Aug 6, 2026, 7:56 AM ETUtilities

Suburban Propane Partners, L.P. — Third Quarter 2026 Earnings Summary

SPHSUBURBAN PROPANE PARTNERS LP

Financial Performance

Reported a net loss of $17.5 million ($0.26 per Common Unit) for the third quarter ended June 27, 2026, compared to a net loss of $14.8 million ($0.23 per Common Unit) in the prior year period.
Adjusted EBITDA for the quarter was $18.0 million, a decrease from $27.0 million in the prior year third quarter.
Total revenues were $261.4 million, slightly up from $260.2 million in the prior year period.
Total gross margin was $160.3 million, unchanged from the prior year; excluding mark-to-market adjustments, gross margin decreased $3.9 million (2.4%) due to lower propane volumes.
Combined operating and general and administrative expenses were $141.4 million, an increase of $5.2 million (3.8%) year-over-year.
Retail propane gallons sold decreased 1.8% to 70.6 million gallons compared to the prior year.
Average propane prices (basis Mont Belvieu) increased 3.6% compared to the prior year.
The Total Consolidated Leverage Ratio was 4.35x for the twelve-month period ended June 27, 2026, compared to 4.33x in the prior year.
Capital expenditures for the quarter were $21.5 million ($6.3 million maintenance, $15.1 million growth).

The Partnership expects to enter fiscal year 2027 with all three of its renewable natural gas (RNG) facilities operational.
The Columbus, Ohio RNG facility is expected to come into service during the fourth quarter.
Management anticipates continued opportunities for organic growth in RNG operations through capacity optimization and increased feedstock intake.
Average daily RNG injection volume for the third quarter was flat compared to the prior year.

RNG revenues benefited from higher prices for environmental attributes, including California LCFS and D3 RIN credits.
A new anaerobic digester facility in Upstate New York was placed into service subsequent to the quarter end.
Counter-seasonal customer base growth substantially offset the impact of warmer weather on propane volumes.
Propane unit margins remained steady despite volume declines.

Average temperatures across all service territories were 17% warmer than normal and 3% warmer than the prior year third quarter.
April 2026 temperatures were 24% warmer than normal and 11% warmer than the prior year, ranking as the second warmest April on record.
The business remains exposed to weather conditions impacting demand for propane, renewable propane, fuel oil, natural gas, RNG, and electricity.

Near-record warm temperatures during April reduced heat-related demand.
Higher residential customer tank levels due to delivery timing in the fiscal second quarter impacted volumes.
Operating costs increased due to higher payroll, benefit-related expenses, fuel, and vehicle maintenance costs.
The company faces risks related to volatility in commodity prices, climate change legislation, and the commercial viability of renewable fuel investments dependent on government funding and regulation.

CEO Michael A. Stivala noted that operating personnel maintained discipline over operating costs and managed selling prices in a volatile commodity environment.
Management highlighted that counter-seasonal customer growth substantially offset weather-related volume declines.
The tone emphasized operational focus on customer service and cost management despite seasonal headwinds.

The Board of Supervisors declared a quarterly distribution of $0.325 per Common Unit for the quarter ending June 27, 2026, equating to an annualized rate of $1.30 per Common Unit.
The distribution is payable on August 11, 2026, to unitholders of record as of August 4, 2026.
The Partnership used excess cash flows and $6.6 million in net proceeds from its At-the-Market (ATM) equity program to repay $36.2 million in borrowings under its revolving credit facility.
The company serves approximately 1 million customers through approximately 750 locations across 42 states.