GLOBAL PARTNERS LP (GLP)·Q4 2024 Earnings Summary

Executive Summary

• Q4 2024 was solid operationally but down year over year on tough retail fuel margin comps; net income was $23.9M ($0.52/unit) and Adjusted EBITDA was $97.8M, both below Q4 2023, while total sales were $4.19B and gross profit $268.8M . Wholesale product margin strength (distillates and gasoline) partially offset softer GDSO fuel margins versus an unusually strong Q4 2023 backdrop .
• Sequentially vs Q3, EBITDA fell (Q4: $94.6M vs Q3: $119.1M) on seasonal retail pressures, though total volume rose to 1.8B gallons (from 1.7B) and Wholesale margin remained robust .
• 2025 capex outlook introduced: maintenance $60–70M; expansion (ex-acquisitions) $75–85M, focused on stations and terminalling; leverage (funded debt/EBITDA) at 3.47x with ample liquidity .
• Capital return: common distribution raised to $0.7400 for Q4 (+$0.01 vs Q3); this marked the 13th consecutive quarterly increase and remains a stock-reaction catalyst alongside continued terminal integration/M&A pipeline commentary .

What Went Well and What Went Wrong

• What Went Well
  • Wholesale segment outperformed: Q4 Wholesale product margin rose to $79.8M (from $51.9M); gasoline blendstocks $38.6M and distillates $41.2M on Motiva terminals and favorable market conditions .
  • Network expansion/integration: Management highlighted doubling terminal capacity to ~22MM barrels via Motiva, Gulf, and East Providence acquisitions, including a 25-year take-or-pay with Motiva, enhancing strategic optionality and returns .
  • Distribution growth and coverage: Q4 distribution lifted to $0.7400; trailing 12-month coverage cited at 1.81x (1.72x after preferreds) underscoring cash-flow resiliency .
• What Went Wrong
  • GDSO fuel margin normalization: Q4 GDSO product margin fell to $213.6M (from $245.4M) as cents/gal declined to $0.36 vs $0.44 in Q4 2023 due to less favorable wholesale price movements vs the exceptional volatility in late 2023 .
  • Higher interest expense burden: Q4 interest expense increased to $34.4M (from $20.7M) tied to 8.25% senior notes and higher average revolver balances post-acquisitions .
  • Operating expense growth from footprint expansion: Q4 operating expenses rose to $128.1M (from $116.0M) reflecting the addition of ~30 terminals (Motiva, Gulf, East Providence) .

Financial Results

Segment product margin (non-GAAP) – $USD Millions

Key performance indicators (operational and financial)

Notes:

• Combined Product Margin, EBITDA, Adjusted EBITDA, and DCF are non-GAAP; reconciliations provided in the press release/8-K .

Guidance Changes

No explicit revenue/margin/tax guidance was issued in Q4 materials.

Earnings Call Themes & Trends

Management Commentary

• “Since late 2023, we have more than doubled our terminal count and capacity… increasing our total storage capacity by 12.1 million barrels to 22 million barrels… [and] a significant 25-year take-or-pay contract with Motiva” .
• “Wholesale…increased… primarily due to the acquisition of 25 terminals from Motiva… and more favorable market conditions… distillates… primarily due to more favorable market conditions in distillates” .
• “We begin 2025 at a strong financial and operational position… expanded operating footprint, greater access to critical pipeline and marine infrastructure and a strong balance sheet” .
• “Trailing 12-month distribution coverage as of December 31 was 1.81x or 1.72x after factoring in distributions for our preferred unitholders” .

Q&A Highlights

• Tariffs exposure: Management emphasized flexible marine-sourced supply; any tariff-driven cost increases are manageable and could even highlight GLP’s competitive advantages in its markets .
• Texas/Houston strategy: Plan to grow all “three legs”—retail, terminals, wholesale/branded rack—with organic projects at Texas terminals and disciplined M&A when synergistic .
• M&A pipeline: Active across retail and terminals; asset quality dictates multiples; management expects transactions over the next year while maintaining discipline .
• Cost/interest dynamics: Interest expense elevated by 8.25% senior notes and higher revolver usage linked to acquisitions .

Estimates Context

• Wall Street consensus (S&P Global) for Q4 2024 EPS/revenue/EBITDA was unavailable at query time due to S&P Global request limits. As a result, we cannot provide a beat/miss assessment vs consensus for this quarter at this time. We attempted to retrieve “Primary EPS Consensus Mean,” “Revenue Consensus Mean,” and “EBITDA Consensus Mean” for the current and forward quarters but were rate-limited by S&P Global during this session.
• Given the disclosed results (EPS $0.52; Adjusted EBITDA $97.8M), sell-side models may adjust GDSO fuel margin assumptions lower for seasonality/tough comps, while maintaining stronger Wholesale assumptions tied to terminal expansion and distillate/gasoline market conditions .

Key Takeaways for Investors

• Q4 softness vs an exceptional Q4 2023 retail margin environment is transitory; retail cents/gal remain above historical averages and the Wholesale engine is performing strongly, aided by terminal acquisitions .
• Volume scale and product margin diversity are increasing: total gallons rose to 1.8B in Q4; Wholesale blendstocks/distillates margins benefited from Motiva assets and market conditions .
• 2025 capex plan steps up (maint. $60–70M; expansion $75–85M) to harvest growth across stations and terminals; watch for incremental returns from organic terminal projects in Texas and the Northeast .
• Balance sheet is positioned to support growth with funded debt/EBITDA at 3.47x and ample undrawn capacity; continued discipline on M&A should drive accretive opportunities .
• Capital return remains constructive: the Q4 distribution increased to $0.7400, the 13th straight quarterly raise; distribution coverage remains healthy, supporting ongoing payouts and potential future increases contingent on cash generation .
• Near-term trading catalyst: narrative pivot from “retail fuel margin normalization” to “terminal-driven Wholesale strength and capex-backed growth,” alongside tariff resilience and M&A optionality .

Appendix: Additional Q4 Press Releases

• Q4 cash distribution of $0.7400 per unit (paid Feb 14, 2025; record Feb 10, 2025) .
• Q4/FY2024 results press release with reconciliations (EX-99.1) .

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Sources:

• Q4 2024 8-K and Exhibit 99.1 (press release):
• Q4 2024 earnings call transcript:
• Q3 2024 8-K and call:
• Q2 2024 8-K and call:
• Q4 2024 distribution press release: