Ferrellgas Reports Revenue Decline and Improved Net Earnings for Nine Months Ending April 30, 2026

Ferrellgas Partners, L.P. reported a decline in financial performance for the three months ended April 30, 2026, with total revenues of $524.6 million, down from $560.8 million in the same period last year. The decrease in revenue was primarily attributed to a drop in propane and other gas liquids sales, which fell to $505.5 million from $533.5 million. The company recorded net earnings of $28.0 million, a significant decrease from $59.1 million in the prior year, largely due to increased operating expenses, particularly in personnel and vehicle costs.

For the nine months ending April 30, 2026, total revenues also decreased to $1.52 billion from $1.59 billion year-over-year. However, net earnings showed a notable improvement, rising to $103.3 million from $11.3 million, primarily due to a substantial legal accrual recorded in the previous fiscal year. The company’s operating income for the nine-month period was $198.1 million, compared to $92.0 million in the prior year, reflecting a strong recovery despite the revenue decline.

Operationally, Ferrellgas reported a decrease in propane sales volumes, with retail customers numbering 908,224, down from 915,672. The company also experienced a slight increase in tank exchange selling locations, which rose to 65,022. The average temperatures during the quarter were reported to be 12% warmer than normal, impacting propane demand negatively. The company continues to focus on expanding its non-temperature-sensitive business segments to mitigate the effects of weather on sales.

In terms of strategic developments, Ferrellgas completed the conversion of all Class B Units into Class A Units on March 16, 2026, following a significant cash distribution of approximately $107 million to Class B Unitholders. This conversion is expected to streamline the company’s capital structure. Additionally, the company has been actively managing its debt, having issued $650 million in senior notes due 2031 to refinance existing debt, which has resulted in increased interest expenses.

Looking ahead, Ferrellgas anticipates that its liquidity, bolstered by cash flows from operations and a $350 million credit facility, will be sufficient to meet its capital expenditure and working capital needs. However, the company remains cautious about the impact of weather conditions and market volatility on its operations and financial performance. The management is focused on maintaining operational efficiencies and exploring growth opportunities in less weather-dependent areas to enhance overall resilience.