Star Group Reports 3.2% Sales Growth and 26.5% Increase in Net Income for Quarter Ending March 31, 2026

Star Group, L.P. reported significant financial performance in its latest 10-Q filing for the quarter ending March 31, 2026. The company achieved total sales of $766.7 million, a 3.2% increase from $743.0 million in the same quarter of the previous year. This growth was driven by a rise in product sales, which reached $689.8 million, up from $665.1 million, attributed to higher average selling prices and increased volume. Net income for the quarter was $108.3 million, compared to $85.9 million in the prior year, reflecting a 26.5% increase. The basic and diluted income per Limited Partner Unit rose to $2.66 from $2.01.

In terms of operational metrics, the company served approximately 403,700 full-service residential and commercial heating oil and propane accounts, alongside 65,900 delivery-only accounts. The total retail volume of home heating oil and propane sold increased by 0.4% to 144.5 million gallons, aided by colder temperatures that were 6.4% lower than the previous year. However, the company experienced net customer attrition of 4.2% in its base business, which was consistent with previous periods. The company also reported a significant increase in its inventory levels, which rose to $80.9 million from $47.0 million, reflecting a strategic decision to bolster stock in response to market conditions.

Strategically, Star Group made a notable acquisition during the six months ended March 31, 2026, purchasing a heating oil business for approximately $1.0 million. This acquisition is expected to enhance the company's market presence and operational capacity. The company also continued its unit repurchase program, repurchasing 0.4 million Common Units at an average price of $11.93 per unit, reflecting its commitment to returning value to shareholders.

The company’s financial position showed a total asset increase to $1.16 billion from $937.3 million, with total liabilities rising to $740.8 million from $640.6 million. The increase in liabilities was primarily due to higher accounts payable and borrowings under the revolving credit facility, which amounted to $87.4 million. The company maintained compliance with its financial covenants, with availability under its credit agreement reported at $241.8 million as of March 31, 2026.

Looking ahead, Star Group anticipates continued challenges due to volatility in wholesale product costs and potential impacts on customer collections. The company is focused on managing its working capital needs and leveraging its recent acquisitions to drive growth. The outlook remains cautious, with expectations of fluctuating demand influenced by weather conditions and market dynamics.