Suburban Propane Partners (SPH) investor relations material

Executive summary

• Net income for Q1 FY2026 was $45.8 million ($0.69 per unit), up from $19.4 million ($0.30 per unit) in Q1 FY2025, driven by higher propane volumes, improved margins, and colder weather in the East.

• Adjusted EBITDA rose 10.8% year-over-year to $83.4 million, reflecting increased demand, effective price and expense management, and contributions from recent acquisitions.

• Retail propane gallons sold increased 4.2% to 110.2 million, primarily due to colder temperatures in the East and new acquisitions.

• Strategic growth initiatives included two propane business acquisitions in California for $24 million and progress in renewable natural gas (RNG) operations.

• Refinanced $350 million of 2027 senior notes with new 2035 notes, extending debt maturities and supporting balance sheet strength.

Financial highlights

• Revenues for Q1 FY2026 were $370.4 million, down 0.8% year-over-year, as higher volumes were offset by lower average selling prices.

• Gross margin increased 5.9% to $239.5 million, with propane unit margins up $0.08 per gallon (4.1%).

• Operating and G&A expenses rose 3.4% to $155.0 million, mainly due to higher payroll and variable compensation.

• Cost of products sold decreased 11.1% to $130.8 million, reflecting lower wholesale propane costs.

• Net cash used in operating activities was $47.7 million, compared to $8.8 million provided in the prior year, due to timing of payments and working capital changes.

Outlook and guidance

• Management remains focused on disciplined growth investments, maintaining balance sheet strength, and flexibility.

• Full-year capital spending estimate for RNG projects remains unchanged, with most spending in the first two quarters.

• Anticipated cash requirements for the remainder of FY2026 include $32 million for propane capex, $29.7 million for renewable energy projects, $42.6 million for interest and taxes, and $65.1 million for distributions.

• Management expects sufficient liquidity from the revolving credit facility, operating cash flow, and the ATM equity program to meet obligations.

• The Board declared a quarterly distribution of $0.325 per unit, annualized to $1.30 per unit, payable February 10, 2026.