Global Partners LP (NYSE:GLP), a petroleum distribution and retail marketing company, announced second-quarter results showing significant year-over-year improvements across its operating segments. Net income reached $71 million compared with $25.2 million in the prior-year period, while adjusted EBITDA climbed to $148.2 million from $98.2 million, driven primarily by higher fuel margins and advantageous market conditions.
The gasoline distribution and station operations segment posted product margin of $245.2 million, reflecting a $37.3 million increase from the prior year. Within this segment, gasoline distribution product margin rose $37.1 million to $175 million due to elevated year-over-year fuel margins, with per-gallon fuel margin increasing to $0.50 from $0.36 in the second quarter of 2025. Station operations, encompassing convenience-store and prepared-food sales, added $70.2 million in product margin. At quarter-end, the company’s portfolio included 1,505 fueling stations and convenience stores. The wholesale segment contributed $106.5 million in product margin, up $14.8 million, benefiting from stronger gasoline and gasoline blend stock margins of $78.4 million despite headwinds in distillates and residual oils. The commercial segment’s product margin increased $4.4 million to $10.5 million, aided by favorable conditions in the bunkering business.
Cash generation strengthened considerably, with adjusted distributed cash flow rising to $92.5 million from $52.3 million in the prior-year quarter. Distribution coverage reached 2.19 times after preferred-unit distributions. The company maintained its quarterly common-unit distribution at $0.78 per unit. Operating expenses increased modestly by $1.1 million to $136.8 million, while selling, general and administrative expenses rose $8.3 million to $83 million, primarily reflecting higher discretionary incentive compensation and wage costs.
Management indicated that geopolitical developments continued contributing to volatile refined-product markets during the quarter, creating inventory challenges alongside elevated price swings. Company leadership noted limited material impact on customer behavior thus far, though average fuel purchase sizes may have declined slightly and some consumers appeared to be trading down to lower-octane gasoline. The company maintained its full-year 2026 capital-spending guidance, projecting maintenance expenditures of $60 million to $70 million and expansion spending of $75 million to $85 million. In strategic moves, Global Partners redeemed all outstanding Series B preferred units carrying a 9.5% fixed rate and indicated it remains active in evaluating acquisition opportunities that would complement its existing business portfolio.
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