Star Group(US:SGU)2025-12-09 00:23Financial Performance - For fiscal 2025, Star reported total revenue of $1.8 billion, a modest increase of approximately 1.0% compared to fiscal 2024, driven by higher volumes sold and increased sales of installations and services [2]. - Star's net income for fiscal 2025 rose by $38.3 million to $73.5 million, primarily due to a favorable change in the fair value of derivative instruments and higher Adjusted EBITDA [3]. - Adjusted EBITDA increased by $24.8 million, or 22.2%, to $136.4 million, driven by higher margins and increased volume sold [4]. - In the fourth quarter of fiscal 2025, total revenue increased by 3.1% to $247.7 million, reflecting higher sales of installations and services [6]. - Total sales for Q3 2025 reached $247.7 million, a 3.5% increase from $240.3 million in Q3 2024 [18]. - Total sales for the twelve months ended September 30, 2025, were $1.78 billion, slightly up from $1.77 billion in the previous year [18]. - EBITDA for the twelve months ended September 30, 2025, was $153.6 million, up 65.9% from $92.6 million in the previous year [23]. Sales Volume - The volume of home heating oil and propane sold increased by 29.2 million gallons, or 11.5%, to 282.6 million gallons, attributed to colder temperatures and acquisitions [2]. - The volume of home heating oil and propane sold in the fourth quarter rose by 1.5 million gallons, or 8.1%, to 20.0 million gallons [6]. - Home heating oil and propane gallons sold in Q3 2025 totaled 20,000, an increase from 18,500 gallons sold in Q3 2024 [21]. Operational Challenges - The fourth quarter Adjusted EBITDA loss was $33.0 million, compared to a loss of $29.7 million in the prior year, due to higher operating expenses and lower margins [8]. - Adjusted EBITDA for Q3 2025 was $(33.0) million, compared to $(29.7) million in Q3 2024, indicating a decline in operational performance [21]. - Net loss for Q3 2025 was $28.7 million, compared to a net loss of $35.1 million in Q3 2024, representing an 18.5% improvement [21]. - The company experienced a net interest expense of $3.2 million in Q3 2025, compared to $1.8 million in Q3 2024, reflecting increased borrowing costs [21]. Strategic Initiatives - Star completed a significant acquisition earlier in the year and maintained disciplined margin management, contributing to overall performance improvements [5]. - The company aims to continue growing and diversifying through further acquisitions and maximizing installation and service profitability [5]. - Star's management expressed optimism about future opportunities to enhance organizational performance in fiscal 2026 [5]. Cash Flow and Costs - Net cash provided by operating activities for the twelve months ended September 30, 2025, was $70.9 million, a decrease from $111.0 million in the previous year [23]. - The cost of product for Q3 2025 was $112.2 million, a slight decrease from $113.8 million in Q3 2024 [18]. - The company reported a weighted average of 33,616 Limited Partner units outstanding for Q3 2025, down from 34,686 units in Q3 2024 [19].