Star Gas Partners ( (SGU) ) has released its Q3 earnings. Here is a breakdown of the information Star Gas Partners presented to its investors.
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Star Group, L.P. is a leading home energy distributor and services provider, specializing in the sale of home heating products and services across the Northeast and Mid-Atlantic U.S. regions. The company is recognized as the largest retail distributor of home heating oil in the nation based on sales volume.
In its fiscal 2025 third quarter, Star Group reported a decrease in total revenue by 7.8% to $305.6 million, compared to the same period last year. This decline was attributed to reduced product sales, impacted by warmer weather and net customer attrition. Despite these challenges, the company highlighted improvements in service and installation performance and positive contributions from recent acquisitions.
The company’s financial performance showed a net loss increase of $5.6 million, totaling $16.6 million for the quarter. This was due to a higher Adjusted EBITDA loss, increased depreciation and amortization, and greater net interest expenses. However, the year-to-date results for the first nine months of fiscal 2025 were more favorable, with a slight revenue increase to $1.5 billion and a significant rise in net income by $31.9 million, driven by higher Adjusted EBITDA and favorable changes in derivative instruments.
Looking ahead, Star Group remains focused on expanding its propane and heating oil customer base while enhancing service and installation profitability. The company aims to position itself as a diversified energy provider capable of adapting to varying weather conditions, with management expressing confidence in achieving solid performance for the remainder of fiscal 2025.