NGL Energy Partners (NGL) Q2 2026 earnings summary

Executive summary

• Adjusted EBITDA from continuing operations rose to $167.3 million in Q2 FY2026, up 12% year-over-year, driven by record Water Solutions segment performance and margin improvement.

• Net income for Q2 FY2026 increased to $29.8 million, up from $3.4 million in the prior year, reflecting strong Water Solutions results and gains from asset sales.

• Water Solutions contributed 85% of Q2 FY2026 segment EBITDA, with record produced water disposal volumes and significant new contract wins.

• Strategic actions included major asset sales, debt refinancing, and repurchases of both common and preferred units.

• Completed the sale of refined products, biodiesel, and most wholesale propane businesses, marking a strategic shift.

Financial highlights

• Q2 FY2026 Adjusted EBITDA was $167.3 million, up from $149.4 million in Q2 FY2025.

• Water Solutions Adjusted EBITDA reached $151.9 million, up 18% year-over-year.

• Net income for Q2 FY2026 was $29.8 million, up from $7.5 million in the prior year period.

• Total revenues from continuing operations were $674.7 million for the quarter, down from $756.5 million year-over-year, mainly due to divestitures and lower commodity prices.

• Interest expense decreased to $64.7 million, reflecting lower rates and reduced debt.

Outlook and guidance

• Full-year FY2026 Adjusted EBITDA guidance raised to $650–$660 million, with FY2027 guidance of at least $700 million.

• Growth capital guidance increased to $160 million, with most new contract EBITDA expected in FY2027.

• Board to evaluate reinstatement of common unit distributions based on leverage, liquidity, and performance.

• Predictable cash flows expected due to long-term fixed fee contracts and minimum volume commitments.