Martin Midstream Partners Reports Third Quarter 2025 Financial Results, Declares Quarterly Cash Distribution and Withdraws Guidance

View all news Martin Midstream Partners Reports Third Quarter 2025 Financial Results, Declares Quarterly Cash Distribution and Withdraws Guidance 10/15/2025 Net loss of $8.4 million and $11.9 million for the three and nine months ended September 30, 2025, respectively Adjusted EBITDA of $19.3 million and $74.3 million for the three and nine months ended September 30, 2025, respectively Declares quarterly cash dividend of $0.005 per common unit Martin Midstream Partners L.P. (Nasdaq: MMLP) (“MMLP” or the “Partnership”) today announced its financial results for the third quarter of 2025. Bob Bondurant, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of the Partnership, stated, “The Partnership reported adjusted EBITDA of $19.3 million for the quarter, and while third quarter results are typically our weakest based on seasonal factors, earnings for the quarter were well below our internal projections in both our marine and grease businesses.” “Our Terminalling and Storage segment delivered results consistent with our internal projections, and we expect stable performance to continue through year-end as the majority of the cash flows in this segment are generated from long-term fee-based contracts.” “The Sulfur Services segment faced modest headwinds in sales, as operations resumed following our annual planned turnarounds at our fertilizer plants. We anticipate a return to full operations with improved results in the coming quarter.” “In the Specialty Products segment, sales volumes in the grease business continued to lag expectations. While recent activity is showing early signs of improvement, muted sales make achieving our prior guidance for this business remote. Results from the lubricants business were slightly below expectations; however, we expect performance to strengthen in the next quarter as the lubricants market adjusts to the exit of a large competitor in south Louisiana.” “Lastly, in the Transportation segment, our land transportation business met expectations for the quarter and remains positioned to deliver steady results over the remainder of the year. Conversely, the marine transportation business experienced a significant decline in demand for inland barge fuel transportation which was unexpected entering the quarter. Barge utilization also declined significantly as refineries favored lighter crude slates, shifting transportation demand away from barges and into pipelines.” “Given this challenging operating environment, the Partnership is withdrawing full year 2025 guidance amid current demand softness impacting inland barge utilization. We believe this is the prudent action to take, and do not intend to provide new guidance until there is greater visibility into the factors impacting demand in this segment.” “As of September 30, 2025, our adjusted leverage ratio increased to 4.63 times, when compared to 4.20 times on June 30, 2025. While we anticipated leverage would remain consistent over these periods, even though third quarter activity would increase our debt levels, our forecast did not include a significant decrease in adjusted EBITDA resulting in a higher leverage ratio. Importantly, the Partnership was in compliance with all our debt covenants on September 30, 2025, and while we are not providing ongoing guidance, we expect to remain in compliance with our debt covenants going forward. Although earnings were pressured this quarter, we remain firmly focused on strengthening the balance sheet through disciplined capital allocation.” THIRD QUARTER 2025 OPERATING RESULTS BY BUSINESS SEGMENT Operating Income (Loss) ($M) Adjusted EBITDA ($M) Three Months Ended September 30, 2025 2024 2025 2024 (Amounts may not add or recalculate due to rounding) Business Segment: Transportation $ 2.8 $ 8.6 $ 5.3 $ 11.6 Terminalling and Storage 4.6 2.7 9.7 8.4 Sulfur Services 0.2 1.3 3.9 4.2 Specialty Products 3.2 3.9 3.9 4.6 Indirect Selling, General and Administrative Expenses (3.9 ) (3.7 ) (3.6 ) (3.7 ) $ 6.9 $ 12.7 $ 19.3 $ 25.1 Transportation Adjusted EBITDA decreased by $6.3 million. In the land division, Adjusted EBITDA declined by $1.3 million, primarily due to lower miles and reduced transportation rates, partially offset by lower operating expenses. In the marine division, Adjusted EBITDA decreased by $5.0 million, driven by reduced demand for inland barge fuel transportation combined with lower day rates. Terminalling and Storage Adjusted EBITDA increased by $1.3 million. At our Smackover refinery, Adjusted EBITDA remained consistent at $3.8 million. In the underground NGL storage division, Adjusted EBITDA increased by $1.4 million due to increased storage and throughput volumes. In our specialty terminals division, Adjusted EBITDA declined by $0.4 million due to lower service revenue, partially offset by reduced operating expenses. Adjusted EBITDA in our shore-based terminals division increased $0.1 million due to lower operating expenses. Sulfur Services Adjusted EBITDA decreased by $0.3 million. In the fertilizer division, Adjusted EBITDA increased by $1.0 million due to reservation fees related to the DSM Semichem joint venture and higher sales volume. In the pure sulfur business, Adjusted EBITDA decreased by $0.7 million due to a reduction in sales volume. In the sulfur prilling business, Adjusted EBITDA decreased by $0.6 million, reflecting a volume-driven reduction in operating fees. Specialty Products Adjusted EBITDA decreased by $0.7 million. In the grease division, Adjusted EBITDA decreased by $0.9 million, primarily due to lower margins associated with a higher mix of lower-margin product sales. The lubricants division increased by $0.2 million, reflecting a reduction in operating expenses. Adjusted EBITDA in the propane division decreased by $0.2 million due to lower volumes and margins, while the NGL division increased by $0.2 million, reflecting reduced operating expenses. Indirect selling, general, and administrative expenses decreased by $0.1 million, primarily due to lower professional fees. 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 September 30, 2025 $ (8.4 ) $ (0.21 ) $ 19.3 $ 23.7 $ (3.4 ) $ 168.7 Three Months Ended September 30, 2024 $ (3.3 ) $ (0.08 ) $ 25.1 $ (15.8 ) $ 2.4 $ 170.9 Reconciliation of Net Income (Loss) to Adjusted EBITDA (in millions) Transportation Terminalling & Storage Sulfur Services Specialty Products Indirect SG&A Interest Expense 3Q 2025 Actual Net income (loss) $ 2.8 $ 4.6 $ 0.2 $ 3.2 $ (4.6 ) $ (14.6 ) $ (8.4 ) Interest expense add back – – – – – $ 14.6 $ 14.6 Income tax expense – – – – $ 0.7 – $ 0.7 Operating Income (loss) $ 2.8 $ 4.6 $ 0.2 $ 3.2 $ (3.9 ) $ – $ 6.9 Depreciation and amortization $ 2.9 $ 5.1 $ 3.5 $ 0.8 – – $ 12.3 Gain on sale or disposition of property, plant, and equipment $ (0.4 ) – – – – – $ (0.4 ) Transaction expenses related to the unsuccessful merger with Martin Resource Management Corporation – – – – $ 0.2 – $ 0.2 Non-cash contractual revenue deferral adjustment – – $ 0.2 – – – $ 0.2 Unit-based compensation – – – – 0.1 – 0.1 Adjusted EBITDA $ 5.3 $ 9.7 $ 3.9 $ 3.9 $ (3.6 ) $ – $ 19.3 (in millions) Transportation Terminalling & Storage Sulfur Services Specialty Products Indirect SG&A Interest Expense 3Q2024 Actual Net income (loss) $ 8.6 $ 2.7 $ 1.3 $ 3.9 $ (5.1 ) $ (14.6 ) $ (3.3 ) Interest expense add back – – – – – $ 14.6 $ 14.6 Income tax expense – – – – $ 1.4 – $ 1.4 Operating Income (loss) $ 8.6 $ 2.7 $ 1.3 $ 3.9 $ (3.7 ) $ – $ 12.7 Depreciation and amortization $ 3.2 $ 5.7 $ 2.9 $ 0.8 – – $ 12.6 Gain on sale or disposition of property, plant, and equipment $ (0.1 ) – – (0.1 ) – – $ (0.2 ) Unit-based compensation – – – – – – – Adjusted EBITDA $ 11.6 $ 8.4 $ 4.2 $ 4.6 $ (3.7 ) $ – $ 25.1 NON-GAAP FINANCIAL MEASURES EBITDA, 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 below tables 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 third quarter 2025 to the Partnership's Adjusted EBITDA for the third quarter 2024. CAPITALIZATION September 30, 2025 December 31, 2024 ($ in millions) Debt Outstanding: Revolving Credit Facility, Due November 20271 $ 53.5 $ 53.5 Finance lease obligations 0.1 0.1 11.50% Senior Secured Notes, Due February 2028 400.0 400.0 Total Debt Outstanding: $ 453.6 $ 453.6 Summary Credit Metrics: Revolving Credit Facility - Total Capacity $ 130.0 $ 150.0 Revolving Credit Facility - Available Liquidity $ 11.4 $ 80.7 Total Adjusted Leverage Ratio2 4.63x 3.96x Senior Leverage Ratio2 0.55x 0.47x Interest Coverage Ratio2 1.85x 2.14x 1 The Partnership was in compliance with all debt covenants as of September 30, 2025 and December 31, 2024. 2 As calculated under the Partnership's revolving credit facility. WITHDRAWAL OF 2025 GUIDANCE The Partnership is withdrawing its previously issued 2025 guidance, consisting of Adjusted EBITDA, Distributable Cash Flow, and Adjusted Free Cash Flow, due to uncertainty in the Transportation segment related to demand softness for inland barge fuel transportation. Investors are cautioned that all prior 2025 guidance should no longer be relied upon. QUARTERLY CASH DISTRIBUTION The Partnership has declared a quarterly cash distribution of $0.005 per unit for the quarter ended September 30, 2025. The distribution is payable on November 14, 2025, to common unitholders of record as of the close of business on November 7, 2025. The ex-dividend date for the cash distribution is November 7, 2025. 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, Facebook, and X. 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, and (vii) 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), 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. EBITDA and 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, and transaction costs associated with business combination, merger, and divestiture activities. 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; andour 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. The GAAP measures most directly comparable to Adjusted EBITDA are Net Income (Loss) and Net Cash Provided by (Used In) Operating Activities. 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 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. MMLP-F MARTIN MIDSTREAM PARTNERS L.P. CONSOLIDATED AND CONDENSED BALANCE SHEETS (Dollars in thousands) September 30, 2025 December 31, 2024 (Unaudited) (Audited) Assets Cash $ 49 $ 55 Accounts and other receivables, less allowance for doubtful accounts of $310 and $940, respectively 55,269 53,569 Inventories 46,870 51,707 Due from affiliates 3,364 13,694 Other current assets 11,765 11,454 Total current assets 117,317 130,479 Property, plant and equipment, at cost 966,412 954,059 Accumulated depreciation (674,641 ) (648,609 ) Property, plant and equipment, net 291,771 305,450 Goodwill 16,671 16,671 Right-of-use assets 67,211 67,140 Investment in DSM Semichem LLC 6,509 7,314 Deferred income taxes, net 9,255 9,946 Other assets, net 1,388 1,509 Total assets $ 510,122 $ 538,509 Liabilities and Partners’ Capital (Deficit) Current installments of long-term debt and finance lease obligations $ 14 $ 14 Trade and other accounts payable 50,711 61,599 Product exchange payables — 798 Due to affiliates 8,479 4,927 Income taxes payable 1,277 1,283 Other accrued liabilities 37,136 46,880 Total current liabilities 97,617 115,501 Long-term debt, net 441,292 437,635 Finance lease obligations 43 55 Operating lease liabilities 46,462 47,815 Other long-term obligations 7,441 7,942 Total liabilities 592,855 608,948 Commitments and contingencies Partners’ capital (deficit) (82,733 ) (70,439 ) Total liabilities and partners' capital (deficit) $ 510,122 $ 538,509 MARTIN MIDSTREAM PARTNERS L.P. CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in thousands, except per unit amounts) Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024 Revenues: Terminalling and storage * $ 23,930 $ 22,562 $ 67,883 $ 67,454 Transportation * 49,709 56,506 156,520 172,489 Sulfur services 4,073 3,477 12,369 10,431 Product sales: * Specialty products 62,443 67,206 192,066 200,819 Sulfur services 28,562 21,183 113,098 85,102 91,005 88,389 305,164 285,921 Total revenues 168,717 170,934 541,936 536,295 Costs and expenses: Cost of products sold: (excluding depreciation and amortization) Specialty products * 54,844 58,409 167,608 173,192 Sulfur services * 20,899 12,545 76,215 52,178 Terminalling and storage * — 23 — 65 75,743 70,977 243,823 225,435 Expenses: Operating expenses * 64,882 62,363 193,718 191,655 Selling, general and administrative * 9,257 12,494 31,913 32,108 Depreciation and amortization 12,336 12,608 37,790 37,944 Total costs and expenses 162,218 158,442 507,244 487,142 Gain on disposition or sale of property, plant and equipment 395 159 1,487 1,320 Operating income 6,894 12,651 36,179 50,473 Other income (expense): Interest expense, net (14,614) (14,592) (43,329) (42,811) Equity in earnings (loss) of DSM Semichem LLC 20 (314) (805) (314) Other, net 3 2 19 20 Total other expense (14,591) (14,904) (44,115) (43,105) Net income before taxes (7,697) (2,253) (7,936) 7,368 Income tax expense (715) (1,066) (3,916) (3,634) Net income (loss) (8,412) (3,319) (11,852) 3,734 Less general partner's interest in net income (loss) (168) (66) (237) 75 Less income (loss) allocable to unvested restricted units (35) (14) (49) 14 Limited partners' interest in net income (loss) $ (8,209) $ (3,239) $ (11,566) $ 3,645 Net income (loss) per unit attributable to limited partners - basic and diluted $ (0.21) $ (0.08) $ (0.30) $ 0.09 Weighted average limited partner units - basic 38,892,348 38,832,222 38,889,260 38,831,064 Weighted average limited partner units - diluted 38,892,348 38,832,222 38,889,260 38,909,976 *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 Nine Months Ended September 30, September 30, 2025 2024 2025 2024 Revenues:* Terminalling and storage $ 18,622 $ 17,785 $ 54,105 $ 54,412 Transportation 6,521 7,975 21,811 24,894 Product Sales 947 91 3,287 343 Costs and expenses:* Cost of products sold: (excluding depreciation and amortization) Specialty products 7,973 8,401 21,260 23,342 Sulfur services 3,303 3,014 9,611 8,926 Terminalling and storage — 23 — 65 Expenses: Operating expenses 27,857 26,153 83,245 79,077 Selling, general and administrative 7,133 12,215 23,160 27,716 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 - June 30, 2025 39,055,086 $ (75,548 ) $ 1,361 $ (74,187 ) Net loss — (8,244 ) (168 ) (8,412 ) Cash distributions — (196 ) (4 ) (200 ) Unit-based compensation — 66 — 66 Balances - September 30, 2025 39,055,086 (83,922 ) 1,189 (82,733 ) Balances - December 31, 2024 39,001,086 $ (71,877 ) $ 1,438 $ (70,439 ) Net loss — (11,615 ) (237 ) (11,852 ) Issuance of restricted units 54,000 — — — Cash distributions — (586 ) (12 ) (598 ) Unit-based compensation — 156 — 156 Balances - September 30, 2025 39,055,086 $ (83,922 ) $ 1,189 $ (82,733 ) Partners’ Capital (Deficit) Common Limited General Partner Amount Units Amount Total Balances - June 30, 2024 39,001,086 $ (59,557 ) $ 1,691 $ (57,866 ) Net loss — (3,253 ) (66 ) (3,319 ) Cash distributions — (195 ) (4 ) (199 ) Unit-based compensation — 42 — 42 Balances - September 30, 2024 39,001,086 (62,963 ) 1,621 (61,342 ) Balances - December 31, 2023 38,914,806 $ (66,182 ) $ 1,558 $ (64,624 ) Net income — 3,659 75 3,734 Issuance of restricted units 86,280 — — — Cash distributions — (585 ) (12 ) (597 ) Unit-based compensation — 145 — 145 Balances - September 30, 2024 39,001,086 $ (62,963 ) $ 1,621 $ (61,342 ) MARTIN MIDSTREAM PARTNERS L.P. CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in thousands) Nine Months Ended September 30, 2025 2024 Cash flows from operating activities: Net income (loss) $ (11,852 ) $ 3,734 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 37,790 37,944 Amortization of deferred debt issuance costs 2,533 2,311 Amortization of debt discount 1,800 1,800 Deferred income tax expense 691 157 Gain on disposition or sale of property, plant and equipment, net (1,487 ) (1,320 ) Equity in loss of DSM Semichem LLC 805 314 Non cash unit-based compensation 156 145 Change in current assets and liabilities, excluding effects of acquisitions and dispositions: Accounts and other receivables (1,700 ) (16,748 ) Inventories 4,837 591 Due from affiliates 10,330 (15,598 ) Other current assets (1,396 ) (373 ) Trade and other accounts payable (9,654 ) 9,867 Product exchange payables (798 ) (426 ) Due to affiliates 3,552 (4,946 ) Income taxes payable (6 ) 663 Other accrued liabilities (11,131 ) (12,632 ) Change in other non-current assets and liabilities (787 ) 701 Net cash provided by operating activities 23,683 6,184 Cash flows from investing activities: Payments for property, plant and equipment (17,905 ) (34,058 ) Payments for plant turnaround costs (5,996 ) (9,599 ) Investment in DSM Semichem LLC — (6,938 ) Proceeds from sale of property, plant and equipment 1,496 953 Net cash used in investing activities (22,405 ) (49,642 ) Cash flows from financing activities: Payments of long-term debt (177,000 ) (173,000 ) Payments under finance lease obligations (10 ) (5 ) Proceeds from long-term debt 177,000 217,077 Payment of debt issuance costs (676 ) (15 ) Cash distributions paid (598 ) (597 ) Net cash provided by (used in) financing activities (1,284 ) 43,460 Net increase (decrease) in cash (6 ) 2 Cash at beginning of period 55 54 Cash at end of period $ 49 $ 56 Non-cash additions to property, plant and equipment $ 1,427 $ 2,418 Non-cash contribution of land to DSM Semichem LLC $ — $ 1,000 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 September 30, 2025 and 2024 Three Months Ended September 30, Variance Percent Change 2025 2024 (In thousands) Revenues $ 53,790 $ 60,196 $ (6,406 ) (11 )% Operating expenses 47,012 45,138 1,874 4 % Selling, general and administrative expenses 1,465 3,423 (1,958 ) (57 )% Depreciation and amortization 2,907 3,182 (275 ) (9 )% 2,406 8,453 (6,047 ) (72 )% Gain on disposition or sale of property, plant and equipment 382 130 252 194 % Operating income $ 2,788 $ 8,583 $ (5,795 ) (68 )% Comparative Results of Operations for the Nine Months Ended September 30, 2025 and 2024 Nine Months Ended September 30, Variance Percent Change 2025 2024 (In thousands) Revenues $ 168,966 $ 183,705 $ (14,739 ) (8 )% Operating expenses 140,058 139,562 496 — % Selling, general and administrative expenses 7,102 8,150 (1,048 ) (13 )% Depreciation and amortization 8,755 10,039 (1,284 ) (13 )% $ 13,051 $ 25,954 $ (12,903 ) (50 )% Gain on disposition or sale of property, plant and equipment 1,460 496 964 194 % Operating income $ 14,511 $ 26,450 $ (11,939 ) (45 )% Terminalling and Storage Segment Comparative Results of Operations for the Three Months Ended September 30, 2025 and 2024 Three Months Ended September 30, Variance Percent Change 2025 2024 (In thousands, except BBL per day) Revenues $ 25,799 $ 24,414 $ 1,385 6 % Cost of products sold — 23 (23 ) (100 )% Operating expenses 15,341 14,857 484 3 % Selling, general and administrative expenses 736 1,130 (394 ) (35 )% Depreciation and amortization 5,143 5,695 (552 ) (10 )% 4,579 2,709 1,870 69 % Loss on disposition or sale of property, plant and equipment (2 ) (34 ) 32 94 % Operating income $ 4,577 $ 2,675 $ 1,902 71 % Shore-based throughput volumes (gallons) 43,555 42,242 1,313 3 % Smackover refinery throughput volumes (guaranteed minimum BBL per day) 6,500 6,500 — — % Comparative Results of Operations for the Nine Months Ended September 30, 2025 and 2024 Nine Months Ended September 30, Variance Percent Change 2025 2024 (In thousands, except BBL per day) Revenues $ 73,441 $ 73,101 $ 340 — % Cost of products sold — 65 (65 ) (100 )% Operating expenses 45,233 45,414 (181 ) — % Selling, general and administrative expenses 2,405 2,232 173 8 % Depreciation and amortization 16,123 16,819 (696 ) (4 )% 9,680 8,571 1,109 13 % Gain on disposition or sale of property, plant and equipment 7 1,063 (1,056 ) (99 )% Operating income $ 9,687 $ 9,634 $ 53 1 % Shore-based throughput volumes (gallons) 129,245 130,502 (1,257 ) (1 )% 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 September 30, 2025 and 2024 Three Months Ended September 30, Variance Percent Change 2025 2024 (In thousands) Revenues: Services $ 4,073 $ 3,477 $ 596 17 % Products 28,562 21,183 7,379 35 % Total revenues 32,635 24,660 7,975 32 % Cost of products sold 24,115 15,292 8,823 58 % Operating expenses 3,265 3,089 176 6 % Selling, general and administrative expenses 1,531 2,091 (560 ) (27 )% Depreciation and amortization 3,531 2,937 594 20 % 193 1,251 (1,058 ) (85 )% Gain on disposition or sale of property, plant and equipment 2 3 (1 ) (33 )% Operating income $ 195 $ 1,254 $ (1,059 ) (84 )% Sulfur (long tons) 157 113 44 39 % Fertilizer (long tons) 44 29 15 52 % Total sulfur services volumes (long tons) 201 142 59 42 Comparative Results of Operations for the Nine Months Ended September 30, 2025 and 2024 Nine Months Ended September 30, Variance Percent Change 2025 2024 (In thousands) Revenues: Services $ 12,369 $ 10,431 $ 1,938 19 % Products 113,098 85,103 27,995 33 % Total revenues 125,467 95,534 29,933 31 % Cost of products sold 85,428 60,246 25,182 42 % Operating expenses 10,752 8,773 1,979 23 % Selling, general and administrative expenses 4,766 5,111 (345 ) (7 )% Depreciation and amortization 10,644 8,697 1,947 22 % 13,877 12,707 1,170 9 % Gain (loss) on disposition or sale of property, plant and equipment 3 (305 ) 308 101 % Operating income $ 13,880 $ 12,402 $ 1,478 12 % Sulfur (long tons) 434 296 138 47 % Fertilizer (long tons) 209 165 44 27 % Total sulfur services volumes (long tons) 643 461 182 39 % Specialty Products Segment Comparative Results of Operations for the Three Months Ended September 30, 2025 and 2024 Three Months Ended September 30, Variance Percent Change 2025 2024 (In thousands) Products revenues $ 62,482 $ 67,225 $ (4,743 ) (7 )% Cost of products sold 56,852 60,445 (3,593 ) (6 )% Operating expenses — 30 (30 ) (100 )% Selling, general and administrative expenses 1,687 2,135 (448 ) (21 )% Depreciation and amortization 755 794 (39 ) (5 )% 3,188 3,821 (633 ) (17 )% Gain on disposition or sale of property, plant and equipment 13 60 (47 ) (78 )% Operating income $ 3,201 $ 3,881 $ (680 ) (18 )% NGL sales volumes (Bbls) 608 582 26 4 % Other specialty products volumes (Bbls) 100 91 9 10 % Total specialty products volumes (Bbls) 708 673 35 5 % Comparative Results of Operations for the Nine Months Ended September 30, 2025 and 2024 Nine Months Ended September 30, Variance Percent Change 2025 2024 (In thousands) Products revenues $ 192,151 $ 200,888 $ (8,737 ) (4 )% Cost of products sold 174,063 179,800 (5,737 ) (3 )% Operating expenses — 81 (81 ) (100 )% Selling, general and administrative expenses 5,257 5,300 (43 ) (1 )% Depreciation and amortization 2,268 2,389 (121 ) (5 )% 10,563 13,318 (2,755 ) (21 )% Gain on disposition or sale of property, plant and equipment 17 66 (49 ) (74 )% Operating income $ 10,580 $ 13,384 $ (2,804 ) (21 )% NGL sales volumes (Bbls) 1,843 1,744 99 6 % Other specialty products volumes (Bbls) 271 263 8 3 % Total specialty products volumes (Bbls) 2,114 2,007 107 5 % Indirect Selling, General and Administrative Expenses Comparative Results of Operations for the Three and Nine Months Ended September 30, 2025 and 2024 Three Months Ended September 30, Variance Percent Change Nine Months Ended September 30, Variance Percent Change 2025 2024 2025 2024 (In thousands) (In thousands) Indirect selling, general and administrative expenses $ 3,860 $ 3,742 $ 118 3 % $ 12,472 $ 11,397 $ 1,075 9 % 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 and nine months ended September 30, 2025 and 2024, 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 September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (in thousands) (in thousands) Net income (loss) $ (8,412 ) $ (3,319 ) $ (11,852 ) $ 3,734 Adjustments: Interest expense 14,614 14,592 43,329 42,811 Income tax expense 715 1,066 3,916 3,634 Depreciation and amortization 12,336 12,608 37,790 37,944 EBITDA 19,253 24,947 73,183 88,123 Adjustments: Gain on disposition or sale of property, plant and equipment (395 ) (159 ) (1,487 ) (1,320 ) Transaction expenses related to the terminated merger with Martin Resource Management Corporation 194 — 1,021 — Equity in (earnings) loss of DSM Semichem LLC (20 ) 314 805 314 Non-cash contractual revenue adjustment 175 — 571 — Unit-based compensation 66 42 156 145 Adjusted EBITDA $ 19,273 $ 25,144 $ 74,249 $ 87,262 Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA, Distributable Cash Flow, and Adjusted Free Cash Flow Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (in thousands) (in thousands) Net cash provided by (used in) operating activities $ (1,213 ) $ (15,753 ) $ 23,683 $ 6,184 Interest expense1 13,037 13,220 38,996 38,700 Current income tax expense (130 ) 935 3,225 3,477 Transaction expenses related to the terminated merger with Martin Resource Management Corporation 194 — 1,021 — Non-cash contractual revenue adjustment 175 — 571 — Changes in operating assets and liabilities which (provided) used cash: Accounts and other receivables, inventories, and other current assets (6,074 ) 22,489 (12,071 ) 32,128 Trade, accounts and other payables, and other current liabilities 11,013 4,032 18,037 7,474 Other 2,271 221 787 (701 ) Adjusted EBITDA 19,273 25,144 74,249 87,262 Adjustments: Interest expense (14,614 ) (14,592 ) (43,329 ) (42,811 ) Income tax expense (715 ) (1,066 ) (3,916 ) (3,634 ) Deferred income taxes 845 131 691 157 Amortization of debt discount 600 600 1,800 1,800 Amortization of deferred debt issuance costs 977 772 2,533 2,311 Payments for plant turnaround costs (4,197 ) (2,894 ) (5,996 ) (9,599 ) Maintenance capital expenditures (5,574 ) (5,738 ) (13,677 ) (17,949 ) Distributable Cash Flow (3,405 ) 2,357 12,355 17,537 Principal payments under finance lease obligations (3 ) (4 ) (10 ) (5 ) Investment in DSM Semichem LLC — — — (6,938 ) Expansion capital expenditures (1,273 ) (3,903 ) (2,994 ) (15,584 ) Adjusted Free Cash Flow $ (4,681 ) $ (1,550 ) $ 9,351 $ (4,990 ) 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. Investor Contacts: [email protected] (877) 256-6644 Danny Cavin - Director, FP&A and Investor Relations Sharon Taylor - EVP & Chief Financial Officer Source: Martin Midstream Partners L.P. Multimedia Files: View all news