Suburban Propane Partners (SPH) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 saw strong propane demand due to normal winter weather, hurricane impacts, and acquisitions in the southwest, resulting in a 5.9% increase in propane volumes year-over-year.

• Adjusted EBITDA rose by $28 million (11.2%) to $278 million, and net income increased to $128.4 million ($1.97 per unit) from $107.7 million ($1.68 per unit) year-over-year.

• Strategic growth included acquisitions in New Mexico, Arizona, and California, and expansion into renewable propane and RNG markets.

• Technology modernization and renewable energy initiatives advanced, including RNG facility investments.

• Retail propane gallons sold grew 5.9% to 400.5 million gallons, supported by colder weather and hurricane impacts.

Financial highlights

• Retail propane gallons sold reached 400.5 million, up 5.9% year-over-year.

• Total gross margin increased $46.8 million (5.7%) to $866.4 million, driven by higher volumes and unit margins.

• Propane unit margins rose 2 cents per gallon (1%) across all customer categories.

• Fourth quarter net loss was $35.7 million ($0.54 per unit), flat year-over-year; adjusted EBITDA for the quarter was $700,000, also flat.

• Total revenues for fiscal 2025 were $1.43 billion, up from $1.33 billion in 2024.

Outlook and guidance

• Capital spending for propane operations in fiscal 2026 expected at $40–$45 million; RNG projects at $30–$35 million, mainly in the first half.

• RNG facility in New York expected to qualify for $7–$9 million in tax credits under the Inflation Reduction Act.

• Ongoing focus on core propane growth, renewable energy platform expansion, and technology upgrades.

• ATM equity program proceeds to support growth and accelerate debt reduction.