Suburban Propane Partners, L.P. reported a net income of $45.8 million, or $0.69 per common unit, for the first quarter of fiscal 2026, a significant increase from the $19.4 million, or $0.30 per common unit, recorded in the same period last year. Total revenues for the quarter were $370.4 million, down slightly by 0.8% from $373.3 million in the prior year. The decrease in revenue was primarily attributed to lower average retail selling prices for propane, despite a 4.2% increase in retail propane gallons sold, which totaled 110.2 million gallons.
The Partnership's cost of products sold decreased by 11.1% to $130.8 million, down from $147.2 million in the previous year, largely due to lower average wholesale costs for propane. This reduction in costs contributed to an increase in gross margin, which rose to $239.5 million, reflecting a 5.9% improvement compared to the prior year. The overall operating expenses increased by 3.3% to $127.2 million, driven by higher payroll and benefit-related costs to support increased customer demand.
Strategically, Suburban Propane made two acquisitions during the quarter, purchasing propane businesses in California for a total of $24 million, which included non-compete payments. These acquisitions are part of the Partnership's growth initiatives aimed at expanding its core propane business. Additionally, the company refinanced its previously outstanding $350 million of 5.875% senior notes due 2027 with new 6.50% senior notes due 2035, extending the weighted average debt maturities and enhancing financial flexibility.
Operationally, the Partnership's total assets increased to $2.4 billion as of December 27, 2025, compared to $2.3 billion at the end of the previous fiscal year. The company reported a total of 66.3 million common units outstanding, reflecting a slight increase from 65.8 million units in the prior period. Looking ahead, Suburban Propane anticipates continued investment in its renewable energy initiatives and expects to maintain sufficient liquidity to meet its obligations, including a quarterly distribution of $0.325 per common unit, payable on February 10, 2026.
About SUBURBAN PROPANE PARTNERS LP
Suburban Propane Partners, L.P. is a nationwide energy marketer and distributor specializing in propane, renewable propane, natural gas, fuel oil, and refined fuels. It serves residential, commercial, industrial, and agricultural customers across the U.S., providing delivery, installation, and service. The company invests in renewable energy projects, emphasizing sustainability, energy transition, and environmental attributes, while focusing on customer satisfaction, operational efficiency, and strategic acquisitions.
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