1.4 million to $33.1 million, which Hanson said was primarily due to lower average balances on the company’s credit facilities.
Second-quarter capital expenditures totaled $35 million, including $15.9 million of maintenance spending and $19.1 million of expansion spending, primarily for investments in the gasoline station business. For the full year, the company maintained its forecast for maintenance capital expenditures of $60 million to $70 million and expansion spending, excluding acquisitions, of $75 million to $85 million.
Balance sheet and acquisition outlook
As of June 30, funded-debt-to-EBITDA leverage under the company’s credit agreement was 2.85 times. Global Partners had $174.6 million outstanding under its working-capital revolving credit facility and $103.5 million outstanding under its revolving credit facility, Hanson said.
On July 30, the company redeemed all outstanding Series B fixed-rate preferred units. Hanson said the preferred units carried a 9.5% fixed rate and that the redemption simplified the capital structure and was accretive. He added that Global Partners could still consider preferred equity or equity markets for certain future acquisitions.
Slifka said the acquisition market has been active, with a significant number of potential opportunities available. He said the company intends to focus on assets that fit and complement its existing portfolio, while seeking to execute transactions where it can be the high bidder for those assets.
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.
