Star Group, L.P. Reports Fiscal 2026 First Quarter Results
Rhea-AI Summary
Star Group (NYSE:SGU) reported fiscal 2026 Q1 results for the three months ended December 31, 2025. Total revenue rose 10.5% to $539.3 million and Adjusted EBITDA increased to $68.4 million from $51.9 million a year earlier. Net income was $35.8 million.
Volumes rose to 93.9 million gallons, weather was ~19% colder year-over-year, and the company recorded a $5.0 million expense from its weather hedge program.
Positive
- Total revenue +10.5% to $539.3 million in Q1 fiscal 2026
- Adjusted EBITDA increased to $68.4 million, up from $51.9 million
- Sales volume +13.9% to 93.9 million gallons benefiting from acquisitions and colder weather
Negative
- Recorded $5.0 million expense from weather hedge contracts due to colder-than-strike temperatures
- Unfavorable fair value change in derivatives reduced results by $10.7 million
Key Figures
Market Reality Check
Peers on Argus
SGU gained 2.85% with strong earnings, while peers like CLNE (+5.33%) and DK (+5.11%) also traded higher. However, the momentum scanner did not flag a broad sector move, suggesting today’s action is more company-specific than a pure industry rotation.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 30 | Earnings call notice | Neutral | -0.5% | Announcement of timing for fiscal 2026 Q1 webcast and conference call. |
| Dec 08 | Full-year earnings | Positive | -3.1% | Fiscal 2025 full-year and Q4 results with higher revenue, volumes and EBITDA. |
| Dec 03 | Earnings call notice | Neutral | +0.9% | Scheduling of webcast and call for fiscal 2025 Q4 and full-year results. |
| Oct 16 | Distribution declaration | Positive | -0.5% | Quarterly common unit distribution of $0.1850 for quarter ended Sept 30, 2025. |
| Aug 06 | Quarterly earnings | Negative | -0.8% | Fiscal 2025 Q3 with revenue decline and wider net loss despite YTD improvements. |
Recent fundamental updates (full-year results, Q3, distribution) often saw muted or negative next-day moves, even when operational metrics improved.
Over the past six months, Star Group has reported several key updates, including fiscal 2025 full-year results with revenue around $1.8 billion and Adjusted EBITDA of $136.4 million, plus a quarterly distribution of $0.1850 per unit. Despite positive fundamentals like higher volumes and EBITDA, shares often moved modestly or negatively in the following session. Today’s strong fiscal 2026 Q1, with revenue of $539.3 million and net income of $35.8 million, continues the narrative of weather- and acquisition-driven growth.
Market Pulse Summary
This announcement highlighted a strong fiscal 2026 first quarter, with revenue reaching $539.3 million, net income of $35.8 million, and Adjusted EBITDA of $68.4 million. Volume rose to 93.9 million gallons, helped by colder weather and acquisitions, while a $5.0 million weather hedge expense weighed on results. Historically, Star Group’s updates have been influenced heavily by temperature patterns and acquisition activity, key variables to monitor going forward.
Key Terms
form 10-q regulatory
ebitda financial
adjusted ebitda financial
derivative instruments financial
weather hedge contracts financial
multiemployer pension plan financial
AI-generated analysis. Not financial advice.
STAMFORD, Conn., Feb. 04, 2026 (GLOBE NEWSWIRE) -- Star Group, L.P. (the "Company" or "Star") (NYSE:SGU), a home energy distributor and services provider, today filed its fiscal 2026 quarterly report on Form 10-Q with the SEC and announced financial results for its fiscal 2026 first quarter, the three months ended December 31, 2025.
Three Months Ended December 31, 2025 Compared to the Three Months Ended December 31, 2024
For the fiscal 2026 first quarter, Star reported a 10.5 percent increase in total revenue to
Star’s net income rose by
The Company reported first quarter Adjusted EBITDA (a non-GAAP measure defined below) of
“Fiscal 2026 has started off very well, as our performance benefited from recent acquisitions, effective physical supply and per-gallon margin management, the continued expansion of our service and installation initiative and, last but not least, temperatures that were almost 20 percent colder than last year and 6 percent colder than normal. The confluence of these factors – even given the operational challenges associated with persistent cold temperatures – resulted in an increase in Adjusted EBITDA 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, February 5, 2026. 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 CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| December 31, | September 30, | |||||||
| (in thousands) | 2025 | 2025 | ||||||
| ASSETS | (unaudited) | |||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 19,857 | $ | 24,683 | ||||
| Receivables, net of allowance of | 198,210 | 102,119 | ||||||
| Inventories | 69,559 | 47,022 | ||||||
| Fair asset value of derivative instruments | — | 790 | ||||||
| Prepaid expenses and other current assets | 37,190 | 32,667 | ||||||
| Total current assets | 324,816 | 207,281 | ||||||
| Property and equipment, net | 127,729 | 128,605 | ||||||
| Operating lease right-of-use assets | 97,508 | 93,264 | ||||||
| Goodwill | 293,350 | 293,350 | ||||||
| Intangibles, net | 120,099 | 124,892 | ||||||
| Restricted cash | 250 | 250 | ||||||
| Captive insurance collateral | 78,997 | 78,189 | ||||||
| Deferred charges and other assets, net | 11,280 | 11,500 | ||||||
| Total assets | $ | 1,054,029 | $ | 937,331 | ||||
| LIABILITIES AND PARTNERS’ CAPITAL | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 54,551 | $ | 33,667 | ||||
| Revolving credit facility borrowings | 71,870 | — | ||||||
| Fair liability value of derivative instruments | 8,388 | 1,398 | ||||||
| Current maturities of long-term debt | 21,000 | 21,000 | ||||||
| Current portion of operating lease liabilities | 21,376 | 19,934 | ||||||
| Accrued expenses and other current liabilities | 127,283 | 119,497 | ||||||
| Unearned service contract revenue | 77,994 | 66,927 | ||||||
| Customer credit balances | 59,263 | 86,810 | ||||||
| Total current liabilities | 441,725 | 349,233 | ||||||
| Long-term debt | 161,938 | 167,118 | ||||||
| Long-term operating lease liabilities | 80,239 | 77,206 | ||||||
| Deferred tax liabilities, net | 32,064 | 30,823 | ||||||
| Other long-term liabilities | 16,216 | 16,171 | ||||||
| Partners’ capital | ||||||||
| Common unitholders | 339,568 | 314,733 | ||||||
| General partner | (6,660 | ) | (6,605 | ) | ||||
| Accumulated other comprehensive loss, net of taxes | (11,061 | ) | (11,348 | ) | ||||
| Total partners’ capital | 321,847 | 296,780 | ||||||
| Total liabilities and partners’ capital | $ | 1,054,029 | $ | 937,331 | ||||
| STAR GROUP, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| Three Months Ended December 31, | ||||||||
| (in thousands, except per unit data - unaudited) | 2025 | 2024 | ||||||
| Sales: | ||||||||
| Product | $ | 447,983 | $ | 399,459 | ||||
| Installations and services | 91,273 | 88,604 | ||||||
| Total sales | 539,256 | 488,063 | ||||||
| Cost and expenses: | ||||||||
| Cost of product | 268,538 | 248,699 | ||||||
| Cost of installations and services | 85,678 | 81,665 | ||||||
| (Increase) decrease in the fair value of derivative instruments | 5,395 | (5,258 | ) | |||||
| Delivery and branch expenses | 109,937 | 99,327 | ||||||
| Depreciation and amortization expenses | 8,755 | 7,903 | ||||||
| General and administrative expenses | 7,593 | 7,183 | ||||||
| Finance charge income | (878 | ) | (675 | ) | ||||
| Operating income | 54,238 | 49,219 | ||||||
| Interest expense, net | (3,819 | ) | (3,011 | ) | ||||
| Amortization of debt issuance costs | (262 | ) | (300 | ) | ||||
| Income before income taxes | $ | 50,157 | $ | 45,908 | ||||
| Income tax expense | 14,367 | 13,024 | ||||||
| Net income | $ | 35,790 | $ | 32,884 | ||||
| General Partner’s interest in net income | 349 | 307 | ||||||
| Limited Partners’ interest in net income | $ | 35,441 | $ | 32,577 | ||||
| Per unit data (Basic and Diluted): | ||||||||
| Net income available to limited partners | $ | 1.07 | $ | 0.94 | ||||
| Dilutive impact of theoretical distribution of earnings | 0.18 | 0.15 | ||||||
| Basic and diluted income per Limited Partner Unit: | $ | 0.89 | $ | 0.79 | ||||
| Weighted average number of Limited Partner units outstanding (Basic and Diluted) | 33,084 | 34,587 | ||||||
| SUPPLEMENTAL INFORMATION STAR GROUP, L.P. AND SUBSIDIARIES RECONCILIATION OF EBITDA AND ADJUSTED EBITDA (Unaudited) | ||||||||
| Three Months Ended December 31, | ||||||||
| (in thousands) | 2025 | 2024 | ||||||
| Net income | $ | 35,790 | $ | 32,884 | ||||
| Plus: | ||||||||
| Income tax expense | 14,367 | 13,024 | ||||||
| Amortization of debt issuance costs | 262 | 300 | ||||||
| Interest expense, net | 3,819 | 3,011 | ||||||
| Depreciation and amortization | 8,755 | 7,903 | ||||||
| EBITDA | 62,993 | 57,122 | ||||||
| (Increase) / decrease in the fair value of derivative instruments | 5,395 | (5,258 | ) | |||||
| Adjusted EBITDA | 68,388 | 51,864 | ||||||
| Add / (subtract) | ||||||||
| Income tax expense | (14,367 | ) | (13,024 | ) | ||||
| Interest expense, net | (3,819 | ) | (3,011 | ) | ||||
| (Recovery) provision for losses on accounts receivable | (267 | ) | 182 | |||||
| Increase in accounts receivables | (95,827 | ) | (81,476 | ) | ||||
| Increase in inventories | (22,537 | ) | (26,670 | ) | ||||
| Decrease in customer credit balances | (27,547 | ) | (16,199 | ) | ||||
| Change in deferred taxes | 1,142 | 2,667 | ||||||
| Change in other operating assets and liabilities | 39,652 | 21,103 | ||||||
| Net cash used in operating activities | $ | (55,182 | ) | $ | (64,564 | ) | ||
| Net cash used in investing activities | $ | (4,959 | ) | $ | (4,652 | ) | ||
| Net cash provided by financing activities | $ | 55,315 | $ | 673 | ||||
| Home heating oil and propane gallons sold | 93,900 | 82,400 | ||||||
| Other petroleum products | 29,900 | 30,700 | ||||||
| Total all products | 123,800 | 113,100 | ||||||
| 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's Q1 fiscal 2026 revenue and Adjusted EBITDA (SGU)?
How did weather affect Star Group's (SGU) Q1 2026 results?
What drove the increase in Star Group's (SGU) sales volumes in Q1 2026?
Did Star Group (SGU) report any derivative or hedge losses in Q1 fiscal 2026?
When and how can investors access Star Group's (SGU) management call for Q1 2026?
