Global Partners 2025 Q3 Earnings Net Income Falls 36.8% Amid Margin Pressures

Global Partners reported Q3 2025 results that fell short of expectations, with a 44.1% drop in EPS and a 36.8% decline in net income. The company did not adjust its guidance but highlighted operational challenges in its Gasoline Distribution and Station Operations segment, which saw reduced product margins. Despite a 6.2% revenue increase, the stock price dropped 6.72% for the week, reflecting investor concerns over margin pressures.

Revenue

The total revenue of Global Partners increased by 6.2% to $4.69 billion in 2025 Q3, driven by strong performance in the Wholesale segment. The Wholesale segment reported $3.12 billion, with gasoline and gasoline blendstocks contributing $2.09 billion and distillates and other oils adding $1.03 billion. Meanwhile, the Gasoline Distribution and Station Operations segment generated $1.28 billion, with gasoline accounting for $1.13 billion and station operations at $151.91 million. The Commercial segment added $297.85 million to the total revenue.

Earnings/Net Income

Global Partners's EPS declined 44.1% to $0.66 in 2025 Q3 from $1.18 in 2024 Q3. Meanwhile, the company's net income declined to $29.02 million in 2025 Q3, down 36.8% from $45.92 million reported in 2024 Q3. The significant declines in both EPS and net income indicate a challenging quarter for profitability, despite the revenue increase.

Post-Earnings Price Action Review

The strategy of buying GLP on revenue beats and holding for 30 days has historically shown positive results, leveraging the market's reaction to positive earnings reports. This approach allows investors to capture short-term price momentum, with a historical average increase of 5.2% within 30 days. The 30-day holding period helps mitigate volatility, as GLP's stock has moderate volatility, making it suitable for this strategy. While returns may not be high, they are stable and reasonable. Additionally, the holding period provides a buffer against market fluctuations, allowing investors to reassess if the stock price declines shortly after purchase, thus limiting potential losses.

CEO Commentary

Eric Slifka (President, CEO & Vice Chairman of Global GP LLC) highlighted strong Q3 performance driven by favorable gasoline market conditions and optimized terminal operations, noting “operational strength and disciplined execution” across the organization. He emphasized strategic investments in terminal assets, marine fuel expansion into Houston, and redefining convenience store experiences through brands like Honey Farms Market. Slifka expressed optimism about long-term growth, stating the company’s “scale, integrated operations, and talented team” enable flexibility to pursue opportunities. He underscored the importance of the retail network in driving loyalty and community engagement, aligning with the company’s focus on “community, hospitality, local, and fresh.”

Guidance

Global Partners provided CapEx guidance for 2025: $45 million to $55 million for maintenance capital expenditures and $40 million to $50 million for expansion capital expenditures, excluding acquisitions. The CEO reiterated a focus on “capital discipline and operational efficiency” to drive sustainable returns, with no explicit revenue or EPS targets mentioned. The Board’s Q3 distribution of $0.755 per common unit, marking the 16th consecutive increase, reflects ongoing commitment to unitholder returns.

Additional News

Global Partners expanded its marine fuel operations into the Port of Houston, enhancing its Gulf Coast presence. The company also declared a 16th consecutive quarterly distribution increase, raising the dividend to $0.755 per common unit. These moves underscore management's commitment to growth and shareholder returns, despite the challenging market conditions.