Suburban Propane Partners (SPH) Q2 2026 earnings summary

Executive summary

• Net income for Q2 FY2026 was $137.5 million ($2.07 per unit), nearly flat year-over-year, with Adjusted EBITDA at $175.3 million, supported by strong propane performance in the East and improved RNG operations.

• Revenues declined 6.2% to $551.2 million, mainly due to lower average propane prices, while retail propane gallons sold were 161.6 million, flat year-over-year.

• Gross margin for Q2 was $343.7 million, down $1.6 million year-over-year, with a $1.4 million unrealized loss from derivative mark-to-market adjustments.

• RNG operations advanced with increased production, improved injection rates, and progress on expansion projects in New York and Ohio.

• $3.5 million in production tax credits recognized for RNG production, with eligibility extended through December 2029.

Financial highlights

• Adjusted EBITDA for Q2 was $175.3 million, flat year-over-year; first half Adjusted EBITDA rose 3.4% to $258.7 million.

• Net income for Q2 was $137.5 million, compared to $137.1 million in Q2 2025.

• Retail propane gallons sold were 161.6 million, unchanged year-over-year.

• Gross margin for Q2 was $343.7 million, down $1.6 million year-over-year; propane unit margins up 1.7%.

• Operating cash flow for the first half was $68.6 million, up from $48.9 million in the prior year.

Outlook and guidance

• RNG facility expansions in New York and Ohio are on schedule for completion in the second half of FY2026, expected to add 200,000 MMBTUs of annual production.

• Management remains focused on strategic growth, leveraging excess cash flows for debt reduction and capital expansion.

• Anticipated cash needs for the remainder of 2026 include $19.9 million for propane capex, $19 million for renewable energy, $37.5 million for interest/taxes, and $43.3 million for distributions.

• Liquidity is expected to be sufficient, supported by the revolving credit facility, operating cash flow, and ATM equity program.