Suburban Propane Q2 revenue falls, net income flat

Suburban Propane Partners

07/05/2026 12:40

Overview

US propane distributor's fiscal Q2 revenue declined year-over-year and missed sole analyst estimate

Net income and adjusted EBITDA for fiscal Q2 were flat compared to prior year

Company reduced total debt by more than $64 mln during the quarter

Outlook

Company expects completion of new RNG facilities in NY and Ohio in H2 fiscal 2026

Suburban Propane expects to add 200,000 MMBtu per annum to RNG platform after facility completion

Company expects eligibility for production tax credits as new RNG facility comes online

Result Drivers

WEATHER IMPACT - Colder temperatures and winter storms in the East drove heat-related demand, but record warmth in the West offset gains, resulting in flat retail propane gallons sold

RNG OPERATIONS - Improved RNG production and injection due to increased facility uptime and capital investments, with additional benefit from $3.5 mln in production tax credits

EXPENSE MANAGEMENT - Flat operating and administrative expenses, as higher payroll and vehicle costs were offset by production tax credits and an insurance recovery

Company press release: ID:nPn4Y23g2a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$551.20 mln
$571 mln (1 Analyst)
Q2 EPS
$2.06
Q2 Net Income
$137.54 mln
Q2 Adjusted EBITDA
$175.34 mln
Q2 EBITDA
$173.61 mln
Q2 Operating Income
$157.91 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", no "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the oil & gas refining and marketing peer group is "buy"

Wall Street's median 12-month price target for Suburban Propane Partners LP is $17.00, about 10.5% below its May 6 closing price of $19.00

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)