Star Group Reports 10.5% Sales Increase to $539.3 Million for Q4 2025

Star Group, L.P. reported a significant increase in financial performance for the three months ending December 31, 2025, with total sales reaching $539.3 million, up from $488.1 million in the same period last year, marking a 10.5% increase. The company’s net income also rose to $35.8 million, compared to $32.9 million in the prior year, reflecting a 5.8% increase. This growth was driven by a 12.1% increase in product sales, which amounted to $448.0 million, primarily due to higher volumes and average selling prices of home heating oil and propane.

The company experienced notable operational changes, including an increase in customer accounts, with approximately 404,900 full-service residential and commercial heating oil and propane accounts, alongside 65,200 delivery-only accounts. The total number of common units outstanding as of January 31, 2026, was 32,879,055. Additionally, Star Group's Adjusted EBITDA increased by $16.5 million to $68.4 million, driven by higher sales volumes and improved margins, despite a $5.0 million increase in expenses related to weather hedge contracts.

In terms of strategic developments, Star Group did not complete any acquisitions during the reported quarter but announced the purchase of a heating oil business for approximately $0.9 million in February 2026. The company continues to focus on expanding its service offerings and enhancing customer engagement, which has contributed to a slight increase in customer retention rates. The company’s operational metrics indicate a net customer attrition of 0.4% for the quarter, consistent with the previous year, suggesting stability in its customer base despite competitive pressures.

Financially, the company’s balance sheet showed total assets of $1.05 billion as of December 31, 2025, up from $937.3 million at the end of the previous quarter. Current liabilities also increased to $441.7 million, reflecting higher accounts payable and accrued expenses. The company’s liquidity position remains strong, with $19.9 million in cash and cash equivalents, and it has maintained compliance with its financial covenants under its credit agreement. Looking ahead, Star Group anticipates continued growth driven by favorable weather conditions and strategic initiatives, although it remains cautious about potential market volatility and economic uncertainties.