Executive Summary

Q3 2025 delivered strong Wholesale performance but headline results declined year over year; diluted EPS per common unit was $0.66 vs $1.17 in Q3 2024, EBITDA was $97.1M vs $119.1M, and gross profit was $271.4M vs $286.0M .
Wall Street consensus (S&P Global) looked for $1.09 EPS, $7.21B revenue, and $115.8M EBITDA—GLP materially missed on all three; management attributed the YoY softness primarily to lower retail fuel margins and less favorable residual oil conditions, despite strength in gasoline wholesale and terminals *.
The Board raised the quarterly cash distribution to $0.7550 per common unit (16th consecutive increase), reinforcing capital-return visibility and coverage discipline (TTM distribution coverage 1.64x; 1.5x including preferreds) .
Stock-relevant catalysts: continuous terminal-network optimization and gasoline wholesale strength, distribution increase, and expanding marine bunkering presence into Houston; offset by retail fuel margin normalization and lower residual oil margins .

What Went Well and What Went Wrong

What Went Well

Wholesale segment product margin rose to $78.0M (+$6.9M YoY), with gasoline and blendstocks margin up to $61.5M (+$18.5M YoY), reflecting favorable gasoline market conditions and expanded terminal network .
CEO emphasized operational strength and disciplined execution, highlighting terminal network scale as a key driver of performance and long-term optimization across the footprint: “We delivered a strong performance in our Wholesale segment, fueled by the continued growth and scale of our terminal network…” .
Operating expenses decreased $4.6M YoY to $132.5M, driven by lower maintenance and repair at terminal operations, demonstrating cost control amid mixed market conditions .

What Went Wrong

GDSO product margin declined to $218.9M (−$18.8M YoY), driven by lower retail fuel volume and margin; fuel margin was $0.37/gal, down 7% YoY as wholesale gasoline prices declined only $0.11 in Q3 2025 vs $0.57 in Q3 2024, compressing retail economics .
Commercial segment product margin fell to $7.0M (−$2.5M YoY), partly due to less favorable bunkering conditions, limiting contribution from marine fuel operations .
SG&A increased $5.8M YoY to $76.3M, reflecting wage/benefit inflation and other SG&A costs, and net income declined to $29.0M from $45.9M YoY, pressuring per-unit earnings .

Financial Results

Headline KPIs (Quarterly)

Metric	Q1 2025	Q2 2025	Q3 2025
Sales ($USD Billions)	$4.59	$4.63	$4.69
Diluted EPS per common unit ($)	$0.36	$0.55	$0.66
EBITDA ($USD Millions)	$91.86	$95.75	$97.13
Adjusted EBITDA ($USD Millions)	$91.14	$98.16	$98.80
Gross Profit ($USD Millions)	$255.24	$272.36	$271.37
EBITDA Margin (%) [calculated]	2.00	2.07	2.07
Gross Profit Margin (%) [calculated]	5.56	5.89	5.78

Year-over-Year Comparison (Q3 2025 vs Q3 2024)

Metric	Q3 2024	Q3 2025
Sales ($USD Billions)	$4.42	$4.69
Diluted EPS per common unit ($)	$1.17	$0.66
EBITDA ($USD Millions)	$119.06	$97.13
Adjusted EBITDA ($USD Millions)	$113.96	$98.80
Gross Profit ($USD Millions)	$286.05	$271.37
EBITDA Margin (%) [calculated]	2.69	2.07
Gross Profit Margin (%) [calculated]	6.47	5.78

Segment Product Margin

Segment	Q3 2024	Q2 2025	Q3 2025
GDSO ($USD Millions)	$237.71	$207.89	$218.90
Wholesale ($USD Millions)	$71.14	$91.73	$77.98
Commercial ($USD Millions)	$9.51	$6.11	$6.99
Combined Product Margin ($USD Millions)	$318.36	$305.73	$303.87

Volumes and Other Operating KPIs

KPI	Q3 2024	Q3 2025
Total Volume (Billions of gallons)	1.7	1.9
Wholesale Volume (Billions of gallons)	1.2	1.4
GDSO Volume (Millions of gallons)	412.7	390.8
Commercial Volume (Millions of gallons)	122.6	149.2
Fuel Margin (GDSO, $/gal)	n/a	$0.37
Site Count (Company-operated portfolio)	n/a	1,540 (−49 YoY)
Distribution Coverage (TTM)	n/a	1.64x (1.5x incl. preferreds)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Maintenance Capex ($USD Millions)	FY 2025	n/a	$45–$55	New
Expansion Capex ex-acquisitions ($USD Millions)	FY 2025	n/a	$40–$50	New
Common Unit Distribution ($/unit)	Q3 2025	$0.7500 (Q2 distribution)	$0.7550	Raised
Preferred Units Distribution (Series B)	Q3 2025	n/a	Announced cash distribution (Series B)	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 2025)	Current Period (Q3 2025)	Trend
Terminal network optimization	Q1/Q2 highlighted terminal acquisitions and integration boosting wholesale margins	Continued strength; gasoline blendstocks margin +$18.5M YoY on favorable conditions and network scale	Improving wholesale contribution
Retail fuel margins	Q1 solid margins; Q2 mixed with lower site count	Retail fuel margins normalized; $0.37/gal down 7% YoY; gasoline price decline less supportive than Q3 2024	Softening vs tough comp
Marine bunkering	Limited in prior quarters	Entered Houston market; differentiated assets and go-to-market positioning	Expansion
Consumer/labor backdrop	Q2/Q1 noted wage inflation and site optimization	Lower-end consumer under pressure; higher-end spending resilient; wage inflation easing; hiring environment improving	Mixed but stabilizing
Capital allocation	Ongoing distribution increases	16th consecutive distribution raise; strong coverage ratios	Shareholder-friendly
Leverage and liquidity	Q2 funded debt/EBITDA 3.6x; refinancing actions	Leverage 3.6x; revolver balances: $240.6M WC facility, $124.8M revolver	Stable

Management Commentary

CEO: “We delivered a strong performance in our Wholesale segment, fueled by the continued growth and scale of our terminal network… While our GDSO segment experienced lower fuel margins compared with the strong margin environment in Q3 2024, our focus remains clear: operate with discipline, invest wisely, and keep optimizing our assets…” .
CFO on retail margin normalization: “Fuel margins of $0.37 were down 7% from the previous year… In Q3 2024, wholesale gasoline prices declined by $0.57; in this year’s third quarter, wholesale gasoline prices declined only $0.11” .
CFO on expenses and capex: “Operating expenses decreased $4.6M… we now anticipate maintenance capex of approximately $45–$55M, and expansion capex of approximately $40–$50M” .
CEO on capital returns: Board declared $0.7550 quarterly distribution, marking the 16th consecutive increase .

Q&A Highlights

Marine bunkering expansion: Entering Houston with differentiated asset positioning and customer relationships; facilities location and delivery approach cited as competitive edge .
Portfolio optimization and M&A: Major site optimization occurred last year; limited runway for further divestitures; seeing more retail deal activity into Q4; terminals remain an area of ongoing opportunity .
Consumer and labor dynamics: Lower-income consumers trading down; C-store performance was up YoY despite −16 company-operated sites; wage inflation cooled and applicant flow improved vs 2022–2023 .

Estimates Context

Metric	S&P Global Consensus (Q3 2025)	Actual (Q3 2025)	Surprise
Revenue ($USD Billions)	$7.21*	$4.69	Miss
EBITDA ($USD Millions)	$115.8*	$97.1	Miss
Primary EPS ($)	$1.09*	$0.66	Miss
Target Price (Consensus Mean, $)	$49.00*	$49.00*	n/a

Notes: Values retrieved from S&P Global. Coverage was limited (1 estimate for EPS and Revenue)*.

Where estimates may need to adjust:

Retail margin normalization and residual oil conditions point to lower near-term profitability assumptions for GDSO and Commercial segments; Wholesale gasoline strength may partially offset at consolidated level .
Expense mix shifts (SG&A up; OpEx down) and leverage steady at 3.6x suggest minor tweaks to interest expense and operating expense run rate in models .

Key Takeaways for Investors

Wholesale gasoline and terminal network strength remains the growth engine; expect continued optimization benefits and throughput support in a stable gasoline backdrop .
Retail fuel margins normalized versus an unusually supportive Q3 2024 environment; model lower GDSO per-gallon margins near recent levels rather than prior-year peaks .
Distribution raised to $0.7550 with strong TTM coverage (1.64x / 1.5x incl. preferreds) underscores capital-return durability; income investors should value coverage stability .
Capex guidance ($45–$55M maintenance; $40–$50M expansion) focuses spend on stations and terminals; watch for incremental ROIC from targeted projects and potential bolt-on terminals .
Balance sheet and liquidity remain manageable (funded debt/EBITDA 3.6x; revolver balances steady), supporting ongoing optimization and select growth initiatives .
Commercial bunkering expansion to Houston broadens geographic reach; monitor margin trajectory and competitive dynamics in Gulf Coast bunkering .
Near-term estimate risk skewed lower given broad-based misses vs consensus and softer retail margins; upside lever is continued wholesale strength and cost management *.

Additional Data and Disclosures:

Q3 2025 press release and full 8-K exhibit include detailed reconciliations for EBITDA, Adjusted EBITDA, DCF and segment product margins .
Recent developments: Q3 distribution declaration and call logistics ; Series B preferred distribution announcement ; Q2 refinancing actions (new 7.125% notes; redemption of 7.00% notes) .

S&P Global Estimates disclaimer: Items marked with an asterisk (*) are consensus values retrieved from S&P Global.

GLOBAL PARTNERS LP (GLP)·Q3 2025 Earnings Summary