Star Group (SGU) Q2 2026 earnings summary

Executive summary

• Net income for Q2 FY2026 rose to $108.3 million, up $22.4 million year-over-year, driven by favorable derivative valuations, higher Adjusted EBITDA, and colder-than-normal weather increasing product volumes and demand for services.

• Adjusted EBITDA for Q2 FY2026 was $138.7 million, up $10.5 million year-over-year, reflecting improved margins and contributions from recent acquisitions.

• Revenue for Q2 FY2026 increased 3.2% to $766.7 million, with product sales up 3.7% and installation/service revenue down 1.3%.

• Net customer attrition remained low at 0.6% for Q2 and under 1% for the six months.

• Closed one small heating oil acquisition in Q2; additional opportunities are under review.

Financial highlights

• Q2 FY2026 revenue: $766.7 million (up 3.2% year-over-year); six-month revenue: $1.3 billion (up 6.1%).

• Q2 FY2026 net income: $108.3 million (up from $85.9 million in Q2 2025); six-month net income: $144.1 million (up from $118.8 million).

• Q2 FY2026 Adjusted EBITDA: $138.7 million (up $10.5 million year-over-year); six-month Adjusted EBITDA: $207.0 million (up $27.0 million).

• Home heating oil and propane volumes for Q2 FY2026: 144.5 million gallons (up 0.4%); six months: 238.4 million gallons (up 5.3%).

• Product gross profit increased by $19 million (7%) to $277 million in Q2, with gross margin on home heating oil and propane at $1.84/gal.

Outlook and guidance

• Management expects continued volatility in product costs due to geopolitical events and market conditions.

• Weather hedge contracts for FY2027 provide up to $12.5 million in protection, with no payment obligation if degree days exceed thresholds.

• Management is focused on operational improvements and investing in people and business development for the remainder of FY2026.

• Maintenance capex for the remainder of FY2026 estimated at $6–7 million, with additional investments in propane operations.