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Suburban Propane(SPH) - 2025 Q4 - Earnings Call Transcript
2025-11-13 15:00
Financial Data and Key Metrics Changes - For fiscal 2025, net income was $128.4 million, or $1.97 per common unit, compared to $107.7 million, or $1.68 per common unit in the prior year [12] - Adjusted EBITDA for fiscal 2025 was $278 million, an increase of $28 million, or 11.2%, compared to the prior year [12] - Total gross margin for fiscal 2025 was $866.4 million, an increase of $46.8 million, or 5.7%, compared to the prior year [15] Business Line Data and Key Metrics Changes - Retail propane gallons sold for fiscal 2025 were 400.5 million gallons, an increase of 5.9% compared to the prior year [13] - In the RNG operations, average daily RNG injection for the fiscal year was approximately 13% lower compared to the prior year due to operational downtimes [16] Market Data and Key Metrics Changes - Average wholesale propane prices for fiscal 2025 were $0.79 per gallon, which was 5.8% higher than the prior year [14] - U.S. propane inventories at the end of the fiscal year were at 106 million barrels, which was 6% higher than a year ago [15] Company Strategy and Development Direction - The long-term strategic growth plan focuses on fostering the growth of the core propane business while investing in lower carbon renewable energy alternatives [25] - The company is positioned to take advantage of the growing respect for propane as a versatile and clean energy solution [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational and financial strength of the company, emphasizing the importance of safety and customer service [25][26] - The company is prepared for the new heating season and is optimistic about future growth opportunities [27] Other Important Information - The company declared a quarterly distribution of $0.325 per common unit, with a distribution coverage of 2.13 times for the trailing 12 months ended September 2025 [24] - The company launched an at-the-market equity program to sell up to $100 million of newly issued common units, raising $23.5 million in net proceeds during fiscal 2025 [10] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded with closing remarks from management [29][30]