Star Group (SGU) Q3 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 07 2025
0mins
Should l Buy SGU?
Source: NASDAQ.COM
- Author's Perspective: The opinions shared in the article are solely those of the author and do not represent Nasdaq, Inc.
- Data Limitations: The information is based on data available up to October 2023.
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About SGU
Star Group, L.P. is a full-service provider specializing in the sale of home heating products and services to residential and commercial customers to heat their homes and buildings. The Company also sells and services heating and air conditioning equipment to its home heating oil and propane customers and, to a lesser extent, provides these offerings to customers outside its home heating oil and propane customer base. It also sells diesel, gasoline and home heating oil on a delivery only basis. It is a retail distributor of home heating oil operating in northern and eastern states within the Northeast and Mid-Atlantic U.S. regions, including its propane locations. The Company conducts its business through an operating subsidiary, Petro Holdings, Inc. It has heating oil and/or propane customers in the states: Connecticut, Delaware, Maryland, Massachusetts, Michigan, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, Virginia, West Virginia and the District of Columbia.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Star Group Reports Strong Q1 2026 Earnings Driven by Cold Weather
- Significant Earnings Growth: Star Group achieved an increase of $16.5 million in adjusted EBITDA for Q1 2026, representing a 32% year-over-year growth, primarily driven by acquisitions, supply management, and temperatures that were 19% colder than last year, showcasing the company's strong performance in cold weather.
- Customer Attrition Management: Despite modest net customer attrition during the period, management emphasized improvements in operational efficiency and execution as key factors in enhancing bottom-line results, indicating ongoing efforts in customer service and cost control.
- Volume Increase: Home heating oil and propane volumes rose by 11.5 million gallons or 14% year-over-year in Q1, benefiting from additional volumes from acquisitions and colder temperatures, although net customer attrition and other factors did impact overall sales.
- Optimistic Future Outlook: Management remains optimistic about acquisition opportunities, anticipating new prospects as spring approaches, while continuing to focus on customer service and cost control to address challenges posed by persistent cold weather.
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Star Group Reports Strong Q1 Earnings with 10.5% Revenue Growth
- Earnings Highlights: Star Group reported a GAAP EPS of $0.89 for Q1, with revenue reaching $539.3 million, reflecting a robust year-over-year growth of 10.5%, indicating strong market performance and improved profitability.
- Acquisition Investment Plan: The company outlines an $81 million acquisition investment aimed at expanding its business scale and market share, which is expected to lay the groundwork for future revenue growth.
- Volume Growth: Star Group reported a 12% increase in volume, which not only reflects rising market demand for its products but also indicates its strong position in a competitive industry.
- Market Outlook: With ongoing investments and expansion strategies, Star Group is expected to enhance its market competitiveness and achieve higher revenue and profitability levels in the future.
See More
Star Group (SGU) Declares $0.185 Quarterly Dividend with 5.98% Yield
- Dividend Declaration: Star Group has declared a quarterly dividend of $0.185 per share, consistent with previous distributions, indicating stable cash flow and a commitment to shareholder returns, which is expected to bolster investor confidence.
- Yield Performance: The forward yield of 5.98% makes this dividend attractive in the current market environment, potentially drawing in income-seeking investors and enhancing the stock's appeal.
- Payment Arrangement: The dividend is payable on February 4, with a record date of January 26 and an ex-dividend date also on January 26, ensuring shareholders receive timely returns and reinforcing trust in the company.
- Expansion Plans: Star Group outlines an $81 million acquisition investment and anticipates 12% volume growth, reflecting a proactive strategy to expand market share and enhance profitability.
See More
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- Significant Revenue Growth: American Express reported a 9% year-over-year revenue increase in the first nine months of 2025, driven by new product launches and strategic partnerships, showcasing strong performance amid a rebound in travel and entertainment spending, thereby solidifying its market position.
- Strong Cash Flow: The company returned $2.9 billion through buybacks and dividends in Q3, with a ROE of 33.4%, exceeding the industry average, indicating robust capital return strategies that enhance investor confidence.
- Rising Demand for Surgical Robots: Intuitive Surgical's stock has gained 6.6% over the past six months, with 240 placements of the da Vinci 5 system in the U.S., driving a 19% year-over-year increase in global procedures, reflecting strong demand in the medical device market.
- Outstanding Microcap Performance: Daily Journal Corp.'s stock surged 61.8% in the past six months, supported by a market capitalization of $894.14 million and a $493 million marketable securities portfolio, demonstrating strong asset management capabilities and growth potential.
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Star Group Declares $0.1850 Quarterly Distribution Per Unit
- Quarterly Distribution Announcement: Star Group has declared a quarterly distribution of $0.1850 per unit for the period ending December 31, 2025, reflecting the company's ongoing commitment to stable cash flow and shareholder returns, which is expected to bolster investor confidence.
- Record and Payment Dates: The record date for this distribution is January 26, 2026, with a payment date of February 4, 2026, ensuring shareholders receive their distributions promptly, thereby strengthening the relationship between the company and its investors.
- Market Position: Star Group is recognized as the largest retail distributor of home heating oil in the U.S. based on sales volume, indicating the company's leadership in the home heating products and services market, which enhances its competitive edge.
- Business Diversification: In addition to home heating oil, Star also sells diesel, gasoline, and provides heating and air conditioning equipment sales and services, showcasing the company's diversified strategy in energy distribution, which helps mitigate risks from market fluctuations.
See More
Star Group (SGU) Declares $0.185 Quarterly Distribution with Payment Date on February 4, 2026
- Quarterly Distribution Announcement: Star Group has declared a quarterly distribution of $0.185 per common unit for the three months ended December 31, 2025, reflecting the company's ongoing commitment to stable cash flow and shareholder returns, which is expected to bolster investor confidence.
- Payment Schedule: The record date for this distribution is January 26, 2026, with a payment date of February 4, 2026, ensuring that shareholders receive their earnings promptly, thereby strengthening the relationship between the company and its investors.
- Market Positioning: As the largest retail distributor of home heating oil in the U.S., Star Group enhances its competitive edge with a broad customer base in the Northeast and Mid-Atlantic regions, which is expected to continue attracting new customers while retaining existing loyalty.
- Future Outlook: The company faces various risk factors, including geopolitical events and inflation; however, Star Group remains committed to improving its business performance through strategic acquisitions and market expansion, demonstrating positive long-term growth potential.
See More
Star Group Reports Strong Q1 2026 Earnings Driven by Cold Weather
- Significant Earnings Growth: Star Group achieved an increase of $16.5 million in adjusted EBITDA for Q1 2026, representing a 32% year-over-year growth, primarily driven by acquisitions, supply management, and temperatures that were 19% colder than last year, showcasing the company's strong performance in cold weather.
- Customer Attrition Management: Despite modest net customer attrition during the period, management emphasized improvements in operational efficiency and execution as key factors in enhancing bottom-line results, indicating ongoing efforts in customer service and cost control.
- Volume Increase: Home heating oil and propane volumes rose by 11.5 million gallons or 14% year-over-year in Q1, benefiting from additional volumes from acquisitions and colder temperatures, although net customer attrition and other factors did impact overall sales.
- Optimistic Future Outlook: Management remains optimistic about acquisition opportunities, anticipating new prospects as spring approaches, while continuing to focus on customer service and cost control to address challenges posed by persistent cold weather.
See More
Star Group Reports Strong Q1 Earnings with 10.5% Revenue Growth
- Earnings Highlights: Star Group reported a GAAP EPS of $0.89 for Q1, with revenue reaching $539.3 million, reflecting a robust year-over-year growth of 10.5%, indicating strong market performance and improved profitability.
- Acquisition Investment Plan: The company outlines an $81 million acquisition investment aimed at expanding its business scale and market share, which is expected to lay the groundwork for future revenue growth.
- Volume Growth: Star Group reported a 12% increase in volume, which not only reflects rising market demand for its products but also indicates its strong position in a competitive industry.
- Market Outlook: With ongoing investments and expansion strategies, Star Group is expected to enhance its market competitiveness and achieve higher revenue and profitability levels in the future.
See More
Star Group (SGU) Declares $0.185 Quarterly Dividend with 5.98% Yield
- Dividend Declaration: Star Group has declared a quarterly dividend of $0.185 per share, consistent with previous distributions, indicating stable cash flow and a commitment to shareholder returns, which is expected to bolster investor confidence.
- Yield Performance: The forward yield of 5.98% makes this dividend attractive in the current market environment, potentially drawing in income-seeking investors and enhancing the stock's appeal.
- Payment Arrangement: The dividend is payable on February 4, with a record date of January 26 and an ex-dividend date also on January 26, ensuring shareholders receive timely returns and reinforcing trust in the company.
- Expansion Plans: Star Group outlines an $81 million acquisition investment and anticipates 12% volume growth, reflecting a proactive strategy to expand market share and enhance profitability.
See More
American Express (AXP) Stock Rises 15.4% Driven by Revenue Growth
- Significant Revenue Growth: American Express reported a 9% year-over-year revenue increase in the first nine months of 2025, driven by new product launches and strategic partnerships, showcasing strong performance amid a rebound in travel and entertainment spending, thereby solidifying its market position.
- Strong Cash Flow: The company returned $2.9 billion through buybacks and dividends in Q3, with a ROE of 33.4%, exceeding the industry average, indicating robust capital return strategies that enhance investor confidence.
- Rising Demand for Surgical Robots: Intuitive Surgical's stock has gained 6.6% over the past six months, with 240 placements of the da Vinci 5 system in the U.S., driving a 19% year-over-year increase in global procedures, reflecting strong demand in the medical device market.
- Outstanding Microcap Performance: Daily Journal Corp.'s stock surged 61.8% in the past six months, supported by a market capitalization of $894.14 million and a $493 million marketable securities portfolio, demonstrating strong asset management capabilities and growth potential.
See More
Star Group Declares $0.1850 Quarterly Distribution Per Unit
- Quarterly Distribution Announcement: Star Group has declared a quarterly distribution of $0.1850 per unit for the period ending December 31, 2025, reflecting the company's ongoing commitment to stable cash flow and shareholder returns, which is expected to bolster investor confidence.
- Record and Payment Dates: The record date for this distribution is January 26, 2026, with a payment date of February 4, 2026, ensuring shareholders receive their distributions promptly, thereby strengthening the relationship between the company and its investors.
- Market Position: Star Group is recognized as the largest retail distributor of home heating oil in the U.S. based on sales volume, indicating the company's leadership in the home heating products and services market, which enhances its competitive edge.
- Business Diversification: In addition to home heating oil, Star also sells diesel, gasoline, and provides heating and air conditioning equipment sales and services, showcasing the company's diversified strategy in energy distribution, which helps mitigate risks from market fluctuations.
See More
Star Group (SGU) Declares $0.185 Quarterly Distribution with Payment Date on February 4, 2026
- Quarterly Distribution Announcement: Star Group has declared a quarterly distribution of $0.185 per common unit for the three months ended December 31, 2025, reflecting the company's ongoing commitment to stable cash flow and shareholder returns, which is expected to bolster investor confidence.
- Payment Schedule: The record date for this distribution is January 26, 2026, with a payment date of February 4, 2026, ensuring that shareholders receive their earnings promptly, thereby strengthening the relationship between the company and its investors.
- Market Positioning: As the largest retail distributor of home heating oil in the U.S., Star Group enhances its competitive edge with a broad customer base in the Northeast and Mid-Atlantic regions, which is expected to continue attracting new customers while retaining existing loyalty.
- Future Outlook: The company faces various risk factors, including geopolitical events and inflation; however, Star Group remains committed to improving its business performance through strategic acquisitions and market expansion, demonstrating positive long-term growth potential.
See More
