Ferrellgas Partners (FGPR) Q1 2025 earnings summary

Executive summary

• Net loss attributable to the partnership was $146.6 million for the quarter, up from $17.5 million last year, mainly due to a $125 million litigation accrual and higher operating expenses.

• Adjusted EBITDA increased by $2.9 million (9%) to $35.8 million, driven by improved gross margin, cost controls, and lower adjusted operating expenses.

• Blue Rhino segment achieved record free cash flow and organic sales growth, aided by new customer wins and improved logistics.

• Strong employee performance during storm response and acquisition onboarding, with significant community support during hurricanes.

• Expanded logistics footprint and customer base, including the acquisition of Kilhoffer Propane in Oklahoma.

Financial highlights

• Gross profit increased by $0.9 million (0.5%) year-over-year, with margin per gallon up 3% due to higher volume and new accounts.

• Revenues decreased by $6.9 million (2%) to $364.1 million, while cost of product sold dropped $7.8 million (4%).

• Retail propane gallons sold decreased 7%, while wholesale gallons sold increased 7% year-over-year.

• Operating loss was $122.9 million, compared to operating income of $5.1 million in the prior year, reflecting the impact of the legal accrual.

• Distributable cash flow attributable to equity investors was $3.4 million, down from $8.0 million year-over-year.

Outlook and guidance

• The extended revolving credit facility and operational cash flow are expected to provide adequate liquidity through at least December 2025.

• Continued focus on acquisitions aligned with strategic goals and market expansion, especially outside the Midwest.

• Maintenance capital expenditures are expected to remain stable, with growth capital expenditures fluctuating based on opportunities.