Suburban Propane Partners (NYSE:SPH) Posts Quarterly Earnings Results

Suburban Propane Partners (NYSE:SPH) released its quarterly earnings data on Thursday. The energy company reported ($0.85) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.58) by ($0.27), FiscalAI reports. The business had revenue of $219.86 million during the quarter, compared to analysts’ expectations of $217.00 million. Suburban Propane Partners had a return on equity of 18.57% and a net margin of 9.37%.

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 Stock Performance

NYSE:SPH traded down $0.31 during trading hours on Thursday, hitting $17.30. 221,697 shares of the company were exchanged, compared to its average volume of 176,607. 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 52-week low of $16.25 and a 52-week high of $20.80. The stock has a market capitalization of $1.15 billion, a price-to-earnings ratio of 8.83, a PEG ratio of 2.16 and a beta of 0.41. The company’s 50 day moving average price is $17.19 and its 200-day moving average price is $18.65.

Suburban Propane Partners Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, November 10th. Investors of record on Tuesday, November 3rd were paid a $0.35 dividend. This is a boost from Suburban Propane Partners’s previous quarterly dividend of $0.3250. The ex-dividend date was Tuesday, November 3rd. This represents a $1.40 dividend on an annualized basis and a yield of 8.1%. Suburban Propane Partners’s dividend payout ratio (DPR) is 71.43%.

Insider Activity

In other news, VP Bryon Koepke sold 2,848 shares of Suburban Propane Partners stock in a transaction on 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 sale, the vice president directly owned 100,714 shares in the company, valued at approximately $1,777,602.10. The trade was a 2.75% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders have sold a total of 3,360 shares of company stock valued at $58,710 over the last three months. Company insiders own 1.30% of the company’s stock.

Analyst Ratings Changes

Several brokerages have weighed in on SPH. Wall Street Zen downgraded shares of Suburban Propane Partners from a “buy” rating to a “hold” rating in a research note on Saturday, August 1st. Zacks Research downgraded Suburban Propane Partners from a “strong-buy” rating to a “hold” rating in a research report on Monday, September 7th. Finally, Weiss Ratings downgraded Suburban Propane Partners from a “hold (c)” rating to a “hold (c-)” rating in a research report on Friday, September 11th. One equities research analyst has rated the stock with a Strong Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, Suburban Propane Partners presently has an average rating of “Moderate Buy”.

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.