Star Group Reports Strong Q1 Earnings with 10.5% Revenue Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 04 2026
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Should l Buy SGU?
Source: seekingalpha
- 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.
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Analyst Views on SGU
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.
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- 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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- 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
- 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.
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