Suburban Propane Partners (SPH) Q3 2025 earnings summary

Executive summary

• Net loss for Q3 2025 was $14.8 million ($0.23 per unit), improving from $17.2 million ($0.27 per unit) in Q3 2024, with stable propane volumes and flat Adjusted EBITDA at $27.0 million.

• Revenues for Q3 2025 increased 2.2% to $260.2 million, driven by higher propane prices and stable volumes.

• Operations delivered solid results despite unseasonably warm weather and commodity price volatility.

• Continued benefits from a strategic propane acquisition in New Mexico and strong demand in the Southeast following hurricanes.

• RNG operations faced minor production declines and lower revenues due to operational improvements, power outages, and weaker environmental attribute prices.

Financial highlights

• Q3 2025 revenues were $260.2 million, up 2.2% year-over-year, with gross margin at $160.6 million, unchanged from the prior year.

• Net loss for Q3 2025 was $14.8 million ($0.23 per unit), compared to $17.2 million ($0.27 per unit) in Q3 2024.

• Adjusted EBITDA for Q3 2025 was $27.0 million, flat year-over-year.

• Retail propane gallons sold were 71.9 million, consistent with the prior year.

• Operating and G&A expenses were $136.3 million, up 0.5% year-over-year.

Outlook and guidance

• Focus remains on operational enhancements to increase RNG injection and advancing capital projects in New York and Ohio.

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

• Inflation on expenses is expected to trend around 3% going forward.

• No recognition of 45Z PTC credits until final Treasury regulations are released, expected by year-end.

• Ongoing operational improvements in Arizona are expected to enhance efficiency, with no major capital outlays or fixed timeline.