Star Group (SGU) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 revenue rose 1.0% year-over-year to $1.8 billion, driven by higher volumes, increased installation/service sales, and recent acquisitions, offsetting lower selling prices from reduced wholesale costs.

• Adjusted EBITDA for fiscal 2025 grew by $24.8 million (22.2%) to $136.4 million, reflecting improved margins, higher volumes, and acquisition contributions.

• Net income for fiscal 2025 increased by $38.2 million to $73.5 million, aided by a $32 million favorable change in derivative fair value, higher Adjusted EBITDA, and a $3.8 million real estate gain.

• Four acquisitions added nearly 12 million gallons in annual volume, with the acquisition pipeline remaining active.

• Installation and service revenue grew nearly 10% over fiscal 2024, contributing to improved profitability.

Financial highlights

• Home heating oil and propane volume increased by 29 million gallons (12%) to 283 million gallons for the year, driven by acquisitions and colder weather.

• Product gross profit rose by $57 million (12%) to $525 million, driven by higher volumes and margins.

• Net income for fiscal 2025 was $73.5 million, up $38.2 million year-over-year, aided by a $32 million favorable change in derivative fair value.

• Adjusted EBITDA reached $136.4 million, up $24.8 million, with $18.5 million from base business and $17 million from acquisitions, partially offset by a $10.6 million weather hedge expense.

• Basic and diluted EPS for fiscal 2025 was $1.82, up from $0.90 in fiscal 2024.

Outlook and guidance

• Focus remains on growing and diversifying through acquisitions, margin management, and expanding installation and service profitability.

• The company is optimistic about further opportunities to improve performance in fiscal 2026.