Star Group Reports Q3 Net Loss of $16.6 Million, Nine-Month Net Income Rises to $102.2 Million

Star Group, L.P. reported its financial results for the third quarter and nine months ended June 30, 2025, revealing a net loss of $16.6 million for the quarter, compared to a loss of $11.0 million in the same period last year. For the nine-month period, the company achieved a net income of $102.2 million, a significant increase from $70.3 million in the prior year. Total sales for the quarter were $305.6 million, down 7.8% from $331.6 million in the previous year, while year-to-date sales increased slightly to $1.54 billion from $1.53 billion.

The decrease in quarterly sales was attributed to a 3.3% decline in total volume sold, alongside a reduction in average selling prices due to lower wholesale product costs. Specifically, product sales fell by $32.8 million, or 13.2%, to $216.2 million, while installations and services revenue rose by 8.3% to $89.5 million, driven by recent acquisitions and expanded service offerings. The company’s gross profit for the quarter was $71.7 million, a decrease of 4.1% from the previous year, primarily due to lower home heating oil and propane volumes.

In terms of operational metrics, Star Group served approximately 413,600 full-service residential and commercial heating oil and propane accounts, alongside 66,500 delivery-only accounts. The company also reported a net customer attrition rate of 3.1% for the nine months ended June 30, 2025, consistent with the previous year. The company’s strategic developments included the acquisition of one heating oil and three propane businesses for approximately $80.5 million, which contributed to an increase in customer accounts and revenue from installations and services.

Star Group's balance sheet showed total assets of $963.8 million as of June 30, 2025, with cash and cash equivalents decreasing to $28.1 million from $117.3 million at the end of the previous fiscal year. The company’s long-term debt stood at $172.3 million, down from $187.8 million, reflecting ongoing efforts to manage its capital structure. The company also reported a significant increase in its goodwill, which rose to $293.4 million, reflecting the impact of recent acquisitions.

Looking ahead, Star Group anticipates continued challenges from market volatility, particularly in wholesale product costs and customer attrition rates. The company remains focused on leveraging its acquisitions to enhance service offerings and improve profitability. Additionally, it plans to maintain its quarterly distribution of $0.1850 per unit, contingent on cash flow generation and compliance with financial covenants under its credit agreement.