Suburban Propane Reports $14.8 Million Net Loss, Revenue Growth of 2.2% in Latest Quarter

Suburban Propane Partners, L.P. reported a net loss of $14.8 million, or $0.23 per common unit, for the three months ended June 28, 2025, an improvement from a net loss of $17.2 million, or $0.27 per common unit, in the same period last year. Total revenues for the quarter increased by 2.2% to $260.2 million, compared to $254.6 million in the prior year, driven primarily by a 3.1% increase in propane revenues, which reached $226.9 million. The company attributed this growth to higher average retail selling prices, which rose by 2.0% year-over-year, despite retail propane gallons sold remaining relatively stable at 71.9 million gallons.

In the nine-month period ending June 28, 2025, Suburban Propane's revenues increased by 9.2% to $1.22 billion, up from $1.12 billion in the previous year. This growth was largely fueled by an 11.5% increase in propane revenues, which totaled $1.08 billion, reflecting a rise in both volumes sold and average selling prices. The company sold 339.7 million gallons of propane, a 6.6% increase compared to the prior year. However, revenues from fuel oil and refined fuels decreased by 8.6% to $60.7 million, primarily due to lower average selling prices and a slight decline in volumes sold.

Operationally, Suburban Propane has made strategic investments to enhance its renewable energy initiatives, including the acquisition of propane assets in New Mexico for $53 million and investments in renewable natural gas (RNG) production. The company also reported a significant increase in its goodwill, which rose to $1.16 billion as of June 28, 2025, reflecting ongoing investments and acquisitions. The total assets of the Partnership increased to $2.31 billion, up from $2.27 billion at the end of the previous fiscal year.

The Partnership's cash flow from operating activities for the first nine months of fiscal 2025 was $144.4 million, compared to $123.8 million in the same period last year. This increase was attributed to higher earnings, although it was partially offset by a larger increase in working capital. The company utilized cash flows and net proceeds from an at-the-market public offering to repay $69 million in borrowings under its revolving credit facility. As of June 28, 2025, Suburban Propane had total long-term borrowings of $1.24 billion, with a Consolidated Leverage Ratio of 4.33x, reflecting improved financial stability.

Looking ahead, Suburban Propane anticipates capital expenditures of approximately $10.7 million for its propane segment and $15.4 million for its renewable energy platform. The company has declared a quarterly distribution of $0.325 per common unit, payable on August 12, 2025, indicating a commitment to returning value to its unitholders while continuing to invest in growth initiatives.