Star Group Reports Strong Q2 FY2026 Results with Increased Revenue, Net Income, and Adjusted EBITDA
Summary
Star Group reported strong fiscal Q2 2026 financial results, with significant increases in revenue, net income, and Adjusted EBITDA, driven by favorable weather and operational efficiency.
Key Events
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Strong Q2 Financial Performance
For the fiscal second quarter ended March 31, 2026, total revenue increased 3.2% to $766.7 million. Net income rose by $22.4 million to $108.3 million, and Adjusted EBITDA increased by $10.5 million to $138.7 million compared to the prior-year period. Basic and diluted income per Limited Partner Unit increased to $2.66 from $2.01.
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Increased Heating Oil and Propane Volumes
Home heating oil and propane volumes sold increased by 0.4% to 144.5 million gallons, primarily due to colder temperatures (6.4% colder than prior year) and additional volume from acquisitions, offsetting net customer attrition.
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Operational Highlights and Acquisitions
The company reported a $5.3 million increase in Adjusted EBITDA from its base business, driven by higher volumes and per-gallon margins. It also closed on one small heating oil acquisition during the quarter and kept net customer attrition under 1%.
Analysis
Star Group, L.P. announced robust financial results for its fiscal second quarter, demonstrating significant growth across key metrics. Net income surged by $22.4 million to $108.3 million, and Adjusted EBITDA increased by $10.5 million to $138.7 million, driven primarily by colder weather conditions, higher heating oil and propane volumes, and improved per-gallon margins. The company also successfully integrated a small acquisition and maintained customer attrition below 1%, indicating strong operational execution. These positive results, following a strong Q1, reinforce the company's performance trajectory, especially as the stock trades near its 52-week high.
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.