Star Group (SGU) SGU Q4 Financial Results Summary
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Star Group, L.P. (SGU) Q4 2025 Financial Results Summary
On December 8, 2025, Star Group, L.P. announced its financial results for the fiscal year 2025 and the fourth quarter ended September 30, 2025.
Fiscal Year 2025 Overview
- Total Revenue: Increased 1.0% to $1.8 billion, driven by higher volumes sold and increased sales of installations and services, counterbalanced by a decline in selling prices due to lower wholesale product costs.
- Volume Sold: Home heating oil and propane sales rose by 29.2 million gallons, or 11.5%, to 282.6 million gallons.
- Colder temperatures (8.2% colder year-over-year, but 8.3% warmer than normal) contributed to the volume increase.
- Net Income: Rose by $38.3 million to $73.5 million.
- Factors:
- $32.4 million favorable change in the fair value of derivative instruments.
- $24.8 million increase in Adjusted EBITDA.
- $3.8 million gain from real estate sale.
- Partially offset by:
- $16.1 million increase in income tax expense.
- $3.9 million higher depreciation and amortization expenses (D&A).
- $2.7 million increase in interest expense.
- Adjusted EBITDA: Increased $24.8 million, or 22.2%, to $136.4 million.
- Contributors:
- $18.5 million rise in the base business.
- $16.9 million increase from acquisitions.
- Offset by $10.6 million increase in weather hedge contract expenses.
Q4 2025 Overview
- Total Revenue: Increased 3.1% to $247.7 million from $240.3 million year-over-year, primarily due to higher service and installations sales.
- Volume Sold: Home heating oil and propane volumes rose by 1.5 million gallons, or 8.1%, to 20.0 million gallons.
- Net Loss: Decreased by $6.4 million to $28.7 million.
- Influences:
- $12.2 million favorable change in the fair value of derivative instruments.
- $3.8 million gain from real estate sale.
- Offset by:
- $3.6 million lower income tax benefit.
- $3.3 million greater Adjusted EBITDA loss.
- Increase in interest expense and D&A.
- Adjusted EBITDA Loss: Recorded $33.0 million, worsening from $29.7 million in Q4 2024.
- Contributing factors: Higher operating expenses and lower margins.
Shareholder Returns
- Quarterly Dividend: Data not provided in the text regarding whether a dividend was declared.
- Share Repurchases: No information indicating any share repurchase activity.
Financial Metrics Summary
- Full Year Revenue Growth: 1.0% increase vs. FY 2024.
- Adjusted EBITDA Growth: 22.2% increase vs. FY 2024.
- Q4 Revenue Growth: 3.1% increase vs. Q4 2024.
- Quarterly Volume Growth: 8.1% increase vs. Q4 2024.
- Net Income Yearly Growth: Increased by $38.3 million year-over-year.
- Net Loss Decrease in Q4: Reduced by $6.4 million from Q4 2024.
- Adjusted EBITDA Loss Increase in Q4: Increase of $3.3 million from Q4 2024.
Star Group, L.P. continues to navigate market challenges while focusing on strategic growth in installations and services, aiming to enhance overall performance and maintain operational efficiencies going forward into fiscal 2026.
Here are the extracted tables in HTML format:
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands)
| Item | Three Months Ended September 30, 2025 | Three Months Ended September 30, 2024 | Twelve Months Ended September 30, 2025 | Twelve Months Ended September 30, 2024 |
|---|---|---|---|---|
| Product | $156,879 | $155,943 | $1,437,601 | $1,448,792 |
| Installations and services | $90,813 | $84,388 | $346,817 | $317,307 |
| Total sales | $247,692 | $240,331 | $1,784,418 | $1,766,099 |
| Cost and expenses: | ||||
| Cost of product | $112,221 | $113,814 | $912,391 | $980,831 |
| Cost of installations and services | $76,046 | $68,637 | $309,161 | $283,444 |
| (Increase) decrease in the fair value of derivative instruments | $(1,428) | $10,756 | $(13,390) | $19,018 |
| Delivery and branch expenses | $85,927 | $81,392 | $400,830 | $366,381 |
| Depreciation and amortization expenses | $9,340 | $8,117 | $35,352 | $31,494 |
| General and administrative expenses | $7,584 | $7,074 | $30,518 | $28,405 |
| Finance charge income | $(1,055) | $(900) | $(4,915) | $(4,576) |
| Operating income (loss) | $(40,943) | $(48,559) | $114,471 | $61,102 |
| Interest expense, net | $(3,209) | $(1,841) | $(14,323) | $(11,560) |
| Amortization of debt issuance costs | $(264) | $(242) | $(1,068) | $(988) |
| Other income, net | $3,822 | $— | $3,822 | $— |
| Income (loss) before income taxes | $(40,594) | $(50,642) | $102,902 | $48,554 |
| Income tax expense (benefit) | $(11,923) | $(15,556) | $29,407 | $13,331 |
| Net income (loss) | $(28,671) | $(35,086) | $73,495 | $35,223 |
| General Partner’s interest in net income (loss) | $(275) | $(326) | $677 | $311 |
| Limited Partners’ interest in net income (loss) | $(28,396) | $(34,760) | $72,818 | $34,912 |
| Per unit data (Basic and Diluted): | ||||
| Net income (loss) available to limited partners | $(0.84) | $(1.00) | $2.12 | $0.99 |
| Dilutive impact of theoretical distribution of earnings | $— | $— | $0.30 | $0.09 |
| Basic and diluted income (loss) per Limited Partner Unit | $(0.84) | $(1.00) | $1.82 | $0.90 |
| Weighted average number of Limited Partner units outstanding | 33,616 | 34,686 | 34,276 | 35,273 |
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
| ASSETS | STAR GROUP, L.P. AND SUBSIDIARIES | September 30, 2025 | September 30, 2024 |
|---|---|---|---|
| Current assets | CONSOLIDATED BALANCE SHEETS | ||
| Cash and cash equivalents | $24,683 | $117,335 | |
| Receivables, net of allowance of $7,196 | $102,119 | $94,981 | |
| and $6,434, respectively | |||
| Inventories | $47,022 | $41,587 | |
| Fair asset value of derivative instruments | $790 | $— | |
| Prepaid expenses and other current assets | $32,667 | $27,566 | |
| Total current assets | $207,281 | $281,469 | |
| Property and equipment, net | $128,605 | $104,534 | |
| Operating lease right-of-use assets | $93,264 | $91,141 | |
| Goodwill | $293,350 | $275,829 | |
| Intangibles, net | $124,892 | $98,712 | |
| Restricted cash | $250 | $250 | |
| Captive insurance collateral | $78,189 | $74,851 | |
| Deferred charges and other assets, net | $11,500 | $12,825 | |
| Total assets | $937,331 | $939,611 | |
| LIABILITIES AND PARTNERS’ CAPITAL | |||
| Current liabilities | |||
| Accounts payable | $33,667 | $31,547 | |
| Revolving credit facility borrowings | $— | $5 | |
| Fair liability value of derivative instruments | $1,398 | $13,971 | |
| Current maturities of long-term debt | $21,000 | $21,000 | |
| Current portion of operating lease liabilities | $19,934 | $19,832 | |
| Accrued expenses and other current liabilities | $119,497 | $116,317 | |
| Unearned service contract revenue | $66,927 | $66,424 | |
| Customer credit balances | $86,810 | $104,700 | |
| Total current liabilities | $349,233 | $373,796 | |
| Long-term debt | $167,118 | $187,811 | |
| Long-term operating lease liabilities | $77,206 | $75,916 | |
| Deferred tax liabilities, net | $30,823 | $21,922 | |
| Other long-term liabilities | $16,171 | $16,273 | |
| Partners’ capital | |||
| Common unitholders | $314,733 | $282,058 | |
| General partner | $(6,605) | $(5,714) | |
| Accumulated other comprehensive loss, net | $(11,348) | $(12,451) | |
| Total partners’ capital | $296,780 | $263,893 | |
| Total liabilities and partners’ capital | $937,331 | $939,611 |