Global Partners (GLP -0.32%), a major owner of fuel terminals and gasoline stations in the Northeast U.S, reported its second quarter 2025 results on August 7, 2025. The headline news was that both earnings per share (EPS) and revenue for Q2 2025 fell short of analyst expectations. The company posted GAAP EPS of $0.55, lower than the consensus estimate of $0.60, and revenue (GAAP) reached $4.6 billion, lagging the expected $5.98 billion. Key profitability and margin metrics also declined compared to Q2 2024, led by reduced earnings, lower profits in retail operations, and weaker margins for wholesale gasoline products. Despite these results, Global Partners raised its cash distribution per unit and continued to invest in acquiring and integrating fuel terminals. The quarter reflected both ongoing growth strategies and short-term execution challenges.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS – Diluted (GAAP) | $0.55 | $0.60 | $1.10 | (50.0 %) |
| Revenue (GAAP) | $4.63 billion | N/A | $4.41 billion | 5.0 % |
| Adjusted EBITDA | $98.2 million | $121.1 million | (19.0 %) | |
| Adjusted Distributable Cash Flow | $52.3 million | $74.2 million | (29.5 %) | |
| Combined Product Margin | $305.7 million | $319.6 million | -4.3 % |
Source: Analyst estimates for the quarter provided by FactSet.
Business Overview and Critical Success Factors
Global Partners operates a large network of gasoline stations and fuel terminals focused primarily in the Northeast U.S. Its core business is the wholesale marketing, storage, and distribution of petroleum products, along with retail fuel and station operations. The company controls 54 bulk terminals with a storage capacity of 22.0 million barrels and supplies more than 1,500 retail fuel sites, anchoring its competitive position with physical infrastructure and supply access.
In recent years, Global Partners has pushed to expand its terminal footprint and streamline its retail portfolio. It continues to emphasize strategic acquisitions, such as purchasing terminals from Gulf Oil and ExxonMobil, to add volume capacity and widen market reach. Key success factors include efficient asset integration, robust commodity risk management, regulatory compliance, and maintaining healthy operating margins across its segments.
Second Quarter Performance and Notable Developments
The company’s GAAP results fell short of both analyst estimates and last year’s performance. EPS (GAAP) was $0.55 versus an expected $0.60, and revenue (GAAP) of $4.63 billion was below the $5.98 billion consensus. Net income (GAAP) dropped to $25.2 million from $46.1 million in Q2 2024, and key profitability metrics such as adjusted EBITDA and adjusted distributable cash flow showed sizable year-over-year declines. Gross profit (GAAP) slipped to $272.4 million from $287.9 million in Q2 2024.
Combined product margin is the main marker of Global Partners’ operating profitability. This figure dropped 4.4% compared to the second quarter of 2024, as retail performance in the Gasoline Distribution and Station Operations (GDSO) segment weakened. Product margin (non-GAAP) in GDSO declined 6%, from $221.5 million to $207.9 million. This drop was driven by both a lower site count and smaller margin contributions from both gasoline distribution and station operations. Wholesale segment product margin was $91.7 million, but the underlying product mix shifted. Gasoline and blendstock product margin (non-GAAP) fell sharply from $70.4 million in Q2 2024 to $58.8 million, while product margin from distillates and other oils increased from $21.5 million in Q2 2024 to $32.9 million (non-GAAP). Commercial segment product margin (non-GAAP) was flat at $6.1 million.
Despite declining margins, overall company sales volumes rose 25% compared to Q2 2024, reaching 2.0 billion gallons and supported by recent terminal acquisitions. However, GDSO volume fell 6.0%, consistent with fewer active retail sites as the company continues to optimize its network by focusing on higher-performing locations. Management attributed the retail decline “in part to decreased site count year-over-year.”
From a capital allocation and balance sheet perspective, Global Partners continued to make strategic investments and optimize its financial structure. It completed a $450 million senior notes offering, redeeming earlier debt and paying down borrowings, though this generated a $2.8 million loss on early debt extinguishment. Net debt rose modestly compared to December 31, 2024, while cash reserves grew to $16.1 million as of June 30, 2025. Environmental liabilities remained steady at approximately $97 million as of June 30, 2025, reflecting ongoing compliance obligations in a regulated industry. Capital expenditures in Q1 2025 totaled $17.9 million, with ongoing investments in both maintenance and growth projects.
Dividends remain a priority. The company raised its quarterly distribution to $0.75 per common unit ($3.00 annualized), continuing a series of annualized increases from $2.98 previously. This payout was announced with the second-quarter results and is scheduled for payment on August 14, 2025. Although distributable cash flow (non-GAAP) dropped nearly 30% compared to Q2 2024, coverage of the distribution remains adequate -- but will require ongoing monitoring if margin pressures persist.
Looking Ahead
Management did not offer specific financial guidance for upcoming quarters or the full year. Executive commentary pointed to confidence in the company’s ability to deliver long-term value through acquisitions and network expansion, but with no quantitative forecast provided. The company’s future results will depend on its capacity to integrate newly acquired terminals, stabilize retail margins, and manage exposure to swings in commodity prices.
Investors should pay special attention to retail segment trends, margin stability within the wholesale business, and the financial impact of ongoing capital investments. Distribution coverage, debt service requirements, and regulatory compliance costs will also be key areas to monitor. As of this quarter, Global Partners has prioritized returning cash to unitholders while investing for future growth, but the absence of guidance underscores limited near-term visibility and the need for careful management of margin pressures and operational volatility.
The quarterly dividend was raised to $0.75 per unit.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
