Financial Data and Key Metrics Changes - The company reported a net income of $86 million for the second quarter of fiscal 2025, which is $18 million higher than the prior year period, driven by a $32 million increase in adjusted EBITDA [8] - Adjusted EBITDA rose by $32 million to $128 million due to higher home heating oil and propane volumes sold and improved margins [8] - For the first half of fiscal 2025, net income was $119 million, an increase of $37 million compared to the prior year, largely due to a $34.6 million increase in adjusted EBITDA [10] Business Line Data and Key Metrics Changes - Home heating oil and propane volume increased by 27 million gallons or 23% to 144 million gallons in the second quarter, attributed to acquisitions and colder weather [7] - For the first half of fiscal 2025, home heating oil and propane volume rose by 29 million gallons or 14.7% to 226 million gallons [9] - Product gross profit increased by $52 million or 25% to $258 million in the second quarter, driven by higher volumes and margins [7] Market Data and Key Metrics Changes - Temperatures during the second quarter were 13% colder than the previous year but still 4.5% warmer than normal, impacting heating demand positively [7] - The geographic areas of operation experienced temperatures that were 9.4% colder than the prior year for the fiscal year to date [9] Company Strategy and Development Direction - The company is focusing on operational execution and efficiency while expanding its HVAC business [6] - Recent acquisitions totaling $126.5 million have been completed, enhancing the company's market presence [5] - The company raised its annual dividend by $0.05 to $0.74 per unit, reflecting a commitment to maximizing shareholder returns [5] Management's Comments on Operating Environment and Future Outlook - Management expressed satisfaction with the team's response to increased demand due to colder temperatures and highlighted ongoing efforts to improve service and installation profitability [6] - The company anticipates further investment opportunities during the summer to advance business development initiatives [7] Other Important Information - The company recorded a $3.1 million expense under its weather hedge for the second quarter, compared to a benefit of $6.5 million in the prior year [8] - Delivery, branch, and general & administrative expenses increased by $22 million year over year, with $9.6 million attributed to the weather hedging program [8] Q&A Session Summary Question: Changes to the buyback program due to recent acquisitions - Management confirmed there has been no change to the buyback program, which is currently on automatic pilot [15][16] Question: Acquisition pipeline focus on HVAC installation servicing - The company is primarily focused on distribution side acquisitions, particularly in heating oil and propane, while also building its HVAC business organically [17] Question: Customer payment ability and credit loss allowances - Historically, the bad debt rate has been around 3% of sales, and management noted that customers prioritize paying for home heating oil during winter [19] Question: Impact of tariffs on heating oil prices - Management acknowledged experiencing price increases on the HVAC side due to tariffs, with vendor notice allowing for price adjustments [24] Question: Availability of acquisitions and execution capability - Management indicated no significant changes related to taxes affecting acquisition availability and noted a busy heating season with pent-up demand [25]

Core Viewpoint - Star Group, L.P. reported strong financial results for the second quarter of fiscal 2025, driven by increased sales volumes and colder weather, despite lower selling prices for petroleum products [2][5]. Financial Performance - Total revenue for the second quarter increased by 11.6% to $743.0 million compared to $666.0 million in the same period last year, primarily due to higher volumes sold [2]. - The volume of home heating oil and propane sold rose by 22.9% to 143.9 million gallons, attributed to colder weather and acquisitions [2][5]. - Net income for the quarter increased by $17.5 million to $85.9 million, supported by a $31.9 million rise in Adjusted EBITDA [3][7]. Adjusted EBITDA - Adjusted EBITDA for the second quarter was $128.2 million, up from $96.3 million in fiscal 2024, reflecting improved margins and increased sales volume [4][8]. - The company faced a $9.6 million negative impact from its weather hedge, recording an expense of $3.1 million due to colder temperatures compared to a credit of $6.5 million in the prior year [4][8]. Year-to-Date Performance - For the six months ended March 31, 2025, total revenue increased by 3.1% to $1.2 billion, with home heating oil and propane volumes up by 14.7% to 226.3 million gallons [6][8]. - Year-to-date net income rose by $37.4 million to $118.8 million, driven by higher Adjusted EBITDA and favorable changes in the fair value of derivative instruments [7][8]. Operational Highlights - The company completed $126.5 million in acquisitions since February 1, 2024, contributing to the volume increase [5]. - Star Group raised its annual dividend by $0.05 to $0.74 per unit, reflecting confidence in its operational performance [5]. Market Conditions - The temperatures in Star's operational areas were 12.9% colder than the same period last year but 4.5% warmer than normal, impacting sales positively [2][6]. - The decline in selling prices was largely due to a decrease in wholesale product costs, which fell by $0.2887 per gallon, or 10.9% [2]. Summary of Sales - Total sales for the second quarter reached $743.0 million, with product sales at $665.1 million and installation and services at $77.9 million [18]. - For the six months, total sales were $1.231 billion, with product sales at $1.064 billion and installation and services at $166.5 million [18]. Cash Flow and Investments - Net cash provided by operating activities for the second quarter was $48.6 million, while net cash used in investing activities was $81.8 million [20]. - The company sold 143.9 million gallons of home heating oil and propane in the second quarter, compared to 117.1 million gallons in the prior year [20].