Suburban Propane Partners, L.P. Announces Third Quarter Results

Rhea-AI Summary

Suburban Propane Partners (NYSE: SPH) reported a third‑quarter fiscal 2026 net loss of $17.5 million ($0.26 per Common Unit), versus a $14.8 million loss ($0.23) a year earlier. Adjusted EBITDA declined to $18.0 million from $27.0 million, as near‑record April warmth reduced heat‑related propane demand and propane gallons sold fell 1.8% to 70.6 million.

Total revenue was $261.4 million, roughly flat year over year, while reported gross margin held at $160.3 million. Excluding mark‑to‑market derivative gains and losses, gross margin decreased 2.4%. Operating plus G&A expenses increased 3.8% to $141.4 million, mainly from higher payroll, benefits, fuel and vehicle costs.

For the nine‑month period, net income rose to $165.8 million ($2.49 per Common Unit) from $141.7 million, with Adjusted EBITDA essentially unchanged at about $277 million. The Partnership used operating cash flow and $6.6 million of ATM equity proceeds to repay $36.2 million on its revolving credit facility, resulting in a Total Consolidated Leverage Ratio of 4.35x. The Board declared a quarterly distribution of $0.325 per Common Unit (annualized $1.30), payable August 11, 2026.

In renewable natural gas, average daily injection was flat year over year, but revenues benefited from higher prices for California LCFS and D3 RIN credits. Suburban Propane placed a new anaerobic digester in Upstate New York into service after quarter‑end and expects its Columbus, Ohio facility to start up in the fourth quarter, positioning all three RNG facilities to be operational entering fiscal 2027.

Positive

• Nine‑month net income up to $165.8M from $141.7M
• Nine‑month EBITDA increased to $274.4M from $255.0M
• Adjusted EBITDA (9M) essentially flat at about $277M
• Debt reduction of $36.2M on revolving credit facility in Q3
• Quarterly cash distribution maintained at $0.325 per Common Unit
• RNG revenues supported by higher LCFS and D3 RIN credit prices

Negative

• Q3 net loss widened to $17.5M from $14.8M
• Q3 Adjusted EBITDA fell to $18.0M from $27.0M
• Q3 gross margin ex-derivatives declined 2.4% ($3.9M)
• Operating and G&A expenses rose 3.8% to $141.4M in Q3
• Retail propane gallons down 1.8% to 70.6M in Q3

News Explained

The company’s August 6, 2026 release reports unaudited third-quarter results and says the complete Form 10-Q will be filed later, so this disclosure is a results summary pending the full quarterly report.

Market Context

SPH's short positioning was classified as low, adding context to this third-quarter report without i...

Analysis

SPH's short positioning was classified as low, adding context to this third-quarter report without indicating a substantial short-driven setup. The principal risk in the record was warmer weather reducing heat-related propane demand.

Key Figures

Net loss: $17.5 million Loss per Common Unit: $0.26 Adjusted EBITDA: $18.0 million +5 more

8 metrics

Net loss $17.5 million Q3 fiscal 2026 vs. $14.8 million in Q3 fiscal 2025

Loss per Common Unit $0.26 Q3 fiscal 2026 vs. $0.23 in Q3 fiscal 2025

Adjusted EBITDA $18.0 million Q3 fiscal 2026 vs. $27.0 million in the prior-year quarter

Retail propane gallons 70.6 million gallons Q3 fiscal 2026, down 1.8% year over year

Total gross margin $160.3 million Q3 fiscal 2026, unchanged year over year

Operating and G&A expenses $141.4 million Q3 fiscal 2026, up 3.8% year over year

Debt repayment $36.2 million Borrowings repaid under the revolving credit facility

Total Consolidated Leverage Ratio 4.35x Twelve-month period ended June 27, 2026 vs. 4.33x prior year

Previous Earnings Reports

5 past events · Latest: May 07 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 07	Second-quarter earnings	Positive	+3.2%	Net income remained strong, EBITDA was flat, and debt reduction totaled $64.3 million.
Feb 05	First-quarter earnings	Positive	+0.6%	Net income rose, EBITDA increased 10.8%, and retail propane volumes grew 4.2%.
Aug 07	Third-quarter earnings	Neutral	-2.5%	The partnership reported a seasonal loss, stable EBITDA, and $69 million of debt reduction.
May 08	Second-quarter earnings	Positive	-5.9%	Net income, EBITDA, propane volumes, and gross margin all increased year over year.
Feb 06	First-quarter earnings	Negative	-4.2%	Net income and retail propane gallons declined amid warmer temperatures and lower agricultural demand.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Prior earnings-tagged events averaged a -1.77% reaction, with four of five events diverging from the announcement sentiment.

Key Terms

adjusted ebitda, at-the-market equity program, mark-to-market adjustment, heating degree days, +1 more

5 terms

adjusted ebitda financial

"Adjusted earnings before interest, taxes, depreciation and amortization"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

at-the-market equity program financial

"proceeds from the issuance of Common Units under our At-the-Market equity program"

An at-the-market equity program lets a company sell newly issued shares directly into the open market at the current trading price through a broker, rather than in a single, prearranged block. It provides flexible, on-demand access to cash—like drawing small amounts from a credit line—but increases the number of shares outstanding, which can reduce existing shareholders’ ownership percentage and put downward pressure on the stock price, so investors monitor program size and pacing.

mark-to-market adjustment financial

"the mark-to-market adjustment for derivative instruments"

A mark-to-market adjustment is an accounting change that updates the value of an asset or liability on a company’s books to what it would sell for at current market prices. Investors care because these adjustments can instantly change reported profits, losses and the company’s financial health — like reappraising a house and seeing your net worth rise or fall overnight — which affects valuation, risk assessment and investment decisions.

heating degree days technical

"Average temperatures (as measured by heating degree days)"

Heating degree days (HDD) measure how cold a location is over time by adding up how many degrees the daily average temperature falls below a set comfortable threshold (commonly 65°F/18°C); each degree below that threshold for one day counts as one HDD. Investors use HDD to gauge likely demand for heating fuels, utility revenues, and seasonal sales—think of it like counting “cold units” that predict how much heating activity and related spending to expect.

lcfs regulatory

"including California LCFS and D3 RIN credits"

LCFS stands for Low Carbon Fuel Standard, a regulatory program that pushes fuel producers and transport operators to lower the amount of carbon emitted per unit of fuel by awarding or charging tradable credits. Think of it like a points system where companies that use cleaner fuels earn sellable credits while dirtier producers must buy them; this changes costs, revenue and demand across energy and transport businesses, so it can materially affect valuations and investment returns.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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WHIPPANY, N.J., Aug. 6, 2026 /PRNewswire/ -- Suburban Propane Partners, L.P. (NYSE: SPH), today announced earnings for its third quarter ended June 27, 2026.

Consistent with the seasonal nature of its business, the Partnership typically experiences a net loss in the third quarter of its fiscal year.  Net loss for the third quarter of fiscal 2026 was $17.5 million, or $0.26 per Common Unit, compared to a net loss of $14.8 million, or $0.23 per Common Unit, for the third quarter of fiscal 2025. Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA, as defined and reconciled below) for the third quarter of fiscal 2026 was $18.0 million, compared to $27.0 million in the prior year third quarter.

In announcing these results, President and Chief Executive Officer Michael A. Stivala said, "The third quarter was impacted by near-record warm temperatures during the month of April, which reduced heat-related demand, as well as higher residential customer tank levels due to the timing of deliveries during the fiscal second quarter.  However, volumes benefited from continued strength and growth in our counter-seasonal customer base, which substantially offset the impact of warmer weather on volumes.  Our operating personnel remained focused on delivering exceptional customer service, managing selling prices in a rising and volatile commodity price environment, while continuing to maintain discipline over operating costs.  During the quarter, we used excess cash flows and proceeds from the issuance of Common Units under our At-the-Market equity program to fund growth capital projects and reduce debt by more than $36 million."

Mr. Stivala continued, "In our renewable natural gas ("RNG") operations, average daily RNG injection for the third quarter was flat compared to the prior year, while revenues from RNG injection benefited from higher prices for environmental attributes, including California LCFS and D3 RIN credits. Subsequent to the end of the quarter, we placed our new anaerobic digester facility in Upstate New York into service, and expect to place our Columbus, Ohio facility into service during the fourth quarter. As a result, we will enter fiscal year 2027 with all three of our facilities operational, with continued opportunities for organic growth from ongoing capacity optimization and growth in feedstock intake."

Retail propane gallons sold in the third quarter of fiscal 2026 of 70.6 million gallons decreased 1.8% compared to the prior year third quarter, primarily due to warmer spring temperatures that adversely impacted heat-related demand.  Average temperatures (as measured by heating degree days) across all of the Partnership's service territories during the third quarter of fiscal 2026 were 17% warmer than normal and 3% warmer than the prior year third quarter.  Average temperatures for the month of April 2026 were 24% warmer than normal and 11% warmer than the prior year, ranking as the second warmest April on record.

Average propane prices (basis Mont Belvieu, Texas) for the third quarter of fiscal 2026 increased 3.6% compared to the prior year third quarter.  Total gross margin for the third quarter of fiscal 2026 of $160.3 million was unchanged from the prior year third quarter.  Gross margin for the third quarter of fiscal 2026 included a $0.7 million unrealized gain attributable to the mark-to-market adjustment for derivative instruments used in risk management activities, compared to a $2.9 million unrealized loss in the prior year third quarter.  These non-cash adjustments, which were reported in cost of products sold, were excluded from Adjusted EBITDA for both periods.  Excluding the impact of the mark-to-market adjustments, total gross margin decreased $3.9 million, or 2.4%, compared to the prior year third quarter, primarily due to lower propane volumes sold, as propane unit margins remained steady.

Combined operating and general and administrative expenses were $141.4 million for the third quarter of fiscal 2026, an increase of $5.2 million, or 3.8%, compared to the prior year third quarter.  The increase was primarily attributable to higher payroll and benefit-related expenses and increased fuel and vehicle maintenance costs, partially offset by lower variable compensation costs and a benefit from production tax credits earned during the current-year quarter from RNG production.  In addition, the prior year third quarter included a gain from an insurance recovery and a pension settlement charge of $0.5 million (which was excluded from Adjusted EBITDA).

During the third quarter of fiscal 2026, the Partnership utilized cash flows from operating activities and net proceeds of $6.6 million from the issuance of Common Units under its ATM program to repay $36.2 million in borrowings under its revolving credit facility.  The Total Consolidated Leverage Ratio, as defined in the Partnership's credit agreement, for the twelve-month period ended June 27, 2026 was 4.35x compared to 4.33x for the twelve-month period ended June 28, 2025.

As previously announced on July 23, 2026, the Partnership's Board of Supervisors declared a quarterly distribution of $0.325 per Common Unit for the three months ending June 27, 2026. On an annualized basis, this distribution rate equates to $1.30 per Common Unit. The distribution is payable on August 11, 2026 to Common Unitholders of record as of August 4, 2026.

About Suburban Propane Partners, L.P.
Suburban Propane Partners, L.P. ("Suburban Propane") is a publicly traded master limited partnership listed on the New York Stock Exchange. Headquartered in Whippany, New Jersey, Suburban Propane has been in the customer service business since 1928 and is a nationwide distributor of propane, renewable propane, renewable natural gas, fuel oil and related products and services, as well as a marketer of natural gas and electricity and producer of and investor in low carbon fuel alternatives, servicing the energy needs of approximately 1 million residential, commercial, governmental, industrial and agricultural customers through approximately 750 locations across 42 states.

Suburban Propane is supported by three core pillars: (1) Suburban Commitment to Excellence – showcasing Suburban Propane's almost 100-year legacy, and ongoing commitment to the highest standards for dependability, flexibility, and reliability that underscores Suburban Propane's commitment to excellence in customer service; (2) SuburbanCares – highlighting continued dedication to giving back to local communities across Suburban Propane's national footprint; and (3) Go Green with Suburban Propane– promoting propane and renewable propane as versatile, low-carbon energy solutions and investing in the next generation of innovative, renewable energy alternatives.

For additional information on Suburban Propane, please visit www.suburbanpropane.com.

Forward-Looking Statements
This press release contains certain forward-looking statements relating to future business expectations and financial condition and results of operations of the Partnership, based on management's current good faith expectations and beliefs concerning future developments.  These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those discussed or implied in such forward-looking statements, including the following:

• The impact of weather conditions on the demand for propane, renewable propane, fuel oil and other refined fuels, natural gas, renewable natural gas ("RNG") and electricity;
• The impact of climate change and potential climate change legislation on the Partnership and demand for propane, renewable propane, fuel oil and other refined fuels, natural gas, RNG and electricity;
• Volatility in the unit cost of propane, renewable propane, fuel oil and other refined fuels, natural gas, RNG and electricity, the impact of the Partnership's hedging and risk management activities, and the adverse impact of price increases on volumes sold as a result of customer conservation;
• The ability of the Partnership to compete with other suppliers of propane, renewable propane, fuel oil, RNG and other energy sources;
• The impact on the price and supply of propane, renewable propane, fuel oil and other refined fuels from the political, military or economic instability of the oil producing nations, including hostilities in the Middle East, Russian military action in Ukraine, global terrorism and other general economic conditions, including the economic instability resulting from natural disasters;
• Economic volatility and downturns, including as a result of tariffs, trade conflict and related uncertainty;
• The ability of the Partnership to acquire and maintain sufficient volumes of, and the costs to the Partnership of acquiring, reliably transporting and storing, propane, renewable propane, fuel oil and other refined fuels;
• The ability of the Partnership to attract and retain employees and key personnel to support the growth of our business;
• The ability of the Partnership to retain customers or acquire new customers;
• The impact of customer conservation, energy efficiency, general economic conditions and technology advances on the demand for propane, renewable propane, fuel oil and other refined fuels, natural gas, RNG and electricity;
• The ability of management to continue to control expenses and manage inflationary increases in fuel, labor and other operating costs;
• Risks related to the Partnership's renewable fuel projects and investments, including the willingness of customers to purchase fuels generated by the projects, the permitting, financing, construction, development and operation of supporting facilities, the Partnership's ability to generate a sufficient return on its renewable fuel projects, and changing regulation and dependence on government funding for commercial viability of renewable fuel investment projects;
• The generation and monetization of environmental attributes produced by the Partnership's renewable fuel projects, changes to legislation or regulations concerning the generation and monetization of environmental attributes and pricing volatility in the open markets where environmental attributes are traded;
• The impact of changes in applicable laws and government regulations, or their interpretations, including those relating to the environment and climate change, permitting, human health and safety, derivative instruments, the sale or marketing of propane and renewable propane, fuel oil and other refined fuels, natural gas, RNG and electricity, including the impact of recently adopted and proposed changes to New York law and changed regulatory priorities, and other regulatory developments that could impose costs and liabilities on the Partnership's business;
• The impact of changes in tax laws that could adversely affect the tax treatment of the Partnership for income tax purposes;
• The impact of legal risks and proceedings on the Partnership's business;
• The impact of operating hazards that could adversely affect the Partnership's reputation and its operating results to the extent not covered by insurance;
• The Partnership's ability to make strategic acquisitions, successfully integrate them and realize the expected benefits of those acquisitions;
• The ability of the Partnership and any third-party service providers on which it may rely for support or services to continue to combat cybersecurity threats to their respective and shared networks and information technology;
• Risks relating to the Partnership's plans to diversify its business;
• Risks related to the Partnership's current and future debt obligations that may limit its ability to make distributions to Unitholders, as well as its financial flexibility;
• The impact of current conditions in the global capital, credit and environmental attribute markets, and general economic pressures; and
• Other risks referenced from time to time in filings with the Securities and Exchange Commission ("SEC") and those factors listed or incorporated by reference into the Partnership's most recent Annual Report under "Risk Factors."

Some of these risks and uncertainties are discussed in more detail in the Partnership's Annual Report on Form 10-K for its fiscal year ended September 27, 2025 and other periodic reports filed with the SEC.  Readers are cautioned not to place undue reliance on forward-looking statements, which reflect management's view only as of the date made.  The Partnership undertakes no obligation to update any forward-looking statement, except as otherwise required by law.

Suburban Propane Partners, L.P. and Subsidiaries Consolidated Statements of Operations For the Three and Nine Months Ended June 27, 2026 and June 28, 2025 (in thousands, except per unit amounts) (unaudited)
	Three Months Ended								Nine Months Ended
	June 27, 2026				June 28, 2025				June 27, 2026				June 28, 2025
Revenues
Propane	$	226,960			$	226,890			$	1,044,492			$	1,082,429
Fuel oil and refined fuels		11,723				9,721				62,244				60,746
Natural gas and electricity		4,522				4,838				19,199				19,916
All other		18,174				18,701				57,036				58,051
		261,379				260,150				1,182,971				1,221,142
Costs and expenses
Cost of products sold		101,051				99,559				439,390				489,083
Operating		124,980				117,528				391,639				380,058
General and administrative		16,451				18,737				74,368				75,501
Depreciation and amortization		16,673				18,735				49,788				53,434
		259,155				254,559				955,185				998,076
Operating income		2,224				5,591				227,786				223,066
Loss on debt extinguishment		—				—				1,183				—
Interest expense, net		18,848				18,881				58,298				59,060
Other, net		721				1,303				1,977				21,499
(Loss) income before provision for income taxes		(17,345)				(14,593)				166,328				142,507
Provision for income taxes		182				242				533				801
Net (loss) income	$	(17,527)			$	(14,835)			$	165,795			$	141,706
Net (loss) income per Common Unit - basic	$	(0.26)			$	(0.23)			$	2.49			$	2.18
Weighted average number of Common Units outstanding - basic		66,680				65,381				66,506				64,936
Net (loss) income per Common Unit - diluted	$	(0.26)			$	(0.23)			$	2.48			$	2.17
Weighted average number of Common Units outstanding - diluted		66,680				65,381				66,856				65,330
Supplemental Information:
EBITDA (a)	$	18,176			$	23,023			$	274,414			$	255,001
Adjusted EBITDA (a)	$	18,013			$	27,019			$	276,758			$	277,364
Retail gallons sold:
Propane		70,622				71,913				342,380				339,679
Refined fuels		2,312				2,522				14,318				14,649
Capital expenditures:
Maintenance	$	6,333			$	4,845			$	19,649			$	17,504
Growth	$	15,123			$	9,835			$	46,342			$	40,328

(a)

EBITDA represents net income before deducting interest expense, income taxes, depreciation and amortization. Adjusted EBITDA represents EBITDA excluding the unrealized net gain or loss on mark-to-market activity for derivative instruments and other items, as applicable, as provided in the table below. Our management uses EBITDA and Adjusted EBITDA as supplemental measures of operating performance and we are including them because we believe that they provide our investors and industry analysts with additional information that we determined is useful to evaluate our operating results.

EBITDA and Adjusted EBITDA are not recognized terms under accounting principles generally accepted in the United States of America ("US GAAP") and should not be considered as an alternative to net income or net cash provided by operating activities determined in accordance with US GAAP.  Because EBITDA and Adjusted EBITDA as determined by us excludes some, but not all, items that affect net income, they may not be comparable to EBITDA and Adjusted EBITDA or similarly titled measures used by other companies.

The following table sets forth our calculations of EBITDA and Adjusted EBITDA:

	Three Months Ended								Nine Months Ended
	June 27, 2026				June 28, 2025				June 27, 2026				June 28, 2025
Net (loss) income	$	(17,527)			$	(14,835)			$	165,795			$	141,706
Add:
Provision for income taxes		182				242				533				801
Interest expense, net		18,848				18,881				58,298				59,060
Depreciation and amortization		16,673				18,735				49,788				53,434
EBITDA		18,176				23,023				274,414				255,001
Loss on debt extinguishment		—				—				1,183				—
Equity in losses and impairment charges for investments in unconsolidated affiliates		541				627				1,437				23,372
Unrealized non-cash (gains) losses on changes in fair value of derivatives		(704)				2,919				(276)				(1,459)
Pension settlement charge		—				450				—				450
Adjusted EBITDA	$	18,013			$	27,019			$	276,758			$	277,364

We also reference gross margins, computed as revenues less cost of products sold as those amounts are reported on the consolidated financial statements.  Our management uses gross margin as a supplemental measure of operating performance and we are including it as we believe that it provides our investors and industry analysts with additional information that we determined is useful to evaluate our operating results.  As cost of products sold does not include depreciation and amortization expense, the gross margin we reference is considered a non-GAAP financial measure. 

The unaudited financial information included in this document is intended only as a summary provided for your convenience, and should be read in conjunction with the complete consolidated financial statements of the Partnership (including the Notes thereto, which set forth important information) contained in its Quarterly Report on Form 10-Q to be filed by the Partnership with the SEC.  Such report, once filed, will be available on the public EDGAR electronic filing system maintained by the SEC.

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SOURCE Suburban Propane Partners, L.P.

FAQ

How did Suburban Propane (SPH) perform financially in Q3 2026?

Suburban Propane reported a Q3 2026 net loss of $17.5 million, versus a $14.8 million loss a year earlier. According to Suburban Propane, Adjusted EBITDA declined to $18.0 million from $27.0 million on slightly lower propane volumes and higher operating expenses.

What were Suburban Propane’s key revenue and gross margin results for Q3 2026?

Suburban Propane generated $261.4 million in Q3 2026 revenues, roughly flat year over year. According to Suburban Propane, reported gross margin was $160.3 million, unchanged, but excluding mark‑to‑market derivatives, gross margin decreased 2.4% due mainly to lower propane volumes.

How did Suburban Propane’s nine-month 2026 results compare with 2025?

For the first nine months of 2026, Suburban Propane earned $165.8 million in net income, up from $141.7 million. According to Suburban Propane, EBITDA rose to $274.4 million from $255.0 million, while Adjusted EBITDA was broadly stable at about $277 million.

What leverage and debt reduction did Suburban Propane (SPH) report for Q3 2026?

Suburban Propane reduced revolving credit facility borrowings by $36.2 million during Q3 2026 using cash flow and ATM equity proceeds. According to Suburban Propane, its Total Consolidated Leverage Ratio was 4.35x for the twelve‑month period ended June 27, 2026.

What dividend did Suburban Propane declare for Q3 2026 and when is it paid?

Suburban Propane’s Board declared a quarterly distribution of $0.325 per Common Unit for Q3 2026. According to Suburban Propane, this equals $1.30 annualized and is payable on August 11, 2026 to unitholders of record as of August 4, 2026.

How did weather affect Suburban Propane’s propane volumes in Q3 2026?

Warmer weather reduced heat‑related propane demand in Q3 2026, with temperatures 17% warmer than normal. According to Suburban Propane, retail propane gallons sold fell 1.8% to 70.6 million, partly offset by growth in counter‑seasonal customers.

What progress did Suburban Propane report in its renewable natural gas (RNG) business?

Suburban Propane’s Q3 2026 RNG injection volumes were flat year over year, but revenues benefited from higher LCFS and D3 RIN prices. According to Suburban Propane, a new Upstate New York digester entered service post‑quarter, with a Columbus, Ohio facility expected online in Q4.