Star Group L.P., reported stronger first-quarter results as colder-than-normal weather, recent acquisitions and growth in service and installation work increased fuel volumes and revenue.
For the three months ending Dec. 31, 2025, revenue rose to $539.3 million from $488.1 million a year earlier. Net income increased to $35.8 million from $32.9 million.
Star sold 93.9 million gallons of home heating oil and propane during the quarter, up from 82.4 million gallons a year earlier. The company said temperatures across its service areas were 18.8% colder than the same period last year and 6.1% colder than normal, citing data from the National Oceanic and Atmospheric Administration.
Product sales totaled $448.0 million. Installations and services generated $91.3 million, up from $88.6 million in the prior year.
Operating income rose to $54.2 million from $49.2 million. Delivery costs, equipment wear, and interest expenses increased. The company also recorded a $5.4 million loss tied to weather-related hedging contracts, compared with a $5.3 million gain in the same quarter last year.
Chief Executive Officer Jeff Woosnam said the quarter benefited from acquisitions, fuel supply management and expanding service work, along with the colder weather.
“The confluence of these factors — even given the operational challenges associated with persistent cold temperatures — resulted in an increase in Adjusted EBITDA of $16.5 million, or 32% year over year, net of a $5.0 million charge tied to our weather hedge program,” Woosnam said in a statement.
Receivables and inventories rose during the winter heating season. Receivables increased to $198.2 million on Dec. 31 from $102.1 million at the end of September. Inventories rose to $69.6 million from $47.0 million. Star also drew $71.9 million on its revolving credit line, compared with no borrowings at the end of the prior fiscal year.
Total assets increased to $1.05 billion from $937.3 million three months earlier.
For the fiscal year ended Sept. 30, 2025, Star reported:
- Sales of about $2.55 billion
- Net income of about $111 million
The results show how weather still plays a key role in home-heating demand, even as Star works to rely less on fuel sales alone. The company has been expanding installation, service, and HVAC work, which tends to be steadier than fuel delivery.
Star said colder conditions continued into January, which could support second-quarter volumes if the weather pattern holds.
Based in Stamford, Connecticut, Star says it is the nation’s largest retail distributor of home heating oil by volume and operates propane locations across the Northeast and Mid-Atlantic.
