Ferrellgas Partners L P

Net loss attributable to the Company increased by $4.7 million, or 18%, to $31.5 million in the fourth quarter of fiscal 2026, compared to a net loss of $26.8 million in the prior year period. The change was primarily driven by an increase of $6.8 million in interest expense, the $3.9 million decrease in gross profit noted above, and a $3.4 million increase in loss on disposal of assets. These variances were partially offset by a $9.8 million decrease in operating expense. The decrease in operating expense includes non-recurring adjustments aggregating to $7.8 million, related to an employee benefit related change and a litigation recovery, and a $9.5 million decrease in plant and other, which was primarily due to a $6.8 million decrease in other expense and a $2.6 million reduction in bad debt. These decreases were partially offset by increases of $4.9 million in personnel costs and $2.6 million in vehicle expense.

In October 2025, the Company completed several financing transactions, including the redemption of its $650.0 million aggregate 2026 Senior Notes, the issuance of new $650.0 million aggregate 2031 Senior Notes, and the extension and expansion of its revolving credit facility. These actions were followed by credit rating upgrades from both S&P Global and Moody’s, as the market recognized the value of our strengthened balance sheet and extended debt maturity profile.

In March 2026, the Company paid a final aggregate distribution of approximately $107.0 million to its Class B Unitholders and subsequently converted all 1.3 million outstanding Class B Units into 6.5 million Class A Units. The conversion simplifies the Company’s unit structure for current and prospective investors and eliminates the Class B distribution obligation, redirecting future cash flows toward debt reduction, operational investment, and long-term value creation for Class A Unitholders.

For fiscal 2026, Adjusted EBITDA, a non-GAAP financial measure, was $321.3 million, compared to $330.7 million in fiscal 2025, a decrease of $9.4 million, or 3%. A $20.4 million increase in operating expense, primarily due to the settlement of legacy general liability claims in fiscal 2026, was partially offset by a $5.4 million decrease in General and administrative expense, after EBITDA adjustments primarily related to a $125.0 million legal settlement in fiscal 2025, and a $4.5 million decrease in equipment lease expense.

Net earnings attributable to the Company were $71.7 million in fiscal 2026, compared to a net loss of $15.6 million in fiscal 2025, a change of $87.3 million. The change was primarily due to a decrease of $134.2 million in general and administrative expense, driven by the $125.0 million litigation settlement in fiscal 2025, which was partially offset by increases of $20.4 million in operating expense, $16.8 million in interest expense and $8.7 million in depreciation and amortization expense. The $20.4 million increase in operating expense includes increases of $14.8 million in plant and other costs and $7.6 million in vehicle expense, which were partially offset by a $2.0 million decrease in personnel costs.