Star Group, L.P. Reports Fiscal 2025 Full Year and Fourth Quarter Results

Core Insights - Star Group, L.P. reported a modest revenue increase of approximately 1.0 percent for fiscal year 2025, totaling $1.8 billion, driven by higher volumes sold and increased sales of installations and services, despite a decline in selling prices due to lower wholesale product costs [2][3] - The company experienced a significant increase in net income, rising by $38.3 million to $73.5 million, primarily due to favorable changes in derivative instruments and higher Adjusted EBITDA [3][4] - Adjusted EBITDA for fiscal 2025 increased by 22.2 percent to $136.4 million, attributed to improved margins and higher sales volumes, despite increased expenses related to weather hedge contracts [4][5] Financial Performance - For the fiscal year ended September 30, 2025, total revenue was $1.8 billion, reflecting a 1.0 percent increase from the previous year [2] - The volume of home heating oil and propane sold increased by 29.2 million gallons, or 11.5 percent, to 282.6 million gallons, aided by colder temperatures and acquisitions [2] - Net income for fiscal 2025 was $73.5 million, up from $35.2 million in fiscal 2024, marking a significant year-over-year improvement [3][26] - Adjusted EBITDA rose by $24.8 million, or 22.2 percent, to $136.4 million, driven by increased margins and sales volumes [4][26] Quarterly Performance - In the fourth quarter of fiscal 2025, total revenue increased by 3.1 percent to $247.7 million compared to $240.3 million in the prior-year period [6] - The volume of home heating oil and propane sold in the fourth quarter rose by 1.5 million gallons, or 8.1 percent, to 20.0 million gallons [6] - The company reported a fourth quarter Adjusted EBITDA loss of $33.0 million, compared to a loss of $29.7 million in the same quarter of the previous year [8] Operational Highlights - The company completed a significant acquisition during the fiscal year and maintained disciplined margin management while keeping overhead expenses in check [5] - Revenue from installation and service offerings grew nearly 10 percent over fiscal 2024, contributing to overall revenue growth [5] - Star Group aims to continue diversifying its operations through further acquisitions and maximizing profitability in installations and services [5]