Thu, May 8, 3:32 PM (9 days ago)
**Suburban Propane Partners, L.P. (SPH) Q2 2025 Financial Performance** **Revenue and Profit Margins:** - **Revenue:** $587.7M (Q2 2024: $498.1M), $961.0M (H1 2025: $863.9M) - **Net Income:** $137.1M (Q2 2024: $111.5M), $156.5M (H1 2025: $135.9M) - **Earnings per Unit:** $2.11 (Q2 2024: $1.73), $2.42 (H1 2025: $2.12) **Cash Flow:** - **Operating Cash Flow:** $48.9M (H1 2025: $62.4M) - **Investing Cash Flow:** -$97.1M (H1 2025: -$30.7M) - **Financing Cash Flow:** $45.1M (H1 2025: -$26.5M) **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by increased propane volumes and higher average selling prices due to cooler temperatures and higher wholesale costs. - **Cost of Products Sold:** Increased by 27.5% due to higher volumes and wholesale costs. - **Operating Expenses:** Increased by 8.6% due to higher payroll and benefit-related costs. - **General and Administrative Expenses:** Increased by 14.7% due to higher payroll and variable compensation costs. - **Depreciation and Amortization:** Increased by 5.2% due to investments in RNG production facilities and propane acquisitions. - **Interest Expense:** Increased by 3.3% due to higher average outstanding borrowings. - **Other, Net:** Decreased by 86.0% due to impairment charges and changes in contingent consideration. **Trends and Uncertainties:** - **Weather:** Cooler temperatures increased demand for propane. - **Inflation:** Increased costs for labor, transportation, and capital expenditures. - **Hedging and Risk Management:** Used to mitigate price volatility and ensure product supply. - **Debt Obligations:** Potential impact on distributions and financial flexibility. - **Renewable Energy Investments:** Subject to market, regulatory, and operational risks. **Future Operations Impact:** - **Capital Expenditures:** $20.6M for propane segment, $23.0M for renewable energy platform. - **Interest and Tax Payments:** $39.7M. - **Distributions:** $42.9M based on the quarterly rate of $0.325 per unit. - **Liquidity Position:** Sufficient funds to meet current and future obligations. **Forward-Looking Statements:** - **Risks:** Include weather conditions, commodity price volatility, regulatory changes, and competition. - **Strategic Initiatives:** Focus on advocating for clean-burning propane and investing in renewable energy alternatives.