Ferrellgas Reports Q2 Fiscal 2026 Net Income Increase to $102.2 Million

Ferrellgas Partners, L.P. reported its financial results for the second quarter of fiscal 2026, revealing a net income of $102.2 million for the three months ending January 31, 2026, compared to $98.8 million for the same period in the previous year. This increase of $3.4 million was attributed to an $8.5 million rise in operating income, which was partially offset by a $5.3 million increase in interest expenses, primarily due to refinancing activities. Total revenues for the quarter were $641.4 million, down from $669.8 million in the prior year, reflecting a decrease in propane sales volumes and lower wholesale prices.

For the six months ending January 31, 2026, Ferrellgas reported a net income of $75.7 million, a significant recovery from a net loss of $47.8 million in the same period last year. The prior year's loss was largely influenced by a $125 million legal accrual. Total revenues for the first half of fiscal 2026 were $996.6 million, down from $1.03 billion in the previous year, driven by a decline in propane sales and lower market prices. The company noted that retail propane sales decreased by 3% due to warmer weather conditions, which reduced demand.

Operationally, Ferrellgas reported a decrease in retail customers to 910,805 from 928,178 year-over-year, while tank exchange selling locations increased slightly. The company’s propane sales volumes decreased by 20.8 million gallons, or 5%, compared to the previous year, with retail sales down 2% and wholesale sales down 13%. The average wholesale market price of propane also fell, contributing to the decline in revenue. Despite these challenges, gross margins from propane and other gas liquids sales remained relatively stable, with an increase in retail gross margin offsetting some of the wholesale margin declines.

In terms of strategic developments, Ferrellgas announced a cash distribution of $82.32 per Class B Unit, totaling approximately $107 million, which is set to be paid on March 13, 2026. This distribution will allow the company to meet the Class B Conversion Threshold, enabling the conversion of all outstanding Class B Units into Class A Units. The company also reported a significant increase in liquidity, with total liquidity at $260 million as of January 31, 2026, comprising $88.4 million in cash and $171.6 million available under its credit facility.

Looking ahead, Ferrellgas remains focused on managing its operational efficiencies and mitigating risks associated with commodity price fluctuations. The company anticipates that its liquidity, combined with cash flows from operations, will be sufficient to meet its capital expenditure and working capital needs in the foreseeable future. However, it acknowledges that weather conditions and market dynamics will continue to play a critical role in its performance.