NYSE:SPH
SUBURBAN PROPANE PARTNERS LP
A massive US-based propane distributor leveraging scale and infrastructure to serve diverse energy needs across residential and industrial sectors.
Key Metrics
Investment Thesis
Bull Case
Investors should consider Suburban Propane as a steady cash-flow generator in the alternative energy space, supported by strong operational cash flow that far exceeds its interest obligations. The company's dominant market position offers pricing power and growth potential as customers transition away from traditional fossil fuels toward more sustainable propane solutions.
Bear Case
The stock faces headwinds from substantial debt levels relative to equity, with current liabilities of $302.8M against only $166.3M in current assets creating liquidity pressure. Declining revenue in 2024 and the large non-operating losses indicate potential margin compression or one-time charges that could erode shareholder value if commodity spreads narrow further.
About SUBURBAN PROPANE PARTNERS LP
Suburban Propane Partners LP is a leading distributor of propane fuel products serving residential, commercial, industrial, and agricultural markets across the United States. The company generates revenue primarily through the sale of propane gas and related equipment to heating systems and industrial applications. With a vast distribution network and significant scale, it positions itself as a critical player in the renewable energy transition away from fossil fuels.
Analysis
Management Discussion
Despite a dip in 2024 net income to $74.2M, the company demonstrated resilience with full-year revenue stabilizing at $1.43B in 2025 and strong cash flow from operations of $186.3M. The balance sheet shows elevated leverage with current liabilities significantly exceeding current assets, yet the massive goodwill and total asset base suggest a robust operational platform capable of weathering commodity cycles.
Industry Overview
The propane distribution industry is a critical component of the US energy mix, providing a renewable alternative to natural gas and oil for heating and transportation. As global demand for low-carbon fuels grows, established distributors with extensive infrastructure like Suburban Propane are well-positioned to capture market share while navigating price volatility.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $1.43B | $1.33B | $1.43B |
| Cost of Revenue | $590.1M | $522.2M | $563.7M |
| Gross Profit | $839.1M | $805.0M | $868.8M |
| Operating Expenses | $632.2M | $633.7M | $662.5M |
| Operating Income | $206.8M | $171.2M | $206.3M |
| G&A | $91.6M | $89.9M | $96.4M |
| D&A | $62.6M | $67.0M | $72.0M |
| Depreciation | $51.7M | $54.7M | $59.4M |
| Amortization | $10.9M | $12.3M | $12.7M |
| Other OpEx | $540.6M | $543.8M | $566.1M |
| Non-Operating Income | $-82.4M | $-96.3M | $-98.4M |
| Interest Expense | $73.4M | $74.6M | $76.3M |
| Pre-Tax Income | $124.4M | $74.9M | $107.9M |
| Income Tax | $668.0K | $734.0K | $1.3M |
| Continuing Ops | $123.8M | $74.2M | $106.6M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $123.8M | $74.2M | $106.6M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $123.8M | $74.2M | $106.6M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $164.0M | $157.5M | $166.3M |
| Cash & Equivalents | $3.5M | $3.2M | $405.0K |
| Accounts Receivable | $67.7M | $66.4M | $69.5M |
| Inventory | $61.8M | $55.4M | $73.7M |
| Other Current Assets | $31.0M | $32.5M | $22.7M |
| Long-Term Assets | $2.11B | $2.12B | $2.13B |
| PP&E (Net) | $646.1M | $654.0M | $691.3M |
| Goodwill | $1.15B | $1.15B | $1.16B |
| Operating Leases | $142.9M | $140.2M | $119.0M |
| Other LT Assets | $168.7M | $169.7M | $161.9M |
| Total Assets | $2.27B | $2.27B | $2.30B |
| Current Liabilities | $307.8M | $306.1M | $302.8M |
| Accounts Payable | $40.0M | $41.1M | $45.0M |
| Current Leases | $33.6M | $35.6M | $34.3M |
| Other Current Liab | $234.2M | $229.4M | $223.4M |
| Long-Term Liabilities | $1.42B | $1.42B | $1.39B |
| Long-Term Debt | $1.19B | $1.21B | $1.21B |
| LT Operating Leases | $108.5M | $103.8M | $83.7M |
| Other LT Liab | $119.6M | $105.5M | $99.5M |
| Total Liabilities | $1.72B | $1.73B | $1.70B |
| Shareholders' Equity | $546.4M | $547.1M | $598.6M |
| AOCI | $-10.7M | $-6.1M | $-5.5M |
| Total L&E | $2.27B | $2.27B | $2.30B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $123.8M | $74.2M | $106.6M |
| Non-Cash Adjustments | $127.3M | $104.4M | $111.5M |
| Working Capital Changes | $-25.8M | $-18.0M | $-31.8M |
| Cash from Operations | $225.2M | $160.6M | $186.3M |
| Capital Expenditures | $44.9M | $59.4M | $72.0M |
| Cash from Investing | $-170.6M | $-81.6M | $-128.3M |
| Debt Issuances | $0 | — | — |
| Debt Repayments | $0 | — | — |
| Cash from Financing | $-44.6M | $-72.5M | $-66.7M |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $10.0M | $6.4M | $-8.7M |
| Beginning Cash | $4.1M | $14.1M | $20.5M |
| Ending Cash | $14.1M | $20.5M | $11.8M |
Frequently Asked Questions
How does SUBURBAN PROPANE PARTNERS LP make money?
Residential heating fuel supply, commercial and industrial propane distribution, agricultural fuel services for livestock operations, and retail sales of equipment and appliances.
What are the main risks for SPH?
High debt load with $1.21B in long-term debt creating significant interest expense vulnerability during rate hikes, revenue sensitivity to volatile propane commodity prices, and potential regulatory changes affecting fuel pricing or distribution standards.
What is SPH's competitive advantage?
Unmatched geographic footprint and logistics network allowing efficient delivery in remote areas, strong brand loyalty among rural customers, and operational scale that lowers per-unit acquisition costs.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.