Q1 2026 Star Group LP Earnings Call Transcript
Key Points
- Star Group LP (SGU) reported a 32% year-over-year increase in adjusted EBITDA, driven by recent acquisitions and effective margin management.
- The company experienced a 14% increase in home heating oil and propane volume, reaching approximately 94 million gallons.
- Colder temperatures, 19% below last year and 6% below normal, positively impacted demand and sales.
- Star Group LP (SGU) achieved a $29 million increase in product gross profit, attributed to higher volumes and improved per gallon margins.
- The company maintained modest net customer attrition despite operational challenges from cold weather.
- Service gross profit decreased by $2.7 million due to high demand and increased costs related to colder temperatures.
- Delivery, branch, and G&A expenses rose by $11 million, with $5 million attributed to weather hedge contracts.
- A $5 million noncash charge was recorded due to changes in the fair value of derivative instruments.
- Higher depreciation, amortization, and net interest expenses, totaling $1.7 million, impacted net income negatively.
- Net income was also affected by a $1.3 million increase in income tax expenses.
Good day, and welcome to the Star Group fiscal 2026 first-quarter results conference call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Chris Witty, Investor Relations Adviser. Please go ahead.
Thank you, and good morning. With me on the call today are Jeff Woosnam, President and Chief Executive Officer; and Rich Ambury, Chief Financial Officer.
I would now like to provide a brief safe harbor statement. This conference call may include forward-looking statements that present the company's expectations and beliefs concerning future events that involve risks and uncertainties and may cause the company's actual performance to be materially different from the performance indicated or implied by such statements. All statements other than statements of historical facts included in this conference call are forward-looking statements.
Although the company believes that the expectations reflected in such forward-looking
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