Star Group Earnings Call Transcripts
Fiscal Year 2026
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Colder-than-normal weather drove higher product volumes and service demand, boosting adjusted EBITDA and net income year-over-year. Operational costs rose due to severe weather, but acquisitions and margin management supported strong results.
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Fiscal Q1 2026 saw a 32% year-over-year rise in Adjusted EBITDA, driven by colder weather, acquisitions, and margin management. Net income increased to $36 million, with strong volume growth and persistent cold weather continuing into Q2.
Fiscal Year 2025
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Fiscal 2025 saw a 12% increase in heating oil and propane volume, driving a 22% rise in Adjusted EBITDA and a $38.2 million increase in net income. Four acquisitions and improved installation/service revenue contributed to growth, while regulatory and market uncertainties remain.
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Third quarter results were impacted by warmer weather and lower volumes, leading to a net loss, but year-to-date performance showed strong gains in volume, gross profit, and net income, driven by acquisitions and improved service. The acquisition pipeline remains active, and management expects strong fiscal 2025 results.
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Second quarter results showed strong growth in volume, profit, and adjusted EBITDA, driven by acquisitions and colder weather. Dividend was raised, and the acquisition pipeline remains active, with weather hedges in place for 2026. Tariffs have modestly increased HVAC costs.
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First quarter results showed higher volumes, improved margins, and strong net income growth, driven by acquisitions and colder weather. Service and installation profits rose, customer losses were low, and capital allocation decisions will follow the heating season.
Fiscal Year 2024
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Adjusted EBITDA rose $14.7M year-over-year despite modest revenue decline, driven by higher margins and improved service profitability. Five acquisitions added over 20,000 customers, while net customer attrition edged up to 4.2%.
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Q3 saw a 25% increase in heating oil and propane volume and a 37% rise in product gross profit, reducing Adjusted EBITDA loss by $18.9 million. A $35 million acquisition is set to close in Q4, and year-to-date net income rose $19 million to $70 million.