Suburban Propane Partners Reports 23% Increase in Net Income for Q2 Fiscal 2025

Suburban Propane Partners, L.P. reported a significant increase in financial performance for the second quarter of fiscal 2025, with net income rising to $137.1 million, or $2.11 per Common Unit, compared to $111.5 million, or $1.73 per Common Unit, in the same period last year. Total revenues for the quarter reached $587.7 million, an 18% increase from $498.1 million in the prior year, driven primarily by a 15.5% increase in retail propane gallons sold, which totaled 162 million gallons. The increase in revenue was also supported by higher average propane prices, which rose by 7.2% compared to the previous year.

The Partnership's operating income for the quarter was $158.4 million, up from $136.9 million a year earlier, reflecting a 15.7% increase. This growth was attributed to higher sales volumes and improved pricing, despite a 27.5% increase in the cost of products sold, which totaled $242.4 million. The increase in costs was primarily due to higher wholesale prices and increased volumes sold. The gross margin for the quarter was $345.3 million, a 12.1% increase from the prior year, indicating effective management of product costs despite rising expenses.

In terms of strategic developments, Suburban Propane made notable acquisitions, including the purchase of propane assets from a retailer in New Mexico for $53 million, which is expected to enhance its market presence. The Partnership also continued to invest in renewable energy initiatives, with significant capital expenditures aimed at supporting its growth in this sector. As of March 29, 2025, the Partnership had 64.9 million Common Units outstanding, reflecting a slight increase from the previous period.

Operationally, the Partnership reported a total of 250,093 thousand in current assets, up from 157,544 thousand in the prior period, while total liabilities remained relatively stable at 1,728 million. The Partnership's cash and cash equivalents increased to $3.9 million from $3.2 million, indicating improved liquidity. The company also announced a quarterly distribution of $0.325 per Common Unit, payable on May 13, 2025, which reflects its commitment to returning value to shareholders.

Looking ahead, Suburban Propane anticipates continued growth driven by strategic acquisitions and investments in renewable energy. The company expects to maintain sufficient liquidity to meet its operational and capital needs, supported by cash flows from operations and available credit facilities. However, management remains cautious about potential market volatility and the impact of weather conditions on demand for propane and other fuels, which could affect future performance.