Suburban Propane Reports Higher Fiscal 2026 Net Income, Higher Distribution

The Tip Desk · November 12, 2026 · 4 min read

The propane and RNG partnership posted $109.0 million of net income, or $1.63 a Common Unit, and lifted its annualized payout to $1.40.

Suburban Propane Partners, L.P. (SPH), a nationwide distributor of propane, renewable propane and renewable natural gas, reported net income of $109.0 million, or $1.63 a Common Unit, for the fiscal year ended September 26, 2026, compared with $106.6 million, or $1.64 a Common Unit, a year earlier.

Adjusted EBITDA rose $6.0 million, or 2.2%, to $284.0 million from $278.0 million in fiscal 2025. President and Chief Executive Officer Michael A. Stivala said the year combined solid propane operations, completion of capital projects that increased the scale of the renewable natural gas business, and continued debt reduction.

Retail propane gallons sold of 402.9 million increased approximately 1% from 400.5 million in fiscal 2025. The company said colder temperatures during the heating season across much of the eastern half of the United States lifted heat-related demand, together with contributions from recent acquisitions. Those gains were partially offset by considerably warmer temperatures in the West, near-record warm temperatures during the spring, and the absence of incremental volumes experienced in the prior year after hurricanes in the Southeast.

Average temperatures across all service territories were 8% warmer than normal and 1% cooler than the prior year. In the East, average temperatures were 4% warmer than normal and 6% cooler than the prior year; in the West they were 23% warmer than normal and 14% warmer than the prior year. Average propane prices on a Mont Belvieu, Texas basis decreased 7.1% compared with the prior year.

Total gross margins of $893.4 million increased $34.7 million, or 4.0%. Excluding unrealized mark-to-market adjustments on derivatives, gross margin increased $32.7 million, or 3.8%, primarily due to a $0.05 per gallon, or 2.5%, increase in propane unit margins, higher volumes, and $12.4 million of production tax credits recognized on RNG injections. Combined operating and general and administrative expenses of $603.1 million increased $22.8 million, or 3.9%, which the company attributed primarily to higher payroll and benefit-related expenses, increased fuel and vehicle maintenance costs, and higher accruals for self-insurance claims, offset to an extent by an insurance recovery related to a partial settlement of certain claims tied to a December 2022 RNG asset acquisition.

Propane Adjusted EBITDA was $365.9 million, compared with $366.4 million in fiscal 2025. Renewable Natural Gas Adjusted EBITDA was $13.5 million, versus $0.2 million a year earlier. RNG volumes sold were 369.4 million MMBtu, versus 325.7 million MMBtu in fiscal 2025, and average daily RNG injection increased 13% compared with the prior year. Stivala said capital investments and operational enhancements at the Stanfield, Arizona facility produced more stable production and higher uptime, and that a new anaerobic digester in Upstate New York, placed into service in July, contributed to the increase. Gas upgrading equipment was completed at the Columbus, Ohio facility, with final commissioning of the injection site by the local utility still pending.

The company recognized $12.4 million of PTCs related to RNG injections from January 2025 through September 2026 and generated $11.3 million of investment tax credits associated with construction of the Upstate New York facility. It monetized approximately $3.0 million of the PTCs during fiscal 2026 and expects to monetize the remaining PTCs and the ITCs during fiscal 2027.

Growth capital expenditures were $59.5 million, versus $48.4 million in fiscal 2025, including $34.6 million of RNG growth capex versus $25.5 million. The partnership acquired two propane businesses in California for $24.0 million and, after year-end, a Florida business for $6.2 million. It also refinanced $350.0 million of senior notes due in March 2027 with $350.0 million of 6.5% senior notes due in December 2035 and reduced total debt by more than $25.0 million. The Total Consolidated Leverage Ratio improved to 4.13x from 4.29x at the end of fiscal 2025.

For the fourth quarter, the partnership typically reports a net loss. Net loss was $56.8 million, or $0.85 a Common Unit, compared with a $35.1 million, or $0.53 a Common Unit, loss a year earlier. Fourth-quarter Adjusted EBITDA increased to $7.3 million from $0.7 million, including a $7.8 million PTC benefit. Retail propane gallons sold were 60.5 million, essentially flat versus 60.8 million a year earlier. RNG volumes sold were 103.8 million MMBtu, versus 75.9 million MMBtu a year earlier. Propane Adjusted EBITDA was $22.0 million, versus $22.9 million a year earlier; Renewable Natural Gas Adjusted EBITDA was $8.6 million, versus a $2.6 million loss. The partnership recorded a $7.9 million goodwill impairment of its natural gas and electricity business, with no such charge a year earlier.

As of September 26, 2026, the partnership recast reportable segments into Propane and Renewable Natural Gas, with prior-period segment information recast. The Board of Supervisors declared a quarterly distribution of $0.35 a Common Unit, up from $0.325, an annualized $1.40 rate, a 7.7% increase over the previous annualized rate.