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EarningsQ2 2026 Earnings Report
SPH Q2 2026 EPS Results
Actual EPS$2.09
Consensus EPS$1.98
Beat/MissBeat by +$0.11
One Year Ago EPS$2.10
SPH Q2 2026 Revenue Results
Actual Revenue$551.21M
Expected Revenue$575.00M
Beat/MissMissed by -$23.79M
YoY Revenue Growth-6.20%
Earnings Announcement Details
QuarterQ2 2026
Date05/07/2026
TimeBefore Open
Conference CallThursday, May 7, 2026
SPH Upcoming Earnings
Suburban Propane's next earnings date is estimated for November 12, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
SPH Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed a generally positive tone driven by strong operational resilience in the heating season, debt reduction of over $64 million, improving RNG production (+16% sequential, +12% YoY) and recognition of $3.5 million in production tax credits. Management highlighted disciplined capital allocation, on-schedule RNG projects adding ~200,000 MMBtus annually, and maintained distributions with 2.2x coverage. Offsetting risks include flat quarter-over-quarter EBITDA, high U.S. propane inventories (+75% YoY) and a 23% decline in average wholesale propane prices, warm western weather that drove ~10% lower volumes in that region, hedge mark-to-market volatility, and still-elevated leverage (4.34x). Overall, the positive operational execution, balance sheet improvement, and RNG momentum outweigh the noted headwinds.Company Guidance
Solid Adjusted EBITDA and H1 Growth
Adjusted EBITDA for Q2 was $175.3 million (essentially flat YoY). Combined with Q1, adjusted EBITDA for the first half was $258.7 million, an increase of $8.4 million or 3.4% compared to the prior year first two quarters.
Strong Cash Generation and Debt Reduction
Used excess operating cash flow to reduce total outstanding debt by more than $64 million in the quarter (revolver repayment of $64.3 million). Trailing-12-month consolidated leverage improved to 4.34x from 4.54x a year ago. Net interest expense decreased 4.2% to $19.7 million.
RNG Production Growth and Tax Credit Recognition
Average daily D3 RNG injection increased 16% sequentially and more than 12% YoY due to improved uptime and process improvements. Recognized $3.5 million of production tax credits (PTCs) on D3 RNG injections (including a $2.0 million catch-up for fiscal 2025 and $0.8 million for Q1 FY2026). Expect ~200,000 MMBtus of annual RNG production capacity to be added when Upstate New York and Columbus projects come online in H2 FY2026.
Resilient Operational Performance in Eastern Markets
Eastern territories saw volumes approximately 3% higher than prior year as average heating degree days were ~3% colder vs prior year; retail propane gallons sold for the quarter were 161.6 million gallons, essentially unchanged YoY. Propane unit margins increased by $0.03 per gallon (1.7%), contributing to total gross margins of $345.1 million, up $0.5 million YoY.
Disciplined Capital Allocation and RNG Project Progress
Total capital spending in Q2 was $24.7 million (up $5.4 million YoY) driven by RNG construction. Year-to-date RNG growth CapEx is $19 million; full-year capital spending estimate for existing projects is $35–$40 million. Columbus and Upstate NY RNG facilities remain on schedule for H2 completion.
Stable Distribution with Strong Coverage
Board declared quarterly distribution of $0.325 per common unit (annualized $1.30). Distribution coverage remains strong at 2.2x for the trailing 12-month period ended March 2026.
Operational Resilience and Brand Initiatives
Management highlighted ability to meet surge demand during severe East coast winter storms by redeploying resources; continued customer growth and retention initiatives and expanded marketing (official propane of NASCAR) to showcase propane use cases.
SPH Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed