Suburban Propane Reports $106.6 Million Net Income and 7.9% Revenue Growth for Fiscal Year 2025

Suburban Propane Partners, L.P. reported a net income of $106.6 million, or $1.64 per Common Unit, for the fiscal year ending September 27, 2025, marking a significant increase from the previous year's net income of $74.2 million, or $1.15 per Common Unit. The company's total revenues rose to $1.43 billion, a 7.9% increase from $1.33 billion in fiscal 2024. This growth was primarily driven by a 5.9% increase in retail propane gallons sold, totaling 400.5 million gallons, alongside higher average selling prices for propane, which increased by 2.8% compared to the prior year.

The financial performance reflects a notable recovery in demand, particularly during the critical winter months, despite average temperatures being 9% warmer than normal. The company attributed the increase in propane sales to sustained cold temperatures during key months, as well as growth in its national accounts business and contributions from recent acquisitions. Gross margins for fiscal 2025 reached $868.8 million, up 7.9% from the previous year, aided by a favorable shift in the market for propane and risk management activities.

Strategically, Suburban Propane has made significant investments in renewable energy, including the acquisition of renewable natural gas (RNG) production assets and partnerships aimed at expanding its renewable energy platform. The company completed the acquisition of a propane business in New Mexico and Arizona for approximately $53 million and has plans for further growth in the renewable sector, including the construction of an anaerobic digester system in New York. These initiatives are part of the company's broader strategy to transition towards lower-carbon energy solutions while maintaining its core propane business.

Operationally, Suburban Propane served approximately 1.0 million customers across 750 locations in 42 states as of September 27, 2025. The company employed 3,190 full-time employees, with a focus on enhancing customer service and operational efficiency. The company also reported a total debt of $1.23 billion, with a Consolidated Leverage Ratio of 4.29x, reflecting a slight decrease in debt compared to the previous year. The company declared a quarterly distribution of $0.325 per Common Unit, equating to an annualized rate of $1.30, which was paid to unitholders in November 2025.

Looking ahead, Suburban Propane anticipates capital expenditures of approximately $45 million for its propane segment and $30 to $35 million for its renewable energy initiatives in fiscal 2026. The company expects to have sufficient liquidity to meet its obligations, supported by cash flows from operations and proceeds from its at-the-market equity program. The ongoing focus on both traditional propane distribution and renewable energy investments positions Suburban Propane for sustainable growth in a transitioning energy landscape.