Suburban Propane Partners (SPH) Q3 2024 earnings summary

Executive summary

• Q3 2024 net loss was $17.2 million ($0.27 per unit), compared to $5.3 million loss in the prior year, driven by 8.6% lower propane volumes and warmer weather across service territories.

• Adjusted EBITDA for Q3 was $27.0 million, down from $33.0 million year-over-year, with gross margin declining to $160.2 million.

• Two retail propane acquisitions in Florida and Nevada were completed for $13.3 million, supporting strategic growth.

• Continued investment in renewable natural gas (RNG) operations, with operational improvements and higher feedstock intake at the Stanfield facility.

• Quarterly distribution of $0.325 per unit declared, annualized at $1.30 per unit, payable August 13, 2024.

Financial highlights

• Q3 2024 revenues were $241.5 million to $254.6 million (down 8.6% year-over-year); nine-month revenues totaled $1.12 billion.

• Retail propane gallons sold decreased 8.6% to 71.7 million gallons due to warm weather; average propane prices rose 11.5% year-over-year.

• Gross margin for Q3 2024 was $160.2 million, down 4.7% year-over-year, with propane unit margins up $0.07/gallon.

• Operating and G&A expenses for Q3 2024 were $135.6 million, down 1.6% year-over-year.

• Net loss per unit was $0.27, compared to $0.08 in the prior year quarter.

Outlook and guidance

• RNG project capital spending expected at $10–$20 million in fiscal 2024 and $35–$45 million in fiscal 2025.

• Propane operations CapEx to remain consistent with historical levels ($40–$45 million annually).

• Construction at Columbus and Adirondack RNG facilities expected to complete in the second half of 2025.

• Management expects sufficient liquidity from cash, credit facility, and operating cash flow to meet obligations.

• Focus remains on strategic growth in propane and renewable energy, operational excellence, and disciplined capital deployment.