Star Group, L.P. Reports Fiscal 2025 Full Year and Fourth Quarter Results
Rhea-AI Summary
Star Group (NYSE:SGU) reported fiscal 2025 full-year and Q4 results. For the year ended Sept 30, 2025, revenue rose ~1.0% to $1.8 billion, volumes increased 11.5% to 282.6 million gallons, and net income was $73.5 million (up $38.3 million). Adjusted EBITDA climbed 22.2% to $136.4 million, driven by stronger per-gallon margins, colder weather and acquisitions; acquisitions added $16.9 million of Adjusted EBITDA. The company recorded a $3.1 million weather-hedge expense in 2025 versus a $7.5 million credit prior year. In Q4, revenue was $247.7 million (+3.1%) and Adjusted EBITDA loss widened to $33.0 million. Management cited continued acquisition and service-installation growth and will host a webcast on Dec 9, 2025 at 11:00 AM ET.
Positive
- Adjusted EBITDA +22.2% to $136.4 million
- Total revenue rose ~1.0% to $1.8 billion
- Home heating volume +11.5% to 282.6M gallons
- Installations & services revenue growth nearly 10%
- Acquisitions added $16.9M of Adjusted EBITDA
Negative
- Q4 Adjusted EBITDA loss of $33.0M vs loss of $29.7M prior year
- Weather hedge swung to a $3.1M expense from a $7.5M credit
- Income tax expense increased by $16.1M
- Depreciation, amortization and interest rose due to acquisitions
Key Figures
Market Reality Check
Peers on Argus
SGU gained 2.21% while key peers like CLNE (-2.62%), DK (-1.98%), and WKC (-1.85%) were down, indicating a stock-specific response to its earnings rather than a sector-wide move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 03 | Earnings call notice | Neutral | +0.9% | Scheduled release and call for fiscal 2025 Q4 and full-year results. |
| Oct 16 | Distribution declaration | Positive | -0.5% | Quarterly distribution of <b>$0.1850</b> per common unit announced. |
| Aug 06 | Q3 2025 earnings | Negative | -0.8% | Q3 revenue declined and net loss widened despite stronger year-to-date metrics. |
| Jul 31 | Earnings call notice | Neutral | +0.2% | Announcement of planned Q3 2025 results release and conference call. |
| Jul 17 | Distribution declaration | Positive | -0.3% | Declared quarterly distribution of <b>$0.1850</b> for quarter ended June 30, 2025. |
Recent fundamental news (earnings, distributions) often saw modest single-day moves, with negative earnings aligning with mild declines and distribution announcements sometimes trading counter to their generally positive tone.
This announcement caps a fiscal 2025 where SGU has regularly communicated around earnings and distributions. In August 2025, Q3 results showed weaker quarterly revenue and a wider loss, though nine‑month net income and Adjusted EBITDA were higher, suggesting improving full‑year trends. Two quarterly distribution declarations in July and October 2025 kept capital returns steady, though unit price reactions were slightly negative. Multiple webcast announcements in July and December 2025 framed expectations for results. Today’s full‑year and Q4 release extends that narrative of higher volume and stronger Adjusted EBITDA despite seasonality and weather‑hedge impacts.
Market Pulse Summary
This announcement details fiscal 2025 growth in fuel volumes and profitability, including a $24.8 million rise in Adjusted EBITDA to $136.4 million and net income of $73.5 million. It also highlights Q4 seasonality, with an Adjusted EBITDA loss of $33.0 million and ongoing impacts from weather hedge contracts. In context of earlier Q3 softness but stronger year‑to‑date trends, investors may focus on acquisition integration, margin management, and future volume trends as key metrics to watch.
Key Terms
ebitda financial
adjusted ebitda financial
derivative instruments financial
capital expenditures financial
goodwill impairment financial
AI-generated analysis. Not financial advice.
STAMFORD, Conn., Dec. 08, 2025 (GLOBE NEWSWIRE) -- Star Group, L.P. (the "Company" or "Star") (NYSE:SGU), a home energy distributor and services provider, today announced financial results for its fiscal 2025 full year and fourth quarter, the three months ended September 30, 2025.
Twelve Months Ended September 30, 2025 Compared to the Twelve Months Ended September 30, 2024
For the fiscal year ended September 30, 2025, Star reported a modest rise (approximately 1.0 percent) in total revenue to
Star’s net income increased by
For fiscal 2025, Adjusted EBITDA increased by
“As we close out fiscal 2025, it’s time to reflect on our recent accomplishments and near-term outlook,” said Jeff Woosnam, Star Group’s President and Chief Executive Officer. “We completed a sizable acquisition earlier this year, have kept overhead expenses largely in check, and maintained disciplined margin management. We also continue to invest in complementary installation and service offerings – which posted revenue growth of nearly 10 percent over fiscal 2024. The resulting bottom line impact of these efforts, coupled with colder temperatures, fueled a year-over-year increase in Adjusted EBITDA of
Three Months Ended September 30, 2025 Compared to the Three Months Ended September 30, 2024
For the fiscal 2025 fourth quarter, Star reported a 3.1 percent increase in total revenue to
Star’s net loss declined by
The Company reported a fourth quarter Adjusted EBITDA loss (a non-GAAP measure defined below) of
EBITDA and Adjusted EBITDA (Non-GAAP Financial Measures)
EBITDA (Earnings from continuing operations before net interest expense, income taxes, depreciation and amortization) and Adjusted EBITDA (Earnings from continuing operations before net interest expense, income taxes, depreciation and amortization, (increase) decrease in the fair value of derivatives, other income (loss), net, multiemployer pension plan withdrawal charge, gain or loss on debt redemption, goodwill impairment, and other non-cash and non-operating charges) are non-GAAP financial measures that are used as supplemental financial measures by management and external users of the Company’s financial statements, such as investors, commercial banks and research analysts, to assess Star’s position with regard to the following:
- compliance with certain financial covenants included in our debt agreements;
- financial performance without regard to financing methods, capital structure, income taxes or historical cost basis;
- operating performance and return on invested capital compared to those of other companies in the retail distribution of refined petroleum products, without regard to financing methods and capital structure;
- ability to generate cash sufficient to pay interest on our indebtedness and to make distributions to our partners; and
- the viability of acquisitions and capital expenditure projects and the overall rates of return of alternative investment opportunities.
The method of calculating Adjusted EBITDA may not be consistent with that of other companies, and EBITDA and Adjusted EBITDA both have limitations as analytical tools and so should not be viewed in isolation but in conjunction with measurements that are computed in accordance with GAAP. Some of the limitations of EBITDA and Adjusted EBITDA are as follows:
- EBITDA and Adjusted EBITDA do not reflect cash used for capital expenditures;
- although depreciation and amortization are non-cash charges, the assets being depreciated or amortized often will have to be replaced and EBITDA and Adjusted EBITDA do not reflect the cash requirements for such replacements;
- EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, working capital;
- EBITDA and Adjusted EBITDA do not reflect the cash necessary to make payments of interest or principal on indebtedness; and
- EBITDA and Adjusted EBITDA do not reflect the cash required to pay taxes.
REMINDER:
Members of Star's management team will host a webcast and conference call at 11:00 a.m. Eastern Time tomorrow, December 9, 2025. The webcast will be accessible on the company’s website, at www.stargrouplp.com, and the telephone number for the conference call is 888-346-3470 (or 412-317-5169 for international callers).
About Star Group, L.P.
Star Group, L.P. is a full service provider specializing in the sale of home heating products and services to residential and commercial customers to heat their homes and buildings. The Company also sells and services heating and air conditioning equipment to its home heating oil and propane customers and, to a lesser extent, provides these offerings to customers outside of its home heating oil and propane customer base. Star also sells diesel, gasoline and home heating oil on a delivery only basis. We believe Star is the nation's largest retail distributor of home heating oil based upon sales volume. Including its propane locations, Star serves customers in the more northern and eastern states within the Northeast and Mid-Atlantic U.S. regions. Additional information is available by obtaining the Company's SEC filings at www.sec.gov and by visiting Star's website at www.stargrouplp.com, where unit holders may request a hard copy of Star’s complete audited financial statements free of charge.
Forward Looking Information
This news release includes "forward-looking statements" which represent the Company’s expectations or beliefs concerning future events that involve risks and uncertainties, including the impact of geopolitical events on wholesale product cost volatility, tariff regimes, including newly imposed U.S. tariffs and any additional responsive non-U.S. tariffs or additional U.S. tariffs, the price and supply of the products that we sell, our ability to purchase sufficient quantities of product to meet our customer’s needs, rapid increases in levels of inflation, the consumption patterns of our customers, our ability to obtain satisfactory gross profit margins, the effect of weather conditions on our financial performance, our ability to obtain new customers and retain existing customers, our ability to make strategic acquisitions, the impact of litigation, natural gas conversions and electrification of heating systems, pandemic and future global health pandemics, recessionary economic conditions, future union relations and the outcome of current and future union negotiations, the impact of current and future governmental regulations, including federal, state and municipal laws restricting greenhouse gases ("GHG") emissions and federal, state and local environmental, health, and safety regulations, the ability to attract and retain employees, customer credit worthiness, counterparty credit worthiness, marketing plans, cyber-attacks, global supply chain issues, labor shortages and new technology, including alternative methods for heating and cooling residences. All statements other than statements of historical facts included in this Report including, without limitation, the statements under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere herein, are forward-looking statements. Without limiting the foregoing, the words “believe,” “anticipate,” “plan,” “expect,” “seek,” “estimate,” and similar expressions are intended to identify forward-looking statements. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Actual results may differ materially from those projected as a result of certain risks and uncertainties. These risks and uncertainties include, but are not limited to, those set forth under the heading "Risk Factors" and "Business Strategy" in our Annual Report on Form 10-K (the "Form 10-K") for the fiscal year ended September 30, 2025. Important factors that could cause actual results to differ materially from the Company’s expectations ("Cautionary Statements") are disclosed in this news release and in the Company’s Form 10-K and our Quarterly Reports on Form 10-Q. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by the Cautionary Statements. Unless otherwise required by law, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this news release.
(financials follow)
| STAR GROUP, L.P. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS | ||||||||
| September 30, | ||||||||
| (in thousands) | 2025 | 2024 | ||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 24,683 | $ | 117,335 | ||||
| Receivables, net of allowance of | 102,119 | 94,981 | ||||||
| Inventories | 47,022 | 41,587 | ||||||
| Fair asset value of derivative instruments | 790 | — | ||||||
| Prepaid expenses and other current assets | 32,667 | 27,566 | ||||||
| Total current assets | 207,281 | 281,469 | ||||||
| Property and equipment, net | 128,605 | 104,534 | ||||||
| Operating lease right-of-use assets | 93,264 | 91,141 | ||||||
| Goodwill | 293,350 | 275,829 | ||||||
| Intangibles, net | 124,892 | 98,712 | ||||||
| Restricted cash | 250 | 250 | ||||||
| Captive insurance collateral | 78,189 | 74,851 | ||||||
| Deferred charges and other assets, net | 11,500 | 12,825 | ||||||
| Total assets | $ | 937,331 | $ | 939,611 | ||||
| LIABILITIES AND PARTNERS’ CAPITAL | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 33,667 | $ | 31,547 | ||||
| Revolving credit facility borrowings | — | 5 | ||||||
| Fair liability value of derivative instruments | 1,398 | 13,971 | ||||||
| Current maturities of long-term debt | 21,000 | 21,000 | ||||||
| Current portion of operating lease liabilities | 19,934 | 19,832 | ||||||
| Accrued expenses and other current liabilities | 119,497 | 116,317 | ||||||
| Unearned service contract revenue | 66,927 | 66,424 | ||||||
| Customer credit balances | 86,810 | 104,700 | ||||||
| Total current liabilities | 349,233 | 373,796 | ||||||
| Long-term debt | 167,118 | 187,811 | ||||||
| Long-term operating lease liabilities | 77,206 | 75,916 | ||||||
| Deferred tax liabilities, net | 30,823 | 21,922 | ||||||
| Other long-term liabilities | 16,171 | 16,273 | ||||||
| Partners’ capital | ||||||||
| Common unitholders | 314,733 | 282,058 | ||||||
| General partner | (6,605 | ) | (5,714 | ) | ||||
| Accumulated other comprehensive loss, net of taxes | (11,348 | ) | (12,451 | ) | ||||
| Total partners’ capital | 296,780 | 263,893 | ||||||
| Total liabilities and partners’ capital | $ | 937,331 | $ | 939,611 | ||||
| STAR GROUP, L.P. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| Three Months Ended September 30, | Twelve Months Ended September 30, | |||||||||||||||
| (in thousands, except per unit data) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Sales: | ||||||||||||||||
| Product | $ | 156,879 | $ | 155,943 | $ | 1,437,601 | $ | 1,448,792 | ||||||||
| Installations and services | 90,813 | 84,388 | 346,817 | 317,307 | ||||||||||||
| Total sales | 247,692 | 240,331 | 1,784,418 | 1,766,099 | ||||||||||||
| Cost and expenses: | ||||||||||||||||
| Cost of product | 112,221 | 113,814 | 912,391 | 980,831 | ||||||||||||
| Cost of installations and services | 76,046 | 68,637 | 309,161 | 283,444 | ||||||||||||
| (Increase) decrease in the fair value of derivative instruments | (1,428 | ) | 10,756 | (13,390 | ) | 19,018 | ||||||||||
| Delivery and branch expenses | 85,927 | 81,392 | 400,830 | 366,381 | ||||||||||||
| Depreciation and amortization expenses | 9,340 | 8,117 | 35,352 | 31,494 | ||||||||||||
| General and administrative expenses | 7,584 | 7,074 | 30,518 | 28,405 | ||||||||||||
| Finance charge income | (1,055 | ) | (900 | ) | (4,915 | ) | (4,576 | ) | ||||||||
| Operating income (loss) | (40,943 | ) | (48,559 | ) | 114,471 | 61,102 | ||||||||||
| Interest expense, net | (3,209 | ) | (1,841 | ) | (14,323 | ) | (11,560 | ) | ||||||||
| Amortization of debt issuance costs | (264 | ) | (242 | ) | (1,068 | ) | (988 | ) | ||||||||
| Other income, net | 3,822 | — | 3,822 | — | ||||||||||||
| Income (loss) before income taxes | $ | (40,594 | ) | $ | (50,642 | ) | $ | 102,902 | $ | 48,554 | ||||||
| Income tax expense (benefit) | (11,923 | ) | (15,556 | ) | 29,407 | 13,331 | ||||||||||
| Net income (loss) | $ | (28,671 | ) | $ | (35,086 | ) | $ | 73,495 | $ | 35,223 | ||||||
| General Partner’s interest in net income (loss) | (275 | ) | (326 | ) | 677 | 311 | ||||||||||
| Limited Partners’ interest in net income (loss) | $ | (28,396 | ) | $ | (34,760 | ) | $ | 72,818 | $ | 34,912 | ||||||
| Per unit data (Basic and Diluted): | ||||||||||||||||
| Net income (loss) available to limited partners | $ | (0.84 | ) | $ | (1.00 | ) | $ | 2.12 | $ | 0.99 | ||||||
| Dilutive impact of theoretical distribution of earnings | — | — | 0.30 | 0.09 | ||||||||||||
| Basic and diluted income (loss) per Limited Partner Unit: | $ | (0.84 | ) | $ | (1.00 | ) | $ | 1.82 | $ | 0.90 | ||||||
| Weighted average number of Limited Partner units outstanding (Basic and Diluted) | 33,616 | 34,686 | 34,276 | 35,273 | ||||||||||||
| SUPPLEMENTAL INFORMATION STAR GROUP, L.P. AND SUBSIDIARIES RECONCILIATION OF EBITDA AND ADJUSTED EBITDA (Unaudited) | ||||||||
| Three Months Ended September 30, | ||||||||
| (in thousands) | 2025 | 2024 | ||||||
| Net loss | $ | (28,671 | ) | $ | (35,086 | ) | ||
| Plus: | ||||||||
| Income tax benefit | (11,923 | ) | (15,556 | ) | ||||
| Amortization of debt issuance costs | 264 | 242 | ||||||
| Interest expense, net | 3,209 | 1,841 | ||||||
| Depreciation and amortization | 9,340 | 8,117 | ||||||
| EBITDA | (27,781 | ) | (40,442 | ) | ||||
| (Increase) / decrease in the fair value of derivative instruments | (1,428 | ) | 10,756 | |||||
| Other income, net | (3,822 | ) | — | |||||
| Adjusted EBITDA | (33,031 | ) | (29,686 | ) | ||||
| Add / (subtract) | ||||||||
| Income tax benefit | 11,923 | 15,556 | ||||||
| Interest expense, net | (3,209 | ) | (1,841 | ) | ||||
| Provision for losses on accounts receivable | 286 | 1,097 | ||||||
| Decrease in accounts receivables | 26,861 | 32,502 | ||||||
| (Increase) decrease in inventories | (3,656 | ) | 1,566 | |||||
| Increase in customer credit balances | 30,213 | 34,970 | ||||||
| Change in deferred taxes | (1,845 | ) | (1,494 | ) | ||||
| Change in other operating assets and liabilities | (13,135 | ) | (14,059 | ) | ||||
| Net cash provided by operating activities | $ | 14,407 | $ | 38,611 | ||||
| Net cash used in investing activities | $ | (347 | ) | $ | (29,984 | ) | ||
| Net cash (used in) provided by financing activities | $ | (17,459 | ) | $ | 63,007 | |||
| Home heating oil and propane gallons sold | 20,000 | 18,500 | ||||||
| Other petroleum products | 32,300 | 33,700 | ||||||
| Total all products | 52,300 | 52,200 | ||||||
| SUPPLEMENTAL INFORMATION STAR GROUP, L.P. AND SUBSIDIARIES RECONCILIATION OF EBITDA AND ADJUSTED EBITDA (Unaudited) | ||||||||
| Twelve Months Ended September 30, | ||||||||
| (in thousands) | 2025 | 2024 | ||||||
| Net income | $ | 73,495 | $ | 35,223 | ||||
| Plus: | ||||||||
| Income tax expense | 29,407 | 13,331 | ||||||
| Amortization of debt issuance costs | 1,068 | 988 | ||||||
| Interest expense, net | 14,323 | 11,560 | ||||||
| Depreciation and amortization | 35,352 | 31,494 | ||||||
| EBITDA | 153,645 | 92,596 | ||||||
| (Increase) / decrease in the fair value of derivative instruments | (13,390 | ) | 19,018 | |||||
| Other income, net | (3,822 | ) | — | |||||
| Adjusted EBITDA | 136,433 | 111,614 | ||||||
| Add / (subtract) | ||||||||
| Income tax expense | (29,407 | ) | (13,331 | ) | ||||
| Interest expense, net | (14,323 | ) | (11,560 | ) | ||||
| Provision for losses on accounts receivable | 6,879 | 8,042 | ||||||
| (Increase) decrease in receivables | (14,011 | ) | 11,271 | |||||
| (Increase) decrease in inventories | (3,231 | ) | 18,475 | |||||
| Decrease in customer credit balances | (19,128 | ) | (15,546 | ) | ||||
| Change in deferred taxes | 8,527 | (3,989 | ) | |||||
| Change in other operating assets and liabilities | (789 | ) | 6,002 | |||||
| Net cash provided by operating activities | $ | 70,950 | $ | 110,978 | ||||
| Net cash used in investing activities | $ | (99,854 | ) | $ | (61,185 | ) | ||
| Net cash (used in) provided by financing activities | $ | (63,748 | ) | $ | 22,351 | |||
| Home heating oil and propane gallons sold | 282,600 | 253,400 | ||||||
| Other petroleum products | 123,900 | 129,100 | ||||||
| Total all products | 406,500 | 382,500 | ||||||
| CONTACT: | |
| Star Group, L.P. | Chris Witty |
| Investor Relations | Darrow Associates |
| 203/328-7310 | 646/438-9385 or cwitty@darrowir.com |
FAQ
What were Star Group (SGU) full-year fiscal 2025 revenue and Adjusted EBITDA?
How much did Star Group (SGU) increase its home heating fuel volumes in fiscal 2025?
Why did Star Group (SGU) report a weather-hedge expense in fiscal 2025?
What were Star Group (SGU) Q4 FY2025 results for revenue and Adjusted EBITDA?
How did acquisitions affect Star Group's (SGU) fiscal 2025 performance?
When and how can investors access Star Group's (SGU) fiscal 2025 earnings webcast?
