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FERRELLGAS PARTNERS L P (FGPR)·Q4 2025 Earnings Summary

Executive Summary

  • Q4 2025 revenue was $343.63M (+1% YoY), but Adjusted EBITDA fell 31% to $23.06M, and net loss widened to $(26.85)M; margin pressure came from higher OpEx and G&A timing effects despite stable cost of product .
  • Full-year FY2025 Adjusted EBITDA rose 4% to $330.69M on gross profit strength (+$39.7M YoY) and lower lease expense, partially offset by higher operating and G&A (including the $125.0M Eddystone settlement) .
  • Operationally, retail sales grew 2% in Q4 and 4% for FY2025; Blue Rhino sales rose $25.5M (+6%) for FY2025; total propane gallons decreased 2% in Q4 but increased 3% for FY2025 .
  • Capital structure: Ferrellgas priced $650.0M of 9.250% senior notes due 2031 to redeem 5.375% notes due 2026, contingent on amending the revolving credit facility; a clear refinancing path is a key near-term catalyst .

What Went Well and What Went Wrong

What Went Well

  • Record gross profit “over $1.0 billion” in FY2025 and 5-year average gross profit of ~$0.96B; management highlighted telematics and employee execution as catalysts .
  • Retail sales growth: Q4 +$2.9M (+2%), FY2025 +$48.3M (+4%); retail tank sets increased 13% in Q4 and 5% in FY2025—evidence of customer acquisition and installation velocity .
  • Blue Rhino performance: FY2025 sales +$25.5M (+6%); operational modernization projects underway to improve efficiency and capacity .
  • CEO quote: “We are proud to have delivered growth in annual sales volume, revenue, gross profit, and adjusted EBITDA… gains from ongoing operational efficiency improvements, counter-seasonal tank exchange growth, and normalized weather conditions” .

What Went Wrong

  • Q4 Adjusted EBITDA down 31% YoY to $23.06M, driven by +$8.6M G&A and +$5.8M operating expense; operating income turned to a $(1.89)M loss vs $2.85M profit in Q4 2024 .
  • Interest expense increased $9.8M in FY2025 (amortization of debt issuance costs +$4.4M, letters of credit fees +$3.4M, other interest +$1.1M), pressuring net results despite higher gross profit .
  • Q4 total propane gallons sold fell 2% YoY (127.88M vs 131.13M), with retail and wholesale volumes both lower; warmer-than-normal weather (+5%) weighed on seasonal demand .

Financial Results

MetricQ4 2024Q2 2025Q3 2025Q4 2025
Revenue ($USD Millions)$340.45 $669.78 $560.85 $343.63
Gross Profit ($USD Millions)$188.15 $347.41 $289.23 $190.90
Operating Income ($USD Millions)$2.85 $127.64 $87.29 $(1.89)
Net Income Attrib. to FGPR ($USD Millions)$(20.78) $98.84 $59.11 $(26.85)
EPS (Basic/Diluted Class A) ($)$(7.58) $2.40 $1.26 $(8.76)
EBITDA ($USD Millions)$28.50 $151.47 $111.96 $24.95
Adjusted EBITDA ($USD Millions)$33.58 $157.04 $114.78 $23.06
Gross Margin (%)55.3% 51.9% 51.6% 55.6%
EBITDA Margin (%)8.4% 22.6% 20.0% 7.3%
EBIT Margin (%)0.8% 19.1% 15.6% −0.5%

Notes: Percentages computed from cited revenue and corresponding numerator values above.

Segment breakdown (propane gallons):

Segment Gallons (000s)Q4 2024Q4 2025
Retail – End Users84,109 83,158
Wholesale – Resellers47,025 44,726
Total Propane Gallons131,134 127,884

KPIs (quarterly):

KPIQ4 2024Q4 2025
Adjusted EBITDA ($USD Millions)$33.58 $23.06
Net Cash Interest Expense ($USD Millions)$(21.63) $(22.78)
Maintenance Capex ($USD Millions)$(7.74) $(6.56)
DCF Attrib. to Class A/B ($USD Millions)$(11.97) $(21.93)
Distributable Cash Flow Excess/(Shortage) ($USD Millions)$(11.97) $(21.93)
Margin per Gallon YoY Change+4% +4%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueQ4 2025Not providedNot providedMaintained (no formal guidance)
Adjusted EBITDAQ4 2025Not providedReported $23.06M (actual) N/A (reported actual)
Interest Expense DriversFY2025N/A+$9.8M YoY driven by +$4.4M amortization (RCF amendments), +$3.4M LC fees, +$1.1M other interest Higher
Capital Structure – Senior Notes2026/2031$650M 5.375% due 2026 outstandingPriced $650M 9.250% due 2031 to redeem 2026 notes, conditioned on RCF amendment Refinancing path progressed
Dividends to Class A UnitholdersFY2025No dividendsNo dividends Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2025)Previous Mentions (Q3 2025)Current Period (Q4 2025)Trend
Capital structure/refinancingEddystone settlement cash/Liquidity neutral; Moelis engaged; upcoming maturities; listing strategy discussed “Anticipate completing a refinancing in a timely manner” Priced $650M 9.250% notes due 2031; redemption plan outlined; webcast scheduled Progressing to execution
Technology/TelematicsEfficiency gains: idling −15%, faster tank sets; fuel usage benefits Blue Rhino plant automation; supply chain readiness Telematics credited for efficiency and delivery metrics improvement Continued execution
Product performance (Blue Rhino)Record January; 6,000 added locations; organic sales +14% Peak season prep; capex projects to modernize operations FY2025 sales +$25.5M (+6%) Sustained growth
Tariffs/macroMonitoring steel tank/cylinder tariffs; mitigation actions Addressed tariff impacts and cost management strategy Not highlighted in Q4 PR De-emphasized in Q4 messaging
Regulatory/legalEddystone settlement schedule (payments Jan/Jun 2025/Jan 2026) Ongoing legal cost noted in OpEx Eddystone-related G&A/EBITDA adjustments disclosed Resolution in process
CFO/IRCFO discussed results; settlement mechanics CFO retired; IR responsibilities expanded No CFO-specific update in Q4 PR Transition ongoing

Management Commentary

  • CEO: “As we close the fiscal year, we are proud to have delivered growth in annual sales volume, revenue, gross profit, and adjusted EBITDA… Investing in our employee-owners and their safety creates an environment for success and innovation.”
  • Operational achievements: “The Company recognized gross profit of over $1.0 billion in fiscal 2025, the highest in the Company’s history… Leveraging our telematics technology… are the catalysts for these positive results.”
  • On Q4 drivers: “Adjusted EBITDA decreased by $10.5 million… driven by increases of $8.6 million in G&A and $5.8 million in operating expense… partially offset by a $2.8 million increase in gross profit.”

Q&A Highlights

  • Capital structure: Management reiterated work with Moelis on alternatives and noted high-yield market activity; targeted interest rate not specified and dependent on market conditions .
  • Class B units: Redemption value estimated ~$305M as of March; conversion mechanics differ and change annually; documents govern resolution options .
  • Tariffs: Strategy centers on continuous improvement and cost management, with supply diversification and buying power mitigating impacts .
  • CFO transition/IR: CFO retired; investor relations responsibilities expanded, maintaining communication continuity .
    Note: The company held a Q4/FY2025 webcast on Oct 15, 2025, but no published Q4 transcript was available in our document set .

Estimates Context

  • S&P Global consensus estimates for Q4 2025 EPS, revenue, and EBITDA were unavailable; there was no target price consensus coverage for FGPR during the period. Values retrieved from S&P Global.*
  • Result comparisons to sell-side estimates cannot be made; we recommend treating management’s reported results and capital structure actions as the primary catalysts for near-term narrative .

Key Takeaways for Investors

  • Q4 seasonal softness and higher OpEx/G&A drove a notable EBITDA miss versus prior year, but full-year metrics show resilient gross profit and Adjusted EBITDA growth—focus on annual trajectory rather than seasonal quarter .
  • Refinancing is advancing: $650M 9.250% notes priced to redeem 2026 notes; contingent revolver amendment is the next step—reduces near-term maturity risk, stabilizes liquidity narrative .
  • Telemetry-driven efficiencies and retail tank set growth signal continued operational improvements and customer acquisition capacity ahead of peak periods .
  • Blue Rhino remains a structural growth asset (FY2025 +6% sales); modernization capex should support throughput and margin preservation in counter-seasonal periods .
  • Watch interest expense line: FY2025 +$9.8M YoY from refinancing-related amortization and LC fees—post-refinancing run-rate will be a key input for distributable cash flow .
  • No Class A distributions; DCF attributable to Class A/B negative in Q4—equity holders should monitor FY2026 DCF trajectory and capital allocation priorities .
  • Near-term trading implication: stock sensitive to refinancing milestones and any updates on Class B resolution; medium-term thesis depends on sustained gross profit growth, Blue Rhino execution, and OpEx discipline .