Suburban Propane Q3 net loss widens as warm weather cuts demand
Suburban Propane Q3 net loss widens as warm weather cuts demand
Overview
U.S. propane distributor's fiscal Q3 net loss widened, with adjusted EBITDA declining yr/yr
Quarter impacted by warmer temperatures, reducing heat-related demand and propane volumes sold
Company reduced debt by over $36 mln using excess cash flows and equity proceeds
Outlook
Company expects all three RNG facilities to be operational entering fiscal 2027
Result Drivers
WARMER WEATHER - Near-record warm temperatures in April reduced heat-related demand and propane volumes sold
CUSTOMER TANK LEVELS - Higher residential customer tank levels from prior quarter deliveries further reduced demand
OPERATING COSTS - Higher payroll, benefits, and vehicle costs increased expenses, partially offset by lower variable compensation and RNG production tax credits
Company press release: ID:nPn78ccdSa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Loss Per Share |
| $0.26 |
|
Q3 Net Loss |
| $17.53 mln |
|
Q3 Adjusted EBITDA |
| $18.01 mln |
|
Q3 EBITDA |
| $18.18 mln |
|
Q3 Operating Income |
| $2.22 mln |
|
Q3 Pretax Loss |
| $17.35 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, L.P. is $17.00, about 4.8% below its August 5 closing price of $17.86
The stock recently traded at 9 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.)
Recent news on Suburban Propane Partners
See all newsBrief: Suburban Propane Partners, L.P - Declares QTRLY Distribution Increase To $0.35 Per Common Unit For Three Months Ended Sept 26, 2026
Suburban Propane Q3 net loss widens as warm weather cuts demand
Suburban Propane Q2 revenue falls, net income flat
Corrected: BRIEF-Suburban Propane Q2 Net Income USD 137.542 Million
Suburban Propane Q1 net income jumps, EBITDA up 10.8%