Suburban Propane Partners LP has recently released its 10-Q report, providing a detailed overview of its financial performance and operations for the three months ended December 27, 2025. The company, based in Whippany, New Jersey, engages in the retail marketing and distribution of propane, renewable propane, renewable natural gas, fuel oil, and refined fuels in the United States. It operates through four segments: Propane, Fuel Oil and Refined Fuels, Natural Gas and Electricity, and All Other, serving residential, commercial, industrial, and agricultural customers.
The report discusses various factors that regularly affect the company's operating results and financial condition. Among these factors, product costs and supply play a crucial role in the company's profitability. The report highlights that the level of profitability in the retail propane, fuel oil, natural gas, and electricity businesses is largely dependent on the difference between retail sales price and the costs to acquire and transport products. The unit cost of products, particularly propane, fuel oil, and natural gas, is subject to volatility due to supply and demand dynamics, economic and political factors impacting crude oil and natural gas supply or pricing, and other market conditions.
The report also addresses the seasonality of the company's business, noting that the retail propane and fuel oil distribution businesses, as well as the retail natural gas marketing business, are seasonal due to the primary use of these fuels for heating in residential and commercial buildings. Additionally, weather conditions have a significant impact on the demand for the company's products, particularly propane, fuel oil, and natural gas, for both heating and agricultural purposes.
Furthermore, the report delves into the company's hedging and risk management activities to reduce the effect of price volatility on its product costs and ensure the availability of products during periods of short supply. Suburban Propane Partners LP engages in hedging through propane forward, options, and swap agreements with third parties, as well as futures and options contracts traded on the New York Mercantile Exchange.
The report also provides an overview of the company's financial performance. For the first quarter of fiscal 2026, Suburban Propane Partners LP reported a net income of $45.8 million, or $0.69 per Common Unit, compared to net income of $19.4 million, or $0.30 per Common Unit, for the first quarter of fiscal 2025. Additionally, the company's adjusted earnings before interest, taxes, depreciation, and amortization (Adjusted EBITDA) for the first quarter of fiscal 2026 improved by $8.1 million, or 10.8%, to $83.4 million compared to the prior year first quarter.
The report also highlights key strategic initiatives, such as the acquisition of two propane businesses in California, strategic refinancing of outstanding senior notes, and the use of net proceeds from the issuance of new senior notes and borrowings under the Revolving Credit Facility to fund growth initiatives. Additionally, the company's Consolidated Leverage Ratio for the twelve-month period ended December 27, 2025, was 4.57x, compared to 4.99x.
The market has reacted to these announcements by moving the company's shares 0.21% to a price of $19.19. For the full picture, make sure to review SUBURBAN PROPANE PARTNERS LP's 10-Q report.
