Star Group (SGU) investor relations material

Executive summary

• Net income for the nine months ended June 30, 2025 increased by $31.9M to $102.2M, driven by higher Adjusted EBITDA and favorable derivative results, partially offset by higher tax, depreciation, and interest expenses.

• Third quarter net loss increased by $5.6M to $16.6M, mainly due to lower volumes, higher depreciation, and acquisition-related costs.

• Acquisitions contributed positively to revenue and Adjusted EBITDA, especially in propane operations.

• Third quarter revenue declined 7.8% year-over-year to $305.6M, mainly due to lower product sales and warmer weather impacting volumes.

• Strategy focuses on expanding value-added services, growing HVAC offerings, and investing in sales and technical team training to drive retention and revenue.

Financial highlights

• Year-to-date revenue rose to $1.54B, up slightly from $1.53B; quarterly revenue was $305.6M, down from $331.6M.

• Year-to-date Adjusted EBITDA increased by $28.2M to $170M, with $21M from base business and $17M from acquisitions.

• Gross profit for the nine months increased $55M to $480M; quarterly gross profit declined $3M to $72M.

• EPS for the nine months was $2.45, up from $1.66; quarterly EPS was $(0.48), down from $(0.31).

• Cash provided by operating activities for the nine months was $56.5M, down from $72.4M in the prior year.

Outlook and guidance

• Management expects continued focus on growing the propane and heating oil customer base, improving service and installation profitability, and pursuing acquisitions.

• Maintenance capital expenditures for the remainder of fiscal 2025 are estimated at $2.0M–$3.0M, with additional $0.1M–$0.2M for propane operations.

• Quarterly distribution of $0.1850 per unit declared for Q3 2025, annualized at $0.74 per unit.