Financial Performance - Net income for the three months ended December 27, 2025, was $45,780, compared to $19,420 for the same period in 2024, reflecting a year-over-year increase of 135.5%[14] - Operating income rose to $67,651, an increase from $59,062, marking an increase of 14.5%[14] - Revenues decreased slightly to $370,386 from $373,329, a decline of about 0.8%[14] - For the three months ended December 27, 2025, total revenues were $370.386 million, a slight decrease from $373.329 million for the same period in 2024[54] - Operating income increased to $112.529 million for the three months ended December 27, 2025, compared to $104.331 million in the prior year, reflecting a growth of 7.8%[145] - Total gross margin for Q1 fiscal 2026 was $239.5 million, an increase of $13.4 million, or 5.9%, compared to the prior year[166] Assets and Liabilities - Total assets increased to $2,395,780, up from $2,296,274, representing a growth of approximately 4.3%[11] - Long-term borrowings increased to $1,322,505 from $1,211,745, an increase of approximately 9.2%[11] - Total current liabilities decreased to $272,639 from $302,820, a reduction of about 9.9%[11] - As of December 27, 2025, total cash, cash equivalents, and restricted cash amounted to $11,575 million, a decrease from $11,771 million as of September 27, 2025[76] - Total long-term debt as of December 27, 2025, was $1,345.2 million, compared to $1,323.3 million in the prior year[205] - Total debt as of December 27, 2025, is $1,345,245,000, an increase from $1,229,845,000 as of September 27, 2025[208] Cash Flow and Financing - Net cash used in operating activities for Q1 fiscal 2026 was $47.7 million, a significant decrease from net cash provided of $8.8 million in the prior year[199] - Net cash used in investing activities was $41.3 million, including $22.0 million for acquisitions and $19.8 million in capital expenditures[200] - Net cash provided by financing activities was $88.8 million, reflecting $115.4 million in net borrowings under the Revolving Credit Facility[202] - The weighted average interest rate for borrowings under the Revolving Credit Facility was approximately 6.27% as of December 27, 2025[106] Revenue Sources - The propane segment generated approximately 88% of the Partnership's total revenue, with residential sales contributing $203.742 million, up from $197.114 million in the prior year[53] - The Partnership recognized $41.250 million in revenue from annually billed contracts during the three months ended December 27, 2025, compared to $36.122 million in the same period of 2024[54] Acquisitions and Investments - Suburban Renewable Energy acquired RNG production assets for $190 million on December 28, 2022, with potential contingent consideration valued at $6.194 million based on future performance[55] - The Partnership acquired propane assets from a retailer in California for $14,000, with $13,269 paid as of December 27, 2025[62] - Another acquisition of propane assets was made for $10,000, with $8,704 paid as of December 27, 2025[63] Impairments and Charges - The Partnership recorded an other-than-temporary impairment charge of $9,595 for its investment in Independence Hydrogen, reducing its carrying value to an estimated fair value of $21,589[57] - The Partnership fully impaired its investment in Oberon Fuels, resulting in a charge of $10,213, bringing the carrying value down to $0[59] - A further impairment charge of $6,095 was recorded for another development-stage entity, also reducing its investment to $0[60] Operational Metrics - Retail propane gallons sold increased by 4.2% to 110.2 million gallons in Q1 fiscal 2026, driven by colder temperatures and contributions from recent acquisitions[165] - Average propane prices decreased by 14.0% compared to the prior year, impacting total revenues from propane distribution, which fell by $3.9 million, or 1.2%[166][175] Legal and Regulatory - The Partnership's operations are subject to legal proceedings, but it does not expect any material adverse effects on its financial condition from current litigation[125] - The Partnership's financial statements are prepared in accordance with SEC regulations and include necessary adjustments for fair presentation[35] Compensation and Employee Expenses - Compensation expense for the Restricted Unit Plan for the three months ended December 27, 2025, was $2,313[116] - Compensation expense recognized for the Long-Term Incentive Plan for the three months ended December 27, 2025, was $4,064[122] - Payroll and payroll benefit expenses increased to $88.741 million, compared to $84.773 million in the prior year, reflecting a rise of 4.1%[144] Strategic Initiatives - The long-term strategic growth plan focuses on expanding the core propane business while investing in lower carbon renewable energy alternatives[173] - The Partnership's business model includes a bundled product offering with a home warranty called EnergyGuard, aimed at enhancing customer retention[126]

Financial Data and Key Metrics Changes - For Q1 2026, the company reported an Adjusted EBITDA of $83.4 million, an increase of $8.1 million or nearly 11% compared to the prior year [7][10] - Net income for the first quarter was $46.6 million, compared to $38 million or $0.59 per common unit in the prior year [10] - Total gross margin for the first quarter was $238.6 million, an increase of $16.1 million or 7.2% year-over-year [12] Business Line Data and Key Metrics Changes - Retail propane gallons sold totaled 100 million, reflecting a 4.2% increase compared to the prior year [10] - The renewable natural gas (RNG) operations saw an increase in average daily RNG injection, driven by operational enhancements at the Stanfield, Arizona facility [8] Market Data and Key Metrics Changes - Average wholesale propane prices per gallon were in the $0.60 range, down from $0.90 a year ago [12] - Propane inventories were reported at 89 million barrels, which is 34% above historical averages for this time of year [12] Company Strategy and Development Direction - The company is focused on long-term strategic growth plans, including the acquisition of two propane businesses in California and progressing capital projects to grow RNG production [9] - The company is investing nearly $7 million in RNG projects and refinancing its 2027 senior notes to maintain balance sheet strength and flexibility [9] Management's Comments on Operating Environment and Future Outlook - Management noted that colder weather in northern territories drove heat-related demand, contributing to the increase in volume sold [6] - The company remains committed to growing its core propane business while also expanding into alternative, lower carbon, renewable fuels [17] Other Important Information - The Board of Supervisors declared a quarterly distribution of $0.325 per common unit, equating to an annualized rate of $1.30 per common unit [16] - The company borrowed $115.4 million under its revolving credit facility to fund seasonal working capital needs [14] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded without any inquiries from participants [18][20]

Suburban Propane Partners (NYSE:SPH) Q1 2026 Earnings call February 05, 2026 09:00 AM ET Company ParticipantsDavin D'Ambrosio - VP and TreasurerMike Kuglin - CFOMike Stivala - PresidentOperatorThank you for standing by. My name is Tina, and I will be your conference operator today. At this time, I would like to welcome everyone to the [Golub Capital BBC] Earnings Call. All lines-Mike StivalaTina, it's Suburban.OperatorI apologize. I apologize. Suburban Propane Partners, L.P. Financial Call. All lines have b ...

Financial Data and Key Metrics Changes - For Q1 2026, the company reported an Adjusted EBITDA of $83.4 million, an increase of $8.1 million or nearly 11% compared to the prior year [7][9] - Net income for the first quarter was $38 million, translating to $0.59 per common unit [9] - Total gross margin for the first quarter was $238.6 million, an increase of $16.1 million or 7.2% year-over-year [11] Business Line Data and Key Metrics Changes - Retail propane gallons sold totaled 100 million, reflecting a 4.2% increase compared to the prior year [9] - The average daily renewable natural gas (RNG) injection increased both sequentially and year-over-year due to operational enhancements at the Stanfield, Arizona facility [7] Market Data and Key Metrics Changes - Average wholesale propane prices per gallon were in the $0.60 range, down from $0.90 per gallon a year ago [11] - Propane inventories were reported at 89 million barrels, which is 34% above historical averages for this time of year [11] Company Strategy and Development Direction - The company is focused on long-term strategic growth plans, including the acquisition of two well-run propane businesses in California and progressing capital projects to grow RNG production [8] - The company is investing nearly $7 million in strategic refinancing of its 2027 senior notes [8] Management's Comments on Operating Environment and Future Outlook - Management noted that colder weather in the northern operating territories drove heat-related demand, contributing to the increase in volume sold [6] - The company remains committed to growing its core propane business while also expanding into alternative, lower carbon, renewable fuels [17] Other Important Information - The Board of Supervisors declared a quarterly distribution of $0.325 per common unit, equating to an annualized rate of $1.30 per common unit [16] - The consolidated leverage ratio improved to 4.57 times compared to 4.0 for the period ended December 2024 [13] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded without any inquiries from participants [18]

Core Insights - The fiscal 2026 heating season has started positively, with colder weather in the Northeast, Mid-Atlantic, and Midwest driving heat-related demand, which offset warmer temperatures in the West [1] - The company reported a 4% increase in volumes sold and an 11% increase in adjusted EBITDA for the first quarter compared to the previous year [4] Financial Performance - Net income for the first quarter was $46.6 million, or $0.70 per common unit, compared to $38 million, or $0.59 per common unit in the prior year [8] - Adjusted EBITDA for the first quarter was $83.4 million, an increase of $8.1 million or 10.8% year-over-year [9] - Retail propane gallons sold totaled 110.2 million gallons, a 4.2% increase compared to the prior year [9] Weather Impact - Average temperatures during the first quarter were 6% warmer than normal but 6% colder than the prior year [10] - In the Eastern US, temperatures were in line with normal and 12% cooler than the prior year, while the Western US experienced temperatures 24% warmer than normal [10] Commodity Prices and Inventory - Average wholesale propane prices for the first quarter were $0.66 per gallon, a 14% decrease compared to the prior year [10] - US propane inventories were reported at 89 million barrels, 34% higher than a year ago and 28% above historical averages [11] Operational Developments - The company has made operational enhancements at its Stanfield, Arizona facility, leading to increased RNG injection [5] - Capital spending for the quarter was $19.8 million, with $6.8 million allocated for RNG growth projects [13] Strategic Growth Initiatives - The company is focused on disciplined investment in growth, with $24 million allocated for the acquisition of two propane businesses in California and nearly $7 billion in growth CapEx for the quarter [6] - The consolidated leverage ratio improved to 4.57 times compared to 4.99 times the previous year [15] Distribution and Coverage - A quarterly distribution of $0.0325 per common unit was declared, equating to an annualized rate of $1.30 per common unit, with a distribution coverage of 2.19 times [17]

Financial Performance - Net income for Q1 fiscal 2026 was $45.8 million, or $0.69 per Common Unit, compared to $19.4 million, or $0.30 per Common Unit in Q1 fiscal 2025[3] - Adjusted EBITDA for Q1 fiscal 2026 improved by $8.1 million, or 10.8%, to $83.4 million compared to the prior year[3] - Total gross margin for Q1 fiscal 2026 was $239.5 million, an increase of $13.4 million, or 5.9%, from the prior year[6] - Net income for the three months ended December 27, 2025, was $45,780, compared to $19,420 for the same period in 2024, representing a year-over-year increase of approximately 135%[20] - EBITDA for the three months ended December 27, 2025, was $82,631, up from $56,694 in the prior year, indicating a growth of about 46%[20] - Adjusted EBITDA increased to $83,405 for the three months ended December 27, 2025, from $75,301 in the same period of 2024, reflecting a rise of approximately 11%[20] Sales and Operations - Retail propane gallons sold increased by 4.2% to 110.2 million gallons in Q1 fiscal 2026, driven by colder temperatures and recent acquisitions[4] - Average propane prices decreased by 14.0% compared to the prior year first quarter[5] - Combined operating and general administrative expenses rose by $5.0 million, or 3.4%, primarily due to higher payroll and variable operating costs[7] Acquisitions and Investments - The Partnership acquired two propane businesses in California for $24.0 million during the quarter[9] Debt and Financing - The refinancing of $350.0 million of senior notes extended weighted average debt maturities by nearly three years[8] - The Consolidated Leverage Ratio for the twelve-month period ended December 27, 2025, was 4.57x, down from 4.99x for the prior year[9] Distributions - A quarterly distribution of $0.325 per Common Unit was declared, equating to an annualized rate of $1.30 per Common Unit[10] Tax and Expenses - The provision for income taxes for the three months ended December 27, 2025, was $231, down from $563 in the prior year, showing a decrease of about 59%[20] - Interest expense, net, was $19,756 for the three months ended December 27, 2025, slightly up from $19,612 in the previous year, indicating a marginal increase of about 1%[20] - Depreciation and amortization expenses were $16,864 for the three months ended December 27, 2025, compared to $17,099 in the same period of 2024, reflecting a decrease of approximately 1%[20] - Loss on debt extinguishment was recorded at $1,183 for the three months ended December 27, 2025, with no comparable figure for the previous year[20] - Equity in losses and impairment charges for investments in unconsolidated affiliates amounted to $521 for the three months ended December 27, 2025, down from $22,241 in the prior year, indicating a significant reduction of approximately 98%[20] - Unrealized non-cash gains on changes in fair value of derivatives were $(930) for the three months ended December 27, 2025, compared to $(3,634) in the same period of 2024, showing an improvement of about 74%[20]

Core Insights - Suburban Propane Partners, L.P. reported a significant increase in net income for the first quarter of fiscal 2026, reaching $45.8 million, or $0.69 per Common Unit, compared to $19.4 million, or $0.30 per Common Unit, in the same period of fiscal 2025 [2][3] - The company experienced a 10.8% increase in Adjusted EBITDA, amounting to $83.4 million, driven by higher volumes sold and effective management of selling prices and expenses [2][3][4] Financial Performance - Net income for Q1 fiscal 2026 was $45.8 million, a 136% increase from $19.4 million in Q1 fiscal 2025 [2][16] - Adjusted EBITDA improved by $8.1 million, or 10.8%, from the previous year [2][4] - Total gross margin increased by $13.4 million, or 5.9%, to $239.5 million, with a notable increase in propane unit margins of $0.08 per gallon, or 4.1% [4][16] Operational Highlights - Retail propane gallons sold reached 110.2 million, a 4.2% increase compared to the prior year, attributed to colder temperatures and recent acquisitions [3][4] - Average temperatures during the quarter were 6% warmer than normal but 6% cooler than the previous year, impacting heat-related demand [3][4] Strategic Developments - The company acquired two propane businesses in California for $24.0 million, enhancing its market presence [8] - A new anaerobic digester facility in Upstate New York is in the commissioning process, and construction of gas upgrade equipment in Columbus, Ohio is progressing [3][8] Debt Management - Suburban Propane refinanced $350.0 million of senior notes, extending debt maturities by nearly three years and improving financial flexibility [6][7] - The Consolidated Leverage Ratio improved to 4.57x from 4.99x year-over-year, indicating better debt management [8] Distribution Information - The Board of Supervisors declared a quarterly distribution of $0.325 per Common Unit, equating to an annualized rate of $1.30 per Common Unit, payable on February 10, 2026 [9]

Company Overview - Suburban Propane Partners, L.P. (NYSE:SPH) distributes fuels including propane, fuel oil, and natural gas, and provides equipment services like heating system installation [2]. Dividend Information - On January 22, the company declared a quarterly dividend of $0.325 per share, payable by February 10, to shareholders of record on February 3, resulting in a yield of 6.45% [2]. Market Sentiment - Jim Cramer referred to Suburban Propane as a "core dividend stock," but expressed concerns about the volatility of propane, indicating that it may not be a stable investment option [1].

Core Viewpoint - Suburban Propane Partners, L.P. is set to announce its Fiscal 2026 First Quarter results on February 5, 2026, with a conference call scheduled for 9:00 AM Eastern Time [1]. Company Overview - Suburban Propane Partners, L.P. is a publicly traded master limited partnership listed on the New York Stock Exchange, headquartered in Whippany, New Jersey [3]. - The company has been in the customer service business since 1928 and operates as a nationwide distributor of propane, renewable propane, renewable natural gas (RNG), fuel oil, and related products and services [3]. - Suburban Propane services approximately 1 million customers across residential, commercial, governmental, industrial, and agricultural sectors through around 750 locations in 42 states [3]. Core Pillars - The company is supported by three core pillars: 1. **Suburban Commitment** - Emphasizing a legacy of nearly 100 years and a commitment to high standards in customer service [4]. 2. **SuburbanCares** - Highlighting the company's dedication to community engagement across its national footprint [4]. 3. **Go Green with Suburban Propane** - Promoting the clean-burning nature of propane and renewable propane as a bridge to a green energy future, while investing in innovative renewable energy alternatives [4].

Core Viewpoint - Suburban Propane Partners, L.P. has successfully completed a $350 million offering of 6.500% Senior Notes due 2035, aimed at refinancing existing debt and enhancing financial flexibility [1][2]. Group 1: Financial Details - The net proceeds from the offering, after estimated expenses, amounted to approximately $344.3 million, which will be utilized to redeem all of the Issuers' 5.875% senior notes due 2027 and cover related fees [2]. - A conditional notice of redemption for the 2027 Senior Notes was sent on December 8, 2025, with the redemption scheduled for January 7, 2026 [2]. Group 2: Company Overview - Suburban Propane is a publicly traded master limited partnership listed on the NYSE, headquartered in Whippany, New Jersey, and has been in operation since 1928 [4]. - The company distributes propane, renewable propane, renewable natural gas, fuel oil, and related products, serving approximately 1 million customers across 42 states through around 750 locations [4]. Group 3: Company Values and Initiatives - Suburban Propane is built on three core pillars: a commitment to excellence in customer service, dedication to community support, and promotion of low-carbon energy solutions [5].