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Global Partners (NYSE: GLP) reported sharply higher first-quarter profit and cash flow, citing colder weather in the Northeast, stronger wholesale and commercial conditions, and improved fuel margins in its gasoline distribution and station operations business.
President and Chief Executive Officer Eric Slifka said the company “started 2026 with a strong Q1,” supported by its integrated liquid energy platform during what he described as a dynamic commodity environment marked by heightened geopolitical tension and global supply disruptions. He said the company’s cash flow generation does not depend on any single commodity, geography, or market dynamic.
Chief Financial Officer Gregory B. Hanson said net income for the first quarter of 2026 was $70.1 million, up from $18.7 million in the first quarter of 2025. EBITDA increased to $142.1 million from $91.9 million, while adjusted EBITDA rose to $140.4 million from $91.3 million.
Distributable cash flow was $96.4 million, compared with $45.7 million a year earlier. Adjusted distributable cash flow was $96.8 million, up from $46.5 million. Hanson said Global Partners ended the quarter with distribution coverage of 1.96 times, or 1.9 times after including distributions to preferred unit holders.
The board approved a quarterly cash distribution of $0.7650 per common unit, or $3.06 annualized, marking the company’s eighteenth consecutive quarterly increase. The distribution is scheduled to be paid May 15 to unit holders of record as of May 11.
Global Partners’ wholesale segment posted a first-quarter product margin increase of $60.5 million, reaching $154.1 million. Product margin from gasoline and gasoline blend stocks rose $44.1 million to $101.2 million, while product margin from distillates and other oils increased $16.4 million to $52.9 million.
Hanson attributed the wholesale improvement primarily to more favorable market conditions in gasoline and residual oil, while noting strong results amid heightened commodity price volatility. He also cautioned that steep backwardation in the forward product pricing curve is expected to increase the cost of carrying hedged inventory in future periods, and said the company remains focused on disciplined inventory management.
Chief Operating Officer Mark Romaine said inventory management is part of the company’s established playbook. In backwardated markets, he said Global Partners can draw down inventories to capture additional margin and reduce the risk of holding inventory; in contango markets, it can build inventory. He described this as a key risk mitigation lever tailored to current market conditions.
In the gasoline distribution and station operations (GDSO) segment, product margin increased $11.4 million to $199.3 million. Gasoline distribution product margin rose $10.9 million to $136.7 million, primarily due to higher fuel margins year over year.
On a cents-per-gallon basis, fuel margin increased to $0.41 in the first quarter of 2026 from $0.35 in the first quarter of 2025. Station operations product margin, including convenience store and prepared food sales, sundries and rental income, increased $0.5 million to $62.6 million.
Hanson said the company had not seen anything noticeable in customer behavior through March, but noted that average fill-ups and average gallons per fill-up declined through March and April. He said the consumer remains “pretty healthy,” adding that higher gasoline prices could affect share of wallet going forward. He said Global Partners continues to use promotions and loyalty programs in its convenience stores to drive customer traffic.
Slifka said margins showed “historic resiliency,” and that volatility has created operational opportunities, including a high volume of daily price changes. He said the company had already made price changes in the tens of thousands, compared with the amount typically made in one year.
Global Partners’ commercial segment product margin increased $4.6 million to $11.7 million, primarily due to more favorable market conditions. Operating expenses rose $2.5 million to $129.2 million, reflecting expenses associated with GDSO and terminal operations. SG&A increased by $25.6 million to $99.3 million, primarily due to higher performance-based incentive compensation expense. Hanson said SG&A expenses are expected to normalize in the remaining quarters of 2026.
Interest expense was $35.5 million, compared with $36 million in the same period of 2025. Capital expenditures were $31.9 million, consisting of $10 million of maintenance capital expenditures and $21.9 million of expansion capital expenditures, primarily related to investments in the gasoline station business.
For full-year 2026, Global Partners expects maintenance capital expenditures of $60 million to $70 million and expansion capital expenditures, excluding acquisitions, of $75 million to $85 million. Hanson said the estimates depend on project timing, equipment and labor availability, weather, and unforeseen events or opportunities.
Hanson described the balance sheet as strong at March 31, with leverage, as defined in the company’s credit agreement, at 3.1 times funded debt to EBITDA. He said Global Partners had $408.3 million of borrowings outstanding on its working capital revolver and $103.5 million outstanding under its revolving credit facility.
On acquisitions, Slifka said the company continues to look at available opportunities and seeks to be involved in active processes. He said seller expectations remain based on cash flow and multiples, which he described as “still strong,” and said the market remains competitive.
Romaine discussed fuel supply heading into the summer driving season. He said inventories are “pretty low,” citing robust exports from the Gulf, light gasoline imports into PADD 1, and aggressive inventory draws in the U.S. over the prior six to eight weeks. He said even if the current conflict were resolved quickly, damage to worldwide production and low inventories could have a lasting impact, and that recovery would take time, with Global Partners focused on PADD 1 and, to a lesser extent, PADD 3.
Slifka added that it will be important to watch whether countries choose to build more secure crude or product inventories after the period of volatility, noting that such moves could pressure supply by showing up as increased demand.
In closing remarks, Slifka called the quarter “exceptional” and said the company is managing the remainder of the year with the same discipline while planning for a range of scenarios as the conflict evolves.
Global Partners LP is a publicly traded master limited partnership engaged in the wholesale distribution and retail marketing of petroleum products. The company sources refined petroleum products from major refineries and suppliers and transports them through an integrated network of pipelines, terminals and storage facilities. Global Partners supplies gasoline, diesel, home heating oil, kerosene, propane and biofuels through its terminal network in the northeastern United States and eastern Canada.
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