Star Group, L.P.

In the fiscal 26 third quarter, home heating oil and propane volume decreased by 3.4 million gallons, or 9.4%, to 33 million gallons. Product gross profit was virtually unchanged at $72 million, while service and installation gross profit increased to $15.6 million, up $1.4 million from the prior year. Delivery, branch and G&A expenses increased by $8.7 million year over year, including $6.2 million of higher insurance claims. The company posted a net loss of $28 million, $11.4 million worse than the prior year period, and adjusted EBITDA loss widened by $7 million to $17.7 million. For the first 9 months of fiscal 26, home heating oil and propane volume increased 3.3% to 271 million gallons, product gross profit rose 10% to $529 million, net income was $116 million, and adjusted EBITDA increased $20 million to $189 million. Management did not provide formal next-quarter or full-year quantitative guidance, but said the company remains “on track for strong financial performance in fiscal 26” and expects to share fiscal 2026 fourth-quarter results in December.

Jeffrey Woosnam said the quarter was shaped by normal seasonal patterns in a non-heating period, with customer attrition in line with prior year levels and lower fuel volume despite slightly colder weather. He emphasized continued improvement in service and installation, describing it as an important growth area, and said the company is expanding its HVAC offering in select markets beyond its traditional customer base. His tone was constructive and confident, noting the company is using the summer to strengthen operations and prepare for winter while remaining well positioned for acquisitions.

Richard Ambury highlighted that Q3 heating fuel volume fell 9.4% to 33 million gallons, but product gross profit held at $72 million due to higher per-gallon margins and stronger other petroleum product gross profit. He said delivery, branch and G&A expenses rose $8.7 million, driven mainly by $6.2 million of higher insurance claims, and that the company recorded a $28 million net loss and a $17.7 million adjusted EBITDA loss. For the 9-month period, he cited $529 million of product gross profit, $116 million of net income, and $189 million of adjusted EBITDA, while noting $5 million of weather hedge expense versus $3.1 million last year and $3.2 million of added expenses from recent acquisitions.

Analysts focused on heating season risks, asking about product availability, competitive dynamics, and customer behavior. Management said it does not see product availability issues and is already securing supply contracts for next year, but noted that higher prices could affect customer commitment to fixed-price or ceiling plans. On acquisitions, management said it has completed two small transactions this year, has a full pipeline, and does not view any current targets as transformational.