Suburban Propane Q3 Loss Widens to $17.5M as Warm Weather Crushes Demand
SPH is trading near its 52-week low of $16.53 (4.5% above the low).
Summary
Suburban Propane's fiscal Q3 net loss widened to $17.53 million, or $0.26 per unit, as near-record warm April temperatures slashed heat-related propane demand. Adjusted EBITDA fell to $18.01 million from a year earlier, pressured by higher payroll, benefits, and vehicle costs, though lower variable compensation and RNG tax credits provided a partial offset. The company used excess cash and equity proceeds to pay down over $36 million in debt, and expects all three renewable natural gas facilities to be operational by the start of fiscal 2027. This follows a strong first-half performance where net income had risen 17% and operating cash flow surged 40%, making the weather-driven Q3 reversal a sharp contrast. With the stock trading near its 52-week low and a median analyst price target of $17.00, the results reinforce near-term earnings pressure from mild weather, though the RNG buildout offers a potential catalyst for fiscal 2027.
At the time of this announcement, SPH was trading at $17.28 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $1.2B. The 52-week trading range was $16.53 to $20.80. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.