Star Group(US:SGU)2026-02-04 21:30Revenue Growth - Star Group reported a 10.5% increase in total revenue for Q1 fiscal 2026, reaching $539.3 million compared to $488.1 million in Q1 fiscal 2025[2]. - Total revenue increased to $35,790 million from $32,884 million, representing a growth of approximately 8.7% year-over-year[18]. Sales Volume - The volume of home heating oil and propane sold increased by 11.5 million gallons, or 13.9%, totaling 93.9 million gallons in Q1 fiscal 2026[2]. - Home heating oil and propane gallons sold increased to 93,900 from 82,400, reflecting a growth of approximately 13.3%[18]. - Total sales of all products reached 123,800 gallons, up from 113,100 gallons, showing an increase of about 9.5%[18]. Profitability - Net income rose by $2.9 million to $35.8 million, driven by a $16.5 million increase in Adjusted EBITDA, despite a $10.7 million unfavorable change in derivative instruments[3]. - Adjusted EBITDA for Q1 fiscal 2026 was $68.4 million, up from $51.9 million in Q1 fiscal 2025, reflecting a 32% year-over-year increase[4][5]. - Adjusted EBITDA rose to $68,388 million compared to $51,864 million, marking a significant increase of about 31.8%[18]. Weather Impact - The colder temperatures in Star's operational areas were 18.8% colder than the same period last year, contributing to increased demand[5]. - The company experienced a $5.0 million expense related to weather hedge contracts due to colder temperatures, compared to no expense in the prior year[4]. Asset Management - Total current assets increased to $324.8 million as of December 31, 2025, up from $207.3 million at the end of September 2025[14]. - Total assets reached $1.054 billion as of December 31, 2025, compared to $937.3 million at the end of September 2025[14]. - The company’s total partners' capital increased to $321.8 million from $296.8 million in the previous quarter[14]. Cash Flow and Financing - Net cash used in operating activities improved to $(55,182) million from $(64,564) million, indicating a reduction in cash outflow[18]. - Net cash provided by financing activities surged to $55,315 million from $673 million, indicating a strong improvement in financing[18]. - The change in other operating assets and liabilities resulted in a positive cash flow of $39,652 million, up from $21,103 million[18]. Credit Management - The increase in accounts receivables was $(95,827) million, compared to $(81,476) million, highlighting a significant rise in credit sales[18]. - The company experienced a decrease in customer credit balances by $(27,547) million, compared to $(16,199) million, indicating improved credit management[18]. Future Focus - Star Group plans to continue focusing on customer service and profitability in installations and services amid ongoing cold weather conditions[5].