Suburban Propane Partners, L.P. announced robust earnings for its second quarter of fiscal 2025, ending March 29, 2025. Net income for the quarter surged to $137.1 million, or $2.11 per Common Unit, a substantial increase from $111.5 million, or $1.73 per Common Unit, in the prior year's second quarter. Adjusted EBITDA improved by $28.0 million, or 19.1%, reaching $175.0 million.
The strong performance was primarily driven by a 15.5% increase in retail propane gallons sold, totaling 162.0 million gallons, compared to the prior year. This volume growth was attributed to sustained widespread cooler temperatures, particularly in January and February, which were 13% colder than the same period last year. Effective margin management in a rising commodity price environment also contributed to the improved profitability.
In early February, the company initiated an At-the-Market (ATM) equity sales program, allowing it to sell up to $100.0 million of newly issued Common Units. During the second quarter, $8.8 million was raised through this program, with proceeds used to repay outstanding debt. The Consolidated Leverage Ratio improved to 4.54x for the trailing twelve-month period ended March 29, 2025, reflecting a strengthening balance sheet.
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