Financial Data and Key Metrics Changes - The company reported a net income of $86 million for Q2 2025, an increase of $18 million compared to the prior year period, driven by a $32 million increase in adjusted EBITDA [9] - Adjusted EBITDA rose by $32 million to $128 million due to higher home heating oil and propane volumes sold and improved margins [9][11] - For the first half of fiscal 2025, net income was $119 million, up $37 million from the previous year, largely due to a $34.6 million increase in adjusted EBITDA [11] 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 Q2 2025, attributed to colder weather and acquisitions [7] - Product gross profit increased by $52 million or 25% to $258 million, driven by higher sales volumes and margins [8] - The service and installation business contributed an increase in adjusted EBITDA of $1.6 million [8] Market Data and Key Metrics Changes - Temperatures during Q2 2025 were 13% colder than the previous year but still 4.5% warmer than normal, impacting heating oil and propane demand [8] - For the first half of fiscal 2025, temperatures were 9.4% colder than the prior year, contributing to a 14.7% increase in home heating oil and propane volume [10] Company Strategy and Development Direction - The company has completed $126.5 million in acquisitions since February 2024, enhancing its 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] - There is a focus on operational execution and efficiency, alongside ongoing expansion in the HVAC business [6] 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 emphasized the importance of service quality [6] - The company anticipates opportunities for further investment in the summer and is focused on business development initiatives [6] Other Important Information - The company recorded a $3.1 million expense under its weather hedge for Q2 2025, compared to a benefit of $6.5 million in the same period last year [9] - 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: Any changes to the buyback program due to recent acquisitions? - Management stated there has been no change to the buyback program, which is currently on automatic pilot [16][17] Question: Are there any acquisitions in the HVAC installation servicing business? - Management indicated that the focus is primarily on distribution side acquisitions, with limited internal organic growth in HVAC [18] Question: Any changes in customers' ability to pay? - Historically, the bad debt rate has been around 3% of sales, and management noted that customers prioritize paying for home heating oil during winter [20] Question: Anticipated impact from tariffs on heating oil prices? - Management acknowledged price increases on HVAC parts and equipment due to tariffs, ranging from 3% to 15% [24] Question: Any changes in acquisition availability due to tax or other factors? - Management noted no significant changes related to taxes but mentioned a busy heating season and potential opportunities post-season [26]