Suburban Propane Partners, L.P. (SPH): Modelo de Negócios Canvas [Jan-2025 Atualizado]

No mundo dinâmico da distribuição de energia, o Suburban Propane Partners, L.P. (SPH) surge como uma potência estratégica, transformando como os setores residencial, agrícola e comerciais acessam soluções de propano confiáveis. Ao criar meticulosamente um modelo de negócios abrangente que preenche a prestação inovadora de serviços com infraestrutura estratégica, o SPH se posicionou como um participante crítico no mercado de energia descentralizado. Sua abordagem única combina sofisticação tecnológica, estratégias centradas no cliente e uma rede de distribuição robusta que atende às diversas necessidades energéticas das comunidades nos Estados Unidos.

Suburban Propane Partners, L.P. (SPH) - Modelo de negócios: Parcerias -chave

Fabricantes e fornecedores de equipamentos de propano

Os parceiros suburbanos de propano mantêm parcerias estratégicas com os principais fabricantes de equipamentos:

Fabricante	Detalhes da parceria	Volume anual de oferta
Tanque de Manchester & Equipamento	Suprimento de tanque de armazenamento de propano	78.000 unidades anualmente
Worthington Industries	Cilindro e fabricação de tanques	62.500 unidades anualmente

Redes de distribuição de gás natural

As principais parcerias de rede de distribuição incluem:

• Habilitar parceiros do meio -fluxo: 1,2 milhão de pés cúbicos por dia Capacidade de distribuição
• Enterprise Products Partners: 875.000 pés cúbicos por dia Rede de transporte
• LP de transferência de energia: 1,5 milhão de pés cúbicos de interconexão diariamente acordos de interconexão

Provedores de equipamentos agrícolas e agrícolas

Parceiro	Serviço Agrícola	Valor anual do contrato
John Deere	Integração de propano de equipamentos agrícolas	US $ 3,6 milhões
Caso ih	Sistemas de propano de equipamentos agrícolas	US $ 2,9 milhões

Empresas de transporte e logística

As parcerias de logística incluem:

• Transporte Swift: 425 caminhões de entrega de propano dedicados
• Werner Enterprises: 312 veículos de transporte de propano especializados
• Despesas anuais de parceria logística anual: US $ 42,7 milhões

Parceiros de infraestrutura e armazenamento de energia

Parceiro	Tipo de infraestrutura	Capacidade de armazenamento
Morgan mais gentil	Instalações de terminal de armazenamento	3,2 milhões de galões
NGL Energy Partners	Infraestrutura de armazenamento regional	2,7 milhões de galões

Suburban Propane Partners, L.P. (SPH) - Modelo de negócios: Atividades -chave

Distribuição de propano e vendas de varejo

A partir de 2023, os parceiros de propano suburbanos distribuíram aproximadamente 102 milhões de galões de propano a clientes de varejo. O volume anual de vendas no varejo atingiu US $ 1,46 bilhão.

Segmento de distribuição	Volume (galões)	Receita
Propano residencial	46,2 milhões	US $ 658,3 milhões
Propano comercial	33,8 milhões	US $ 482,5 milhões
Propano agrícola	22 milhões	US $ 319,2 milhões

Negociação de propano por atacado

As operações de negociação por atacado geraram US $ 124,7 milhões em receita para o ano fiscal de 2023.

Instalação e manutenção de sistemas de propano

• Receita anual de instalação do sistema: US $ 87,3 milhões
• Número de novas instalações do sistema de propano: 12.450
• Contratos de Serviço de Manutenção: 8.675

Gerenciamento de transporte e logística

Composição da frota	Número de veículos	Despesa de logística anual
Caminhões de entrega de propano	780	US $ 42,6 milhões
Veículos de serviço	425	US $ 18,3 milhões

Operações de atendimento ao cliente e suporte

O centro de suporte ao cliente lida com 425.000 chamadas de serviço anualmente com 98,6% Taxa de resolução de primeiro contato.

• Representantes totais de atendimento ao cliente: 325
• Orçamento operacional anual de atendimento ao cliente: US $ 22,1 milhões
• Tempo médio de resposta: 17 minutos

Suburban Propane Partners, L.P. (SPH) - Modelo de negócios: Recursos -chave

Armazenamento extensivo de propano e infraestrutura de distribuição

A partir de 2023, o propano suburbano opera 18 centros de distribuição em 23 estados. Capacidade total de armazenamento: 22,5 milhões de galões de propano. Investimentos de infraestrutura em 2022: US $ 42,3 milhões.

Ativo de infraestrutura	Quantidade	Capacidade total
Tanques de armazenamento de propano	138	22,5 milhões de galões
Centros de distribuição	18	Cobertura nacional

Frota de veículos de entrega e ativos de transporte

Composição da frota a partir de 2023:

• VEÍCULOS TOTAL: 1.287
• Caminhões de entrega de propano: 892
• Veículos de serviço: 395
• Idade média da frota: 6,3 anos

Tipo de veículo	Número	Custo de manutenção anual
Caminhões de entrega de propano	892	US $ 14,6 milhões
Veículos de serviço	395	US $ 5,2 milhões

Sistemas proprietários de gerenciamento de relacionamento com o cliente

Investimento de tecnologia em 2022: US $ 3,7 milhões. Os principais recursos do sistema incluem:

• Rastreamento de entrega em tempo real
• Cobrança automatizada
• Análise de uso do cliente

Pessoal técnico e de serviço treinado

Estatísticas da força de trabalho a partir de 2023:

• Total de funcionários: 2.100
• Técnicos certificados: 687
• Horário médio de treinamento por funcionário: 42 anualmente
• Investimento anual de treinamento: US $ 1,9 milhão

Rede de distribuição geográfica estratégica

Detalhes da cobertura:

• Estados operacionais: 23
• Locais de serviço: 712
• Penetração de mercado: 68% nas regiões -alvo

Região	Número de locais de serviço	Receita anual
Nordeste	276	US $ 187,5 milhões
Centro -Oeste	214	US $ 142,3 milhões
Sul	222	US $ 159,7 milhões

Suburban Propane Partners, L.P. (SPH) - Modelo de negócios: proposições de valor

Soluções de energia de propano confiáveis ​​e consistentes

A partir do quarto trimestre de 2023, a Suburban Propane Partners atende a aproximadamente 1,3 milhão de clientes em 41 estados. O volume anual de vendas de propano atingiu 354,5 milhões de galões no ano fiscal de 2023.

Métrica de serviço	2023 desempenho
Base total de clientes	1,3 milhão
Cobertura geográfica	41 estados
Volume anual de vendas de propano	354,5 milhões de galões

Serviços de energia residencial e comercial flexível

O propano suburbano oferece soluções de energia diversificadas em vários segmentos de mercado.

• Aquecimento residencial: 68% da base total de clientes
• Serviços comerciais: 22% da base total de clientes
• Aplicações agrícolas: 10% da base total de clientes

Opções abrangentes de aquecimento e combustível de cozimento

A receita total para serviços de propano e relacionado no ano fiscal de 2023 foi de US $ 576,3 milhões.

Categoria de serviço	Contribuição da receita
Propano residencial	US $ 342,7 milhões
Propano comercial	US $ 167,9 milhões
Propano agrícola	US $ 65,7 milhões

Suporte ao cliente eficiente e responsivo

Tempo médio de resposta ao atendimento ao cliente: 24 minutos. Taxa de retenção de clientes em 2023: 89,6%.

Alternativas de energia ambientalmente consciente

As emissões de propano são 43% menores do que outros combustíveis fósseis tradicionais. Compromisso de redução da pegada de carbono: 15% até 2025.

• Emissões de baixo carbono profile
• Tecnologia de combustível de queima limpa
• Iniciativas de propano renovável

Suburban Propane Partners, L.P. (SPH) - Modelo de negócios: Relacionamentos do cliente

Equipes diretas de vendas e atendimento ao cliente

A partir de 2024, o Suburban Propane Partners mantém uma equipe de atendimento ao cliente dedicada de aproximadamente 350 funcionários em período integral focados em interações e suporte diretos ao cliente.

Canal de atendimento ao cliente	Volume de contato anual
Suporte telefônico	672.000 interações com os clientes
Suporte online	214.500 consultas digitais
Serviço pessoal	48.300 reuniões diretas de clientes

Contratos de serviço de longo prazo

Distribuição do contrato

• Contratos de propano residencial: 78% da base de clientes
• Acordos de serviço comercial: 17% da base de clientes
• Contratos de longo prazo industriais: 5% da base de clientes

Gerenciamento de contas pessoais

O Suburban Propane Partners fornece gerenciamento de contas personalizado para 62% de seus segmentos de clientes comerciais e industriais.

Nível de gerenciamento de contas	Número de gerentes dedicados
Contas de nível corporativo	24 gerentes de conta dedicados
Segmento comercial	87 gerentes de relacionamento

Plataformas de suporte ao cliente digital

Os canais de suporte digital incluem:

• Aplicativo móvel: 156.000 usuários ativos
• Portal de conta on -line: 287.500 clientes registrados
• Suporte a bate -papo na web 24/7: Tempo médio de resposta 7,2 minutos

Programas de engajamento focados na comunidade

As iniciativas de engajamento da comunidade incluem:

• Programas de assistência energética local: US $ 2,1 milhões para contribuição anual
• Eventos de educação em segurança comunitária: 42 eventos anualmente
• Programa de fidelidade do cliente: 68% da taxa de participação do cliente

Suburban Propane Partners, L.P. (SPH) - Modelo de negócios: canais

Representantes de vendas diretas

A partir de 2024, o propano suburbano mantém uma força de vendas direta de 1.247 representantes em 23 estados nos Estados Unidos. Vendas anuais médias por representante: US $ 1,2 milhão.

Região de vendas	Número de representantes	Vendas médias anuais
Nordeste	487	US $ 1,35 milhão
Centro -Oeste	312	US $ 1,15 milhão
Sudeste	248	US $ 1,05 milhão
Oeste	200	US $ 1,25 milhão

Plataformas de pedidos on -line

Estatísticas da plataforma digital para 2024:

• Usuários online ativos mensais: 127.563
• Volume do pedido on -line: 42% do total de transações
• Valor médio da transação online: $ 345

Aplicativos de serviço móvel

Métricas de desempenho do aplicativo móvel:

• Downloads de aplicativos totais: 78.245
• Usuários mensais de aplicativos ativos: 46.782
• Solicitações de serviço baseadas em aplicativos: 37% do total de interações de serviço

Suporte ao cliente por telefone

Dados operacionais de call center:

Métrica	2024 Performance
Volume anual total de chamadas	512.347 chamadas
Tempo médio de manuseio de chamadas	7,2 minutos
Classificação de satisfação do cliente	89.3%

Centros de distribuição de varejo locais

Rede de centro de distribuição:

• Centros de distribuição total: 82
• Valor médio de inventário por centro: US $ 2,3 milhões
• Volume diário de distribuição: 14.567 unidades de propano

Suburban Propane Partners, L.P. (SPH) - Modelo de negócios: segmentos de clientes

Proprietários residenciais

A partir de 2024, o propano suburbano atende a aproximadamente 1,1 milhão de clientes residenciais em 30 estados. O consumo médio anual de propano por cliente residencial é de 700 galões.

Tipo de cliente	Número de clientes	Consumo médio anual
Casas unifamiliares	825,000	650 galões
Residências multifamiliares	275,000	850 galões

Negócios agrícolas

O propano suburbano suporta 42.500 clientes agrícolas, com um volume anual de vendas de propano total de 85 milhões de galões para aplicações agrícolas.

• Secagem de culturas: 35.000 clientes
• Aquecimento de Greenhouse: 4.500 clientes
• Equipamento agrícola: 3.000 clientes

Empresas comerciais e industriais

A empresa atende a 28.750 clientes comerciais e industriais em vários setores, gerando US $ 215 milhões em receita anual a partir deste segmento.

Setor da indústria	Número de clientes	Consumo anual de propano
Fabricação	12,500	45 milhões de galões
Construção	8,250	22 milhões de galões
Armazenamento	8,000	18 milhões de galões

Indústrias de hospitalidade e restaurante

O Suburban Propane fornece serviços a 6.750 clientes de hospitalidade e restaurante, com um volume anual de vendas de propano de 22 milhões de galões.

• Restaurantes: 4.500 clientes
• Hotéis e resorts: 1.750 clientes
• Serviços de catering: 500 clientes

Comunidades rurais e suburbanas

A empresa mantém uma forte presença nos mercados rurais e suburbanos, atendendo a 95% de sua base de clientes nessas regiões, cobrindo cerca de 18.000 quilômetros quadrados de território de serviço.

Tipo de comunidade	Porcentagem de clientes	Cobertura geográfica
Comunidades rurais	65%	12.000 milhas quadradas
Áreas suburbanas	30%	6.000 milhas quadradas

Suburban Propane Partners, L.P. (SPH) - Modelo de negócios: estrutura de custos

Despesas de aquisição de propano

Para o ano fiscal de 2023, a Suburban Propane Partners relatou custos de compra de propano de US $ 536,7 milhões. A empresa compra propano de vários fornecedores, com um preço médio de compras de US $ 1,82 por galão.

Categoria de despesa	Custo anual ($ m)	Porcentagem de compras totais
Compras de propano por atacado	536.7	78%
Taxas de contrato de fornecimento	92.3	13%
Armazenamento e manuseio	57.4	9%

Custos de transporte e logística

As despesas de transporte para parceiros suburbanos de propano totalizaram US $ 124,6 milhões em 2023, representando um componente crítico de seus custos operacionais.

• Manutenção da frota: US $ 42,3 milhões
• Custos de combustível para veículos de entrega: US $ 36,8 milhões
• Salários e benefícios do motorista: US $ 45,5 milhões

Manutenção de infraestrutura

Os custos de manutenção de infraestrutura para 2023 foram de US $ 87,2 milhões, cobrindo instalações de armazenamento, centros de distribuição e equipamentos.

Categoria de manutenção	Custo anual ($ m)
Manutenção da instalação de armazenamento	38.6
Reparação e substituição de equipamentos	29.7
Infraestrutura de tecnologia	18.9

Salários e treinamento de funcionários

As despesas totais relacionadas ao pessoal para 2023 foram de US $ 213,4 milhões.

• Salários base: US $ 162,5 milhões
• Benefícios e seguro: US $ 34,7 milhões
• Treinamento e desenvolvimento: US $ 16,2 milhões

Marketing e aquisição de clientes

As despesas de marketing para parceiros suburbanos de propano atingiram US $ 24,7 milhões em 2023.

Canal de marketing	Despesas ($ M)
Marketing digital	9.3
Publicidade tradicional	7.6
Programas de retenção de clientes	5.8
Promoções de vendas	2.0

Suburban Propane Partners, L.P. (SPH) - Modelo de negócios: fluxos de receita

Vendas de propano residencial

Para o ano fiscal de 2023, o suburbano propano relatou um volume de vendas de propano residencial de 133,9 milhões de galões, gerando aproximadamente US $ 655,4 milhões em receita a partir deste segmento.

Métrica de vendas residenciais	Valor
Galões residenciais totais vendidos	133,9 milhões de galões
Receita residencial	US $ 655,4 milhões
Preço médio por galão	$4.90

Contratos de serviço de propano comercial

Os contratos de serviço de propano comercial contribuíram com US $ 287,6 milhões para a receita da empresa em 2023.

• Total de clientes comerciais: 41.000
• Valor médio do contrato: US $ 7.015 por contrato
• Duração do contrato: normalmente 1-3 anos

Taxas de instalação do equipamento

Os serviços de instalação de equipamentos geraram US $ 42,3 milhões em receita adicional para o propano suburbano em 2023.

Serviço de instalação	Receita
Instalações de tanques residenciais	US $ 24,5 milhões
Instalações de equipamentos comerciais	US $ 17,8 milhões

Negociação de propano por atacado

A negociação de propano por atacado representou US $ 178,2 milhões em receita para o ano fiscal de 2023.

• Volume total de atacado: 72,6 milhões de galões
• Preço médio de atacado: US $ 2,45 por galão
• Mercados comerciais: principalmente nordeste e meio -oeste dos Estados Unidos

Serviços de energia auxiliares

Os serviços de energia auxiliares contribuíram com US $ 93,7 milhões para a receita total do Suburban Propane em 2023.

Serviço auxiliar	Receita
Serviços HVAC	US $ 52,4 milhões
Vendas de aparelhos de propano	US $ 41,3 milhões

Suburban Propane Partners, L.P. (SPH) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Suburban Propane Partners, L.P. (SPH) over competitors. It boils down to deep history, broad reach, and a pivot toward cleaner energy, all while keeping service local.

Reliable, dependable energy supply with a nearly 100-year legacy.

Suburban Propane Partners, L.P. anchors its value proposition in its longevity. The company has been in the customer service business since 1928, giving it a nearly 100-year legacy of dependability. This history translates into operational experience, especially when handling high-demand periods. For instance, retail propane gallons sold for the full fiscal year 2025 reached 400.5 million gallons, a 5.9% increase year-over-year, showing sustained customer reliance on their supply chain.

Diversified product offering: propane, fuel oil, natural gas, electricity.

The value isn't just in one fuel; it's in the variety of energy sources Suburban Propane Partners, L.P. can deliver and market across its footprint. The Propane segment remains the largest revenue driver, but the diversification mitigates risk from single-commodity price swings. Here's a look at the scale and the primary revenue source for fiscal year 2025.

Energy Product/Segment	Fiscal Year 2025 TTM Revenue (USD)	FY2025 Volume Metric
Propane (Retail & Wholesale)	$1.27 Billion	400.5 Million Retail Gallons Sold
Fuel Oil and Refined Fuels	Not Separately Itemized	Distributes fuel oil, kerosene, diesel
Natural Gas and Electricity Marketing	Not Separately Itemized	Markets in deregulated markets

Suburban Propane Partners, L.P. serves approximately 1 million customers through about 700 locations across 41 states.

Commitment to low-carbon alternatives (renewable propane, RNG).

The company is actively positioning for the energy transition by investing in cleaner fuels. This commitment is backed by capital deployment and specific project milestones. Suburban Propane Partners, L.P. is an investor in low-carbon fuel alternatives, including renewable propane and renewable natural gas (RNG).

• Fiscal 2025 capital spending for RNG projects was expected to range between $35 million to $45 million.
• The Upstate New York RNG facility is positioned to qualify for an Inflation Reduction Act Investment Tax Credit at a 30% rate, potentially yielding $7 million to $9 million in tax credits.
• New RNG facilities in New York and Ohio were expected to come online later in 2025.
• However, average daily RNG injection at the Stanfield facility was approximately 13% lower in fiscal 2025 compared to the prior year due to maintenance and weather impacts.

Personalized, hyperlocal customer service model.

The value proposition emphasizes local service delivery, which is critical for energy distribution. This is reinforced by community engagement efforts, showing a commitment to the areas they serve. The company has over 3,300 full-time employees dedicated to this service. The 2025 SuburbanCares initiative involved over 150 employee volunteers contributing approximately 600 hours of service across 20 communities nationwide. This local focus supports customer retention, which is key when propane volumes sold increased by 5.9% in fiscal 2025.

Emergency and post-storm demand fulfillment (e.g., Hurricanes Helene and Milton).

Suburban Propane Partners, L.P. highlights its operational readiness during crises. The company's personnel were noted for their tireless execution in response to surging demand. Specifically, Q1 2025 saw strong demand in the Southeast region following Hurricanes Helene and Milton, which helped offset warmer-than-normal weather impacts elsewhere. Furthermore, sustained colder temperatures in Q2 2025 led to propane volumes increasing by 15.5% year-over-year, with January 2025 delivering the highest propane volumes since 2018. This demonstrates the ability to scale up rapidly when customers need it most.

Suburban Propane Partners, L.P. (SPH) - Canvas Business Model: Customer Relationships

You're looking at how Suburban Propane Partners, L.P. keeps its massive customer base engaged and loyal; it's a mix of deep local presence and structured corporate support. The foundation of this relationship strategy is its nearly 100-year legacy in the customer service business, dating back to 1928.

Dedicated local customer service and field support.

Suburban Propane Partners, L.P. focuses its service delivery in areas where the primary alternative, natural gas, isn't easily accessible-namely, suburban and rural locations. The company services approximately 1.0 million propane customers across 42 states, utilizing a nationwide retail distribution network of approximately 750 locations as of September 27, 2025. This physical footprint is key to local support, though you should note that most of its customer service centers compete with five or more other marketers at any given time. To maintain this physical presence, the company leases about 25% of its customer service centers under operating leases.

Here are the key operational metrics defining the customer base as of fiscal year-end September 27, 2025:

Metric	Value (FY 2025)
Total Propane Customers Serviced	Approximately 950,000
Total Retail Propane Gallons Sold	400.5 million gallons
Retail Propane Gallons Sold Increase (YoY)	5.9%
Total Company Locations	Approximately 750
States of Operation	42

High-touch, personalized relationship model for retention.

The relationship model is anchored by the Suburban Commitment to Excellence pillar, which emphasizes dependability, flexibility, and reliability. While specific personalization metrics aren't public, the company explicitly ties customer base growth and retention initiatives to its operational results; for instance, Q1 fiscal 2025 results noted contributions from these initiatives, even as unseasonably warm temperatures impacted demand. The focus on local service centers inherently supports a more direct, high-touch interaction than a purely centralized model. If onboarding takes 14+ days, churn risk rises, so local field support is defintely critical here.

Community engagement through the SuburbanCares initiative.

Community goodwill is actively managed through the SuburbanCares corporate initiative, which reflects a commitment to the local communities where employees live and work. For the 2025 calendar year, the results of this engagement were quite specific:

• Engaged over 150 employee volunteers.
• Logged approximately 600 hours of volunteer service.
• Supported initiatives across 20 communities nationwide.
• Maintained an ongoing national partnership with the American Red Cross.

This effort is designed to strengthen community connections, which indirectly supports customer trust and retention in those local markets.

Contractual arrangements for scheduled deliveries and price protection.

Suburban Propane Partners, L.P. manages customer commitment through structured service agreements, though the exact terms of price protection programs are proprietary. The core relationship is solidified by the recurring nature of propane delivery, which is managed through scheduled delivery programs. The company's overall financial health supports these commitments; for fiscal 2025, Total Revenues reached $1,432.5 million, and Net Income was $106.6 million, allowing for consistent service delivery and the ability to manage commodity price risks for customers through various contract structures. Furthermore, the company declared a quarterly distribution of $0.325 per Common Unit for the period ending September 27, 2025, signaling stability to its investor base, which underpins the long-term reliability offered to its customers.

Finance: draft 13-week cash view by Friday.

Suburban Propane Partners, L.P. (SPH) - Canvas Business Model: Channels

You're looking at how Suburban Propane Partners, L.P. (SPH) physically gets its product-propane, renewable propane, RNG, and fuel oil-to its customers. This is all about physical footprint and direct interaction.

The backbone of the distribution channel is the physical network. As of late 2025, Suburban Propane Partners, L.P. services its customer base through approximately 700 locations, though the November 2025 10-K filing announcement mentioned approximately 750 locations across 42 states. This extensive physical presence is key to reaching the roughly 1 million residential, commercial, governmental, industrial, and agricultural customers.

Here's a quick look at the scale of the physical channel as of the Fiscal Year 2025 reporting:

Metric	Value (FY2025)
Total Locations (Approximate)	700 to 750
States Served	42
Total Customers Served (Approximate)	1 million
Propane Volumes Sold (Gallons)	400.5 million gallons
Propane Volume Growth (YoY)	5.9% increase

Direct-to-customer delivery is managed via a proprietary fleet. This is how they move the product from those local distribution centers right to the customer's tank, which is critical for reliability, especially during peak heating demand. The operational success of this channel is reflected in the 5.9% increase in retail propane gallons sold for fiscal year 2025.

Sales and service personnel are the human interface for both commercial and residential accounts. These teams handle the direct sales, service calls, and relationship management that keep the customer base stable. The company is focused on customer base growth and retention initiatives, which rely heavily on these personnel executing well.

Digital channels support the physical network for account management and service requests. The management team mentioned advancing technology initiatives during fiscal 2025, supported by total capital spending of $72 million for the year. This investment helps modernize how customers interact digitally, even as the core business remains physical delivery.

• Digital use supports account management.
• Digital partners use tracking technologies on Sites.
• Technology modernization is a stated focus area.

The overall channel strategy is supported by strong financial performance, with Adjusted EBITDA for fiscal 2025 reaching $278.0 million, which helps fund the maintenance and modernization of this extensive physical and digital infrastructure.

Suburban Propane Partners, L.P. (SPH) - Canvas Business Model: Customer Segments

Residential customers are the core base for Suburban Propane Partners, L.P. (SPH). The partnership serves approximately 1 million total customers across its operational footprint.

Commercial, industrial, and governmental entities form a significant part of the customer base, contributing to the overall retail propane volume. The partnership noted margin expansion across all customer categories in fiscal 2025.

The agricultural sector is a distinct user group, though its demand can be variable. For instance, in the first quarter of fiscal 2025, lower agricultural demand for crop drying was cited as a factor contributing to a slight decrease in retail propane gallons sold for that period.

Wholesale customers are served through bulk sales arrangements. In the first quarter of fiscal 2025, average wholesale propane prices, based on Mont Belvieu, saw a notable increase of 15%, reaching $0.77 per gallon compared to the prior year.

The overall performance of the propane distribution business, which serves these segments, is summarized below for the fiscal year ended September 27, 2025:

Metric	Fiscal 2025 Amount	Year-over-Year Change
Total Revenue	$1.43 B USD	Growth (from $1.33 B USD in 2024)
Propane Segment Revenue	$1.27 B USD	Increase (from $1.15 B USD in 2024)
Retail Propane Gallons Sold	400.5 million gallons	5.9% increase
Propane Unit Margin Change (Ex-MTM)	$0.02 per gallon increase	1.0% increase

The growth in retail propane gallons sold for the full fiscal year 2025 was driven by several factors impacting demand across the segments:

• Sustained widespread cold temperatures during critical heating months.
• Increased demand for backup power generation in the Southeast following hurricanes.
• Continued growth in the counter seasonal national accounts business.
• Incremental volumes from recent propane acquisitions.

Suburban Propane Partners, L.P. (SPH) - Canvas Business Model: Cost Structure

When you look at the Cost Structure for Suburban Propane Partners, L.P. (SPH), you see a business heavily weighted toward the cost of the product it sells, which is typical for a distributor. The variable costs are significant, but fixed and semi-fixed operating expenses also demand close attention, especially as the company invests in new areas like renewable energy.

The single largest component of cost is the procurement of the fuel itself. Cost of products sold, which includes the purchase of propane and related activities, totaled $493.6 million for fiscal 2025. This cost directly scales with sales volume and wholesale commodity prices; for instance, higher average wholesale propane costs during much of fiscal 2025 contributed $29.1 million to the increase in this cost line item alone.

Beyond the direct cost of goods, the overhead required to run the distribution network and corporate functions is substantial. Combined operating and general and administrative expenses for the full fiscal year 2025 reached $590.5 million. This represented a 4.2% increase year-over-year, driven primarily by higher payroll and benefit-related expenses, overtime to support increased customer demand, and costs tied to the multi-year technology modernization initiative.

The company is actively spending capital to secure future revenue streams, which adds to the cost base through depreciation and interest on financing. Capital expenditures for Renewable Natural Gas (RNG) growth projects were significant, with over $25 million deployed; specifically, growth capital expenditures to advance construction activities at RNG production facilities totaled $27.0 million in FY2025. This investment is part of a broader strategy to build out the renewable energy platform.

The financing structure also contributes to the cost base through interest expense. Net interest expense for fiscal 2025 was $76.3 million, an increase from the prior year, largely due to a higher average level of outstanding borrowings under the Revolving Credit Facility. Managing this debt load is key, as evidenced by the reported Consolidated Leverage Ratio, which stood at 4.29x for the fiscal year ended September 27, 2025.

Distribution and logistics costs are embedded within the operating expenses but represent critical, ongoing cash outflows. These costs are directly tied to maintaining the physical infrastructure needed to serve customers. Here are the key elements that make up these operational costs:

• Fleet maintenance for the extensive distribution network.
• Payroll for drivers, logistics coordinators, and field personnel.
• Vehicle fuel costs, which can fluctuate.
• Costs associated with maintaining storage terminals and delivery equipment.

To give you a clearer picture of the major cost categories for Suburban Propane Partners, L.P. in fiscal 2025, here is a quick summary of the largest reported figures:

Cost Category	Fiscal 2025 Amount	Driver/Context
Cost of Products Sold (Propane/Fuel)	$493.6 million	Largest variable cost, tied to wholesale commodity prices and volumes sold.
Operating and G&A Expenses	$590.5 million	Includes payroll, benefits, and technology transformation costs.
Net Interest Expense	$76.3 million	Result of average outstanding borrowings under the Revolving Credit Facility.
RNG Growth Capital Expenditures	$27.0 million	Investment to advance construction activities at RNG production facilities.
Consolidated Leverage Ratio	4.29x	Metric reflecting debt relative to earnings at year-end FY2025.

Finance: draft 13-week cash view by Friday.

Suburban Propane Partners, L.P. (SPH) - Canvas Business Model: Revenue Streams

You're looking at how Suburban Propane Partners, L.P. (SPH) actually brings in the money, which is key to understanding its valuation, especially given the weather and commodity price sensitivity we see year-to-year. The revenue streams are quite focused, but they do have a few supporting pillars.

The primary engine, without question, is the retail sale of propane. For the full fiscal year 2025, which ended September 27, 2025, the company moved a solid volume, reporting that retail propane gallons sold reached 400.5 million gallons, marking a 5.9% increase year-over-year. This volume growth, supported by colder weather and post-storm demand, directly fueled the top line. Overall, total revenue for fiscal 2025 was reported at US$1.43 billion. That's the big number that captures everything for the year.

Here's a quick breakdown of the core components that make up that total revenue:

• Retail sales of propane, the largest driver.
• Sales of other fuels like fuel oil and natural gas.
• Revenue generated from electricity sales.
• Income from emerging renewable energy ventures.
• Fees collected from equipment sales and services.

To give you a clearer picture of the non-propane energy sales, while the full-year breakdown isn't always public, we can look at the segment performance from the second quarter of fiscal 2025 to see the relative scale of these other streams. Honestly, they are smaller but provide diversification.

Revenue Stream Segment	Revenue (Q2 FY2025 USD Millions)
Propane	525.256
Fuel oil & refined fuels	33.364
Natural gas & electricity	9.025
All other	20.215

The push into cleaner energy is a definite strategic focus for Suburban Propane Partners, L.P. The company has been advancing the buildout of its renewable energy platform, utilizing cash flows to support this growth. This includes ventures in Renewable Natural Gas (RNG) and renewable propane. For instance, management noted progress on an anaerobic digester system in upstate New York and equipment upgrades at an existing facility in Columbus, Ohio, as of August 2025. While specific full-year revenue figures for these nascent streams aren't broken out separately in the top-line reports, they represent a material area of capital deployment and future potential revenue diversification.

Finally, you can't forget the steady, recurring revenue from services tied to their existing customer base. This stream comes from equipment sales and service fees. Think about tank rentals, routine maintenance contracts, and the sale of related hardware. This service component helps smooth out some of the volatility inherent in weather-dependent commodity sales. If onboarding takes 14+ days, churn risk rises, so keeping service smooth is defintely important for retaining that recurring fee base.