Martin Midstream lifts 2026 adjusted EBITDA guidance to $94 million after a sulfur-led quarter

Martin Midstream Partners raised full-year 2026 adjusted EBITDA guidance to $94.0 million after third-quarter adjusted EBITDA came in at $23.6 million against $19.3 million a year earlier, a quarter in which the partnership still reported a $4.1 million net loss and added borrowings to carry a seasonal cash outflow.

Revenue for the three months ended September 30 rose to $231.7 million from $168.7 million a year earlier, carried by product sales rather than fee-based services. The reported net loss was $4.1 million, or $0.10 per unit, and depreciation and amortization of $13.1 million again exceeded operating income of $10.2 million.

Sulfur and lubricants carry a quarter that still lost money

Segment adjusted EBITDA explains where the increase came from. Sulfur Services earned $5.8 million against $3.9 million, with the release crediting a $4.5 million increase in pure sulfur to higher volumes, margins and commodity prices, partly offset by a $3.4 million decline in fertilizer on compressed margins and lower volumes. Specialty Products rose to $5.9 million from $3.9 million, led by a $1.8 million gain in lubricants on higher sales volumes and margins. Transportation improved to $7.2 million from $5.3 million as the marine division added $3.3 million on higher utilization and day rates, while land transportation fell $1.4 million. Terminalling and Storage was the weak segment, slipping to $8.3 million from $9.7 million as specialty terminals lost $700,000 and underground storage $600,000.

Bob Bondurant, president and chief executive of the general partner, described the mix this way: “Our pure sulfur and lubricants businesses were the primary drivers of the quarter, outweighing a difficult fertilizer market that also negatively impacted the land transportation business.” He added that the partnership sees “no meaningful relief for fertilizer before year-end but expect sulfur to remain a reliable counterweight.”

Guidance rises alongside a higher capital budget

The $94.0 million target leaves $21.7 million of adjusted EBITDA to find in the fourth quarter, given the $72.3 million generated in the first nine months, itself below the $74.3 million reported for the same period of 2025. The raised target is also below the $99.0 million of adjusted EBITDA the partnership reported for the whole of 2025, so the $21.7 million implied for the fourth quarter of 2026 sits under the roughly $24.8 million implied for the fourth quarter of 2025 by the same subtraction.

The release announces the revision alongside a higher 2026 capital estimate rather than attributing the raise to that spending. Bondurant: “revising our full-year 2026 Adjusted EBITDA guidance to $94 million along with increasing our estimated 2026 capital expenditures to capture increased spending from higher labor and material costs specifically related to third quarter turnaround costs at our fertilizer plants.”

The release raises the guidance figure without restating the prior number, so the size of the revision cannot be measured from the documents filed, and the guidance covers only adjusted EBITDA and the cash lines beneath it, with no revenue or per-unit forecast.

Leverage holds at 4.96 times as revolver borrowings climb

Total debt outstanding was approximately $483.5 million at September 30, up from $439.1 million at December 31, 2025, and available liquidity under the revolving credit facility was approximately $21.9 million. The total adjusted leverage ratio was 4.96x, against 4.43x at year-end and unchanged from the second quarter, on trailing-twelve-month Credit Adjusted EBITDA of $97.6 million. The $400.0 million of 11.50% senior secured notes due February 2028 remain outstanding, and the partnership reported $14.7 million of net interest expense in the third quarter of 2026. Its interest coverage ratio, calculated under the revolving credit facility, was 1.86x at September 30, against 1.90x at December 31, 2025.

Bondurant attributed the increase to calendar effects: “Third quarter cash flow is historically the lowest of the year, as our fertilizer facilities complete their annual maintenance turnarounds and the semi-annual interest payment on our senior notes comes due, both of which temporarily increase borrowings under our revolving credit facility.” Distributable cash flow was $200,000 for the quarter, and the partnership declared a quarterly distribution of $0.005 per unit, payable November 13, 2026 to unitholders of record on November 6, 2026, the same date as the ex-dividend date. The revised guidance table in the accompanying summary projects full-year distributable cash flow of negative $200,000 and adjusted free cash flow of negative $5.0 million, a forecast that leaves no internally generated cash to cover the year's distributions.

Fertilizer weakness and a smaller revolver sit under the higher guidance

Two constraints frame the raised target. Fertilizer adjusted EBITDA fell $3.4 million in the quarter and management expects no meaningful relief before year-end, while the same fertilizer plants drove the turnaround spending that lifted the capital budget. The weakness is not new to the quarter: fertilizer adjusted EBITDA was $400,000 for the first nine months against $13.8 million a year earlier. Separately, the $21.9 million of availability sits on a smaller commitment than at December 31, 2025: revolving credit facility capacity is $115.0 million, down from $130.0 million. The release reports leverage and coverage ratios but no borrowing-base calculation, and offers no explanation for the capacity reduction.

The next dated markers: November 6 and 13

The distribution's record date and payment date are the nearest dated events, and the cash return unitholders receive is $0.005 per unit for the quarter. The guidance question is settled only by the fourth-quarter release, which the partnership has not dated. Management also pointed to a longer-dated item, saying the DSM Semichem joint venture “continues to work through customer qualification ahead of an anticipated ramp in 2027.”