Ferrellgas Partners (FGPR) Q3 2025 earnings summary

Executive summary

• Achieved 9% year-over-year sales growth and 12% net earnings growth in Q3 FY2025, driven by strong field performance and residential market expansion.

• Named one of Newsweek's Most Trustworthy Companies in America, reflecting operational excellence and employee dedication.

• Well positioned for the upcoming peak grilling season, with new national accounts secured through multi-year contracts.

• Demonstrated resilience and service continuity during severe weather events by mobilizing resources nationwide.

• Distributable cash flow attributable to equity investors increased to $85.6 million for Q3 FY25, with excess of $68.3 million.

Financial highlights

• Q3 FY2025 revenue rose 9% to $560.8 million, with retail and wholesale sales up 9% and 8% year-over-year, respectively.

• Net earnings attributable to Ferrellgas Partners, L.P. were $59.1 million, up from $52.8 million in Q3 FY2024.

• Adjusted EBITDA grew 10% to $114.8 million, driven by higher gross profit and lower general and administrative expenses.

• Gross profit increased $16.9 million (6%) year-over-year, offset by a 12% rise in cost of product due to higher propane prices.

• Distributable cash flow attributable to Class A and B Unitholders was $68.3 million for the quarter.

Outlook and guidance

• Anticipates strong performance in the upcoming peak grilling season, supported by new national account wins and expanded Blue Rhino operations.

• Expects to complete refinancing of $308.8 million revolving credit facility and $650 million senior unsecured notes before their 2025 and 2026 maturities.

• Management has developed and internally approved a plan to restructure capital, refinance, and/or extend the maturity of the Credit Facility and 2026 Notes.

• There is substantial doubt about the ability to continue as a going concern due to upcoming debt maturities and letters of credit, but management expects the refinancing plan to alleviate this risk.

• Ongoing CFO search and transition of investor relations responsibilities.