Ferrellgas Partners, L.P. reported second‑quarter fiscal 2026 results that ended January 31 2026, showing net earnings attributable to the partnership of $102.2 million, a 3 % year‑over‑year increase from $98.8 million. Adjusted EBITDA climbed 6 % to $166.1 million, driven by a $3.0 million rise in gross profit and a $31.3 million reduction in cost of product.
The company highlighted operational efficiencies, noting a $4.6 million cut in general and administrative expenses and a $1.6 million decrease in lease‑related operating costs. Management credited winter‑readiness initiatives—upgraded inventory visibility and predictive analytics—to help meet elevated demand while maintaining route efficiency during an extended cold spell in the eastern United States and milder weather in the west.
Revenue fell 4 % to $2.89 billion, largely due to lower propane prices. The decline was offset by a $7.1 million increase in gross profit for the retail business, indicating that higher‑margin retail volumes helped cushion the impact of commodity price pressure.
The quarter also marked a turnaround from the first quarter of fiscal 2026, when the partnership posted a net loss of $26.9 million. The shift to profitability underscores the effectiveness of the company’s cost‑control program and its ability to adapt to changing market conditions.
Ferrellgas announced a cash distribution of $82.32 per Class B Unit, totaling approximately $107 million, payable around March 13 2026. The distribution accompanies a planned conversion of Class B Units to Class A Units, a move that simplifies the capital structure and signals a commitment to returning value to unit holders.
"Our team's preparation at the beginning of fiscal 2026 enabled us to achieve strong second‑quarter results. Extended cold weather across much of the eastern region, combined with warmer conditions in the west, created both challenges and opportunities for the beginning of the winter heating season. Our employee‑owners showed exceptional adaptability by reallocating personnel and resources to meet increased demand while continuing to drive growth and manage expenses. As a result, we achieved expanded margins, increased profit and are well positioned for the upcoming quarter and the rest of the fiscal year," said Tamria Zertuche, President and CEO.
"Overall, it was a quarter where preparation, operational discipline, and cost control all came together nicely, and you see it in our financial results. Winter is not over yet, so we're optimistic about the third quarter," added Nick Heimer, Vice President and Corporate Controller.
Ferrellgas beat analyst estimates for the quarter, with adjusted earnings per share of $2.51 surpassing consensus expectations. The beat reflects the company’s disciplined cost management and the ability to maintain margin expansion despite a modest revenue decline.
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