{"id":959327,"date":"2026-05-06T18:56:03","date_gmt":"2026-05-06T22:56:03","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/star-group-l-p-reports-fiscal-2026-second-quarter-results\/"},"modified":"2026-05-06T18:56:03","modified_gmt":"2026-05-06T22:56:03","slug":"star-group-l-p-reports-fiscal-2026-second-quarter-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/star-group-l-p-reports-fiscal-2026-second-quarter-results\/","title":{"rendered":"Star Group, L.P. Reports Fiscal 2026 Second Quarter Results"},"content":{"rendered":"
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STAMFORD, Conn., May 06, 2026 (GLOBE NEWSWIRE) — Star Group, L.P. (the “Company” or “Star”) (NYSE:SGU), a home energy distributor and services provider, today filed its quarterly report on Form 10-Q with the SEC and announced financial results for the fiscal 2026 second quarter, the three months ended March 31, 2026.<\/p>\n

\n Three Months Ended March 31, 2026 Compared to the Three Months Ended March 31, 2025<\/strong>
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For the fiscal 2026 second quarter, Star reported a 3.2 percent increase in total revenue to $766.7 million compared with $743.0 million in the prior-year period, reflecting higher heating oil and propane volumes sold. The amount of home heating oil and propane sold during the fiscal 2026 second quarter rose by 0.6 million gallons, or 0.4 percent, to 144.5 million gallons, as the additional volume provided from acquisitions and colder temperatures, more than offset the impact of net customer attrition and other factors. Temperatures in Star’s geographic areas of operation for the three months ended March 31, 2026 were 6.4 percent colder than the three months ended March 31, 2025 and 2.8 percent colder than normal, as reported by the National Oceanic and Atmospheric Administration.<\/p>\n

Star\u2019s net income rose by $22.4 million in the quarter, to $108.3 million, primarily due to a favorable change in the fair value of derivative instruments of $20.7 million, a $10.5 million increase in Adjusted EBITDA, a $0.6 million decrease in depreciation and amortization expense, and $0.4 million lower net interest expense, partially offset by a $9.7 million increase in income tax expense.<\/p>\n

The Company reported second quarter Adjusted EBITDA (a non-GAAP measure defined below) of $138.7 million, up $10.5 million year-over-year, primarily due to a $5.3 million increase in Adjusted EBITDA in the base business, $2.1 million higher Adjusted EBITDA from recent acquisitions, and a $3.1 million decrease in expense related to the Company’s weather hedge contracts. The increase in Adjusted EBITDA in the base business was driven by the higher home heating oil and propane volume, due to colder weather, an increase in home heating oil and propane per gallon margins, and higher installation profitability, partially offset by an increase in operating expenses. While home heating oil and propane volume grew by just 0.4 percent during this period, the extreme weather conditions significantly impacted direct operating costs, which rose by $4.0 million, or 5.9 percent; insurance expense also increased by $4.0 million largely due to higher claims expense attributable to the weather. At the same time, the Company did not recognize any expense or benefit under its weather hedge contracts in the second quarter of fiscal 2026 (versus a $3.1 million expense recorded for the three months ended March 31, 2025) due to the fact that Star already recognized the cap of $5.0 million expense under its weather hedge contracts during the first quarter.<\/p>\n

\u201cThe second quarter was, in many ways, a continuation of conditions experienced in the first. Colder temperatures were the norm across much of our operating footprint, resulting in slightly higher heating oil and propane volumes sold, but the severe weather \u2013 including storms and high snowfall \u2013 also raised operating expenses,\u201d said Jeff Woosnam, Star Group\u2019s President and Chief Executive Officer. \u201cThat said, we were still able to post Adjusted EBITDA of nearly $139 million and kept net customer attrition under 1 percent — both important accomplishments for the Company. We also closed on one small heating oil acquisition during the quarter. Given the challenges of this past winter, we\u2019re very pleased with how the team performed and are working on continued improvement to our underlying operations in the second half.\u201d<\/p>\n

\n Six Months Ended March 31, 2026 Compared to the Six Months Ended March 31, 2025<\/strong>
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For the six months ended March 31, 2026, Star reported a 6.1 percent increase in total revenue to $1.3 billion, reflecting higher product volumes sold and an increase in selling prices in response to higher wholesale product costs. The volume of home heating oil and propane sold during the first six months of fiscal 2026 increased by 12.1 million gallons, or 5.3 percent, to 238.4 million gallons, reflecting colder temperatures and the additional volume provided from acquisitions, more than offsetting net customer attrition and other factors. Temperatures in Star\u2019s geographic areas of operation fiscal year-to-date were 11.0 percent colder than during the prior-year period and 4.1 percent colder than normal, as reported by the National Oceanic and Atmospheric Administration.<\/p>\n

For the six months ended March 31, 2026, Star\u2019s net income increased $25.3 million, to $144.1 million, compared to the prior-year period, primarily due to a $27.0 million increase in Adjusted EBITDA and a favorable change in the fair value of derivative instruments of $10.1 million, partially offset by an $11.1 million increase in income tax expense and $0.5 million higher net interest expense.<\/p>\n

Year-to-date Adjusted EBITDA increased $27.0 million, to $207.0 million, compared to the six months ended March 31, 2025, primarily due to a $22.1 million increase in Adjusted EBITDA in the base business and a $6.8 million higher Adjusted EBITDA from recent acquisitions, partially offset by a $1.9 million increase in expense related to the Company’s weather hedge contracts. The increase in Adjusted EBITDA in the base business was driven by higher home heating oil and propane volumes, an increase in home heating oil and propane per-gallon margins, and higher installation profitability, partially reduced by an increase in operating expenses due to the colder weather. The temperatures experienced during the weather hedge period ending March 31, 2026 were colder than the strike prices and, therefore, the Company recorded an expense under the weather hedge contracts of $5.0 million, versus a $3.1 million expense recorded for the six months ended March 31, 2025.<\/p>\n

\n EBITDA and Adjusted EBITDA (Non-GAAP Financial Measures)<\/strong>
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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\u2019s financial statements, such as investors, commercial banks and research analysts, to assess Star\u2019s position with regard to the following:<\/p>\n