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KILGORE, Texas - Martin Midstream Partners L.P. (NASDAQ:MMLP) reported a third-quarter net loss of $8.4 million, or -$0.21 per unit, significantly missing analyst estimates of -$0.02 per unit. The disappointing results, driven by unexpected weakness in marine transportation and grease businesses, sent shares tumbling 6%.
The midstream energy company generated adjusted EBITDA of $19.3 million for the quarter ended September 30, 2025, down from $25.1 million in the same period last year. The company has withdrawn its full-year 2025 guidance due to current demand softness impacting inland barge utilization.
"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," said Bob Bondurant, President and CEO of Martin Midstream GP LLC, the general partner of the Partnership.
The Transportation segment was particularly hard hit, with adjusted EBITDA decreasing by $6.3 million compared to the prior year. The marine division experienced a significant decline in demand for inland barge fuel transportation, while the land division saw lower miles and reduced transportation rates.
The company’s adjusted leverage ratio increased to 4.63 times as of September 30, 2025, up from 4.20 times on June 30, 2025. Despite the earnings pressure, management emphasized they remain in compliance with all debt covenants and expect to maintain compliance going forward.
"Although earnings were pressured this quarter, we remain firmly focused on strengthening the balance sheet through disciplined capital allocation," Bondurant added.
The Partnership declared a quarterly cash dividend of $0.005 per common unit, maintaining its commitment to returning capital to unitholders despite the challenging operating environment.
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