Suburban Propane Q2 Net Income at $137.5M Flat, Cuts Debt by $64M
SPH•Suburban Propane Partners reported Q2 fiscal 2026 net income of $137.5m and adjusted EBITDA of $175.3m, both flat year-on-year, while gallons sold held steady despite a 23.1% drop in average propane prices. The company cut total debt by $64m and readies new RNG facilities adding 200,000 MMBtu annual capacity.
1. Q2 Financial Results
Suburban Propane Partners earned $137.5 million in net income for the quarter ended March 28, 2026, or $2.07 per unit, compared to $137.1 million, or $2.11 per unit a year earlier. Adjusted EBITDA was $175.3 million, unchanged year-over-year, as gross margin held near prior levels despite a 23.1% decline in average Mont Belvieu propane prices.
2. Weather and Operational Impact
Retail propane sales of 161.6 million gallons were flat year-on-year as colder weather in the eastern U.S. boosted demand while western regions saw record warmth. Operational teams managed several winter storms and commodity price volatility to maintain service levels and customer retention.
3. Renewable Natural Gas Expansion
RNG operations saw improved Stanfield, Arizona injections, and the new Upstate New York digester plus Columbus, Ohio upgrading system will add roughly 200,000 MMBtu per year when completed in H2. The company recognized a $3.5 million production tax credit benefit and expects further credits as D3 RNG production ramps.
4. Debt Reduction and Capital Allocation
Using excess cash flow, the partnership reduced total debt by over $64 million this quarter. Management emphasized disciplined allocation, balancing core propane growth, renewable investments, and balance sheet strength.
