Star Group Reports Q3 Net Loss of $27.99 Million, Sales Increase 16.5%

Star Group, L.P. reported its financial results for the third quarter and nine months ended June 30, 2026, revealing a net loss of $27.99 million for the quarter, compared to a loss of $16.63 million in the same period last year. For the nine-month period, the company achieved a net income of $116.08 million, up from $102.17 million in the prior year. Total sales for the quarter reached $358.07 million, a 16.5% increase from $305.62 million in the previous year, driven by higher average selling prices despite a decrease in volume sold.

The company experienced significant changes in its financial performance compared to the previous fiscal period. Product sales increased by $50.85 million, or 23.5%, to $267.01 million for the quarter, attributed to a rise in wholesale product costs. However, the volume of home heating oil and propane sold decreased by 3.4 million gallons, or 9.4%, to 32.8 million gallons. For the nine months, total sales rose to $1.66 billion, a 8.3% increase from $1.54 billion, with product sales contributing $1.40 billion, up 9.7% year-over-year.

Strategically, Star Group made an acquisition of a heating oil business for approximately $1 million during the nine months ended June 30, 2026. This acquisition is expected to enhance the company's market presence. The company also reported a total of 32.81 million common units outstanding as of July 31, 2026, reflecting a slight decrease in the number of units compared to the previous year. The company continues to focus on expanding its service offerings and improving operational efficiencies.

Operationally, Star Group served approximately 396,900 full-service residential and commercial heating oil and propane accounts, alongside 66,000 delivery-only accounts. The company reported a net customer attrition rate of 2.7% for the nine months ended June 30, 2026, an improvement from 3.1% in the prior year. The company also noted an increase in average selling prices, which positively impacted gross profit margins, particularly in the home heating oil and propane segments.

Looking ahead, Star Group anticipates continued volatility in wholesale product costs, which may affect customer retention and profitability. The company plans to maintain its focus on operational efficiency and strategic acquisitions while navigating the challenges posed by market conditions. The management remains optimistic about the potential for growth, supported by a strong liquidity position and compliance with financial covenants under its credit agreement.