Suburban Propane Partners SPH Q4 2026: Big Charges, Better EBITDA, and a Distribution Hike
As seen on the 24/7 Wall St. homepage on November 12, 2026.
The seasonal loss came in far wider than expected on $23.1 million of equity losses and impairments on unconsolidated affiliates plus a $7.9 million goodwill writedown, with propane demand holding up. Adjusted EBITDA rose to $7.3 million from $0.7 million a year ago, and management just lifted the annualized distribution 7.7% to $1.40 per unit with RNG growth spending substantially done.
Continue ReadingShow less
Suburban Propane Partners posted a Q4 GAAP loss of $0.85 per Common Unit, missing expectations of $0.58. The gap was driven almost entirely by non-cash items: $23.1 million in equity losses and impairment charges on investments in unconsolidated affiliates and a $7.9 million goodwill impairment tied to the natural gas and electricity business.
Strip those charges out and the operational story looks considerably better. Adjusted EBITDA climbed to $7.3 million from just $0.7 million in the same quarter a year earlier, a swing driven partly by a $7.8 million benefit from renewable natural gas production tax credits. Revenue of $219.9 million edged past the $217 million consensus estimate, rising about 4% year over year.
The headline investors are likely to focus on is the distribution increase. Management raised the quarterly payout to $0.35 per Common Unit, lifting the annualized rate to $1.40, a 7.7% increase. CEO Michael Stivala tied the move directly to the near-completion of RNG growth capital spending and confidence in the long-term outlook, saying the partnership is now entering fiscal 2027 with a larger, more reliable RNG platform.
Sponsored
Looking ahead, management expects to monetize $12.4 million of production tax credits and $11.3 million of investment tax credits during fiscal 2027. The Columbus, Ohio anaerobic digestion facility is complete pending final commissioning of its injection site by the local utility, while a new facility in Upstate New York came online in July 2026. Those additions, combined with capacity optimization, are the core of the fiscal 2027 earnings growth case. The partnership also refinanced $350 million of senior notes due March 2027 with 6.5% senior notes due December 2035, removing a near-term debt maturity from the picture.
The recurring seasonal loss pattern is well established in the partnership's history, with losses in Q3 and Q4 of both fiscal 2025 and 2026 as heating demand drops off. The magnitude of this quarter's miss relative to estimates is almost entirely a function of the non-cash impairments rather than propane demand, which management described as holding up, with retail propane volumes of 60.5 million gallons essentially flat year over year.
Sources
Mentioned: SPH