Marine Unit ‘Bright Spot’ In Martin Midstream Third Quarter

Calling the performance of its marine fleet a “bright spot” in its transportation sector, Martin Midstream Partners L.P. announced its financial results for the third quarter of 2026 on October 21.

Martin Midstream Partners L.P., headquartered in Kilgore, Texas, is a publicly traded limited partnership with a diverse set of operations focused primarily in the Gulf Coast region of the United States.

Bob Bondurant, president and chief executive officer of Martin Midstream GP LLC, the general partner of the partnership, said, “For the third quarter of 2026, the partnership generated adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $23.6 million, ahead of our internal forecast for the quarter and $4.3 million higher than the third quarter of 2025.” 

MMLP’s primary business lines include: terminaling, processing and storage services for petroleum products and by-products; land and marine transportation services for petroleum products and by-products, chemicals and specialty products; sulfur and sulfur-based products processing, manufacturing, marketing and distribution; and marketing, distribution and transportation services for natural gas liquids and blending and packaging services for specialty lubricants and grease.

Sulfur Driver

“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,” Bondurant said. “Through the first nine months of the year, the partnership has generated adjusted EBITDA of $72.3 million, and we are 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.”

“Terminaling and Storage came in just short of plan for the quarter, as lighter activity at our specialty terminals outweighed gains at the Smackover Refinery and our underground storage facility,” he continued. “With the majority of the segment’s cash flow underpinned by fixed-fee agreements, we remain confident in its full-year outlook.”

“Specialty Products results were ahead of plan, led by another strong quarter in lubricants, where margins expanded on higher sales volumes,” he said. “The grease business, although with significant improvement quarter over quarter, continues below our forecasted volumes.”

“Transportation Services finished the quarter slightly behind plan. Our marine fleet was a bright spot, with units operating at or above targeted utilization now that this year’s inspection cycle is behind us. Land transportation miles were lower, as our central Florida terminal experienced an extensive reduction in freight driven by reduced third-party fertilizer production.”

Standout Segments

Sulfur Services was the standout segment for the quarter, finishing well ahead of plan, Bondurant said. The company’s pure sulfur business drove the out-performance, as the services it provides “are highly valued in the current market. Our fertilizer business remains under pressure as growers’ cost structures and economics are not improving. We see no meaningful relief for fertilizer before year-end, but expect sulfur to remain a reliable counterweight. Finally, the DSM Semichem joint venture continues to work through customer qualification ahead of an anticipated ramp in 2027,” he said.

Sulfur Services’ adjusted EBITDA increased by $2 million. In the pure sulfur business, adjusted EBITDA increased $4.5 million, primarily reflecting higher volumes and margins, including the favorable impact of higher commodity prices. In the sulfur prilling business, adjusted EBITDA increased $0.8 million on higher volumes and reservation fees. In the fertilizer division, adjusted EBITDA decreased $3.4 million on compressed margins and lower volumes.

“Transportation adjusted EBITDA increased by $1.9 million. In our land transportation division, adjusted EBITDA decreased $1.4 million, as lower transportation rates and mileage reduced service revenue, and the third quarter of 2025 included a favorable allowance adjustment that did not recur.

In the marine division, adjusted EBITDA increased by $3.3 million. Adjusted EBITDA in the inland division increased $3.4 million on higher utilization and day rates. Adjusted EBITDA in the company’s offshore division remained generally consistent.

For the full report, visit Martin Midstream Partners at https://mmlp.com/investor-relations/press-releases/press-releases-details/2026/Martin-Midstream-Partners-Reports-Third-Quarter-2026-Financial-Results-Increases-Full-Year-2026-Adjusted-EBITDA-Guidance-to-94-Million-and-Declares-Quarterly-Cash-Distribution/default.aspx.