Star Gas Partners ( (SGU) ) has released its Q2 earnings. Here is a breakdown of the information Star Gas Partners presented to its investors.
Star Group, L.P., a leading home energy distributor and services provider, specializes in the sale of home heating products and services, including heating oil and propane, primarily in the Northeast and Mid-Atlantic U.S. regions.
In its fiscal 2025 second quarter earnings report, Star Group announced an 11.6% increase in total revenue to $743 million, driven by higher sales volumes despite a decrease in selling prices. The company attributed this growth to colder weather conditions and recent acquisitions.
Key financial highlights include a 22.9% increase in the volume of home heating oil and propane sold, reaching 143.9 million gallons. Net income rose by $17.5 million to $85.9 million, supported by a $31.9 million increase in Adjusted EBITDA. However, this was partially offset by higher income tax expenses and changes in the fair value of derivative instruments.
Star Group’s strategic focus on acquisitions and operational efficiency was evident, with $126.5 million in acquisitions completed since February 2024. The company also increased its annual dividend by 5 cents to 74 cents per unit, reflecting confidence in its financial health and commitment to shareholder returns.
Looking ahead, Star Group remains focused on expanding its HVAC business and enhancing customer service, while navigating challenges such as weather variability and market conditions. The company aims to continue leveraging acquisitions and operational improvements to drive future growth.