On March 7, 2025, Ferrellgas Partners LP (FGPR, Financial) released its 8-K filing detailing the financial results for the second fiscal quarter ended January 31, 2025. Ferrellgas Partners LP, a leading propane distributor in the United States, operates across various regions, providing propane and related equipment to a diverse customer base, including residential, industrial, and agricultural sectors.
Performance and Challenges
Ferrellgas Partners LP reported a gross profit increase of $19.1 million, or 6.0%, compared to the previous year, driven by a $59.9 million, or 10%, rise in revenues. This was partially offset by a $40.8 million, or 14%, increase in the cost of products. The company faced challenges due to warmer-than-normal weather early in the quarter, which reduced agricultural demand for propane. However, colder weather in January helped boost demand across all customer segments.
Financial Achievements
The company achieved net earnings attributable to Ferrellgas Partners LP of $98.8 million, up from $95.8 million in the prior year. This increase was primarily due to the rise in gross profit, despite higher operating and interest expenses. The company's strategic focus on operational efficiency and customer demand management was evident as it navigated a dynamic quarter.
Key Financial Metrics
Adjusted EBITDA for the quarter increased by $10.1 million, or 7%, to $157.0 million, compared to $146.9 million in the previous year. This growth was driven by the increase in gross profit and a decrease in general and administrative expenses. The company's efforts to optimize fleet maintenance and reduce vehicle costs contributed to these results.
“In the second fiscal quarter, our experienced field professionals showcased their operational excellence in every facet of our business,” commented Tamria Zertuche, President and CEO.
Income Statement Highlights
| Metric | Q2 2025 | Q2 2024 |
|---|---|---|
| Total Revenues | $669.8 million | $609.9 million |
| Gross Profit | $347.4 million | $328.3 million |
| Net Earnings | $98.8 million | $95.8 million |
Analysis and Outlook
Ferrellgas Partners LP's performance in the second fiscal quarter of 2025 highlights its ability to adapt to changing weather conditions and manage operational challenges effectively. The increase in wholesale propane prices and strategic customer acquisitions, such as a new autogas customer in Minnesota, underscore the company's growth potential. Despite the challenges posed by weather and increased operating expenses, Ferrellgas Partners LP continues to demonstrate resilience and operational excellence, positioning itself well for future growth in the propane distribution industry.
Explore the complete 8-K earnings release (here) from Ferrellgas Partners LP for further details.
