Star Group Reports Strong Q2 FY2026 Earnings with Significant Profit and Revenue Growth
SGU sits 16% above its 52-week low of $11.31.
Summary
Star Group, L.P. reported substantial year-over-year increases in net income, EPS, and total sales for both the second fiscal quarter and six-month period ended March 31, 2026, driven by colder weather and improved margins, alongside an increased unit repurchase authorization.
Key Events · Earnings and Guidance · SGU
-
Strong Q2 & H1 Financial Performance
Net income for Q2 FY2026 increased by $22.4 million to $108.3 million, and for the six months, it rose by $25.3 million to $144.1 million. Diluted EPS grew by $0.65 to $2.66 for Q2 and by $0.75 to $3.55 for the six-month period, compared to the prior year.
-
Adjusted EBITDA Shows Significant Growth
Adjusted EBITDA for Q2 FY2026 increased by $10.5 million to $138.7 million, and for the six months, it increased by $27.0 million to $207.0 million, reflecting improved operational profitability.
-
Increased Unit Repurchase Authorization
The Board authorized an increase in the unit repurchase program, making 2.1 million common units available for repurchase, a substantial increase from the previous 0.5 million units. The company repurchased 439,000 units for $5.2 million during the six months ended March 31, 2026, and an additional 5,000 units in April 2026.
-
Quarterly Distribution Declared
A quarterly distribution of $0.1975 per unit ($0.79 annualized) was declared in April 2026 and paid on May 6, 2026, totaling $6.5 million to common unitholders.
Analysis · SGU · Trade & Services
Star Group, L.P. delivered robust financial results for the second fiscal quarter and six months ended March 31, 2026, with substantial year-over-year increases in net income, EPS, and Adjusted EBITDA. This strong performance was primarily driven by colder weather conditions compared to the prior year, which boosted heating oil and propane sales volumes and improved per-gallon margins. The company also increased its unit repurchase authorization, signaling confidence in its valuation and commitment to returning capital to unitholders. However, management noted increased product price volatility due to geopolitical events, which led to higher hedging costs and a potential slowdown in accounts receivable collections, as well as a risk to future customer renewal rates for price-protected contracts.
At the time of this filing, SGU was trading at $13.15 on NYSE in the Trade & Services sector, with a market capitalization of approximately $432.4M. The 52-week trading range was $11.31 to $13.50. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.