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Suburban Propane Partners, L.P. First Quarter Results of 2026

Suburban Propane Partners, L.P. (NYSE: SPH) recently announced its earnings for the first quarter that concluded on December 27, 2025. The financial results depict a significant increase in performance metrics, showcasing the strength of the company amidst a challenging operating environment.

Impressive Financial Performance

In the first quarter of fiscal 2026, Suburban Propane posted a net income of $45.8 million, translating to $0.69 per Common Unit. This marks an impressive rise compared to last year's net income of $19.4 million, or $0.30 per Common Unit during the same quarter of fiscal 2025. The adjusted earnings before interest, taxes, depreciation, and amortization (Adjusted EBITDA) for the quarter experienced growth, arriving at $83.4 million, which is a 10.8% rise, reflecting a robust operational performance.

Michael A. Stivala, President and CEO, emphasized the positive trajectory stating, "The fiscal 2026 heating season is off to a solid start, driven by cooler average temperatures in the Northeast, Mid-Atlantic, and Midwest regions. We saw a 4.2% increase in volumes sold compared to last year's figures, a testament to our customer base growth and retention initiatives."

Operational Highlights

The report elaborated on the operational strategies that facilitated this growth. Notably, Suburban Propane’s retail propane gallons sold reached 110.2 million gallons, a 4.2% increase year-on-year, attributed to increased seasonal demand spurred by colder weather across eastern U.S. regions. This uptick in demand overshadowed warmer temperatures in the West, solidifying Suburban's standing in heat-related markets.

Stivala addressed the efficiency measures that contributed to substantial earnings. The successful management of selling prices coupled with the strategic oversight of expenses played a significant role.

Furthermore, Suburban Propane's renewable natural gas (RNG) operations demonstrated improvement with increased daily RNG injections compared to prior periods, indicating the effectiveness of operational enhancements made to their production facilities, particularly in Stanfield, Arizona.

Strategic Acquisitions

Stivala also announced the successful acquisition of two propane businesses in California during the quarter, reinforcing their market position in strategic locations. This acquisition, costing $24 million, highlights the company's ongoing commitment to expand its portfolio in vital regions and grow the production of renewable propane.

The quarter also saw the strategic refinancing of senior notes, extending debt maturities and enhancing financial flexibility, a move that will no doubt benefit long-term growth strategies as the company plans for disciplined investments moving forward.

Future Prospects

Despite operating in a volatile market, Suburban is poised for growth, primarily due to its balance between traditional propane distribution and new renewable energy investments. It remains dedicated to maintaining a resilient capital structure while exploring avenues for sustainable energy solutions.

Mr. Stivala concluded, "Our focus continues to remain on disciplined investments in growth while strengthening our balance sheet capability. This mindful approach places us well for future opportunities in an ever-evolving energy landscape."

As they progress through the fiscal year, Suburban Propane demonstrates a steadfast commitment to excellence, a focus on community engagement, and a vision for sustainability that positions them favorably in the national energy conversation.

About Suburban Propane Partners, L.P.

Founded in 1928 and headquartered in Whippany, New Jersey, Suburban Propane is recognized as a leader in energy distribution, providing propane, renewable propane, natural gas, electricity, and other related services to approximately 1 million customers across 42 states. Their operations reflect a deep commitment to innovation and customer service excellence.

For anyone seeking further insights, visit www.suburbanpropane.com.