Martin Midstream Partners (Nasdaq: MMLP) trims 2026 guidance after wider Q1 loss
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Martin Midstream Partners L.P. reported weaker results for the first quarter of 2026 and cut its full-year outlook. The Partnership posted a net loss of $6.8 million, compared with a net loss of $1.0 million a year earlier, as fertilizer margin pressure and transportation challenges weighed on performance.
First-quarter Adjusted EBITDA was $20.8 million, down from $27.8 million in 2025, on revenues of $187.7 million versus $192.5 million. Sulfur Services and Transportation saw the largest Adjusted EBITDA declines, while Terminalling and Storage and Specialty Products were relatively stable.
The Partnership revised full-year 2026 Adjusted EBITDA guidance down to $90.0 million and generated negative Distributable Cash Flow of $2.9 million in the quarter. As of March 31, total debt outstanding was about $468.1 million with a total adjusted leverage ratio of 5.08x. Despite the weaker cash generation, the Partnership declared a quarterly cash distribution of $0.005 per common unit.
Positive
- None.
Negative
- Profitability deterioration and weaker cash generation: Net loss widened to $6.8 million from $1.0 million, Adjusted EBITDA fell to $20.8 million from $27.8 million, and Distributable Cash Flow turned to a negative $2.9 million from a positive $9.1 million year over year.
- Downward guidance revision under high leverage: Full-year 2026 Adjusted EBITDA guidance was cut to $90.0 million while total debt stood at $468.1 million and the total adjusted leverage ratio rose to 5.08x as of March 31, 2026.
Insights
Results weaken, guidance cut and leverage above 5x raise risk focus.
Martin Midstream Partners delivered softer first-quarter 2026 performance, with Adjusted EBITDA of $20.8 million versus $27.8 million a year earlier. Segment detail shows sharp declines in Sulfur Services and Transportation, driven by fertilizer margin compression and staffing constraints in land transport.
Management reduced full-year 2026 Adjusted EBITDA guidance to $90.0 million, signaling that current headwinds are expected to persist. Distributable Cash Flow was negative $2.9 million in the quarter, and full-year Distributable Cash Flow is guided to only $8.3 million, limiting internal funding capacity.
Debt remains elevated at $468.1 million with a total adjusted leverage ratio of 5.08x as of March 31, 2026, though the revolving credit facility was amended to add covenant flexibility. The Partnership still declared a quarterly distribution of $0.005 per unit, while guidance implies modest positive Adjusted Free Cash Flow of about $4.0 million for full-year 2026.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q1 2026 revenue: $187.7 million
Q1 2026 net loss: $6.8 million
Q1 2026 Adjusted EBITDA: $20.8 million
+5 more
8 metrics
Q1 2026 revenue
$187.7 million
Three months ended March 31, 2026 total revenues
Q1 2026 net loss
$6.8 million
Net loss for three months ended March 31, 2026 vs $1.0M in 2025
Q1 2026 Adjusted EBITDA
$20.8 million
Adjusted EBITDA for three months ended March 31, 2026 vs $27.8M in 2025
Q1 2026 Distributable Cash Flow
-$2.9 million
Distributable Cash Flow for three months ended March 31, 2026
Quarterly distribution per unit
$0.005 per unit
Cash distribution for quarter ended March 31, 2026 payable May 15, 2026
Total debt outstanding
$468.1 million
Debt outstanding as of March 31, 2026 including revolving credit facility and notes
Total adjusted leverage ratio
5.08x
Leverage ratio as calculated under revolving credit facility at March 31, 2026
2026 Adjusted EBITDA guidance
$90.0 million
Revised full-year 2026 Adjusted EBITDA guidance
Key Terms
Adjusted EBITDA, Distributable Cash Flow, Adjusted Free Cash Flow, Credit Adjusted EBITDA, +1 more
5 terms
Adjusted EBITDA financial
"Net loss of $6.8 million... Adjusted EBITDA of $20.8 million for the first quarter of 2026"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Distributable Cash Flow financial
"Distributable Cash Flow | $ (2.9) | | | $ 9.1"
Distributable cash flow is the amount of money a business generates from its operations that management considers available to pay dividends, buy back shares, or make other distributions to owners after setting aside what’s needed to keep the business running and meet routine obligations. Investors care because it shows how much real cash can be returned to them—like a household’s leftover paycheck after paying rent and groceries—and helps judge whether payouts are sustainable and backed by operations rather than accounting entries.
Adjusted Free Cash Flow financial
"Adjusted Free Cash Flow. We define Adjusted Free Cash Flow as Distributable Cash Flow less growth capital expenditures"
Adjusted free cash flow is the amount of money a company generates from its operations after accounting for essential expenses and investments, like maintaining or upgrading equipment. It shows how much cash is truly available to grow the business, pay debts, or return to shareholders, helping investors see the company's financial health more clearly.
Credit Adjusted EBITDA financial
"our leverage ratio was 5.08 times based on Credit Adjusted EBITDA"
Credit-adjusted EBITDA is a measure of a company's operating profit that starts with earnings before interest, taxes, depreciation and amortization and then adjusts for credit-related items such as expected loan losses, bad-debt allowances, or other financing and credit costs. Investors use it to see how much cash the business generates after accounting for credit risks, which helps assess the company’s ability to pay debt or cover losses—like judging a car’s fuel efficiency after adding the weight of heavy cargo.
leverage ratio financial
"our leverage ratio was 5.08 times based on Credit Adjusted EBITDA"
Leverage ratio measures how much a company relies on borrowed money compared with its own funds or assets, typically expressed as debt relative to equity or total assets. Like a homeowner with a mortgage, higher leverage can amplify returns when business is strong but also raises the chance of big losses or default if revenue falls, so investors use it to judge financial risk and resilience.
Earnings Snapshot
Revenue: $187.7 million · Guidance included
Q1 2026
Revenue
$187.7 million
$192.5 million prior-year comparator
Net income (loss)
-$6.8 million
-$1.0 million prior-year comparator
Adjusted EBITDA
$20.8 million
$27.8 million prior-year comparator
Distributable Cash Flow
-$2.9 million
$9.1 million prior-year comparator
Guidance
For full-year 2026, the Partnership guided to Adjusted EBITDA of $90.0 million, Distributable Cash Flow of $8.3 million, and Adjusted Free Cash Flow of $4.0 million.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of report (date of earliest event reported): April 22, 2026
(Exact name of Registrant as specified in its charter)
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Registrant's telephone number, including area code: (903 ) 983-6200
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||||||
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| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | ||||||||
Securities registered pursuant to Section 12(b) of the Act
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the
Exchange Act. o
| Item 2.02 | Results of Operations and Financial Condition. | |||||||
On April 22, 2026, Martin Midstream Partners L.P. (the "Partnership") issued a press release reporting its financial results for the quarter ended March 31, 2026, together with accompanying supplemental information regarding the Partnership’s first quarter 2026 earnings summary (the “Supplemental Information”). Copies of the press release and the Supplemental Information are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report on Form 8-K and will be published on the Partnership's website at www.MMLP.com. In accordance with General Instruction B.2 of Form 8-K, the information set forth herein and in the press release and Supplemental Information is deemed to be “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
| Item 9.01 | Financial Statements and Exhibits. | |||||||
(d) Exhibits
In accordance with General Instruction B.2 of Form 8-K, the information set forth in the attached Exhibit 99.1 and Exhibit 99.2 are deemed to be “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act.
| Exhibit Number | Description | |||||||
| 99.1 | Press release dated April 22, 2026 | |||||||
| 99.2 | Supplemental information - Martin Midstream Partners L.P. First Quarter Earnings Summary | |||||||
| 104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document (contained in Exhibit 101). | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
MARTIN MIDSTREAM PARTNERS L.P. By: Martin Midstream GP LLC, Its General Partner | ||||||||||||||
Date: April 22, 2026 | By: /s/ Sharon L. Taylor | |||||||||||||
| Sharon L. Taylor | ||||||||||||||
Executive Vice President and Chief Financial Officer | ||||||||||||||
EXHIBIT 99.1
MARTIN MIDSTREAM PARTNERS REPORTS FIRST QUARTER 2026 FINANCIAL RESULTS AND DECLARES QUARTERLY CASH DISTRIBUTION
•Net loss of $6.8 million for the first quarter of 2026, compared to a net loss of $1.0 million for the same period in 2025
•Adjusted EBITDA of $20.8 million for the first quarter of 2026, compared to Adjusted EBITDA of $27.8 million for the same period in 2025
•Revises full year Adjusted EBITDA guidance downward to $90.0 million
•Declares quarterly cash dividend of $0.005 per common unit
KILGORE, Texas, April 22, 2026 (BUSINESS WIRE) -- Martin Midstream Partners L.P. (Nasdaq: MMLP) (“MMLP” or the “Partnership”) today announced its financial results for the first quarter of 2026.
Bob Bondurant, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of the Partnership, stated, “For the first quarter of 2026, the Partnership generated Adjusted EBITDA of $20.8 million, short of the pace needed to achieve our full-year guidance. Two primary headwinds impacted the quarter: meaningful margin pressure in our fertilizer business and lower than anticipated contribution by the transportation business. As a result, we are revising our full-year 2026 Adjusted EBITDA guidance downward to $90.0 million.”
“Our Terminalling and Storage and Specialty Products segments performed in line with our internal expectations for the quarter, and we expect both segments to achieve their full-year guidance targets.”
“In our Sulfur Services segment, first quarter 2026 results were negatively impacted in the fertilizer business, as elevated input costs, primarily sulfur and ammonia, and weak farmer affordability continue to impact fertilizer products. Strong performance from our pure sulfur business partially offset the fertilizer shortfall, and we expect this business to achieve its full-year guidance target. However, we do not expect fertilizer market conditions to meaningfully improve over the balance of the year, and we have adjusted our guidance for the fertilizer business line accordingly.”
“In our Transportation Services segment, demand remained strong during the first quarter of 2026 for both our marine and land divisions. However, in the land transportation business, customer demand is outpacing our current driver capacity. The inability to hire and retain additional certified tank truck drivers negatively impacted our trucking revenues in the first quarter and continues to be a challenge across the overall trucking industry. Given this driver capacity constraint, we are reducing our guidance for this business line. The inland marine equipment performed in line with expectations and our offshore equipment experienced reduced utilization from planned downtime due to regulatory inspections that were advanced into the first quarter. We anticipate the marine division will perform as expected for the year.”
“During the quarter, we amended our revolving credit facility, providing the Partnership with additional covenant flexibility as we navigate through the current environment. As of March 31, 2026, total debt outstanding was approximately $468.0 million, liquidity under our revolving credit facility was approximately $37.5 million, and our leverage ratio was 5.08 times based on Credit Adjusted EBITDA.”
FIRST QUARTER 2026 OPERATING RESULTS BY BUSINESS SEGMENT
| Operating Income (Loss) ($M) | Adjusted EBITDA ($M) | ||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (Amounts may not add or recalculate due to rounding) | |||||||||||||||||||||||
| Business Segment: | |||||||||||||||||||||||
| Transportation | $ | 3.2 | $ | 5.5 | $ | 6.0 | $ | 8.0 | |||||||||||||||
| Terminalling and Storage | 2.2 | 2.1 | 7.1 | 7.7 | |||||||||||||||||||
| Sulfur Services | 2.5 | 7.7 | 6.8 | 11.5 | |||||||||||||||||||
| Specialty Products | 3.5 | 3.7 | 4.3 | 4.5 | |||||||||||||||||||
| Indirect Selling, General and Administrative Expenses | (3.5) | (4.7) | (3.4) | (3.8) | |||||||||||||||||||
| $ | 8.0 | $ | 14.4 | $ | 20.8 | $ | 27.8 | ||||||||||||||||
Transportation Adjusted EBITDA decreased by $2.0 million. In the land division, Adjusted EBITDA declined by $0.8 million, primarily due to lower miles and reduced transportation rates combined with higher operating expenses. In the marine division, Adjusted EBITDA decreased by $1.2 million. Offshore Adjusted EBITDA declined $0.9 million, driven by lower utilization associated with planned regulatory inspections combined with lower transportation rates. The offshore unit is expected to return to service during the second quarter. Inland Adjusted EBITDA declined $0.1 million, driven by lower day rates, partially offset by higher utilization. Additionally, the marine division saw an increase in operating expenses of $0.2 million.
Terminalling and Storage Adjusted EBITDA decreased by $0.6 million. At our Smackover refinery, Adjusted EBITDA declined by $0.4 million as a result of higher operating expenses, partially offset by increased throughput and reservation fees. In our specialty terminals division, Adjusted EBITDA declined by $0.4 million due to lower service revenue combined with higher operating expenses. Adjusted EBITDA in our shore-based terminals division decreased $0.2 million due to lower service revenue, partially offset by higher throughput fees combined with lower operating expenses. In the underground NGL storage division, Adjusted EBITDA increased by $0.4 million due to increased throughput revenue, partially offset by a slight increase in expenses.
Sulfur Services Adjusted EBITDA decreased by $4.7 million. In the fertilizer division, Adjusted EBITDA decreased by $5.4 million from margin pressure associated with rapidly rising raw material costs combined with lower volume. In the pure sulfur business, Adjusted EBITDA increased by $0.4 million due to lower operating expenses, partially offset by reduced margins. In the sulfur prilling business, Adjusted EBITDA increased by $0.3 million due to increased reservation fees.
Specialty Products Adjusted EBITDA decreased by $0.2 million. Adjusted EBITDA for the lubricants division increased by $1.0 million, reflecting increases in volume and margins. In the grease division, Adjusted EBITDA decreased by $1.1 million, primarily due to reduced volumes and margins. Adjusted EBITDA in the propane division decreased by $0.4 million due to lower volumes. The NGL division increased by $0.2 million, reflecting higher margins.
Indirect selling, general, and administrative expenses decreased by $0.4 million, primarily due to lower employee-related expenses.
RESULTS OF OPERATIONS SUMMARY
(in millions, except per unit amounts)
| Period | Net Income (Loss) | Net Income (Loss) Per Unit | Adjusted EBITDA | Net Cash Provided by (Used in) Operating Activities | Distributable Cash Flow | Revenues | ||||||||||||||||||||||||||||||||
| Three Months Ended March 31, 2026 | $ | (6.8) | $ | (0.17) | $ | 20.8 | $ | (13.8) | $ | (2.9) | $ | 187.7 | ||||||||||||||||||||||||||
| Three Months Ended March 31, 2025 | $ | (1.0) | $ | (0.03) | $ | 27.8 | $ | (6.0) | $ | 9.1 | $ | 192.5 | ||||||||||||||||||||||||||
Reconciliation of Net Income (Loss) to Adjusted EBITDA for the Three Months Ended March 31, 2026 and 2025
| (in millions) | Transportation | Terminalling & Storage | Sulfur Services | Specialty Products | Indirect SG&A | Interest Expense | 1Q 2026 Actual | ||||||||||||||||
| Net income (loss) | $ | 3.2 | $ | 2.2 | $ | 2.5 | $ | 3.5 | $ | (4.3) | $ | (14.0) | $ | (6.8) | |||||||||
| Interest expense add back | – | – | – | – | – | $ | 14.0 | $ | 14.0 | ||||||||||||||
| Equity in (earnings) loss of DSM Semichem LLC | – | – | – | – | $ | 0.3 | – | $ | 0.3 | ||||||||||||||
| Income tax expense | – | – | – | – | $ | 0.5 | – | $ | 0.5 | ||||||||||||||
| Operating Income (loss) | $ | 3.2 | $ | 2.2 | $ | 2.5 | $ | 3.5 | $ | (3.5) | $ | – | $ | 8.0 | |||||||||
| Depreciation and amortization | $ | 3.0 | $ | 5.0 | $ | 4.1 | $ | 0.8 | – | – | $ | 12.9 | |||||||||||
| (Gain) loss on sale or disposition of property, plant, and equipment | $ | (0.3) | – | – | – | – | – | $ | (0.3) | ||||||||||||||
| Non-cash contractual revenue deferral adjustment | – | – | $ | 0.2 | – | – | – | $ | 0.2 | ||||||||||||||
| Unit-based compensation | – | – | – | – | – | – | – | ||||||||||||||||
| Adjusted EBITDA | $ | 6.0 | $ | 7.1 | $ | 6.8 | $ | 4.3 | $ | (3.4) | $ | – | $ | 20.8 | |||||||||
| (in millions) | Transportation | Terminalling & Storage | Sulfur Services | Specialty Products | Indirect SG&A | Interest Expense | 1Q2025 Actual | ||||||||||||||||
| Net income (loss) | $ | 5.5 | $ | 2.1 | $ | 7.7 | $ | 3.7 | $ | (6.0) | $ | (14.1) | $ | (1.0) | |||||||||
| Interest expense add back | – | – | – | – | – | $ | 14.1 | $ | 14.1 | ||||||||||||||
| Equity in (earnings) loss of DSM Semichem LLC | – | – | – | – | $ | 0.2 | – | $ | 0.2 | ||||||||||||||
| Income tax expense | – | – | – | – | $ | 1.1 | – | $ | 1.1 | ||||||||||||||
| Operating Income (loss) | $ | 5.5 | $ | 2.1 | $ | 7.7 | $ | 3.7 | $ | (4.7) | $ | – | $ | 14.4 | |||||||||
| Depreciation and amortization | $ | 2.9 | $ | 5.6 | $ | 3.6 | $ | 0.8 | – | – | $ | 12.8 | |||||||||||
| (Gain) on sale or disposition of property, plant, and equipment | $ | (0.5) | – | – | – | – | – | $ | (0.5) | ||||||||||||||
| Transaction expenses related to the unsuccessful merger with Martin Resource Management Corporation | – | – | – | – | $ | 0.8 | – | $ | 0.8 | ||||||||||||||
| Non-cash contractual revenue deferral adjustment | – | – | $ | 0.2 | – | – | – | $ | 0.2 | ||||||||||||||
| Unit-based compensation | – | – | – | – | – | – | – | ||||||||||||||||
| Adjusted EBITDA | $ | 8.0 | $ | 7.7 | $ | 11.5 | $ | 4.5 | $ | (3.8) | $ | – | $ | 27.8 | |||||||||
NON-GAAP FINANCIAL MEASURES
EBITDA, Adjusted EBITDA, Credit Adjusted EBITDA, Distributable Cash Flow and Adjusted Free Cash Flow are non-GAAP financial measures which are explained in greater detail below under the heading "Use of Non-GAAP Financial Information." The Partnership has also included tables below entitled "Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA” and “Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA, Distributable Cash Flow, and Adjusted Free Cash Flow” in order to show the components of these non-GAAP financial measures and their reconciliation to the most comparable GAAP measurement.
An attachment included in the Current Report on Form 8-K to which this announcement is included contains a comparison of the Partnership’s Adjusted EBITDA for the first quarter of 2026 to the Partnership's Adjusted EBITDA for the first quarter of 2025.
CAPITALIZATION
| March 31, 2026 | December 31, 2025 | ||||||||||
| ($ in millions) | |||||||||||
| Debt Outstanding: | |||||||||||
Revolving Credit Facility, Due November 2027 1 | $ | 68.0 | $ | 39.0 | |||||||
| Finance lease obligations | 0.1 | 0.1 | |||||||||
| 11.50% Senior Secured Notes, Due February 2028 | 400.0 | 400.0 | |||||||||
| Total Debt Outstanding: | $ | 468.1 | $ | 439.1 | |||||||
| Summary Credit Metrics: | |||||||||||
| Revolving Credit Facility - Total Capacity | $ | 115.0 | $ | 130.0 | |||||||
| Revolving Credit Facility - Available Liquidity | $ | 37.5 | $ | 31.4 | |||||||
Total Adjusted Leverage Ratio 2 | 5.08x | 4.43x | |||||||||
Senior Leverage Ratio 2 | 0.74x | 0.39x | |||||||||
Interest Coverage Ratio 2 | 1.77x | 1.90x | |||||||||
1 The Partnership was in compliance with all debt covenants as of March 31, 2026 and December 31, 2025.
2 As calculated under the Partnership's revolving credit facility.
QUARTERLY CASH DISTRIBUTION
The Partnership has declared a quarterly cash distribution of $0.005 per unit for the quarter ended March 31, 2026. The distribution is payable on May 15, 2026, to common unitholders of record as of the close of business on May 8, 2026. The ex-dividend date for the cash distribution is May 8, 2026.
Qualified Notice to Nominees
This release is intended to serve as qualified notice under Treasury Regulation Section 1.1446-4(b)(4) and (d). Brokers and nominees should treat one hundred percent (100%) of MMLP’s distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, MMLP’s distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate. For purposes of Treasury Regulation section 1.1446(f)-4(c)(2)(iii), brokers and nominees should treat one hundred percent (100%) of the distributions as being in excess of cumulative net income for purposes of determining the amount to withhold. Nominees, and not Martin Midstream Partners L.P., are treated as withholding agents responsible for any necessary withholding on amounts received by them on behalf of foreign investors.
About Martin Midstream Partners
Martin Midstream Partners L.P., headquartered in Kilgore, Texas, is a publicly traded limited partnership with a diverse set of operations focused primarily in the Gulf Coast region of the United States. MMLP’s primary business lines include: (1) terminalling, processing, and storage services for petroleum products and by-products; (2) land and marine transportation services for petroleum products and by-products, chemicals, and specialty products; (3) sulfur and sulfur-based products processing, manufacturing, marketing and distribution; and (4) marketing, distribution, and transportation services for natural gas liquids and blending and packaging services for specialty lubricants and grease. To learn more, visit www.MMLP.com. Follow Martin Midstream Partners L.P. on LinkedIn and Facebook.
Forward-Looking Statements
Statements about the Partnership’s outlook and all other statements in this release other than historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements and all references to financial estimates rely on a number of assumptions concerning future events and are subject to a number of uncertainties, including (i) the effects of the continued volatility of commodity prices and the related macroeconomic and political environment, (ii) uncertainties relating to the Partnership’s future cash flows and operations, (iii) the Partnership’s ability to pay future distributions, (iv) future market conditions, (v) current and future governmental regulation, (vi) future taxation, (vii) our expectation around the achievement of the amounts reflected in our guidance, and (viii) other factors, many of which are outside its control, which could cause actual results to differ materially from such statements. While the Partnership believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in anticipating or predicting certain important factors. A discussion of these factors, including risks and uncertainties, is set forth in the Partnership’s annual and quarterly reports filed from time to time with the Securities and Exchange Commission (the “SEC”). The Partnership disclaims any intention or obligation to revise any forward-looking statements, including financial estimates, whether as a result of new information, future events, or otherwise except where required to do so by law.
Use of Non-GAAP Financial Information
To assist management in assessing our business, we use the following non-GAAP financial measures: earnings before interest, taxes, and depreciation and amortization ("EBITDA"), Adjusted EBITDA (as defined below), Credit Adjusted EBITDA (as defined below), distributable cash flow available to common unitholders (“Distributable Cash Flow”), and free cash flow after growth capital expenditures and principal payments under finance lease obligations ("Adjusted Free Cash Flow"). Our management uses a variety of financial and operational measurements other than our financial statements prepared in accordance with U.S. GAAP to analyze our performance.
Certain items excluded from EBITDA and Adjusted EBITDA are significant components in understanding and assessing an entity's financial performance, such as cost of capital and historical costs of depreciable assets.
Adjusted EBITDA and Credit Adjusted EBITDA. We define Adjusted EBITDA as EBITDA before unit-based compensation expenses, gains and losses on the disposition of property, plant and equipment, impairment and other similar non-cash adjustments, transaction costs associated with business combination, merger, and divestiture activities, equity in earnings (loss) from unconsolidated entities, and non-cash contractual revenue deferral adjustments. Adjusted EBITDA is used as a supplemental performance and liquidity measure by our management and by external users of our financial statements, such as investors, commercial banks, research analysts, and others, to assess:
•the financial performance of our assets without regard to financing methods, capital structure, or historical cost basis;
•the ability of our assets to generate cash sufficient to pay interest costs, support our indebtedness, and make cash distributions to our unitholders; and
•our operating performance and return on capital as compared to those of other companies in the midstream energy sector, without regard to financing methods or capital structure.
We define Credit Adjusted EBITDA as Adjusted EBITDA plus pro forma adjustments associated with business combinations or material projects and capitalized interest. Credit Adjusted EBITDA is used as a supplemental performance and liquidity measure by our management and by external users of our financial statements, such as investors, commercial banks, research analysts, and others to provide additional information regarding the calculation of, and compliance with, certain financial covenants in the Partnership’s Third Amended and Restated Credit Agreement.
The GAAP measures most directly comparable to Adjusted EBITDA and Credit Adjusted EBITDA are Net Income (Loss) and Net Cash Provided by (Used In) Operating Activities. Adjusted EBITDA and Credit Adjusted EBITDA should not be considered an alternative to, or more meaningful than, Net Income (Loss), Operating Income (Loss), Net Cash Provided by (Used in) Operating Activities, or any other measure of financial performance presented in accordance with GAAP. Adjusted EBITDA and Credit Adjusted EBITDA may not be comparable to similarly titled measures of other companies because other companies may not calculate Adjusted EBITDA in the same manner.
Adjusted EBITDA does not include interest expense, income tax expense, and depreciation and amortization. Because we have borrowed money to finance our operations, interest expense is a necessary element of our costs and our ability to generate cash available for distribution. Because we have capital assets, depreciation and amortization are also necessary elements of our costs. Therefore, any measures that exclude these elements have material limitations. To compensate for these limitations, we believe that it is important to consider Net Income (Loss) and Net Cash Provided by (Used in) Operating Activities as determined under GAAP, as well as Adjusted EBITDA, to evaluate our overall performance.
Distributable Cash Flow. We define Distributable Cash Flow as Net Cash Provided by (Used in) Operating Activities less cash received (plus cash paid) for closed commodity derivative positions included in Accumulated Other Comprehensive Income (Loss), plus changes in operating assets and liabilities which (provided) used cash, less maintenance capital expenditures and plant turnaround costs. Distributable Cash Flow is a significant performance measure used by our management and by external users of our financial statements, such as investors, commercial banks and research analysts, to compare basic cash flows generated by us to the cash distributions we expect to pay unitholders. Distributable Cash Flow is also an important financial measure for our unitholders since it serves as an indicator of our success in providing a cash return on investment. Specifically, this financial measure indicates to investors whether or not we are generating cash flow at a level that can sustain or support an increase in our quarterly distribution rates. Distributable Cash Flow is also a quantitative standard used throughout the investment community with respect to publicly-traded partnerships because the value of a unit of such an entity is generally determined by the unit's yield, which in turn is based on the amount of cash distributions the entity pays to a unitholder.
Adjusted Free Cash Flow. We define Adjusted Free Cash Flow as Distributable Cash Flow less growth capital expenditures and principal payments under finance lease obligations. Adjusted Free Cash Flow is a significant performance measure used by our management and by external users of our financial statements and represents how much cash flow a business generates during a specified time period after accounting for all capital expenditures, including expenditures for growth and maintenance capital projects. We believe that Adjusted Free Cash Flow is important to investors, lenders, commercial banks and research analysts since it reflects the amount of cash available for reducing debt, investing in additional capital projects, paying distributions, and similar matters. Our calculation of Adjusted Free Cash Flow may or may not be comparable to similarly titled measures used by other entities.
The GAAP measure most directly comparable to Distributable Cash Flow and Adjusted Free Cash Flow is Net Cash Provided by (Used in) Operating Activities. Distributable Cash Flow and Adjusted Free Cash Flow should not be considered alternatives to, or more meaningful than, Net Income (Loss), Operating Income (Loss), Net Cash Provided by (Used in) Operating Activities, or any other measure of liquidity presented in accordance with GAAP. Distributable Cash Flow and Adjusted Free Cash Flow have important limitations because they exclude some items that affect Net Income (Loss), Operating Income (Loss), and Net Cash Provided by (Used in) Operating Activities. Distributable Cash Flow and Adjusted Free Cash Flow may not be comparable to similarly titled measures of other companies because other companies may not calculate these non-GAAP metrics in the same manner. To compensate for these limitations, we believe that it is important to consider Net Cash Provided by (Used in) Operating Activities determined under GAAP, as well as Distributable Cash Flow and Adjusted Free Cash Flow, to evaluate our overall liquidity.
Investor Contacts:
ir@mmlp.com
(877) 256-6644
Danny Cavin - Director, FP&A and Investor Relations
MMLP-F
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED BALANCE SHEETS
(Dollars in thousands)
| March 31, 2026 | December 31, 2025 | ||||||||||
| (Unaudited) | (Audited) | ||||||||||
| Assets | |||||||||||
| Cash | $ | 49 | $ | 49 | |||||||
Accounts and other receivables, less allowance for doubtful accounts of $289 and $310, respectively | 70,146 | 58,371 | |||||||||
| Inventories | 49,655 | 50,248 | |||||||||
| Due from affiliates | 13,706 | 8,942 | |||||||||
| Other current assets | 15,240 | 12,298 | |||||||||
| Total current assets | 148,796 | 129,908 | |||||||||
| Property, plant and equipment, at cost | 975,853 | 970,753 | |||||||||
| Accumulated depreciation | (690,604) | (681,527) | |||||||||
| Property, plant and equipment, net | 285,249 | 289,226 | |||||||||
| Goodwill | 16,671 | 16,671 | |||||||||
| Right-of-use assets | 67,504 | 69,938 | |||||||||
| Investment in DSM Semichem LLC | 5,897 | 6,198 | |||||||||
| Deferred income taxes, net | 8,884 | 9,026 | |||||||||
| Other assets, net | 4,128 | 1,451 | |||||||||
| Total assets | $ | 537,129 | $ | 522,418 | |||||||
| Liabilities and Partners’ Capital (Deficit) | |||||||||||
| Current installments of long-term debt and finance lease obligations | $ | 15 | $ | 15 | |||||||
| Trade and other accounts payable | 72,379 | 57,814 | |||||||||
| Product exchange payables | 863 | 169 | |||||||||
| Due to affiliates | 6,300 | 13,286 | |||||||||
| Income taxes payable | 1,762 | 1,580 | |||||||||
| Other accrued liabilities | 36,913 | 51,279 | |||||||||
| Total current liabilities | 118,232 | 124,143 | |||||||||
| Long-term debt, net | 458,450 | 428,008 | |||||||||
| Finance lease obligations | 36 | 39 | |||||||||
| Operating lease liabilities | 44,560 | 48,353 | |||||||||
| Other long-term obligations | 8,560 | 7,670 | |||||||||
| Total liabilities | 629,838 | 608,213 | |||||||||
| Commitments and contingencies | |||||||||||
| Partners’ capital (deficit) | (92,709) | (85,795) | |||||||||
| Total liabilities and partners' capital (deficit) | $ | 537,129 | $ | 522,418 | |||||||
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per unit amounts)
| Three Months Ended | ||||||||||||||
| March 31, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Revenues: | ||||||||||||||
| Terminalling and storage * | $ | 22,437 | $ | 21,549 | ||||||||||
| Transportation * | 52,807 | 52,985 | ||||||||||||
| Sulfur services | 4,374 | 4,223 | ||||||||||||
| Product sales: * | ||||||||||||||
| Specialty products | 61,606 | 69,305 | ||||||||||||
| Sulfur services | 46,450 | 44,481 | ||||||||||||
| 108,056 | 113,786 | |||||||||||||
| Total revenues | 187,674 | 192,543 | ||||||||||||
| Costs and expenses: | ||||||||||||||
| Cost of products sold: (excluding depreciation and amortization) | ||||||||||||||
| Specialty products * | 52,914 | 60,494 | ||||||||||||
| Sulfur services * | 36,585 | 29,082 | ||||||||||||
| 89,499 | 89,576 | |||||||||||||
| Expenses: | ||||||||||||||
| Operating expenses * | 66,806 | 64,454 | ||||||||||||
| Selling, general and administrative * | 10,812 | 11,774 | ||||||||||||
| Depreciation and amortization | 12,871 | 12,816 | ||||||||||||
| Total costs and expenses | 179,988 | 178,620 | ||||||||||||
| Gain (loss) on disposition or sale of property, plant and equipment | 333 | 479 | ||||||||||||
| Operating income (loss) | 8,019 | 14,402 | ||||||||||||
| Other income (expense): | ||||||||||||||
| Interest expense, net | (13,961) | (14,107) | ||||||||||||
| Equity in earnings (loss) of DSM Semichem LLC | (301) | (209) | ||||||||||||
| Other, net | 1 | (2) | ||||||||||||
| Total other expense | (14,261) | (14,318) | ||||||||||||
| Net income (loss) before taxes | (6,242) | 84 | ||||||||||||
| Income tax expense | (518) | (1,117) | ||||||||||||
| Net income (loss) | (6,760) | (1,033) | ||||||||||||
| Less general partner's interest in income (loss) | (135) | (21) | ||||||||||||
| Less income (loss) allocable to unvested restricted units | (26) | (4) | ||||||||||||
| Limited partners' interest in net income (loss) | $ | (6,599) | $ | (1,008) | ||||||||||
| Net income (loss) per unit attributable to limited partners - basic and diluted | $ | (0.17) | $ | (0.03) | ||||||||||
| Weighted average limited partner units - basic | 38,951,684 | 38,882,982 | ||||||||||||
| Weighted average limited partner units - diluted | 38,951,684 | 38,882,982 | ||||||||||||
*Related Party Transactions Shown Below
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per unit amounts)
*Related Party Transactions Included Above
| Three Months Ended | ||||||||||||||
| March 31, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Revenues:* | ||||||||||||||
| Terminalling and storage | $ | 18,756 | $ | 17,262 | ||||||||||
| Transportation | 8,043 | 7,970 | ||||||||||||
| Product Sales | 983 | 1,300 | ||||||||||||
| Costs and expenses:* | ||||||||||||||
| Cost of products sold: (excluding depreciation and amortization) | ||||||||||||||
| Specialty products | 7,930 | 6,010 | ||||||||||||
| Sulfur services | 3,288 | 3,121 | ||||||||||||
| Terminalling and storage | — | — | ||||||||||||
| Expenses: | ||||||||||||||
| Operating expenses | 27,296 | 27,565 | ||||||||||||
| Selling, general and administrative | 8,267 | 7,892 | ||||||||||||
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF CAPITAL (DEFICIT)
(Unaudited)
(Dollars in thousands)
| Partners’ Capital (Deficit) | ||||||||||||||||||||||||||
| Common Limited | General Partner Amount | |||||||||||||||||||||||||
| Units | Amount | Total | ||||||||||||||||||||||||
| Balances - December 31, 2025 | 39,055,086 | $ | (86,922) | $ | 1,127 | $ | (85,795) | |||||||||||||||||||
| Net income (loss) | — | (6,625) | (135) | (6,760) | ||||||||||||||||||||||
| Issuance of restricted units | 69,600 | — | — | — | ||||||||||||||||||||||
| Cash distributions | — | (195) | (4) | (199) | ||||||||||||||||||||||
| Unit-based compensation | — | 45 | — | 45 | ||||||||||||||||||||||
| Balances - March 31, 2026 | 39,124,686 | $ | (93,697) | $ | 988 | $ | (92,709) | |||||||||||||||||||
| Partners’ Capital (Deficit) | ||||||||||||||||||||||||||
| Common Limited | General Partner Amount | |||||||||||||||||||||||||
| Units | Amount | Total | ||||||||||||||||||||||||
| Balances - December 31, 2024 | 39,001,086 | $ | (71,877) | $ | 1,438 | $ | (70,439) | |||||||||||||||||||
| Net income (loss) | — | (1,012) | (21) | (1,033) | ||||||||||||||||||||||
| Issuance of restricted units | 54,000 | — | — | — | ||||||||||||||||||||||
| Cash distributions | — | (195) | (4) | (199) | ||||||||||||||||||||||
| Unit-based compensation | — | 43 | — | 43 | ||||||||||||||||||||||
| Balances - March 31, 2025 | 39,055,086 | $ | (73,041) | $ | 1,413 | $ | (71,628) | |||||||||||||||||||
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
| Three Months Ended | |||||||||||
| March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income (loss) | $ | (6,760) | $ | (1,033) | |||||||
| Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||||||||||
| Depreciation and amortization | 12,871 | 12,816 | |||||||||
| Amortization of deferred debt issuance costs | 932 | 777 | |||||||||
| Amortization of debt discount | 600 | 600 | |||||||||
| Deferred income tax expense (benefit) | 142 | (214) | |||||||||
| (Gain) loss on disposition or sale of property, plant and equipment, net | (333) | (479) | |||||||||
| Equity in (earnings) loss of DSM Semichem LLC | 301 | 209 | |||||||||
| Non cash unit-based compensation | 45 | 43 | |||||||||
| Change in current assets and liabilities, excluding effects of acquisitions and dispositions: | |||||||||||
| Accounts and other receivables | (11,775) | (10,836) | |||||||||
| Inventories | 593 | 7,289 | |||||||||
| Due from affiliates | (4,764) | 4,054 | |||||||||
| Other current assets | (770) | (1,080) | |||||||||
| Trade and other accounts payable | 15,852 | (2,658) | |||||||||
| Product exchange payables | 694 | (226) | |||||||||
| Due to affiliates | (6,986) | (2,509) | |||||||||
| Income taxes payable | 182 | 1,269 | |||||||||
| Other accrued liabilities | (15,608) | (14,913) | |||||||||
| Change in other non-current assets and liabilities | 1,007 | 872 | |||||||||
| Net cash provided by (used in) operating activities | (13,777) | (6,019) | |||||||||
| Cash flows from investing activities: | |||||||||||
| Payments for property, plant and equipment | (7,489) | (5,875) | |||||||||
| Payments for plant turnaround costs | (7,789) | (822) | |||||||||
| Proceeds from sale of property, plant and equipment | 347 | 479 | |||||||||
| Net cash provided by (used in) investing activities | (14,931) | (6,218) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Payments of long-term debt | (52,500) | (42,500) | |||||||||
| Payments under finance lease obligations | (4) | (4) | |||||||||
| Proceeds from long-term debt | 81,500 | 55,000 | |||||||||
| Payment of debt issuance costs | (89) | (63) | |||||||||
| Cash distributions paid | (199) | (199) | |||||||||
| Net cash provided by (used in) financing activities | 28,708 | 12,234 | |||||||||
| Net increase (decrease) in cash | — | (3) | |||||||||
| Cash at beginning of period | 49 | 55 | |||||||||
| Cash at end of period | $ | 49 | $ | 52 | |||||||
| Non-cash additions to property, plant and equipment | $ | 1,575 | $ | 1,572 | |||||||
MARTIN MIDSTREAM PARTNERS L.P.
SEGMENT OPERATING INCOME
(Unaudited)
(Dollars and volumes in thousands, except BBL per day)
Transportation Segment
Comparative Results of Operations for the Three Months Ended March 31, 2026 and 2025
| Three Months Ended March 31, | Variance | Percent Change | |||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Revenues | $ | 56,803 | $ | 57,475 | $ | (672) | (1) | % | |||||||||||||||
| Operating expenses | 48,278 | 46,647 | 1,631 | 3 | % | ||||||||||||||||||
| Selling, general and administrative expenses | 2,567 | 2,868 | (301) | (10) | % | ||||||||||||||||||
| Depreciation and amortization | 3,038 | 2,932 | 106 | 4 | % | ||||||||||||||||||
| $ | 2,920 | $ | 5,028 | $ | (2,108) | (42) | % | ||||||||||||||||
| Gain (loss) on disposition or sale of property, plant and equipment | 317 | 478 | (161) | (34) | % | ||||||||||||||||||
| Operating income (loss) | $ | 3,237 | $ | 5,506 | $ | (2,269) | (41) | % | |||||||||||||||
Terminalling and Storage Segment
Comparative Results of Operations for the Three Months Ended March 31, 2026 and 2025
| Three Months Ended March 31, | Variance | Percent Change | |||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| (In thousands, except BBL per day) | |||||||||||||||||||||||
| Revenues | $ | 24,388 | $ | 23,414 | $ | 974 | 4 | % | |||||||||||||||
| Operating expenses | 16,259 | 14,813 | 1,446 | 10 | % | ||||||||||||||||||
| Selling, general and administrative expenses | 981 | 923 | 58 | 6 | % | ||||||||||||||||||
| Depreciation and amortization | 4,954 | 5,569 | (615) | (11) | % | ||||||||||||||||||
| 2,194 | 2,109 | 85 | 4 | % | |||||||||||||||||||
| Gain (loss) on disposition or sale of property, plant and equipment | 9 | 1 | 8 | 800 | % | ||||||||||||||||||
| Operating income (loss) | $ | 2,203 | $ | 2,110 | $ | 93 | 4 | % | |||||||||||||||
| Shore-based throughput volumes (gallons) | 34,447 | 38,491 | (4,044) | (11) | % | ||||||||||||||||||
| Smackover refinery throughput volumes (guaranteed minimum) (BBL per day) | 6,500 | 6,500 | — | — | % | ||||||||||||||||||
Sulfur Services Segment
Comparative Results of Operations for the Three Months Ended March 31, 2026 and 2025
| Three Months Ended March 31, | Variance | Percent Change | |||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||
| Services | $ | 4,374 | $ | 4,223 | $ | 151 | 4 | % | |||||||||||||||
| Products | 46,450 | 44,481 | 1,969 | 4 | % | ||||||||||||||||||
| Total revenues | 50,824 | 48,704 | 2,120 | 4 | % | ||||||||||||||||||
| Cost of products sold | 39,439 | 32,002 | 7,437 | 23 | % | ||||||||||||||||||
| Operating expenses | 3,057 | 3,832 | (775) | (20) | % | ||||||||||||||||||
| Selling, general and administrative expenses | 1,680 | 1,597 | 83 | 5 | % | ||||||||||||||||||
| Depreciation and amortization | 4,127 | 3,557 | 570 | 16 | % | ||||||||||||||||||
| 2,521 | 7,716 | (5,195) | (67) | % | |||||||||||||||||||
| Gain (loss) on disposition or sale of property, plant and equipment | 6 | — | 6 | ||||||||||||||||||||
| Operating income (loss) | $ | 2,527 | $ | 7,716 | $ | (5,189) | (67) | % | |||||||||||||||
| Sulfur (long tons) | 128 | 123 | 5 | 4 | % | ||||||||||||||||||
| Fertilizer (long tons) | 87 | 97 | (10) | (10) | % | ||||||||||||||||||
| Total sulfur services volumes (long tons) | 215 | 220 | (5) | (2) | % | ||||||||||||||||||
Specialty Products Segment
Comparative Results of Operations for the Three Months Ended March 31, 2026 and 2025
| Three Months Ended March 31, | Variance | Percent Change | |||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Products revenues | $ | 61,627 | $ | 69,328 | $ | (7,701) | (11) | % | |||||||||||||||
| Cost of products sold | 55,210 | 63,045 | (7,835) | (12) | % | ||||||||||||||||||
| Operating expenses | — | 31 | (31) | (100) | % | ||||||||||||||||||
| Selling, general and administrative expenses | 2,135 | 1,749 | 386 | 22 | % | ||||||||||||||||||
| Depreciation and amortization | 752 | 758 | (6) | (1) | % | ||||||||||||||||||
| 3,530 | 3,745 | (215) | (6) | % | |||||||||||||||||||
| Gain (loss) on disposition or sale of property, plant and equipment | 1 | — | 1 | ||||||||||||||||||||
| Operating income (loss) | $ | 3,531 | $ | 3,745 | $ | (214) | (6) | % | |||||||||||||||
| NGL sales volumes (Bbls) | 593 | 663 | (70) | (11) | % | ||||||||||||||||||
| Other specialty products volumes (Bbls) | 97 | 81 | 16 | 20 | % | ||||||||||||||||||
| Total specialty products volumes (Bbls) | 690 | 744 | (54) | (7) | % | ||||||||||||||||||
Indirect Selling, General and Administrative Expenses
Comparative Results of Operations for the Three Months Ended March 31, 2026 and 2025
| Three Months Ended March 31, | Variance | Percent Change | ||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||||||
| Indirect selling, general and administrative expenses | $ | 3,479 | $ | 4,675 | $ | (1,196) | (26) | % | ||||||||||||||||||
Non-GAAP Financial Measures
The following tables reconcile the non-GAAP financial measurements used by management to our most directly comparable GAAP measures for the three months ended March 31, 2026 and 2025, which represents EBITDA, Adjusted EBITDA, Distributable Cash Flow, and Adjusted Free Cash Flow:
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
| Three Months Ended March 31, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| (in thousands) | ||||||||||||||
| Net income (loss) | $ | (6,760) | $ | (1,033) | ||||||||||
| Adjustments: | ||||||||||||||
| Interest expense | 13,961 | 14,107 | ||||||||||||
| Income tax expense | 518 | 1,117 | ||||||||||||
| Depreciation and amortization | 12,871 | 12,816 | ||||||||||||
| EBITDA | 20,590 | 27,007 | ||||||||||||
| Adjustments: | ||||||||||||||
| (Gain) loss on disposition or sale of property, plant and equipment | (333) | (479) | ||||||||||||
| Transaction expenses related to the terminated merger with Martin Resource Management Corporation | — | 827 | ||||||||||||
| Equity in earnings (loss) of DSM Semichem LLC | 301 | 209 | ||||||||||||
| Non-cash contractual revenue adjustment | 175 | 221 | ||||||||||||
| Unit-based compensation | 45 | 43 | ||||||||||||
| Adjusted EBITDA | $ | 20,778 | $ | 27,828 | ||||||||||
Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA, Distributable Cash Flow, and Adjusted Free Cash Flow
| Three Months Ended March 31, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| (in thousands) | ||||||||||||||
| Net cash provided by (used in) operating activities | $ | (13,777) | $ | (6,019) | ||||||||||
Interest expense 1 | 12,429 | 12,730 | ||||||||||||
| Current income tax expense | 376 | 1,331 | ||||||||||||
| Transaction expenses related to the terminated merger with Martin Resource Management Corporation | — | 827 | ||||||||||||
| Non-cash contractual revenue adjustment | 175 | 221 | ||||||||||||
| Changes in operating assets and liabilities which (provided) used cash: | ||||||||||||||
| Accounts and other receivables, inventories, and other current assets | 16,716 | 573 | ||||||||||||
| Trade, accounts and other payables, and other current liabilities | 5,866 | 19,037 | ||||||||||||
| Other | (1,007) | (872) | ||||||||||||
| Adjusted EBITDA | 20,778 | 27,828 | ||||||||||||
| Adjustments: | ||||||||||||||
| Interest expense | (13,961) | (14,107) | ||||||||||||
| Income tax expense | (518) | (1,117) | ||||||||||||
| Deferred income taxes | 142 | (214) | ||||||||||||
| Amortization of debt discount | 600 | 600 | ||||||||||||
| Amortization of deferred debt issuance costs | 932 | 777 | ||||||||||||
| Payments for plant turnaround costs | (7,789) | (822) | ||||||||||||
| Maintenance capital expenditures | (3,064) | (3,857) | ||||||||||||
| Distributable Cash Flow | (2,880) | 9,088 | ||||||||||||
| Principal payments under finance lease obligations | (4) | (4) | ||||||||||||
| Expansion capital expenditures | (3,138) | (929) | ||||||||||||
| Adjusted Free Cash Flow | $ | (6,022) | $ | 8,155 | ||||||||||
1 Net of amortization of debt issuance costs and discount, which are included in interest expense but not included in net cash provided by operating activities.
April 22, 2026 First Quarter 2026 Earnings Summary MARTIN MIDSTREAM PARTNERS Exhibit 99.2
MMLP 1Q 2026 Adjusted EBITDA Reconciliation & Comparison (in millions) Page 2 Terminalling & Storage 1Q25A 1Q26A Smackover Refinery $4.1 $3.7 Specialty Terminals $2.5 $2.1 Shore-Based Terminals $1.4 $1.2 Underground Storage $(0.3) $0.1 Total Terminalling & Storage $7.7 $7.1 Specialty Products 1Q25A 1Q26A Lubricants $1.5 $2.5 Grease $1.4 $0.3 Propane $1.3 $0.9 Natural Gasoline $0.3 $0.5 Total Specialty Products $4.5 $4.3 Adjusted EBITDA* $31.7 $24.2 Unallocated SG&A $(3.8) $(3.4) Total Adjusted EBITDA $27.8 $20.8 Sulfur Services 1Q25A 1Q26A Fertilizer $7.0 $1.6 ELSA $0.9 $0.9 Sulfur $3.6 $4.3 Total Sulfur Services $11.5 $6.8 Transportation 1Q25A 1Q26A Land $5.0 $4.2 Marine $2.9 $1.7 Total Transportation $8.0 $6.0 Note: numbers may not add due to rounding *Pre-Unallocated SG&A Transportation Terminalling & Storage Sulfur Services Specialty Products SG&A Interest Expense 1Q 2026 Actual Net income (loss) $3.2 $2.2 $2.5 $3.5 $(4.3) $(14.0) $(6.8) Interest expense add back — — — — — $14.0 $14.0 Equity in (earnings) loss of DSM Semichem — — — — $0.3 — $0.3 Income tax expense — — — — $0.5 — $0.5 Operating income (loss) $3.2 $2.2 $2.5 $3.5 $(3.5) $— $8.0 Depreciation and amortization $3.0 $5.0 $4.1 $0.8 — — $12.9 (Gain) loss on sale or disposition of property, plant, and equipment $(0.3) — — — — — $(0.3) Non-cash contractual revenue deferral adjustment — — $0.2 — — — $0.2 Unit-based compensation — — — — — — — Adjusted EBITDA $6.0 $7.1 $6.8 $4.3 $(3.4) $— $20.8
MMLP 1Q 2025 Adjusted EBITDA Reconciliation (in millions) Page 3 Note: numbers may not add due to rounding Transportation Terminalling & Storage Sulfur Services Specialty Products SG&A Interest Expense 1Q 2025 Actual Net income (loss) $5.5 $2.1 $7.7 $3.7 $(6.0) $(14.1) $(1.0) Interest expense add back — — — — — $14.1 $14.1 Equity in (earnings) loss of DSM Semichem LLC — — — — $0.2 — $0.2 Income tax expense — — — — $1.1 — $1.1 Operating income (loss) $5.5 $2.1 $7.7 $3.7 $(4.7) $— $14.4 Depreciation and amortization $2.9 $5.6 $3.6 $0.8 — — $12.8 (Gain) loss on sale or disposition of property, plant, and equipment $(0.5) — — — — — $(0.5) Transaction expenses related to the unsuccessful merger with Martin Resource Management Corporation — — — — $0.8 — $0.8 Non-cash contractual revenue deferral adjustment — — $0.2 — — — $0.2 Unit-based compensation — — — — — — — Adjusted EBITDA $8.0 $7.7 $11.5 $4.5 $(3.8) $— $27.8
Page 4 Note: numbers may not add due to rounding *Pre-Unallocated SG&A MMLP Full-Year 2026E Revised Guidance (in millions) Actuals - Three Months Ended March 31, 2026 (Unaudited) Revised Guidance Year Ending December 31, 2026 (Unaudited) Adjusted EBITDA by segment: Transportation Segment $6.0 $28.2 Terminalling and Storage Segment $7.1 $31.6 Sulfur Services Segment $6.8 $27.0 Specialty Products Segment $4.3 $17.6 Total segment adjusted EBITDA * $24.2 $104.4 Unallocated SG&A $(3.4) $(14.4) Total adjusted EBITDA $20.8 $90.0 Maintenance capital expenditures and plant turnaround costs: Maintenance capital expenditures $(3.1) $(16.7) Plant turnaround costs $(7.8) $(11.0) Total maintenance capital expenditures and plant turnaround costs $(10.9) $(27.7) Interest expense, net of amortization of deferred debt issuance costs and discount on notes payable $(12.4) $(51.1) Income taxes, net of deferred $(0.4) $(2.9) Total distributable cash flow $(2.9) $8.3 Expansion capital expenditures $(3.1) $(4.3) Principal payments under finance lease obligations $— $— Total adjusted free cash flow $(6.0) $4.0
Disclaimers Page 5 Use of Non-GAAP Financial Measures Forward Looking Statements This presentation includes certain non-GAAP financial measures such as Adjusted EBITDA. These non-GAAP financial measures are not meant to be considered in isolation or as a substitute for results prepared in accordance with accounting principles generally accepted in the United States (GAAP). A reconciliation of non-GAAP financial measures included in this presentation to the most directly comparable financial measures calculated and presented in accordance with GAAP is set forth in the Appendix of this presentation or on our web site at www.MMLP.com. MMLP’s management believes that these non-GAAP financial measures may provide useful information to investors regarding MMLP’s financial condition and results of operations as they provide another measure of the profitability and ability to service its debt and are considered important measures by financial analysts covering MMLP and its peers. The Partnership has not provided comparable GAAP financial information on a forward-looking basis because it would require the Partnership to create estimated ranges on a GAAP basis, which would entail unreasonable effort. Adjustments required to reconcile forward-looking non-GAAP measures cannot be predicted with reasonable certainty but may include, among others, costs related to debt amendments and unusual charges, expenses and gains. Some or all of those adjustments could be significant. Statements about the Partnership’s outlook and all other statements in this release other than historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements and all references to financial estimates rely on a number of assumptions concerning future events and are subject to a number of uncertainties, including (i) the effects of the continued volatility of commodity prices and the related macroeconomic and political environment, (ii) uncertainties relating to the Partnership’s future cash flows and operations, (iii) the Partnership’s ability to pay future distributions, (iv) future market conditions, (v) current and future governmental regulation, (vi) future taxation, (vii) our expectation around the achievement of the amounts reflected in our guidance, and (viii) other factors, many of which are outside its control, which could cause actual results to differ materially from such statements. While the Partnership believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in anticipating or predicting certain important factors. A discussion of these factors, including risks and uncertainties, is set forth in the Partnership’s annual and quarterly reports filed from time to time with the Securities and Exchange Commission (the “SEC”). The Partnership disclaims any intention or obligation to revise any forward- looking statements, including financial estimates, whether as a result of new information, future events, or otherwise except where required to do so by law.
Martin Midstream Partners 4200 B Stone Road Kilgore, Texas 75662 903.983.6200 www.MMLP.com
FAQ
How did Martin Midstream Partners (MMLP) perform in Q1 2026?
Martin Midstream Partners reported a net loss of $6.8 million for Q1 2026 on revenues of $187.7 million. Adjusted EBITDA was $20.8 million, down from $27.8 million a year earlier, reflecting weaker results in Sulfur Services and Transportation.
How do Martin Midstream Partners' Q1 2026 results compare to Q1 2025?
Q1 2026 results were weaker than Q1 2025. Net loss increased from $1.0 million to $6.8 million, Adjusted EBITDA declined from $27.8 million to $20.8 million, and Distributable Cash Flow fell from a positive $9.1 million to a negative $2.9 million.
What 2026 guidance did Martin Midstream Partners (MMLP) provide?
The Partnership revised its full-year 2026 outlook, guiding to $90.0 million of Adjusted EBITDA. It also projected full-year Distributable Cash Flow of $8.3 million and Adjusted Free Cash Flow of $4.0 million, based on current expectations for each business segment.
What is Martin Midstream Partners' leverage and debt position as of March 31, 2026?
As of March 31, 2026, Martin Midstream Partners had total debt outstanding of about $468.1 million. The total adjusted leverage ratio under its revolving credit facility was 5.08x, and the interest coverage ratio was 1.77x, indicating a highly leveraged balance sheet.
What quarterly distribution did Martin Midstream Partners declare for Q1 2026?
For the quarter ended March 31, 2026, the Partnership declared a quarterly cash distribution of $0.005 per common unit. The distribution is payable on May 15, 2026 to common unitholders of record as of the close of business on May 8, 2026.
Which segments drove Martin Midstream Partners' Q1 2026 performance?
In Q1 2026, Adjusted EBITDA by segment was $6.0 million for Transportation, $7.1 million for Terminalling and Storage, $6.8 million for Sulfur Services, and $4.3 million for Specialty Products. Sulfur Services and Transportation experienced the largest year-over-year declines.
How much liquidity does Martin Midstream Partners have under its credit facility?
As of March 31, 2026, Martin Midstream Partners reported $37.5 million of available liquidity under its revolving credit facility, which had total capacity of $115.0 million. The facility was amended during the quarter to provide additional covenant flexibility.