Martin MLP Walks Back Profit Guidance as Losses Deepen

Martin Midstream Partners LP (MMLP) on Wednesday pulled down its projection for adjusted EBITDA for 2026 to $90 million as net losses piled up from $1 million for the first quarter (Q1) of 2025 to $6.6 million for Q1 2026.

Kilgore, Texas-based MMLP, a midstream oil and chemicals company and a producer of sulfur products, has not posted a profitable year since 2019.

"For the first quarter of 2026, the Partnership generated Adjusted EBITDA of $20.8 million, short of the pace needed to achieve our full-year guidance", Bob Bondurant, president and chief executive of MMLP general partner Martin Midstream GP LLC, said in an online statement.

"Two primary headwinds impacted the quarter: meaningful margin pressure in our fertilizer business and lower than anticipated contribution by the transportation business".

In the transport segment, operating profit fell to $3.2 million for Q1 2026 from $5.5 million for Q1 2025. Segment EBITDA adjusted for nonrecurring or extraordinary items dropped to $6 million from $8 million due to lower miles, reduced transport rates and higher operating expenses.

Terminaling and storage operating income inched up from $2.1 million for Q1 2025 to $2.2 million for Q1 2026. Adjusted EBITDA decreased from $7.7 million to $7.1 million due to higher operating expenses, partially offset by higher throughput and reservation fees.

Sulfur services operating profit plunged to $2.5 million for Q1 2026 from $7.7 million for Q1 2025. Adjusted EBITDA fell to $6.8 million from $11.5 million. The fertilizer division saw "rapidly rising raw material costs", as well as delivered lower volumes. The pure sulfur division benefited from lower operating expenses, partially offset by weaker margins. Sulfur prilling benefited from increased reservation fees.

Specialty products operating profit slid to $3.5 million for Q1 2026 from $3.7 million for Q1 2025. Adjusted EBITDA fell to $4.3 million for Q1 2026 from $4.5 million for Q1 2025. Lubricants improved in margins and volumes, while the grease division saw the opposite. Propane volumes fell. Natural gas liquids increased margins.

Marine transport recorded lower utilization associated with planned regulatory inspections, lower transport rates and higher operating expenses. The inland division saw higher utilization, but lower day rates.

Revenue across operations totaled $187.67 million for Q1 2026, compared to $192.54 million for Q1 2025. The biggest contributor for both periods was the terminaling and storage segment: $18.76 million for Q1 2026 vs $17.26 million for Q1 2025.

While MMLP had no distributable cash flow, which stood at negative $2.88 million, the company declared a dividend per unit of $0.005.

"During the quarter, we amended our revolving credit facility, providing the Partnership with additional covenant flexibility as we navigate through the current environment", Bondurant said. "As of March 31, 2026, total debt outstanding was approximately $468.0 million, liquidity under our revolving credit facility was approximately $37.5 million, and our leverage ratio was 5.08 times based on Credit Adjusted EBITDA".

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