The newly created SVP role centralizes strategy and operations for Suburban Renewable Energy, LLC, with operations including three owned anaerobic digester facilities producing renewable natural gas in Arizona, Ohio, and New York, plus investments in renewable fuels. Management is advancing long-term strategic growth plans with acquisitions in core markets, capital projects to grow RNG production, and maintaining balance sheet strength and flexibility.
Cyborg Score Rationale
Q1 FY2026 net income of $45.8M ($0.69/unit) versus $19.4M ($0.30) year-ago and Adjusted EBITDA of $83.4M, up 10.8% year-over-year. Trailing twelve month earnings grew 92.1% year-on-year with a 9.3% net margin compared to 5.2% last year. However, weak interest coverage remains a pressure point, and earnings are forecast to decline with an unstable dividend history, limiting flexibility if profits soften.
Top Insights
FY2026 heating season is solid with cooler temperatures in Northeast/Midwest and 4.2% volume increase from customer growth initiatives.
Successfully refinanced $350M of 2027 senior notes with 2035 notes, extending weighted average debt maturities by nearly three years.
Introduced new Propane+rDME blended product combining propane with renewable dimethyl ether for lower carbon intensity.
Forward dividend yield of 6.96% on annualized distribution of $1.30 per unit attracts income-focused investors.
Named Competitors
Propane Distribution — Large propane distributor competing on scale and regional coverage
Propane Distribution — Natural gas utility with complementary product offerings
Energy Distribution — Integrated gas and electric utility with diversified energy portfolio
Recent Developments
(February 2026) Q1 FY2026 net income $45.8M, EPS $0.69; Adjusted EBITDA up 10.8% YoY
(January 2026) Executive promotion to SVP Renewable Energy to centralize renewable strategy
(December 2025) Completed refinancing of 2027 senior notes with 2035 notes due $350M at 6.50%
(December 2025) Commissioning of anaerobic digester facility in upstate New York for RNG production
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