The wider-than-expected Q3 loss and 33% Adjusted EBITDA decline signal seasonal weakness compounded by weather headwinds. Monitor Q4 results for RNG facility ramp (Upstate NY now in service, Columbus, OH expected in Q4) and any guidance on fiscal 2027 outlook, which could provide a catalyst if volumes recover from the warm weather drag.
Price Chart
Executive Summary
Suburban Propane Partners reported a Q3 fiscal 2026 net loss of $17.5M ($-0.26/unit), wider than the prior year's loss of $14.8M ($-0.23/unit), and significantly below the consensus estimate of $-0.15. Adjusted EBITDA fell 33% to $18.0M from $27.0M a year ago, driven by near-record warm April temperatures reducing heat-related demand and higher operating expenses. The miss is notable for a seasonally weak quarter, but the sequential improvement in leverage (4.35x) and continued debt reduction partially offset the negative read-through.
Key Financial Metrics
Key Facts
- Net loss of $17.5M ($-0.26/unit) vs net loss of $14.8M ($-0.23/unit) in Q3 2025 — a $0.03/unit wider loss
- Adjusted EBITDA fell to $18.0M from $27.0M, a 33% decline year-over-year
- Retail propane gallons sold decreased 1.8% to 70.6M gallons due to near-record warm April temperatures
- Total gross margin of $160.3M was flat year-over-year; excluding mark-to-market adjustments, gross margin fell $3.9M (-2.4%) on lower volumes
- Combined operating and G&A expenses rose 3.8% to $141.4M, driven by higher payroll, benefits, and fuel costs
- Repaid $36.2M in borrowings under revolving credit facility during the quarter; Total Consolidated Leverage Ratio at 4.35x
- Issued $6.6M in Common Units under ATM program to fund growth capital and debt reduction
- Quarterly distribution maintained at $0.325/unit ($1.30 annualized)
Financial Impact
Net loss widened by $2.7M year-over-year; Adjusted EBITDA declined by $9.0M
Risk Factors
- Warm weather patterns continuing into the heating season could further pressure propane volumes
- Rising operating expenses (payroll, fuel, vehicle maintenance) may compress margins if not offset by higher unit margins or volume growth
- Leverage at 4.35x leaves limited balance sheet flexibility for distributions or growth if cash flows weaken further
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001005210-26-000010 |
| Document: sph-20260806.htm | 0001005210-26-000010 |
| Document: 0001005210-26-000010-index-headers.html | 0001005210-26-000010 |
| Document: 0001005210-26-000010-index.html | 0001005210-26-000010 |
| Document: 0001005210-26-000010.txt | 0001005210-26-000010 |
| 8-K Data (Synthetic) | 0001005210-26-000010 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 6, 2026 8w ago | 8-K | $17.74 $17.52 | ▲ +1.24% | ▲ +1.84% | $16.67 (+6.03%) |
Jul 23, 2026 10w ago | 8-K | $18.34 $17.61 | ▼ −3.98% | ▼ −7.29% | $16.67 (−9.11%) |
May 7, 2026 21w ago | 8-K | $19.60 $19.01 | ▼ −3.01% | ▼ −6.15% | $16.67 (−14.95%) |
Apr 23, 2026 23w ago | 8-K | $19.15 $20.42 | ▲ +6.61% | ▲ +1.98% | $16.67 (−12.97%) |
US Market Status
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