Ferrellgas Partners, L.P. Reports Third Quarter Fiscal Year 2025 Results

Rhea-AI Summary

Ferrellgas Partners (OTC: FGPR) reported strong Q3 FY2025 results with 9% revenue growth and 12% net earnings growth. The company achieved net earnings of $59.1 million, up from $52.8 million in Q3 FY2024. Revenue growth was driven by increased demand across all segments, with retail sales up 9% and wholesale sales up 8%. Adjusted EBITDA rose 10% to $114.8 million. The quarter was 4% warmer than normal but 12% cooler than Q3 FY2024, contributing to a 12% increase in residential customer gallons sold. The company secured new national accounts through multi-year contracts and reported improved operational metrics through telematics technology. Ferrellgas is currently working with Moelis & Company on refinancing its $308.8 million revolving credit facility and $650.0 million senior unsecured notes, due in late 2025 and early 2026 respectively.

Positive

• Revenue growth of 9% across all customer segments with retail sales up 9% and wholesale sales up 8%
• Net earnings increased by 12% to $59.1 million from $52.8 million year-over-year
• Adjusted EBITDA grew 10% to $114.8 million
• Secured six new national account customers with three-year deals adding 1.6 million gallons of new business
• Residential sales volume grew 12% over the prior year quarter
• Improved operational metrics through telematics technology implementation

Negative

• 12% increase in cost of product due to propane pricing increases
• $8.8 million increase in operating expenses including higher legal costs and software expenses
• $3.5 million increase in interest expense
• Pending refinancing needs for $308.8M revolving credit facility and $650M senior notes due in 2025/2026
• Potential impact from tariffs on steel tanks and cylinders affecting supply chain costs

LIBERTY, Mo., June 06, 2025 (GLOBE NEWSWIRE) -- Ferrellgas Partners, L.P. (OTC: FGPR) (“Ferrellgas” or the “Company”) today reported financial results for its 2025 third fiscal quarter ended April 30, 2025.

Tamria Zertuche, President and Chief Executive Officer, commented, “We are very pleased to have delivered strong third quarter sales growth of 9%, which translated into solid gross profit, and net earnings growth of 12%. This growth was driven by our strong field performance in inclement weather and residential market growth.”

Ms. Zertuche continued, “The Company has been named once again by Newsweek as one of the Most Trustworthy Companies in America. The dedication and commitment our employee-owners make to our customers is a key driver in our growth. We are grateful for the outstanding efforts of our employees who continue to deliver operational excellence through efficiencies, and solid results. Our drivers braced against the elements to safely meet the needs of our customers. Safe driving by our experienced and highly tenured employees, aided by proven planning practices helped achieve opportunities for growth in Retail and solid Blue Rhino performance. I could not be prouder of the way our teams performed. We are well positioned to capitalize on the upcoming peak grilling season, and our prudent expansion efforts are paying off with the addition of several new national accounts with multi-year contracts.”

Financial Highlights:

Revenue growth, of 9% versus the prior year, was driven by positive demand in all customer segments in the third fiscal quarter. Retail and wholesale sales increased 9% and 8%, respectively, as noted below.

Gross profit increased $16.9 million, or 6%, in the third fiscal quarter compared to the prior year. The increase was driven by an increase of $45.1 million, or 9%, in revenues, which was partially offset by an increase of $28.1 million, or 12%, in cost of product. Higher costs were driven by propane pricing increases.

The Company recognized net earnings attributable to Ferrellgas Partners, L.P. of $59.1 million and $52.8 million in the third fiscal quarter of fiscal 2025 and 2024, respectively. The $6.3 million increase was primarily due to the $16.9 million increase in gross profit, described above, which was partially offset by an $8.8 million increase in operating expenses and $3.5 million increase in interest expense.

The $8.8 million increase in operating expense was due to increases of $7.8 million in plant and other, $0.7 million in personnel, and $0.3 million in vehicle expense. The increase in plant and other was primarily due to increases of $3.5 million in legal costs, $1.6 million in software expense, $1.0 million for capitalized tank installations and plant supplies, and $0.8 million for property maintenance.

The $3.5 million increase in interest expense was primarily driven by increases of $1.9 million for amortization of debt issuance costs, related to amendments to the Company’s revolving credit facility, $0.7 million for letters of credit fees, and $0.7 million for interest charges for a lease related to a growth initiative.

For the third fiscal quarter, Adjusted EBITDA, a non-GAAP financial measure, increased by $10.8 million, or 10%, to $114.8 million, compared to $104.0 million in the prior year quarter. The $16.9 million increase in gross profit and a $1.1 million decrease in general and administrative expense, after adjusting for a $0.6 million increase in EBITDA adjustments, drove the increase in Adjusted EBITDA for the third fiscal quarter as compared to the prior year period. This increase was partially offset by the $8.8 million increase in operating expenses noted above.

Operational Highlights:

The third fiscal quarter 2025 was warmer than normal by 4% but 12% cooler than the third fiscal quarter 2024, which aligns with a 12% increase in gallons sold to residential customers. Propane sales volumes during the third fiscal quarter increased 13.4 million gallons, or 6%, compared to the prior year period. Additionally, increases of 6.0% and 2.6% in wholesale propane prices at our two major supply points contributed to the increase in revenues.

Retail sales increased $32.7 million, or 9%, compared to the prior year quarter and partially aligns with the increase in retail gallons sold of 8.8 million gallons, or 5%. Residential sales volume growth of 12% over the prior year quarter drove the majority of the increase, with other retail volume for industrial commercial, national, and agricultural customers growing at 2%.

Wholesale sales increased $9.9 million, or 8%, compared to the prior year period with a corresponding increase of 4.6 million gallons, or 10%, compared to the prior year period. The favorable increase was driven by a $4.7 million increase in wholesale gallons sold and a $3.1 million increase in tank exchange sales due to organic growth and preparation for peak season.

Blue Rhino, the Company’s tank exchange business, focused this quarter on preparing for its peak summer selling season, which aligns with the next fiscal quarter. Impactful capital projects began at several Blue Rhino production plants to improve efficiency and expand capabilities as we modernize operations and make investments to serve customer demands. During periods of economic uncertainty, we have historically observed a shift in consumer behavior toward more cost-effective, home-based leisure activities like grilling. The Company is well-positioned to meet increases in demand through our robust supply network and customer-focused service model.

The Company gained six new national account customers through a three-year deal, which is expected to add a cumulative 1.6 million gallons of new business. In another win, the national sales team signed four additional multi-year contracts, adding a cumulative 0.8 million gallons.

The Company’s new telematic technology has been in place for a full year and has proven to enhance our customer delivery. Metrics related to unproductive deliveries, fill rates, zero gallon and cylinder deliveries have all shown improvement during the third fiscal quarter as compared to the prior year period. Leveraging the technology, the Company’s North Central region experienced a generational ice storm in March, employees worked tirelessly, without a single safety incident, to ensure customers had a critical supply of propane.

The Company continues to closely monitor global trade developments, including the imposition of tariffs on steel tanks and cylinders, and changes in trade policies that may affect our supply chain, cost structure, and overall business operations. The Company is exploring numerous potential actions to mitigate the effects of these developments as we strengthen and diversify our supplier relationships in addition to leveraging the company’s buying power as a national logistics company. We remain committed to proactively adapt to evolving trade conditions with a focus on minimizing disruption and improving financial performance.

Debt Refinancing

As previously disclosed, the Company is working with Moelis & Company, LLC, a global investment bank, on refinancing efforts with respect to the $308.8 million revolving credit facility maturing on December 31, 2025, and the $650.0 million senior unsecured notes due April 1, 2026. The Company anticipates completing a refinancing in a timely manner.

On Friday, June 6, 2025, the Company will conduct a teleconference on the Internet at https://edge.media-server.com/mmc/p/jvdtqz33 to discuss the results of operations for the third fiscal quarter ended April 30, 2025. The webcast of the teleconference will begin at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). Questions may be submitted via the investor relations e-mail box at InvestorRelations@ferrellgas.com.

About Ferrellgas

Ferrellgas Partners, L.P., through its operating partnership, Ferrellgas, L.P., and subsidiaries, serves propane customers in all 50 states, the District of Columbia, and Puerto Rico. Its Blue Rhino propane exchange brand is sold at over 66,000 locations nationwide. Ferrellgas employees indirectly own 1.1 million Class A Units of the partnership, through an employee stock ownership plan. Ferrellgas Partners, L.P. filed an Annual Report on Form 10-K for the fiscal year ended July 31, 2024, with the Securities and Exchange Commission on September 27, 2024. Investors can request a hard copy of this filing free of charge and obtain more information about the partnership online at www.ferrellgas.com. For more information, follow Ferrellgas on Facebook, X, LinkedIn, and Instagram.

Cautionary Note Regarding Forward-Looking Statements

Statements included in this release concerning current estimates, expectations, projections about future results, performance, prospects, opportunities, plans, actions and events and other statements, concerns, or matters that are not historical facts are forward-looking statements as defined under federal securities laws. These statements often use words such as “anticipate,” “believe,” “intend,” “plan,” “projection,” “forecast,” “strategy,” “position,” “continue,” “estimate,” “expect,” “may,” “will,” or the negative of those terms or other variations of them or comparable terminology. A variety of known and unknown risks, uncertainties and other factors could cause results, performance, and expectations to differ materially from anticipated results, performance, and expectations, including the effect of weather conditions on the demand for propane; the prices of wholesale propane, motor fuel and crude oil; disruptions to the supply of propane; competition from other industry participants and other energy sources; energy efficiency and technology advances; significant delays in the collection of accounts or notes receivable; customer, counterparty, supplier or vendor defaults; changes in demand for, and production of, hydrocarbon products; inherent operating and litigation risks in gathering, transporting, handling and storing propane; costs of complying with, or liabilities imposed under, environmental, health and safety laws; the impact of pending and future legal proceedings; the interruption, disruption, failure or malfunction of our information technology systems including due to cyber-attack; economic and political instability, particularly in areas of the world tied to the energy industry, including the ongoing conflicts between Russia and Ukraine and in the Middle East; disruptions in the capital and credit markets; and access to available capital to meet our operating and debt-service requirements; and the anticipated completion of a refinancing. These risks, uncertainties, and other factors also include those discussed in the Annual Report on Form 10-K of Ferrellgas Partners, L.P., Ferrellgas, L.P., Ferrellgas Partners Finance Corp., and Ferrellgas Finance Corp. for the fiscal year ended July 31, 2024, in the Quarterly Report on Form 10-Q of Ferrellgas Partners, L.P., Ferrellgas, L.P., Ferrellgas Partners Finance Corp., and Ferrellgas Finance Corp. for the quarters ended January 31, 2025 and April 30, 2025, and in other documents filed from time to time by these entities with the Securities and Exchange Commission. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this release are made only as of the date hereof. Ferrellgas disclaims any intention or obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law.

FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per unit data) (unaudited)
		Three months ended								Nine months ended								Twelve months ended
		April 30,								April 30,								April 30,
		2025				2024				2025				2024				2025				2024
Revenues:
Propane and other gas liquids sales		$	533,546			$	490,057			$	1,507,371			$	1,413,200			$	1,825,610			$	1,733,315
Other			27,301				25,717				87,337				83,464				109,550				105,235
Total revenues			560,847				515,774				1,594,708				1,496,664				1,935,160				1,838,550
Cost of sales:
Propane and other gas liquids sales			267,891				240,281				750,953				690,299				902,144				841,257
Other			3,727				3,195				11,838				11,366				12,953				14,587
Gross profit			289,229				272,298				831,917				794,999				1,020,063				982,706
Operating expense - personnel, vehicle, plant & other			159,392				150,629				478,306				454,913				624,995				597,861
Operating expense - equipment lease expense			3,833				5,275				14,333				15,994				19,924				21,775
Depreciation and amortization expense			24,336				25,340				73,006				74,179				97,298				98,096
General and administrative expense			12,721				13,305				167,361				43,321				174,379				59,898
Non-cash employee stock ownership plan compensation charge			802				880				2,358				2,500				3,092				3,223
Loss on asset sales and disposals			855				130				4,546				1,847				5,518				4,610
Operating income			87,290				76,739				92,007				202,245				94,857				197,243
Interest expense			(28,142	)			(24,685	)			(82,116	)			(73,205	)			(107,134	)			(98,434	)
Other income, net			779				1,324				1,957				3,509				2,939				4,269
Earnings (loss) before income tax expense			59,927				53,378				11,848				132,549				(9,338	)			103,078
Income tax expense			378				240				943				711				918				804
Net earnings (loss)			59,549				53,138				10,905				131,838				(10,256	)			102,274
Net earnings (loss) attributable to noncontrolling interest(1)			444				372				(375	)			839				(753	)			376
Net earnings (loss) attributable to Ferrellgas Partners, L.P.		$	59,105			$	52,766			$	11,280			$	130,999			$	(9,503	)		$	101,898
Class A unitholders' interest in net earnings (loss)		$	6,127			$	(63,802	)		$	(36,919	)		$	(18,853	)		$	(73,726	)		$	(25,290	)
Net earnings (loss) per unitholders' interest
Basic and diluted net earnings (loss) per Class A Unit		$	1.26			$	(13.13	)		$	(7.60	)		$	(3.88	)		$	(15.18	)		$	(5.21	)
Weighted average Class A Units outstanding - basic and diluted			4,858				4,858				4,858				4,858				4,858				4,858

(1)	Amounts allocated to the general partner for its 1.0101% interest (excluding the economic interest attributable to the preferred unitholders) in the operating partnership, Ferrellgas, L.P.

Supplemental Data and Reconciliation of Non-GAAP Items:
		Three months ended								Nine months ended								Twelve months ended
		April 30,								April 30,								April 30,
		2025				2024				2025				2024				2025				2024
Net earnings (loss) attributable to Ferrellgas Partners, L.P.		$	59,105			$	52,766			$	11,280			$	130,999			$	(9,503	)		$	101,898
Income tax expense			378				240				943				711				918				804
Interest expense			28,142				24,685				82,116				73,205				107,134				98,434
Depreciation and amortization expense			24,336				25,340				73,006				74,179				97,298				98,096
EBITDA			111,961				103,031				167,345				279,094				195,847				299,232
Non-cash employee stock ownership plan compensation charge			802				880				2,358				2,500				3,092				3,223
Loss on asset sales and disposal			855				130				4,546				1,847				5,518				4,610
Other income, net			(779	)			(1,324	)			(1,957	)			(3,509	)			(2,939	)			(4,269	)
Legal fees and settlements related to non-core businesses			1,479				323				130,633				1,480				132,143				5,957
Legal fees and settlements related to core businesses			—				—				4,540				—				4,540				—
Acquisition and related costs(1)			—				—				(798	)			—				1,371				—
Business transformation costs(2)			17				591				1,338				1,556				2,392				3,644
Net earnings (loss) attributable to noncontrolling interest(3)			444				372				(375	)			839				(753	)			376
Adjusted EBITDA(4)			114,779				104,003				307,630				283,807				341,211				312,773
Net cash interest expense(5)			(23,384	)			(21,240	)			(69,288	)			(63,411	)			(90,922	)			(85,809	)
Maintenance capital expenditures(6)			(6,365	)			(5,383	)			(25,506	)			(13,952	)			(33,243	)			(18,706	)
Cash paid for income taxes			(298	)			(136	)			(708	)			(495	)			(912	)			(874	)
Proceeds from certain asset sales			904				589				2,115				1,969				2,456				2,042
Distributable cash flow attributable to equity investors(7)			85,636				77,833				214,243				207,918				218,590				209,426
Less: Distributions accrued or paid to preferred unitholders			15,623				16,045				48,086				48,546				64,318				64,797
Distributable cash flow attributable to general partner and non-controlling interest			(1,713	)			(1,557	)			(4,285	)			(4,159	)			(4,371	)			(4,190	)
Distributable cash flow attributable to Class A and B Unitholders(8)			68,300				60,231				161,872				155,213				149,901				140,439
Less: Distributions paid to Class A and B Unitholders(9)			—				99,996				—				99,996				—				99,996
Distributable cash flow excess (shortage)(10)		$	68,300			$	(39,765	)		$	161,872			$	55,217			$	149,901			$	40,443
Propane gallons sales
Retail - Sales to End Users			171,084				162,282				483,790				479,776				567,899				566,924
Wholesale - Sales to Resellers			51,723				47,102				172,453				152,845				219,478				202,906
Total propane gallons sales			222,807				209,384				656,243				632,621				787,377				769,830

(1	)	Non-recurring due diligence related to potential acquisition activities, restructuring costs, and other adjustments.
(2	)	Non-recurring costs included in “Operating, general and administrative expense” related to the implementation of business transformation initiatives.
(3	)	Amounts allocated to the general partner for its 1.0101% interest (excluding the economic interest attributable to the preferred unitholders) in the operating partnership, Ferrellgas, L.P.
(4	)	Adjusted EBITDA is calculated as net earnings (loss) attributable to Ferrellgas Partners, L.P., plus the sum of the following: income tax expense, interest expense, depreciation and amortization expense, non-cash employee stock ownership plan compensation charge, loss on asset sales and disposals, other income, net, legal fees and settlements related to non-core businesses, legal fees and settlements related to core businesses, acquisition and related costs, business transformation costs, and net earnings (loss) attributable to noncontrolling interest. Management believes the presentation of this measure is relevant and useful because it allows investors to view the partnership's performance in a manner similar to the method management uses, adjusted for items management believes make it easier to compare its results with other companies that have different financing and capital structures. Adjusted EBITDA, as management defines it, may not be comparable to similarly titled measurements used by other companies. Items added into our calculation of Adjusted EBITDA that will not occur on a continuing basis may have associated cash payments. Adjusted EBITDA should be viewed in conjunction with measurements that are computed in accordance with GAAP.
(5	)	Net cash interest expense is the sum of interest expense less non-cash interest expense and other income, net.
(6	)	Maintenance capital expenditures include capitalized expenditures for betterment and replacement of property, plant and equipment, and may from time to time include the purchase of assets that are typically leased.
(7	)	Distributable cash flow attributable to equity investors is calculated as Adjusted EBITDA minus net cash interest expense, maintenance capital expenditures and cash paid for income taxes plus proceeds from certain asset sales. Management considers distributable cash flow attributable to equity investors a meaningful measure of the partnership’s ability to declare and pay quarterly distributions to equity investors, including holders of the operating partnership’s Preferred Units. Distributable cash flow attributable to equity investors, as management defines it, may not be comparable to similarly titled measurements used by other companies. Items added into our calculation of distributable cash flow attributable to equity investors that will not occur on a continuing basis may have associated cash payments. Distributable cash flow attributable to equity investors should be viewed in conjunction with measurements that are computed in accordance with GAAP.
(8	)	Distributable cash flow attributable to Class A and B Unitholders is calculated as Distributable cash flow attributable to equity investors minus distributions accrued or paid on the Preferred Units and distributable cash flow attributable to general partner and noncontrolling interest. Management considers distributable cash flow attributable to Class A and B Unitholders a meaningful measure of the partnership’s ability to declare and pay quarterly distributions to Class A and B Unitholders. Distributable cash flow attributable to Class A and B Unitholders, as management defines it, may not be comparable to similarly titled measurements used by other companies. Items added to our calculation of distributable cash flow attributable to Class A and B Unitholders that will not occur on a continuing basis may have associated cash payments. Distributable cash flow attributable to Class A and B Unitholders should be viewed in conjunction with measurements that are computed in accordance with GAAP.
(9	)	The Company did not pay any distributions to Class A Unitholders during any of the periods in fiscal 2025 or fiscal 2024.
(10	)	Distributable cash flow excess (shortage) is calculated as Distributable cash flow attributable to Class A and B Unitholders minus Distributions paid to Class A and B Unitholders. Distributable cash flow excess, if any, is retained to establish reserves, to reduce debt, to fund capital expenditures and for other partnership purposes, and any shortage is funded from previously established reserves, cash on hand or borrowings under our Credit Facility. Management considers Distributable cash flow excess (shortage) a meaningful measure of the partnership’s ability to effectuate those purposes. Distributable cash flow excess (shortage), as management defines it, may not be comparable to similarly titled measurements used by other companies. Items added into our calculation of distributable cash flow excess (shortage) that will not occur on a continuing basis may have associated cash payments. Distributable cash flow excess (shortage) should be viewed in conjunction with measurements that are computed in accordance with GAAP.

FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except unit data)
(unaudited)
ASSETS		April 30, 2025				July 31, 2024
Current assets:
Cash and cash equivalents (including $10,678 of restricted cash at July 31, 2024)		$	109,325			$	124,160
Accounts and notes receivable, net			183,115				120,627
Inventories			86,109				96,032
Prepaid expenses and other current assets			29,795				34,383
Total current assets			408,344				375,202
Property, plant and equipment, net			609,827				604,954
Goodwill, net			257,155				257,006
Intangible assets (net of accumulated amortization of $364,949 and $358,895 at April 30, 2025 and July 31, 2024, respectively)			108,318				112,155
Operating lease right-of-use assets			40,963				47,620
Other assets, net			71,112				61,813
Total assets		$	1,495,719			$	1,458,750
LIABILITIES, MEZZANINE AND EQUITY (DEFICIT)
Current liabilities:
Accounts payable		$	49,087			$	33,829
Current portion of long-term debt			652,382				2,510
Current operating lease liabilities			17,141				22,448
Other current liabilities			229,211				184,021
Total current liabilities			947,821				242,808
Long-term debt			814,050				1,461,008
Operating lease liabilities			24,840				26,006
Other liabilities			42,766				27,267
Contingencies and commitments
Mezzanine equity:
Senior preferred units, net of issue discount and offering costs (700,000 units outstanding at April 30, 2025 and July 31, 2024)			651,349				651,349
Equity (Deficit):
Limited partner unitholders
Class A (4,857,605 Units outstanding at April 30, 2025 and July 31, 2024)			(1,291,074	)			(1,256,946	)
Class B (1,300,000 Units outstanding at April 30, 2025 and July 31, 2024)			383,012				383,012
General partner Unitholder (49,496 Units outstanding at April 30, 2025 and July 31, 2024)			(70,425	)			(70,080	)
Accumulated other comprehensive income			1,435				2,025
Total Ferrellgas Partners, L.P. deficit			(977,052	)			(941,989	)
Noncontrolling interest			(8,055	)			(7,699	)
Total deficit			(985,107	)			(949,688	)
Total liabilities, mezzanine and deficit		$	1,495,719			$	1,458,750

Contacts
Investor Relations – InvestorRelations@ferrellgas.com

FAQ

What were Ferrellgas Partners (FGPR) Q3 2025 earnings?

Ferrellgas reported net earnings of $59.1 million in Q3 FY2025, up 12% from $52.8 million in Q3 FY2024.

How much did FGPR's revenue grow in Q3 2025?

Ferrellgas achieved 9% revenue growth in Q3 2025, with retail sales up 9% and wholesale sales up 8%.

What is Ferrellgas's current debt situation?

The company is working to refinance a $308.8 million revolving credit facility maturing December 2025 and $650.0 million senior unsecured notes due April 2026.

How did weather impact FGPR's Q3 2025 performance?

The quarter was 4% warmer than normal but 12% cooler than Q3 FY2024, contributing to a 12% increase in residential customer gallons sold.

What new business did Ferrellgas secure in Q3 2025?

The company gained six new national account customers through three-year deals adding 1.6 million gallons, plus four additional multi-year contracts adding 0.8 million gallons.