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

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]