Suburban Propane Partners (SPH) Q3 2026 earnings summary

Executive summary

• Q3 2026 began slowly due to record warm April, with retail propane gallons sold down 1.8% year-over-year to 70.6 million gallons, but volumes rebounded in May and June, supported by customer growth in agricultural, industrial, and national accounts.

• Net loss for Q3 2026 was $17.5 million ($0.26 per unit), compared to $14.8 million ($0.23 per unit) in Q3 2025, reflecting seasonality and warmer weather impacting demand.

• Adjusted EBITDA for Q3 2026 was $18.0 million, down from $27.0 million in Q3 2025, mainly due to lower propane volumes and higher operating costs.

• RNG operations saw flat injection volumes year-over-year, but benefited from higher environmental credit prices and new facilities coming online to support future growth.

• Two propane business acquisitions in California were completed for $24 million, supporting strategic growth.

Financial highlights

• Q3 2026 revenues were $261.4 million, up 0.5% year-over-year; gross margin was $160.3 million, flat year-over-year; adjusted EBITDA was $18.0 million, down from $27.0 million.

• Operating and G&A expenses rose 3.8% to $141.4 million, driven by payroll, benefits, and vehicle costs.

• Net income for the nine months ended June 27, 2026 was $165.8 million, up from $141.7 million in the prior year period.

• Maintenance capital expenditures were $6.3 million; growth capital expenditures were $9.8 million for Q3 2026.

• Depreciation and amortization for Q3 2026 was $16.7 million, down 11.0% year-over-year.

Outlook and guidance

• All three RNG facilities are expected to be operational entering fiscal 2027, with annual injection of 750,000–800,000 MMBtus, supporting organic growth through capacity optimization and increased feedstock intake.

• Improving environmental credit prices and regulatory support seen as tailwinds for RNG revenue.

• Management expects sufficient liquidity to meet obligations, supported by cash flow, credit facility, and ATM equity program.

• Full-year capital spending for RNG projects estimated at $35 million, at the low end of guidance.

• Strategic focus remains on core propane growth and investments in renewable energy alternatives.