Ferrellgas Partners LP reported mixed fourth-quarter results Thursday, posting a wider net loss even as adjusted EBITDA rose, reflecting the impact of elevated borrowing costs and warmer weather that dampened propane demand.
Adjusted EBITDA increased 3% to $23.8 million from $23.1 million in the year-ago quarter. Net loss attributable to the company widened 18% to $31.5 million from $26.8 million. Interest expense climbed $6.8 million, while a loss on disposable assets grew by $3.4 million, both weighing on the bottom line.
Gross profit fell $3.9 million, or 2%, to approximately $192 million, as cost of sales rose $3.1 million, or 2%. Revenue declined slightly by $800,000, or 0.2%. Gallons sold dropped roughly 1 million, or 1%, nearly entirely driven by a decline in retail volumes.
For the full fiscal year 2026, Ferrellgas posted a turnaround in net earnings, swinging to $71.7 million in income from a $15.6 million loss a year earlier — an $87.3 million improvement. Adjusted EBITDA fell 3% to $321.3 million from $330.7 million. Revenue decreased $74.3 million, or 4%, while cost of sales came down $75.5 million, or 8%, suggesting margin expansion despite lower volume.
The company sold about 759 million gallons on a trailing twelve-month basis, down 24.6 million gallons, or 3%, from the prior year. Wholesale volumes declined 13.8 million gallons, or 6%, while retail gallons fell 10.7 million, or 2%.
Weather was a notable headwind. Fourth-quarter temperatures were 17% warmer than the prior year, with the West region 34% warmer. For the full year, weather averaged about 11% warmer than the previous year and 3% above normal, with the West region again leading at 16% warmer.
The company redeemed $650 million in senior notes maturing in 2026 and issued $650 million of 2031 senior notes. It also converted 1.3 million Class B units into 6.5 million Class A units in March, eliminating the Class B distribution obligation.
Total liquidity stood at $195.1 million as of July 31, 2026, comprising $48.4 million in cash and cash equivalents plus $146.7 million available on its revolving credit facility.
Ferrellgas said it maintained its position as the second-largest U.S. retail propane marketer by volume. Retail customer retention held steady at 87%, and new customer conversion reached 92.4%. Its Blue Rhino tank-exchange program operated at more than 65,000 retail locations nationwide.
Capital expenditures totaled $77.3 million — $49.3 million for growth capital and $28 million for maintenance — down from $80 million in fiscal 2025.
On safety, workers’ compensation claims improved 3.9% and lost-time incidents improved 15%, with compliance improvements across six key categories.
In regulatory developments, Ferrellgas highlighted a U.S. Supreme Court ruling on June 8 striking down a Department of Energy requirement that residential furnaces meet 95% annual fuel utilization efficiency by 2028 — a standard affecting roughly 55% of gas furnaces sold. Congress also overturned an Advanced Clean Truck mandate for commercial delivery fleet electrification under the Congressional Review Act.
The company also pointed to a Federal Energy Regulatory Commission pipeline rate index spanning July 2026 through June 2031 that caps rate increases below inflation. The National Propane Gas Association estimates the new index saves the industry roughly $7 billion compared with the prior index and about $14 billion versus original proposals.
Shares were unchanged at $21.90, trading within a 52-week range of $14.52 to $27.29. The company’s market capitalization stood at $248.73 million, with a trailing-twelve-month EV/EBITDA multiple of 7.71 and a free-cash-flow yield of 35%.
President and CEO Tamria Zertuche called fiscal 2026 "a year defined by discipline," citing balance-sheet strength and continued lender and bondholder support.
