Star Group, L.P. (SGU) reported fiscal 2026 first‑quarter revenue of $539.3 million, a 10.5% year‑over‑year increase that was largely powered by a 13.9% rise in home heating oil and propane volume to 93.9 million gallons. The volume growth was driven by a 19% colder winter than the previous year and a 6% drop below normal temperatures, which pushed demand for heating fuels higher. Management also highlighted the completion of a small heating‑oil acquisition a few days before the quarter’s close, adding additional distribution capacity and reinforcing the company’s market‑share gains in the Northeast and Mid‑Atlantic regions.
Adjusted EBITDA climbed to $68.4 million, up $16.8 million or 32% from the prior year’s $51.9 million. The lift was supported by higher per‑gallon margins—$1.8010 versus $1.7039 a year earlier—combined with disciplined cost management. Net income rose to $35.8 million, up from $32.9 million, and earnings per share reached $0.89, beating the consensus estimate of $0.79 by $0.10 or 13%. The company’s margin expansion reflects both pricing power in its core fuel business and the successful integration of the recent acquisition.
"Fiscal 2026 has started off very well as our performance benefited from recent acquisitions, physical supply and per‑gallon margin management, the continued focus on service and installation profitability and last but not least, temperatures that were almost 19% colder than last year and 6% colder than normal," said President and CEO Jeffrey Woosnam. Woosnam added that the company’s weather‑hedge program incurred a $5 million charge, but the overall impact was offset by the favorable weather and volume gains. CFO Richard Ambury noted that product gross profit increased by $29 million, or 19%, to approximately $179 million, underscoring the effectiveness of the company’s margin‑management strategy.
The results beat analyst expectations across the board. EPS of $0.89 surpassed the consensus of $0.79 by $0.10, while revenue of $539.3 million exceeded the $497 million estimate by $42.3 million. The beat was largely driven by the colder winter, which lifted demand, and the acquisition that added volume and margin‑positive inventory. The company’s ability to maintain a 32% year‑over‑year increase in adjusted EBITDA, despite a $5 million weather‑hedge expense, further reinforced the positive earnings outlook.
Looking ahead, Star Group maintained its full‑year revenue guidance of $4.14 billion to $4.15 billion and adjusted operating income guidance of $2.15 billion to $2.16 billion, unchanged from the prior quarter. Management expressed confidence in sustaining profitability through continued margin management and strategic acquisitions, while noting that persistent cold temperatures could present operational challenges. The company’s focus on service and installation profitability, coupled with its robust distribution network, positions it well to capitalize on seasonal demand swings in the coming quarters.
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