Ferrellgas Partners (FGPR) investor relations material

Executive summary

• Fiscal 2026 featured disciplined operations, cost management, and strategic capital actions, including resolving legacy liability claims, refinancing $650 million in senior notes, and converting all Class B Units to Class A Units, simplifying equity and eliminating Class B distribution obligations.

• Adjusted EBITDA for Q4 2026 grew 3% year-over-year to $23.8 million; full-year adjusted EBITDA was $321.3 million, down 3% from 2025 due to non-recurring legal settlements.

• Net earnings for fiscal 2026 were $71.7 million, a significant turnaround from a net loss of $15.6 million in 2025, driven by lower general and administrative expenses after a major litigation settlement.

• Operational improvements included enhanced customer retention, safety performance, and efficiency, despite a softer wholesale demand environment and higher interest expense.

• Retail customer retention remained strong, with a 92.4% new customer conversion rate and Blue Rhino maintaining over 65,000 retail locations.

Financial highlights

• Q4 adjusted EBITDA increased by $700,000 (3%) to $23.8 million; full-year adjusted EBITDA decreased by $9.4 million (3%) to $321.3 million.

• Q4 net loss increased to $31.5 million from $26.8 million, mainly due to higher interest expense and asset disposal losses.

• Full-year net earnings were $71.7 million, a positive swing of $87.3 million year-over-year.

• Fiscal 2026 revenue was $1.86 billion, down 4% from $1.94 billion in 2025; cost of sales fell 8% to $840.1 million.

• Capital expenditures totaled $77.3 million, with $49.3 million for growth and $28.0 million for maintenance.

Outlook and guidance

• Entering fiscal 2027 with a stronger balance sheet, simplified equity structure, and operational momentum.

• Propane supply remains plentiful, supporting stable margins and reliable service.

• Focus remains on disciplined operations, expanding Blue Rhino exchange, and maintaining strong customer retention.

• Favorable regulatory changes and a lean cost structure position the company well for continued growth.