Suburban Propane Partners, L.P.

Reported second-quarter adjusted net income was $139.3 million, or $2.09 per common unit, versus $136.9 million, or $2.11 per common unit, in the prior-year quarter. Adjusted EBITDA was $175.3 million, flat year over year, and retail propane gallons sold were 161.6 million, essentially unchanged. Gross margin was $345.1 million, up $500,000 year over year. Average wholesale propane prices were $0.69 per gallon, down 23% from the prior year quarter, and U.S. propane inventories ended at 77 million barrels, 75% above March 2025 levels and 47% above the five-year average for March. For the quarter, the company recognized $3.5 million of PTCs. Full-year capital spending for the existing RNG projects is estimated at $35 million to $40 million. Management did not provide formal quarterly or full-year earnings guidance, but said the remaining RNG facilities are on schedule for completion in the second half of fiscal 2026 and expected to add about 200,000 MMBtus of annual production.

Mike Stivala framed the quarter as a solid result in a difficult weather environment, emphasizing that the core propane business performed well despite the East/West weather split. He stressed operational discipline, customer service, and the company’s ability to redirect resources to meet surging demand in the East. He was also constructive on RNG, saying the company is stabilizing production, advancing expansion projects, and building what he called a long-term renewable platform with durable growth potential.

Mike Kuglin highlighted that adjusted EBITDA was flat at $175.3 million and adjusted net income was $139.3 million, or $2.09 per unit, after excluding noncash hedge marks. He noted total gross margins of $345.1 million and explained that operating and G&A expenses of $169.5 million were flat, with higher payroll, fuel, maintenance, and self-insurance accruals offset by PTC recognition and a $2.9 million insurance recovery. He also cited $24.7 million of capex in the quarter, $19 million of year-to-date growth capex for RNG, $64.3 million of revolver repayments, and leverage improving to 4.34x, saying the company has ample borrowing capacity and expects future quarters to generate excess cash.

There was no analyst Q&A, as the operator stated there were no questions. The prepared remarks nonetheless addressed likely investor concerns around weather volatility, commodity prices, RNG project timing, and the visibility of tax-credit economics. Management said the new RNG facilities in Upstate New York and Columbus, Ohio remain on track for completion in the second half of fiscal 2026 and that PTC eligibility has been clarified by Treasury guidance.