Star Group, L.P. (SGU) reported a 10.5% year-over-year increase in total revenues for Q1 fiscal 2026, reaching $539.3 million, compared to $488.1 million in the same quarter last year. Net income rose 9% to $35.8 million from $32.9 million, driven by an increase in heating demand, which saw home heating oil and propane volumes jump by 13.9% to 93.9 million gallons.
For the quarter ending December 31, 2025, adjusted EBITDA increased by 32% year-over-year to $68.4 million, while earnings per unit rose to 89 cents from 79 cents. Management noted that operational efficiencies and colder weather, which was nearly 19% colder than the previous year, contributed to these results despite higher operational costs due to severe winter conditions.
Star Group’s shares have risen 5.7% since the earnings report, outperforming the S&P 500, which experienced a 3.8% decline during the same period. The weather-related challenges included $5 million in expenses from hedge contracts and a $10.7 million unfavorable change in the fair value of derivatives.
