Q4 2025 Suburban Propane Partners LP Earnings Call Transcript
Key Points
- Suburban Propane Partners LP (SPH) reported a 6% increase in propane volumes for fiscal 2025, driven by strong demand during critical winter months and strategic acquisitions.
- Adjusted EBITDA increased by $28 million or 11.2% compared to the prior year, reflecting effective margin management and expense discipline.
- The company successfully acquired and integrated propane businesses in strategic markets, enhancing its presence in New Mexico, Arizona, and California.
- Suburban Propane Partners LP (SPH) secured incremental supply of renewable propane, exceeding 2 million gallons in sales, and expanded into new markets like Florida and Virginia.
- The company improved its leverage ratio to 4.29 times, down from 4.76 times the previous year, indicating better financial health and flexibility.
- RNG operations faced challenges with a 13% decrease in average daily RNG injection due to operational issues and adverse weather conditions.
- Combined operating and G&A expenses increased by 4.2%, driven by higher payroll, benefits, and costs related to a technology modernization initiative.
- Net interest expense rose by $1.7 million due to higher average borrowings, despite lower benchmark interest rates.
- The company reported a net loss of $35.7 million for the fourth quarter, consistent with the seasonal nature of the business.
- RNG revenues were impacted by lower prices for California LCFS credits and Federal D3 RINs, despite a slight increase in LCFS credit prices.
Thank you for standing by, and welcome to the Suburban Propane Partners fourth quarter and fiscal Year-End earnings conference call. (Operator Instructions)
I'd now like to turn the call over to Davin D'Ambrosio, Vice President and Treasurer. You may begin.
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Thank you, Rob. Good morning, everyone. Thank you for joining us this morning for our fiscal 2025 fourth quarter and full year earnings conference call. I'm here with Mike Stivala, our President and Chief Executive Officer; Mike Kuglin, Chief Financial Officer; and Alex Centeno, our Senior Vice President of Operations.
This morning, we will review our fourth -- fiscal 2025 fourth quarter and full year financial results, along with our current outlook for the business. Once we've concluded our prepared remarks, we will open the session to questions. Our conference call contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, relating
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