Suburban Propane Partners (NYSE:SPH) Issues Quarterly Earnings Results, Misses Estimates By $0.27 EPS

Key Points

• Quarterly EPS missed estimates: Suburban Propane reported a loss of $0.85 per unit, $0.27 worse than expected, while revenue of $219.86 million topped forecasts of $217 million.
• Fiscal 2026 adjusted results improved: Adjusted EBITDA rose 2.2% to $284 million and adjusted net income reached $138.1 million; propane volumes increased 1% and stronger unit margins lifted gross margin.
• The partnership raised its annualized distribution 7.7% to $1.40 per unit and reported 2.13× distribution coverage. Rising wholesale propane prices could pressure margins, while the results excluded impairments totaling $31 million.

Suburban Propane Partners (NYSE:SPH - Get Free Report) released its quarterly earnings results on Thursday. The energy company reported ($0.85) EPS for the quarter, missing the consensus estimate of ($0.58) by ($0.27), FiscalAI reports. Suburban Propane Partners had a return on equity of 18.57% and a net margin of 9.37%. The company had revenue of $219.86 million during the quarter, compared to analysts' expectations of $217.00 million.

Here are the key takeaways from Suburban Propane Partners' conference call:

• Fiscal 2026 adjusted EBITDA rose 2.2% to $284 million, while adjusted net income increased to $138.1 million, or $2.07 per common unit. Propane volumes grew 1%, and higher unit margins contributed to stronger gross margin.
• RNG injections increased 13%, and updated federal clean-fuel guidance supported $12.4 million in production tax credit benefits; the partnership also generated $11.3 million in investment tax credits. Two new facilities are expected to add about 300,000 MMBtus of annual production at full capacity, though Columbus was still awaiting final utility commissioning.
• The partnership raised its annualized distribution 7.7% to $1.40 per unit, with trailing-twelve-month distribution coverage of 2.13 times. Leverage improved to 4.13 times from 4.29 times, and fiscal 2027 capital spending is projected to decline to $60 million–$70 million as major RNG projects wind down.
• Wholesale propane prices rose sharply after fiscal year-end, reaching more than $1.30 per gallon in early November before easing to about $1.05, roughly 70% above the year-earlier level. Higher commodity costs may pressure margins or require price increases as the heating season proceeds.
• Results excluded a $23.1 million impairment of an early-stage energy technology investment and a $7.9 million goodwill impairment tied to the natural gas and electricity marketing business, which has been constrained by New York regulatory actions.

Suburban Propane Partners Trading Down 1.8%

Shares of Suburban Propane Partners stock traded down $0.31 during trading on Thursday, hitting $17.30. The stock had a trading volume of 221,697 shares, compared to its average volume of 176,607. The firm's fifty day simple moving average is $17.19 and its 200-day simple moving average is $18.65. The stock has a market cap of $1.15 billion, a PE ratio of 8.83, a PEG ratio of 2.16 and a beta of 0.41. The company has a debt-to-equity ratio of 1.72, a current ratio of 0.78 and a quick ratio of 0.52. Suburban Propane Partners has a 12 month low of $16.25 and a 12 month high of $20.80.

Suburban Propane Partners Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, November 10th. Stockholders of record on Tuesday, November 3rd were paid a $0.35 dividend. This is an increase from Suburban Propane Partners's previous quarterly dividend of $0.3250. This represents a $1.40 annualized dividend and a dividend yield of 8.1%. The ex-dividend date of this dividend was Tuesday, November 3rd. Suburban Propane Partners's payout ratio is currently 71.43%.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on SPH. Wall Street Zen downgraded Suburban Propane Partners from a "buy" rating to a "hold" rating in a research report on Saturday, August 1st. Weiss Ratings cut Suburban Propane Partners from a "hold (c)" rating to a "hold (c-)" rating in a report on Friday, September 11th. Finally, Zacks Research cut Suburban Propane Partners from a "strong-buy" rating to a "hold" rating in a report on Monday, September 7th. One equities research analyst has rated the stock with a Strong Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy".

Insider Activity at Suburban Propane Partners

In related news, VP Bryon Koepke sold 2,848 shares of Suburban Propane Partners stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $17.65, for a total transaction of $50,267.20. Following the completion of the transaction, the vice president directly owned 100,714 shares of the company's stock, valued at approximately $1,777,602.10. The trade was a 2.75% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Over the last three months, insiders have sold 3,360 shares of company stock worth $58,710. 1.30% of the stock is currently owned by insiders.

About Suburban Propane Partners

Suburban Propane Partners, L.P. is an energy distributor that supplies propane, fuel oil and related products and services to residential, commercial, industrial and agricultural customers. Its offerings include heating fuels, equipment and services designed to support customers' energy and home-comfort needs. The company also participates in the natural gas and electricity markets and invests in renewable energy initiatives. Its operations serve customers across much of the United States. Founded in 1928, Suburban Propane has grown from a regional propane business into a diversified energy provider.

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