Ferrellgas Swings to Q3 Loss Amid Propane Price Drop
Ticker: FGPR · Form: 10-Q · Filed: Jun 6, 2025 · CIK: 922358
Sentiment: bearish
Topics: Propane Distribution, Energy Sector, Quarterly Earnings, Net Loss, Revenue Decline, Commodity Prices, Debt Management
Related Tickers: FGPR, UGI, APU
TL;DR
**Ferrellgas is getting squeezed by falling propane prices and declining volumes, making it a tough hold right now.**
AI Summary
Ferrellgas Partners L P reported a net loss of $10.7 million for the three months ended April 30, 2025, a significant deterioration from the net income of $10.0 million in the prior-year period. For the nine months ended April 30, 2025, the company posted a net income of $10.6 million, down from $60.5 million in the same period last year, representing an 82.5% decrease. Total revenues for the three months ended April 30, 2025, were $383.0 million, a decrease from $414.0 million in the comparable period of 2024. The nine-month revenue also saw a decline to $1.61 billion from $1.73 billion. The decrease in net income is primarily attributed to lower average sales prices of propane and reduced volumes sold, impacting both retail and wholesale segments. The company continues to manage its debt structure, with $1.05 billion in total debt as of April 30, 2025. Strategic outlook remains focused on operational efficiency and market share in a challenging pricing environment.
Why It Matters
Ferrellgas's swing to a net loss and significant decline in nine-month net income signals a challenging environment for propane distributors, directly impacting investor returns and potentially future dividend stability. Employees might face pressure as the company navigates reduced profitability. For customers, while lower propane prices might seem beneficial, the company's financial strain could affect service quality or expansion plans in the long term. In a competitive market, this performance could allow rivals to gain market share if Ferrellgas struggles to adapt to pricing pressures and volume declines.
Risk Assessment
Risk Level: high — The company reported a net loss of $10.7 million for the three months ended April 30, 2025, a sharp decline from a $10.0 million net income in the prior year. Furthermore, the nine-month net income plummeted by 82.5% to $10.6 million from $60.5 million, primarily due to lower average sales prices and reduced volumes, indicating significant operational headwinds and market sensitivity.
Analyst Insight
Investors should consider reducing exposure to FGPR given the substantial decline in profitability and revenue, driven by unfavorable market conditions for propane. Monitor future filings for signs of stabilization in propane prices and sales volumes before considering re-entry.
Financial Highlights
- debt To Equity
- Not Disclosed
- revenue
- $383.0M
- operating Margin
- Not Disclosed
- total Assets
- Not Disclosed
- total Debt
- $1.05B
- net Income
- -$10.7M
- eps
- Not Disclosed
- gross Margin
- Not Disclosed
- cash Position
- Not Disclosed
- revenue Growth
- -7.5%
Revenue Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Retail | $383.0M | -7.5% |
| Wholesale | Not Disclosed | Not Disclosed |
Key Numbers
- $10.7M — Net Loss (for Q3 2025, a swing from $10.0M net income in Q3 2024)
- $10.6M — Nine-Month Net Income (down 82.5% from $60.5M in the prior year period)
- $383.0M — Q3 Revenue (decreased from $414.0M in Q3 2024)
- $1.61B — Nine-Month Revenue (decreased from $1.73B in the prior year period)
- $1.05B — Total Debt (as of April 30, 2025, indicating significant leverage)
- 82.5% — Net Income Decrease (for the nine months ended April 30, 2025, compared to the prior year)
Key Players & Entities
- FERRELLGAS PARTNERS L P (company) — filer of the 10-Q
- FERRELLGAS FINANCE CORP (company) — co-filer of the 10-Q
- FERRELLGAS PARTNERS FINANCE CORP (company) — co-filer of the 10-Q
- FERRELLGAS L P (company) — co-filer of the 10-Q
- $10.7 million (dollar_amount) — net loss for the three months ended April 30, 2025
- $10.0 million (dollar_amount) — net income for the three months ended April 30, 2024
- $10.6 million (dollar_amount) — net income for the nine months ended April 30, 2025
- $60.5 million (dollar_amount) — net income for the nine months ended April 30, 2024
- $383.0 million (dollar_amount) — total revenues for the three months ended April 30, 2025
- $1.05 billion (dollar_amount) — total debt as of April 30, 2025
FAQ
What caused Ferrellgas Partners L P's net loss in Q3 2025?
Ferrellgas Partners L P's net loss of $10.7 million for the three months ended April 30, 2025, was primarily driven by lower average sales prices of propane and reduced volumes sold across both retail and wholesale segments.
How did Ferrellgas's revenue perform in the latest quarter?
For the three months ended April 30, 2025, Ferrellgas Partners L P reported total revenues of $383.0 million, a decrease from $414.0 million in the comparable period of 2024.
What is the nine-month net income trend for Ferrellgas?
Ferrellgas Partners L P's net income for the nine months ended April 30, 2025, was $10.6 million, a substantial decrease from $60.5 million in the same period last year, representing an 82.5% decline.
What is Ferrellgas Partners L P's current debt level?
As of April 30, 2025, Ferrellgas Partners L P reported total debt of $1.05 billion, indicating a significant leverage position.
What are the key risks highlighted in Ferrellgas's 10-Q filing?
The key risks include the impact of lower average sales prices of propane and reduced sales volumes, which directly led to the net loss of $10.7 million in Q3 2025 and the 82.5% drop in nine-month net income.
How does Ferrellgas's performance impact investors?
The swing to a net loss and the significant 82.5% decline in nine-month net income for Ferrellgas Partners L P could negatively impact investor returns and raise concerns about future dividend stability.
What is Ferrellgas's fiscal year end?
Ferrellgas Partners L P's fiscal year ends on July 31.
Is Ferrellgas Partners L P considered a non-accelerated filer?
Yes, the filing explicitly states that Ferrellgas Partners L P is a Non-accelerated Filer.
What is the primary business of Ferrellgas Partners L P?
Ferrellgas Partners L P operates in the retail-miscellaneous retail sector, primarily involved in the distribution of propane and related equipment.
What was the net income for Ferrellgas in the three months ended April 30, 2024?
For the three months ended April 30, 2024, Ferrellgas Partners L P reported a net income of $10.0 million.
Risk Factors
- Commodity Price Volatility [high — market]: The company's profitability is highly sensitive to fluctuations in propane prices. Lower average sales prices for propane directly impacted the reported net loss of $10.7 million for the three months ended April 30, 2025.
- Reduced Sales Volumes [medium — operational]: A decrease in propane volumes sold across both retail and wholesale segments contributed to the revenue decline from $414.0 million to $383.0 million year-over-year for the third quarter. This indicates challenges in maintaining or growing customer base or market share.
- Significant Debt Load [high — financial]: Ferrellgas Partners L.P. carries a total debt of $1.05 billion as of April 30, 2025. While the company is managing its debt structure, this level of leverage can increase financial risk, especially in a declining revenue environment.
- Challenging Pricing Environment [medium — market]: The company's strategic outlook acknowledges a 'challenging pricing environment.' This suggests ongoing pressure on margins and revenue, potentially limiting future growth prospects and impacting the ability to recover from current losses.
Industry Context
The propane distribution industry is characterized by its reliance on commodity prices, seasonal demand, and logistical challenges. Ferrellgas operates in a competitive landscape with other major distributors and regional players. Recent trends indicate pressure from volatile commodity prices and potentially softening demand in certain sectors, impacting overall industry profitability.
Regulatory Implications
Ferrellgas operates under various environmental and safety regulations related to the storage, transportation, and sale of propane. Compliance with these regulations is crucial to avoid fines, operational disruptions, and reputational damage. Changes in energy policy or environmental standards could also impact operational costs and market dynamics.
What Investors Should Do
- Monitor propane price trends and volume data closely.
- Analyze debt management strategies and covenants.
- Evaluate operational efficiency initiatives.
Key Dates
- 2025-04-30: End of Third Quarter Fiscal Year 2025 — Reporting period for the $10.7 million net loss and $383.0 million in revenue, showing a significant year-over-year decline.
- 2025-04-30: Reporting Date for Total Debt — Indicates a total debt of $1.05 billion, highlighting the company's leverage.
- 2025-06-06: Filing Date of 10-Q — Public disclosure of the company's financial performance and position for the period ending April 30, 2025.
Glossary
- Propane
- A highly flammable hydrocarbon gas commonly used as a fuel for heating, cooking, and vehicles. (The primary product for Ferrellgas, with sales prices and volumes directly impacting the company's financial results.)
- Retail Segment
- Sales of propane and related products directly to end-users, such as residential and commercial customers. (A key revenue driver for Ferrellgas, which experienced lower average sales prices and reduced volumes in the reported quarter.)
- Wholesale Segment
- Sales of propane to other distributors or resellers. (Another significant revenue stream for Ferrellgas, which also appears to have been affected by the overall market conditions.)
- Net Income/Loss
- The profit or deficit remaining after all revenues and expenses have been accounted for. (Indicates the company's overall profitability. A net loss of $10.7 million for Q3 2025 is a significant concern.)
Year-Over-Year Comparison
Compared to the prior year's third quarter, Ferrellgas Partners L.P. has experienced a significant downturn. Revenue decreased from $414.0 million to $383.0 million, and the company swung from a net income of $10.0 million to a net loss of $10.7 million. This deterioration is attributed to lower average sales prices and reduced volumes of propane, highlighting a challenging market environment that has impacted profitability and revenue generation compared to the previous reporting period.
Filing Details
This Form 10-Q (Form 10-Q) was filed with the SEC on June 6, 2025 regarding FERRELLGAS PARTNERS L P (FGPR).