SPH · Suburban Propane Partners, L.P.

Suburban Propane Partners, L.P. delivered fiscal 2026 second quarter results with net income nearly flat at $137.5 million despite a 6.3% decline in total revenues to $551.2 million, driven by a 23.1% drop in average propane prices (Mont Belvieu basis) and flat retail propane volumes of 161.6 million gallons. Mixed weather patterns—colder East (3% colder than prior year) boosting demand, offset by record warm West (17% warmer)—kept volumes stable, while propane unit margins expanded 1.7% or $0.03 per gallon, supporting a near-flat total gross margin of $343.7 million after adjusting for mark-to-market derivative impacts. Adjusted EBITDA held steady at $175.3 million, reflecting effective management of commodity volatility amid Middle East tensions and operational efficiencies. CEO Michael A. Stivala highlighted teams' preparation for demand surges, customer growth initiatives, and RNG progress, including improved D3 RNG injection at Stanfield, Arizona, a $3.5 million PTC benefit, and upcoming facilities adding 200,000 MMBtu annually. Operating expenses remained flat at $169.5 million, offset by PTC recognition and insurance recoveries. Balance sheet strength improved with $64.3 million debt repayment, lowering the leverage ratio to 4.34x, aligning with disciplined capital allocation toward core propane growth and renewables. A $0.325 per Common Unit distribution was declared, underscoring cash flow generation amid winding RNG capex.