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Suburban Propane Partners, L.P. Reports Financial Results for Q3 2025

Suburban Propane Partners, L.P., a prominent player in the propane and renewable energy sector, recently released its earnings report for the third quarter that concluded on June 28, 2025. The report indicates a net loss of $14.8 million, marking a slight improvement from the previous year's loss of $17.2 million for the same quarter. This is reflective of the company's seasonal trends as the third quarter typically exhibits lower revenues due to decreased heating demand.

In terms of operational efficiency, the company reported an Adjusted EBITDA of $27 million, remaining consistent with the previous year's performance for the same quarter. Michael A. Stivala, the President and Chief Executive Officer, highlighted the impressive efforts by the operations team in navigating through warmer temperatures and fluctuating commodity prices, which traditionally pose challenges in meeting customer needs during the summer months. Stivala stated, “Our personnel have done an outstanding job, effectively managing costs and maintaining stable selling prices while focusing on customer growth and retention.”

Despite the weather being 14% warmer than usual and 5% cooler compared to last year, Suburban Propane sold 71.9 million gallons of propane, aiming to maintain sales levels consistent with prior performance. The average propane prices also saw an increase of 4.7% compared to the third quarter of 2024. Gross margins remained stable at $160.6 million, unchanged from the previous year, even considering a $2.9 million unrealized loss related to hedging strategies aimed at risk management.

Growth Initiatives and Renewable Energy Focus

Beyond managing traditional propane sales, Suburban Propane is actively advancing its renewable natural gas (RNG) operations. The report noted a slight decline in average daily RNG injection volumes; however, the company aims to enhance production capabilities at its facility in Stanfield, Arizona. Revenue from RNG operations faced downward pressure due to diminished prices for environmental attributes under the Renewable Fuel Standard. Nevertheless, Suburban Propane is committed to scaling up its investments into renewable energy, including ongoing developments of new anaerobic digestion systems in New York and equipment upgrades in Ohio.

Furthermore, during the third quarter, the Partnership used proceeds from its At-the-Market (ATM) sales program and its excess cash flows to fund growth projects and pay down $69 million in debt. Their consolidated leverage ratio improved to 4.33 times, showcasing a solid commitment to strengthening their financial standing.

The Partnership’s Board of Supervisors also declared a quarterly distribution of $0.325 per Common Unit, equivalent to an annualized rate of $1.30. This distribution reflects the company's focus on returning value to its shareholders, further solidifying confidence in its long-term strategies.

Looking Ahead

Suburban Propane continues to face challenges influenced by climate volatility and market conditions impacting demand and operating costs. Management recognizes the potential risks related to fluctuating fuel costs, changes in environmental regulations, and external economic pressures. Through effective strategic planning and operational improvements, Suburban Propane aims to navigate these challenges while furthering its growth ambitions in the renewable sector. As they continue to innovate and enhance their operational capabilities, the company remains dedicated to delivering value not only to customers but also to shareholders and the communities they serve across the nation.

In conclusion, whilst the third quarter results suggest ongoing challenges tied to their seasonal business dynamics, Suburban Propane Partners, L.P. demonstrates resilience and a forward-thinking approach in the face of evolving market landscapes. As the company further invests in its renewable initiatives and facilities, it remains poised to play a significant role in the future of energy distribution in the United States.