Suburban Propane Partners, L.P. posted a robust full‑year 2025 performance, reporting net income of $106.6 million, or $1.64 per Common Unit, up 43% from $74.2 million ($1.15 per unit) in 2024. Adjusted EBITDA rose 11.2% to $278 million, driven by a 5.9% increase in retail propane volumes to 400.5 million gallons. The company attributes the volume lift to post‑Hurricane Helene and Milton demand, colder weather in core markets, and strategic acquisitions that expanded its distribution footprint. Gross margins improved 7.9% year‑over‑year, reflecting pricing power in the propane segment and efficient cost management.
In contrast, the fourth quarter ended September 27, 2025 saw a net loss of $35.1 million, or $0.53 per Common Unit, compared with a $44.6 million loss ($0.69 per unit) in the same quarter of 2024. Adjusted EBITDA for Q4 was $0.7 million, down from $0.8 million a year earlier. Revenue fell to $211.4 million, missing the consensus estimate of $227 million by roughly $15.6 million. The miss was largely due to weaker-than‑expected demand during the peak winter months, despite the company’s emphasis on cold‑weather resilience. Analysts noted that the seasonal nature of propane sales and a slight decline in wholesale pricing contributed to the shortfall.
Capital expenditures for the year were $40–45 million for propane operations and $30–35 million for renewable natural gas (RNG) projects, correcting the earlier reported $35–45 million range. The RNG investment underscores Suburban’s strategy to diversify into low‑carbon fuels, positioning the company for long‑term growth as the energy transition accelerates.
The company used excess cash flows and proceeds from its At‑the‑Market equity program—approximately $23.5 million—to fund core propane growth, advance renewable‑energy projects, and repay $1.8 million of revolving credit debt. This allocation reflects a disciplined capital strategy that balances short‑term operational needs with long‑term diversification.
Management highlighted the year as “outstanding,” noting that the combination of weather‑driven demand, strategic acquisitions, and disciplined cost control drove the strong results. CEO Michael A. Stivala emphasized the company’s role in the “energy evolution” and its commitment to renewable energy, signaling confidence in its diversified platform.
Investor reaction was mixed. While the full‑year earnings beat expectations, the Q4 revenue miss and net loss tempered enthusiasm. Market participants focused on the revenue shortfall, which outweighed the positive earnings surprise, leading to a cautious outlook for the company’s near‑term performance.
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