Ferrellgas reports higher gross profit and stronger propane margins, but expenses pressure earnings and adjusted EBITDA.
Stock Earnings Results
June 5, 2026
Table of Contents
June 5, 2026
Ferrellgas Partners, L.P. (OTC: FGPR) reported fiscal third-quarter 2026 results with higher gross profit, stronger margin per gallon, and improved customer retention, but net earnings and adjusted EBITDA declined due to higher operating expenses and legacy casualty claim settlements.
Ferrellgas is one of the largest retail propane marketers in the U.S., serving residential, commercial, agricultural, industrial, wholesale, and Blue Rhino propane exchange customers.
Revenue declined by $36.3 million, or about 6%, as lower propane prices weighed on sales. Average propane prices based on Mont Belvieu fell 15.7% from the prior-year period. That decline was offset by a $38.5 million, or 14%, reduction in cost of product, helping gross profit rise by $2.2 million, or roughly 1%.
Gallons sold declined 2.8 million, or 1%. Retail gallons fell 4.4 million, while wholesale gallons increased 1.6 million. Margin per gallon improved about 2%, helped by operating efficiencies.
Net earnings attributable to Ferrellgas fell to $28.0 million from $59.1 million a year earlier. The decline was mainly tied to a $29.0 million increase in operating expenses, including legacy casualty claim settlements that management does not expect to recur at the same level.
Adjusted EBITDA declined to $102.1 million from $114.8 million, down about 11%.
Ferrellgas completed the conversion of all 1.3 million Class B units into 6.5 million Class A units after making the final $107.0 million distribution to Class B unitholders.
The company said the move simplifies its unit structure and eliminates the Class B distribution obligation. Future cash flow can now be directed toward debt reduction, business investment, and long-term value creation for Class A unitholders.
Weather remained a major headwind. Heating degree days were 12.4% below the ten-year normal and 8.8% warmer than the prior-year period.
The company still pointed to pockets of strength. North Central volumes increased 2% year-over-year, while the Southeast grew volumes despite warmer weather. Blue Rhino added 1,496 net new selling locations through the third quarter, bringing its retail presence to more than 65,000 locations nationwide.
Ferrellgas also said national accounts momentum continued, with extensions for four existing accounts, five new national accounts, and 17 new Autogas locations expected to contribute 370,000 gallons annually.
Ferrellgas showed better gross profit and stronger margin per gallon, but higher operating costs and warmer weather pressured earnings.
The quarter also marked an important capital structure milestone, with the Class B unit conversion simplifying the business and potentially freeing future cash flow for debt reduction and reinvestment.
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