The conversion of Class B to Class A Units could improve liquidity and attract broader investor interest. Traders should monitor the upcoming earnings call for guidance on full-year performance and the impact of recent operational improvements on future margins.
Price Chart
Executive Summary
Ferrellgas Partners reported stronger-than-expected second-quarter fiscal 2026 results, with net earnings rising 3% year-over-year to $102.2 million despite a 4% revenue decline, driven by cost reductions and margin expansion. The company also announced a $107 million distribution on Class B Units and plans to convert all 1.3 million Class B Units into Class A Units, marking a significant capital structure change.
Key Financial Metrics
Key Facts
- Net earnings attributable to Ferrellgas increased 3% YoY to $102.2 million in Q2 FY2026
- Adjusted EBITDA rose 6% to $166.1 million, driven by $31.3 million reduction in cost of product
- Gross profit increased $3.0 million (1%) despite a $28.4 million (4%) revenue decline
- Company declared $107 million cash distribution on Class B Units and will convert all 1.3 million Class B Units to Class A Units
- Retail gross profit increased $7.1 million (3%) due to winter demand and operational efficiencies
Financial Impact
Net earnings increased by $3.3 million (3%) year-over-year to $102.2 million, with adjusted EBITDA up $9.1 million (6%) to $166.1 million
Segment Breakdown
| Segment | Revenue |
|---|---|
| Retail | $641.4M |
Risk Factors
- Revenue declined 4% year-over-year despite improved profitability, indicating pricing or volume challenges
- Weather patterns were mixed, with warmer conditions in the west partially offsetting cold weather benefits in the east
- The company faces ongoing risks from commodity price volatility and weather dependency in the propane business
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-023782 |
| Document: fgp-20260305x8k.htm | 0001104659-26-023782 |
| Document: 0001104659-26-023782-index-headers.html | 0001104659-26-023782 |
| Document: 0001104659-26-023782-index.html | 0001104659-26-023782 |
| Document: 0001104659-26-023782.txt | 0001104659-26-023782 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Mar 5, 2026 33w ago | 8-K | $25.47 $24.00 | ▼ −5.75% | ▼ −17.05% | $20.21 (−20.64%) |
Mar 4, 2026 33w ago | 8-K | $25.47 $24.00 | ▼ −5.75% | ▼ −17.05% | $20.21 (−20.64%) |
US Market Status
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