Executive Summary

Q2 2025 delivered Adjusted EBITDA of $27.1M and net loss of $2.4M; full-year Adjusted EBITDA guidance of $109.1M was reaffirmed, signaling management’s confidence despite macro/tariff caution .
Segment mix was resilient: Terminalling & Storage modestly up YoY on Smackover throughput/reservation fees, while Transportation and Specialty Products lagged; Sulfur Services volumes exceeded internal projections but margins compressed YoY on higher raw materials .
Cash from operations surged to $30.9M (vs. -$6.0M in Q1 and $11.8M in Q2’24), with DCF of $6.7M; leverage at 4.20x expected to plateau in seasonally weak Q3 before declining in Q4 as turnarounds roll off .
Consensus (S&P Global) EBITDA for Q2 was ~$29.6M vs. actual EBITDA ~$26.9M, a miss primarily owing to Transportation (land rates/miles) and Specialty (grease margin mix) headwinds; EPS and revenue consensus were unavailable* [functions.GetEstimates].
Stock reaction catalyst: maintained FY25 guidance and strong CFO underpin near-term balance-sheet focus; watch proposed tariffs, marine utilization recovery, and Q3 turnaround cadence for narrative shifts .

What Went Well and What Went Wrong

What Went Well
- “Sulfur Services segment delivered sales volumes and margins that exceeded our internal projections,” positioning for a strong first half; volumes up 40% YoY (217 vs. 155 long tons) .
- Terminalling & Storage: Smackover refinery Adjusted EBITDA +$0.9M YoY on higher throughput/reservation fees and lower opex; overall segment Adjusted EBITDA +$0.4M YoY .
- CFO strength and liquidity: Net cash from operations $30.9M; revolver availability $31.3M; leverage stable at 4.20x with a planned decline in Q4 post-turnarounds .
What Went Wrong
- Transportation underperformed: land Adjusted EBITDA -$2.8M YoY on lower miles and rates; marine utilization dipped due to equipment repairs, trimming cash flow .
- Specialty Products: grease EBITDA -$1.5M YoY on lower-margin mix; segment Adjusted EBITDA -$1.3M YoY despite lubricants exceeding expectations .
- Net results and margins: Net loss of $2.4M vs. $3.8M income in Q2’24; Operating Income $14.9M vs. $19.9M YoY; higher sulfur cost and repairs pressured margins .

Financial Results

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$184.5	$192.5	$180.7
Net Income ($USD Millions)	$3.8	$(1.0)	$(2.4)
Diluted EPS ($USD)	$0.09	$(0.03)	$(0.06)
EBITDA ($USD Millions)	$32.6	$27.0	$26.9
EBITDA Margin %	17.16%*	13.89%*	14.89%*
EBIT Margin %	10.28%*	7.23%*	7.90%*
Net Income Margin %	2.01%*	-0.53%*	-1.31%*
Cash from Operations ($USD Millions)	$11.8	$(6.0)	$30.9

Note: Asterisked values retrieved from S&P Global.*

Segment Adjusted EBITDA ($USD Millions)

Segment	Q2 2024	Q2 2025
Transportation	$11.2	$8.5
Terminalling & Storage	$8.0	$8.4
Sulfur Services	$10.6	$9.7
Specialty Products	$5.7	$4.4
Unallocated SG&A	$(3.8)	$(3.9)
Total Adjusted EBITDA	$31.7	$27.1

Key KPIs and Balance Sheet

KPI	Q2 2024	Q2 2025
Sulfur services total volumes (long tons)	155	217
Specialty Products total volumes (Bbls)	633	661
Shore-based throughput (gallons)	42,491	47,199
Smackover refinery throughput (BBL/day, guaranteed min)	6,500	6,500
Quarterly distribution ($/unit)	$0.005	$0.005
Total debt outstanding ($USD Millions)	$453.6	$441.1
Revolver availability ($USD Millions)	$80.7	$31.3
Total adjusted leverage ratio (x)	3.96x	4.20x

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted EBITDA ($M)	FY 2025	$109.1	$109.1	Maintained
Segment Adjusted EBITDA – Transportation ($M)	FY 2025	$35.4	$35.4	Maintained
Segment Adjusted EBITDA – Terminalling & Storage ($M)	FY 2025	$35.6	$35.6	Maintained
Segment Adjusted EBITDA – Sulfur Services ($M)	FY 2025	$31.9	$31.9	Maintained
Segment Adjusted EBITDA – Specialty Products ($M)	FY 2025	$20.8	$20.8	Maintained
Unallocated SG&A ($M)	FY 2025	$(14.7)	$(14.7)	Maintained
Maintenance capex ($M)	FY 2025	$20.5	$20.5	Maintained
Plant turnaround costs ($M)	FY 2025	$5.4	$5.4	Maintained
Interest expense (net) ($M)	FY 2025	$(51.1)	$(51.1)	Maintained
Income taxes (net of deferred) ($M)	FY 2025	$(4.2)	$(4.2)	Maintained
Total Distributable Cash Flow ($M)	FY 2025	$27.8	$27.8	Maintained
Expansion capex ($M)	FY 2025	$(9.0)	$(9.0)	Maintained
Adjusted Free Cash Flow ($M)	FY 2025	$18.8	$18.8	Maintained
Quarterly cash distribution ($/unit)	Q2 2025	$0.005	$0.005	Maintained

Earnings Call Themes & Trends

Note: A Q2 2025 earnings call transcript was not found in our document catalog (none returned July–Aug 2025). We use management commentary from earnings releases for trend tracking [functions.ListDocuments July–Aug 2025].

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
Tariffs/macro	Q1: “geopolitical uncertainty and trade tensions may impact…especially transportation”	“Remain cautious…monitor proposed tariffs”	Sustained caution
Marine utilization	Q4: heated barges demand lower; Q1: utilization improved vs Q4	Slightly below expectations due to equipment repairs	Mixed; repair-driven
Land transport rates/miles	Q4/Q1: rate pressure, higher lease/insurance costs	Lower miles and reduced rates; opex lower mitigated	Ongoing pressure
Smackover refinery	Q4: blending-related higher expenses	Higher throughput/reservation fees; opex lower	Improving
Sulfur Services (ELSA/fertilizer)	Q4/Q1: reservation fees, stronger volumes	Volumes/margins > internal projections; margin compression YoY on raw materials	Volume strong; margins tighter
Specialty grease margins	Q1: tighter margins	Lower margins via mix; EBITDA -$1.5M YoY	Headwind persists
Balance sheet/leverage	Q4: focus on debt reduction; leverage 3.96x	Leverage 4.20x; expected to decline in Q4	Seasonal plateau then decline

Management Commentary

“Based on performance over the first half of the year, we are reaffirming our full year adjusted EBITDA guidance of $109.1 million. However, we remain cautious and continue to closely monitor the potential impacts of the proposed tariffs.” — Bob Bondurant, CEO .
“Sulfur Services segment delivered sales volumes and margins that exceeded our internal projections…prepares to enter turnaround season during the third quarter.” .
“In the Transportation segment, utilization in the marine business was slightly below expectations due to equipment repairs…Land transportation rates continued to show signs of pressure…lower-than-expected operating expenses contributed to improved cash flow.” .
“Specialty Products…temporary volume reductions in the grease business…results from the lubricants business exceeded expectations.” .
“Terminalling and Storage segment delivered results slightly below…due to higher operating expenses…we anticipate favorable performance over the second half of the year.” .
Leverage cadence: “We anticipate that leverage will remain at this level in the third quarter…We expect leverage to decline in the fourth quarter as the Sulfur Services segment exits turnaround season and operational cash flows improve.” .

Q&A Highlights

No Q2 2025 earnings call transcript was available in our database; therefore, no Q&A content to report [functions.ListDocuments July–Aug 2025].

Estimates Context

EBITDA: Consensus (S&P Global) for Q2 2025 was $29.6M vs. actual EBITDA ~$26.9M; miss of ~$2.7M driven by Transportation and Specialty margin/mix pressure and sulfur raw material cost inflation. Values retrieved from S&P Global [functions.GetEstimates] .
EPS: Consensus not available; company reported diluted EPS of $(0.06) . Values retrieved from S&P Global (consensus unavailable).*
Revenue: Consensus not available; revenue actual $180.7M . Values retrieved from S&P Global (consensus unavailable).*

Key Takeaways for Investors

FY25 Adjusted EBITDA guidance maintained at $109.1M; segment guidance unchanged, reinforcing balance-sheet deleveraging focus into 2028 notes refinancing window .
Near term watch items: Q3 seasonal cash flow weakness (turnarounds, interest payments) and tariff risk to Transportation demand; management guides leverage decline in Q4 post-turnaround .
Transportation land rates/miles remain soft; marine utilization impacted by repairs—monitor rate/mix, opex discipline, and equipment availability as catalysts for margin normalization .
Sulfur Services volumes strong; margins compressed YoY by raw materials—pricing actions and ELSA reservation fees partially offset; turnaround season likely to weigh on Q3 .
Terminalling & Storage inflected positively at Smackover on throughput/reservation fees; cost control can drive incremental upside in H2 .
CFO strength ($30.9M) and disciplined capex (growth $0.8M; maintenance $5.2M in Q2) support liquidity through Q3 seasonality; distribution maintained at $0.005/unit .
Estimate revisions: Expect modest downward adjustments to near-term EBITDA where Street models implied ~$29.6M; lack of EPS/revenue consensus reduces headline risk but miss on EBITDA is noteworthy*. Values retrieved from S&P Global [functions.GetEstimates].

Footnote: Asterisked values retrieved from S&P Global.

MARTIN MIDSTREAM PARTNERS L.P. (MMLP)·Q2 2025 Earnings Summary