Star Group, L.P. Reports Fiscal 2026 First Quarter Results

Core Viewpoint - Star Group, L.P. reported strong financial results for the first quarter of fiscal 2026, driven by increased revenue from product sales and service installations, alongside colder temperatures impacting demand for home heating products [2][5]. Financial Performance - Total revenue for the first quarter increased by 10.5% to $539.3 million from $488.1 million year-over-year, attributed to higher product volumes and service revenue [2]. - Net income rose by $2.9 million to $35.8 million, supported by a $16.5 million increase in Adjusted EBITDA, despite challenges from derivative instrument valuations and increased expenses [3][4]. - Adjusted EBITDA reached $68.4 million, up from $51.9 million in the prior year, reflecting a 32% year-over-year increase after accounting for weather-related expenses [4][5]. Operational Highlights - The volume of home heating oil and propane sold increased by 11.5 million gallons, or 13.9%, totaling 93.9 million gallons, influenced by colder temperatures and acquisitions [2]. - Temperatures in operational areas were reported to be 18.8% colder than the same period last year and 6.1% colder than normal, significantly impacting sales [2][5]. Strategic Initiatives - The company emphasized the benefits of recent acquisitions, effective supply management, and the expansion of service and installation initiatives as key contributors to its performance [5]. - Management expressed confidence in maintaining customer service quality and cost control while pursuing profitability in installation and service segments [5]. Balance Sheet Overview - Total assets increased to $1,054.0 million as of December 31, 2025, compared to $937.3 million at the end of the previous fiscal year [13]. - Current liabilities rose to $441.7 million, reflecting increased accounts payable and borrowings under the revolving credit facility [13]. Sales Breakdown - Product sales accounted for $447.983 million, while installations and services contributed $91.273 million to total sales [14]. - The cost of products sold was $268.538 million, with installation and service costs at $85.678 million, leading to an operating income of $54.238 million [14].