Suburban Propane Reports $137.5 Million Net Income and $551.2 Million Revenue in Q2 Fiscal 2026

Suburban Propane Partners, L.P. reported a net income of $137.5 million, or $2.07 per common unit, for the second quarter of fiscal 2026, reflecting a slight increase from the $137.1 million, or $2.11 per common unit, recorded in the same period last year. Total revenues for the quarter were $551.2 million, down 6.2% from $587.7 million in the prior year, primarily due to a decrease in average retail selling prices for propane, which fell by 23.1%. The company’s gross margin for the quarter was $343.7 million, a decrease of $1.6 million compared to the previous year, influenced by a $1.4 million unrealized loss from derivative instruments used in risk management.

In terms of operational metrics, retail propane gallons sold remained flat at 161.6 million gallons, with cooler temperatures in the eastern U.S. offsetting warmer conditions in the West. The company’s total cost of products sold decreased by 14.4% to $207.5 million, driven by lower average wholesale costs for propane. Operating expenses were relatively stable at $139.5 million, while general and administrative expenses rose slightly to $30.0 million, reflecting higher variable compensation costs.

Strategically, Suburban Propane has continued to expand its operations, acquiring two propane businesses in California for a total of $24 million. The company also refinanced its debt, redeeming $350 million of 5.875% senior notes due 2027 with new 6.50% senior notes due 2035, which is expected to enhance financial flexibility. As of March 28, 2026, the company’s long-term debt stood at approximately $1.28 billion, with a Consolidated Leverage Ratio of 4.34x, an improvement from 4.54x a year earlier.

Looking ahead, Suburban Propane anticipates cash requirements for the remainder of fiscal 2026 to include approximately $19.9 million for maintenance and growth capital expenditures in the propane segment, $19.0 million for renewable energy initiatives, and $43.3 million for distributions to common unitholders. The company declared a quarterly distribution of $0.325 per common unit, payable on May 12, 2026, indicating a commitment to returning value to its investors while pursuing strategic growth in both traditional and renewable energy sectors.