Martin Midstream Partners' Annual Loss Deepens

Why It Matters

The deeper loss highlights financing pressure on Gulf Coast midstream operators and signals tighter cash flow ahead, affecting investors and creditors.

Key Takeaways

• 2025 net loss widened to $14.7 million.
• Interest expense hit $57.8 million, driving loss.
• Adjusted EBITDA forecast 2026 $96.5 million.
• Debt $439.1 million, leverage 4.43×.
• Dividend reduced to $0.005 per unit.

Pulse Analysis

The midstream logistics sector is feeling the strain of higher financing costs, and Martin Midstream Partners exemplifies that trend. With $57.8 million of interest expense consuming a large portion of earnings, the company’s balance sheet reflects the broader challenge of elevated debt levels across oil‑transport firms. Investors are watching leverage ratios closely; Martin’s 4.43‑times credit‑adjusted EBITDA places it in a risk‑adjusted bracket that may limit future borrowing capacity, especially as credit markets tighten.

Despite the GAAP loss, the firm’s adjusted EBITDA of $99 million shows operational resilience in core transport and storage segments. Higher inland utilization and offshore day rates lifted transport‑adjusted EBITDA, while terminaling benefited from increased refinery throughput. However, softer fertilizer margins and reduced marine utilization underscore the volatility of commodity‑linked services. The mixed segment performance suggests that fixed‑fee contracts provide a cushion, but exposure to market cycles remains a key risk factor for earnings stability.

Looking ahead, Martin Midstream’s guidance of $96.5 million adjusted EBITDA for 2026 comes with a planned $36.5 million capital outlay, primarily for scheduled refinery turnarounds. This capital intensity may pressure free cash flow, especially as operating cash generation fell to $22.4 million in Q4. The modest dividend of $0.005 per unit signals a cautious capital return approach, balancing shareholder expectations with the need to preserve liquidity. Stakeholders will monitor how the company navigates debt service, capex demands, and segment headwinds to maintain its dividend and credit profile.

Martin Midstream Partners' Annual Loss Deepens

By Jov Onsat · Rigzone Staff · Thursday, February 19, 2026 · 9:08 AM EST

The Gulf Coast‑focused oil logistics company saw “a decline in marine utilization during the third quarter, a softer fertilizer market in the fourth quarter and headwinds in our grease business throughout the year.”

Image by gunnar3000 via iStock

Martin Midstream Partners LP, a Gulf Coast‑focused oil and oil products logistics company, on Wednesday reported a net loss of $14.7 million for 2025, compared to a net loss of $5.2 million for 2024.

Last year’s net result was driven by $57.8 million in interest expense and $21.9 million in unallocated selling, general and administrative expense, according to the Kilgore, Texas‑based company’s quarterly report.

Martin Midstream’s Q4 net loss of $2.9 million improved from a net result of ‑$8.4 million for the prior three‑month period.

Full‑year and Q4 EBITDA adjusted for extraordinary or non‑recurring items stood at $99 million and $24.8 million, respectively.

• Transport‑adjusted EBITDA for Q4 2025 increased by $2.4 million versus Q4 2024 on higher inland utilization and offshore day rates in the marine division and increased service revenue and transportation rates in the land division.

• Terminaling and storage‑adjusted EBITDA for Q4 2025 rose by $2.7 million on higher refinery throughput and higher revenue from natural‑gas‑liquids underground storage.

• Sulfur services‑adjusted EBITDA for Q4 2025 fell by $3.7 million on lower fertilizer margins.

• Specialty products‑adjusted EBITDA for Q4 2025 dropped by $0.9 million on a higher lubricants sales volume, partially offset by higher propane margins.

“Unallocated selling, general and administrative expense decreased by $0.9 million, reflecting lower insurance‑related costs,” Martin Midstream added.

Operating activities generated $22.4 million in net cash for Q4 2025, compared to $42.2 million for Q4 2024. On an annual basis, operating net cash only slightly decreased, from $48.4 million for 2024 to $46.1 million for 2025.

Martin Midstream expects adjusted EBITDA to decrease year‑on‑year to $96.5 million in 2026, despite a projected increase in capital spend to $36.5 million primarily due to scheduled refinery turnaround activity.

“While our GAAP (generally accepted accounting principles) net loss reflects non‑cash items and specific segment headwinds, our focus remained on balance‑sheet discipline,” said Bob Bondurant, president and chief executive of Martin Midstream GP LLC, the general partner. “We ended the year with total debt outstanding of approximately $439.1 million, liquidity of $31.4 million under our revolving credit facility and an adjusted leverage ratio of 4.43 times based on credit‑adjusted EBITDA.”

“Our 2025 results within the terminaling and storage segment, our pure sulfur services business and our land transportation business delivered stable performance, underscoring the durability of our fixed‑fee contracts within these businesses. This stability was partially offset by a decline in marine utilization during the third quarter, a softer fertilizer market in the fourth quarter and headwinds in our grease business throughout the year.”

Martin Midstream’s dividend for Q4 2025 was $0.005 per unit. Its annualized dividend per unit was $0.02.

Martin Midstream ended the year with $129.9 million in current assets, including $49,000 in cash. Current liabilities stood at $124.1 million.

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