Martin Midstream Partners Reports Second Quarter 2025 Financial Results
Martin Midstream Partners L.P., headquartered in Kilgore, Texas, has released its financial results for the second quarter of 2025. The company operates primarily in the Gulf Coast region of the United States, focusing on terminalling, processing, and storage services for petroleum products and by-products, land and marine transportation services, sulfur and sulfur-based products processing, and marketing, distribution, and transportation services for natural gas liquids and specialty lubricants and grease.
Financial Highlights
For the second quarter of 2025, Martin Midstream Partners reported a net loss of $2.4 million, compared to a net income of $3.8 million in the same period last year. Adjusted EBITDA for the quarter was $27.1 million, down from $31.7 million in the second quarter of 2024. The company maintained its full-year adjusted EBITDA guidance of $109.1 million. Revenues for the quarter were $180.7 million, slightly down from $184.5 million in the same period last year.
Business and Operational Highlights
The Sulfur Services segment exceeded internal projections for sales volumes and margins, positioning it well for the first half of the year. However, the Transportation segment faced challenges, with marine business utilization below expectations due to equipment repairs, although land transportation partially offset this shortfall. The Specialty Products segment experienced temporary volume reductions in the grease business unit but saw better-than-expected results in the lubricants business. The Terminalling and Storage segment delivered results slightly below internal projections due to higher operating expenses.
Strategic Initiatives and Corporate Developments
During the quarter, growth capital expenditures totaled $0.8 million, and maintenance capital expenditures were $5.2 million. The adjusted leverage ratio was 4.20 times as of June 30, 2025, compared to 4.21 times as of March 31, 2025. The company declared a quarterly cash distribution of $0.005 per common unit, payable on August 14, 2025.
Management's Perspective
Bob Bondurant, President and CEO of Martin Midstream GP LLC, commented on the results, stating, "The Partnership reported adjusted EBITDA of $27.1 million for the quarter. Based on performance over the first half of the year, we are reaffirming our full-year adjusted EBITDA guidance of $109.1 million. However, we remain cautious and continue to closely monitor the potential impacts of the proposed tariffs."
Future Outlook
The company anticipates that leverage will remain at current levels in the third quarter, which is typically the seasonally weakest period for cash flow. However, they expect leverage to decline in the fourth quarter as the Sulfur Services segment exits turnaround season and operational cash flows improve.
SEC Filing: MARTIN MIDSTREAM PARTNERS L.P. [ MMLP ] - 8-K - Jul. 16, 2025