Star Group LP Q1 2026 Star Group LP Earnings Call | AllMind AI Earnings | AllMind AI
Q1 2026 Star Group LP Earnings Call
Speaker #1: the star and welcome to Good day Fiscal 2026 results conference All call . mode . participants will only be in Should you need assistance , please signal a conference specialist by pressing the star key , followed by zero .
Operator: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note, this event is being recorded. I would now like to turn the conference over to Chris Witty, investor relations advisor. Please go ahead.
Speaker #1: After today's presentation , there will be an opportunity to ask questions , to ask a question , you may press star then one on your telephone keypad .
Speaker #1: To withdraw your question , please press star . Then two . Please note this event is being recorded . I would now like to turn the conference over to Chris Investor Relations Advisor .
Chris Witty: 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 represent 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 statements are reasonable, it can give no assurance that such expectations will prove to have been correct.
Chris Witty: 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.
Speaker #1: Please go ahead .
Speaker #2: Thank you and good morning . With me on the call today are Jeffrey Woosnam President and Chief Executive Officer and Richard Ambury chief Financial I would now Officer .
Chris Witty: This conference call may include forward-looking statements that represent 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.
Speaker #2: I’d like to provide a brief safe harbor statement. This conference call may include forward-looking statements that represent the company’s beliefs and expectations concerning future events. These statements 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.
Chris Witty: 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 statements are reasonable, it can give no assurance that such expectations will prove to have been correct.
Speaker #2: 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 statements are reasonable, it can give no assurance that these expectations will prove to have been correct.
Chris Witty: Important factors that could cause actual results to differ materially from the company's expectations are disclosed in this conference call, the company's annual report on Form 10-K for the fiscal year ended September 30, 2025, and the company's other filings with the SEC. All subsequent written and oral forward-looking statements attributable to the company or persons acting on its behalf are expressly qualified in their entirety by the cautionary statements. Unless otherwise required by law, the company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, after the date of this conference call. I'd now like to turn the call over to Jeff Woosnam. Jeff?
Chris Witty: Important factors that could cause actual results to differ materially from the company's expectations are disclosed in this conference call, the company's annual report on Form 10-K for the fiscal year ended September 30, 2025, and the company's other filings with the SEC.
Speaker #2: Important factors that could cause actual results to differ materially from the company's expectations are disclosed in this conference call . The company's annual Report on 10-K for the fiscal year ended September 30th , 2025 , and the company's other filings with the SEC .
Chris Witty: All subsequent written and oral forward-looking statements attributable to the company or persons acting on its behalf are expressly qualified in their entirety by the cautionary statements.
Speaker #2: All subsequent written for looking statements are available to the and oral company or persons acting on its behalf are expressly qualified in their entirety by the cautionary statements .
Chris Witty: Unless otherwise required by law, the company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, after the date of this conference call. I'd now like to turn the call over to Jeff Woosnam. Jeff?
Speaker #2: Unless otherwise required by law . The company undertakes no obligation to publicly update or revise any forward looking statements , whether as a result of new information , future events or otherwise .
Jeff Woosnam: Thanks, Chris, and good morning, everyone. Thank you for joining us to discuss our first quarter results. Fiscal 2026 has started off very well as our performance benefited from recent acquisitions, physical supply, and per gallon margin management, the continued focus on service and installation profitability, and last but not least, temperatures that were almost 19% colder than last year and 6% colder than normal. The confluences of these factors, even given the operational challenges associated with persistent cold temperatures, resulted in an increase of Adjusted EBITDA of $16.5 million or 32% year-over-year, net of a $5 million charge to our weather hedge program. At the same time, net customer attrition was modest during the period.
Jeff Woosnam: Thanks, Chris, and good morning, everyone. Thank you for joining us to discuss our first quarter results.
Speaker #2: After the date of this conference call now turn the call over to Jeffrey Woosnam Jeff .
Jeff Woosnam: Fiscal 2026 has started off very well as our performance benefited from recent acquisitions, physical supply, and per gallon margin management, the continued focus on service and installation profitability, and last but not least, temperatures that were almost 19% colder than last year and 6% colder than normal.
Speaker #3: Thanks , Chris , and good morning , everyone . Thank you for joining us to discuss our first quarter results . Fiscal 2026 has started off very well as our performance benefited from recent acquisitions , supply physical and per gallon margin management .
Speaker #3: The continued focus on service and installation profitability . And last but not least , temperatures that were almost 19% colder than last year and 6% colder than normal .
Jeff Woosnam: The confluences of these factors, even given the operational challenges associated with persistent cold temperatures, resulted in an increase of Adjusted EBITDA of $16.5 million or 32% year-over-year, net of a $5 million charge to our weather hedge program. At the same time, net customer attrition was modest during the period.
Speaker #3: The influences of these factors , even given the operational challenges with associated persistent cold temperatures , resulted in an increase of adjusted EBITDA of $16.5 million , or 32% , year over year , net of a $5 million charge to our weather Hedge program .
Jeff Woosnam: Improvement efficiency and operational execution have been specific areas of focus for us, so it's quite rewarding to see our work have a meaningful impact on bottom line results. The cold weather has continued thus far into Q2, and in fact, January finished 2% colder than last year and 9% colder than normal. I'm very proud of the way our employees have responded to the added demand and the challenges of making deliveries in snow and ice conditions. They have worked tirelessly at times through difficult conditions to provide our customers with the level of service and responsiveness they have come to expect. While we did not close on any acquisitions in Q1, we did complete one purchase of a small heating oil business just a few days ago.
Jeff Woosnam: Improvement efficiency and operational execution have been specific areas of focus for us, so it's quite rewarding to see our work have a meaningful impact on bottom line results. The cold weather has continued thus far into Q2, and in fact, January finished 2% colder than last year and 9% colder than normal.
Speaker #3: At the same time , net customer attrition was modest during the period , improving efficiency and operational execution have been specific areas of focus for us , so it's quite rewarding to see our work have a meaningful impact on bottom line results .
Speaker #3: The cold weather has continued thus far into the second quarter , and in fact , January finished 2% colder than last year and 9% colder than normal .
Jeff Woosnam: I'm very proud of the way our employees have responded to the added demand and the challenges of making deliveries in snow and ice conditions. They have worked tirelessly at times through difficult conditions to provide our customers with the level of service and responsiveness they have come to expect.
Speaker #3: I'm very proud of the way our employees have added responded to the the snow and ice challenges of making deliveries in demand and conditions .
Speaker #3: They've worked tirelessly through difficult conditions to provide our customers with the level of service and responsiveness they have come to expect.
Jeff Woosnam: While we did not close on any acquisitions in Q1, we did complete one purchase of a small heating oil business just a few days ago.
Speaker #3: While we did not close on any acquisitions in the first quarter , we did complete one purchase of a small heating oil business just a few days ago .
Jeff Woosnam: It's not at all unusual to experience a slight lull in prospect activity during a busy heating season, but we still have several opportunities under various stages of review, and I anticipate that we will see new ones presented as we get closer to spring. Although it's too early to say how fiscal 2026 will play out, we remain vigilant in providing excellent customer service, keeping costs down, and growing our service and installation profitability. I believe we are well prepared to address whatever challenges or opportunities might present themselves over the remainder of the heating season. With that, I'll turn the call over to Rich to provide additional comments on the quarter's financial results. Rich?
Jeff Woosnam: It's not at all unusual to experience a slight lull in prospect activity during a busy heating season, but we still have several opportunities under various stages of review, and I anticipate that we will see new ones presented as we get closer to spring.
Speaker #3: It's not at all unusual to experience a slight lull in prospect activity during a busy heating season , but we still have several opportunities under various stages of review , and I anticipate that we will see new ones presented as we get closer to spring .
Jeff Woosnam: Although it's too early to say how fiscal 2026 will play out, we remain vigilant in providing excellent customer service, keeping costs down, and growing our service and installation profitability.
Speaker #3: Although it's too early to say how fiscal 2026 will play out , we remain vigilant in in providing excellent customer service , keeping costs down growing our our service and and installation profitability .
Jeff Woosnam: I believe we are well prepared to address whatever challenges or opportunities might present themselves over the remainder of the heating season. With that, I'll turn the call over to Rich to provide additional comments on the quarter's financial results. Rich?
Speaker #3: I believe we are well prepared to address whatever challenges or opportunities might present themselves over the remainder of the heating season.
Rich Ambury: Thanks, Jeff, and good morning, everyone. For the quarter, our home heating oil and propane volume rose by 11.5 million gallons, or 14%, to approximately 94 million gallons, as the additional volume provided from acquisitions and colder temperatures was reduced by net customer attrition and other factors. Temperatures in our geographic areas operations for the three months ending 31 December 2025 were 19% colder than the three months ending 31 December 2024, and 6% colder than normal. Our product gross profit increased by $29 million, or 19%, to approximately $179 million due to an increase in home heating oil and propane volume sold, and higher per gallon margins.
Rich Ambury: Thanks, Jeff, and good morning, everyone. For the quarter, our home heating oil and propane volume rose by 11.5 million gallons, or 14%, to approximately 94 million gallons, as the additional volume provided from acquisitions and colder temperatures was reduced by net customer attrition and other factors.
Speaker #3: With that , I'll turn the call over to Rich to provide additional quarter's comments on the financial results . Rich , Jeff , , thanks and good .
Speaker #4: Morning , everyone . For our home heating oil and propane volume rose by 11.5 million gallons , or 14% , to approximately 94 million gallons .
Rich Ambury: Temperatures in our geographic areas operations for the three months ending 31 December 2025 were 19% colder than the three months ending 31 December 2024, and 6% colder than normal. Our product gross profit increased by $29 million, or 19%, to approximately $179 million due to an increase in home heating oil and propane volume sold, and higher per gallon margins.
Speaker #4: As the additional volume provided from and colder temperatures was reduced acquisitions by net customer attrition . And other factors . Temperatures in our geographic areas operations for the three months ending December 31st , 2025 were 19% colder than the three months ending December 31st , 2024 , and 6% colder than normal .
Speaker #4: Our product gross profit increased by $29 million , 19% to approximately 179 million gallons due to an increase in home heating oil and propane volumes sold and per higher margins combined realized a gross profit from service installations of for the 5.6 million three months ending December 31st , 2025 , gross compared to of 6.9 million for the three months ending December 31st , 2024 .
Rich Ambury: We realized a combined gross profit from service and installations of $5.6 million for the three months ending December 31, 2025, compared to gross profit of $6.9 million for the three months ending December 31, 2024. While installation gross profit increased by $1.4 million, the service gross profit loss did increase by $2.7 million due to the high demand for service relating to the 19% colder temperatures and the additional costs attributable to an increase in our propane tank sets. Delivery, branch, and G&A expenses rose by $11 million in the first quarter of fiscal 2026 versus the prior year period. The company's weather hedge contracts accounted for $5 million of the increase, as temperatures experienced from November through December of 2025 were colder than the contract's strike price.
Rich Ambury: We realized a combined gross profit from service and installations of $5.6 million for the three months ending December 31, 2025, compared to gross profit of $6.9 million for the three months ending December 31, 2024.
Rich Ambury: While installation gross profit increased by $1.4 million, the service gross profit loss did increase by $2.7 million due to the high demand for service relating to the 19% colder temperatures and the additional costs attributable to an increase in our propane tank sets.
Speaker #4: While installation gross profit increased by 1.4 million . The service gross profit loss did increase by 2.7 million due to the high demand for service relating to the 19% colder temperatures and the additional cost attributable to an increase in our propane tank sets .
Rich Ambury: Delivery, branch, and G&A expenses rose by $11 million in the first quarter of fiscal 2026 versus the prior year period. The company's weather hedge contracts accounted for $5 million of the increase, as temperatures experienced from November through December of 2025 were colder than the contract's strike price.
Speaker #4: Delivery, branch, and G&A expenses rose by $11 million in the first quarter of fiscal 2026 versus the prior year period. The company's weather hedge accounted for $5 million of the increase, as experienced temperatures from November through December of 2025 were colder than the contracts.
Rich Ambury: In addition, delivery expenses rose by $3.8 million, or 13%, largely due to the 14% increase in home heating oil and propane volume sold. The remaining operating costs increased by just $2.2 million, or approximately 2%. During the first quarter of Fiscal 2026, we recorded a $5 million non-cash charge related to the change in the fair value of our derivative instruments. By comparison, in the first quarter of fiscal 2025, we recorded a $5 million credit. Net income increased by $3 million in the quarter to $36 million, as an increase in Adjusted EBITDA of $16.5 million was reduced by the unfavorable non-cash change in the fair value of derivative instruments, as I just mentioned, was $10 million year-over-year.
Rich Ambury: In addition, delivery expenses rose by $3.8 million, or 13%, largely due to the 14% increase in home heating oil and propane volume sold. The remaining operating costs increased by just $2.2 million, or approximately 2%.
Speaker #4: Strike price . In addition , delivery expenses rose by $3.8 million , largely due contracts or 13% , to 14% the increase in home heating oil and propane volume sold .
Rich Ambury: During the first quarter of Fiscal 2026, we recorded a $5 million non-cash charge related to the change in the fair value of our derivative instruments. By comparison, in the first quarter of fiscal 2025, we recorded a $5 million credit.
Speaker #4: The remaining operating costs increased by just 2.2 million , or approximately 2% , during the first quarter of fiscal 2026 . We recorded a $5 million non-cash related to change in the fair derivative instruments by value of our comparison , in the first quarter of fiscal 2025 , we recorded a $5 million credit net income increased by $3 million in quarter the to $36 million .
Rich Ambury: Net income increased by $3 million in the quarter to $36 million, as an increase in Adjusted EBITDA of $16.5 million was reduced by the unfavorable non-cash change in the fair value of derivative instruments, as I just mentioned, was $10 million year-over-year.
Speaker #4: An increase in an as-adjusted EBITDA of $16.5 million was reduced by the unfavorable non-cash change in the fair value of derivative instruments. As I mentioned, $10 million year over just year.
Rich Ambury: In addition, net income was also negatively impacted by higher depreciation and amortization expenses and net interest expense, due solely to our higher acquisition program, and that totaled $1.7 million in aggregate, along with higher income tax expense of $1.3 million. Adjusted EBITDA increased by $16.5 million to $68 million, primarily due to a $16.8 million increase in adjusted EBITDA in the base business and a $4.8 million increase in adjusted EBITDA from recent acquisitions, which was partially offset by the $5 million increase in expense relating to the company's weather hedge contracts. With that, I'll turn the call back over to Jeff.
Rich Ambury: In addition, net income was also negatively impacted by higher depreciation and amortization expenses and net interest expense, due solely to our higher acquisition program, and that totaled $1.7 million in aggregate, along with higher income tax expense of $1.3 million.
Speaker #4: In addition , income net was also negatively impacted by higher depreciation and amortization expenses and net interest expense due solely to higher our acquisition program .
Speaker #4: And that totaled $1.7 million in aggregate income tax higher , along with expense of $1.3 million . Adjusted EBITDA increased by 16.5 million to $68 million , primarily due to a 16.8 million increase in adjusted EBITDA in the base business And .
Rich Ambury: Adjusted EBITDA increased by $16.5 million to $68 million, primarily due to a $16.8 million increase in adjusted EBITDA in the base business and a $4.8 million increase in adjusted EBITDA from recent acquisitions, which was partially offset by the $5 million increase in expense relating to the company's weather hedge contracts. With that, I'll turn the call back over to Jeff.
Speaker #4: a $4.8 million increase in adjusted EBITDA recent from acquisitions , which was partially offset $5 million the increase in expense relating to the company's weather hedge contracts .
Jeff Woosnam: Thanks, Rich. At this time, we're pleased to address any questions you may have. Operator, please open the phone lines for questions.
Jeff Woosnam: Thanks, Rich. At this time, we're pleased to address any questions you may have. Operator, please open the phone lines for questions.
Speaker #4: And with that , I'll turn the call back over to Jeff .
Operator: Thank you. To ask a question, you may press Star, then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press Star then two. Once again, if you have a question, please press Star then one. The first question comes from Tim Mullen with Laurelton Management.
Operator: Thank you. To ask a question, you may press Star, then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys.
Speaker #3: Thanks , Rich . At this time , we're pleased to address any questions you may have . Operator , please open the phone lines for questions .
Speaker #1: Thank To ask a you . question , you may press star then one on your telephone keypad . If you're using a speakerphone , please pick up your handset before pressing the keys .
Operator: If at any time your question has been addressed and you would like to withdraw your question, please press Star then two. Once again, if you have a question, please press Star then one. The first question comes from Tim Mullen with Laurelton Management.
Speaker #1: If at any time your question has been addressed and you would like to withdraw your question , press please star then two . Once again , if you have a please press question , star .
Speaker #1: Then one . The first question comes from Tim with Lauren Holt , Mullen management .
Tim Mullen: Hey, guys. Just wondering if you had any commentary, given we're now a month in, a little over a month into Q2 for the fiscal year, given obviously, this cold weather has persisted, in terms of how it's going operationally or any other kind of general commentary you can provide? Thanks.
Timothy Mullen: Hey, guys. Just wondering if you had any commentary, given we're now a month in, a little over a month into Q2 for the fiscal year, given obviously, this cold weather has persisted, in terms of how it's going operationally or any other kind of general commentary you can provide? Thanks.
Speaker #5: Hey guys , just wondering if you commentary given had any we're a month in a little over a month the into second quarter for the fiscal year , given obviously this cold weather is persisted .
Jeff Woosnam: Sure, Tim. Yeah. I mean, obviously, January was colder than normal. February is starting off that way, and we've got a pretty strong forecast in front of us. And we've been dealing with, you know, with some storms. So conditions have definitely been a challenge for us, but, you know, frankly, this is what we're built for as a full-service provider, and this is what we plan for. So, I'm just always amazed at how our employees really just step up and get a lot of satisfaction out of taking care of our customers. So, I feel very good about our current position right now, given some very difficult conditions.
Jeff Woosnam: Sure, Tim. Yeah. I mean, obviously, January was colder than normal. February is starting off that way, and we've got a pretty strong forecast in front of us. And we've been dealing with, you know, with some storms.
Speaker #5: In terms of how it's going operationally, or any other kind of general commentary you provide, can—thanks.
Speaker #3: Tim . Short , Yeah . I mean , obviously January was was colder than normal . February is starting off that way . And we've got a pretty strong forecast in front of us we've been , and dealing with with , you know , some some storms .
Jeff Woosnam: So conditions have definitely been a challenge for us, but, you know, frankly, this is what we're built for as a full-service provider, and this is what we plan for.
Jeff Woosnam: So, I'm just always amazed at how our employees really just step up and get a lot of satisfaction out of taking care of our customers. So, I feel very good about our current position right now, given some very difficult conditions.
Speaker #3: conditions have definitely been a So challenge for us . But you know , frankly this is what we're built for as a full service provider .
Speaker #3: And this is what we plan for . So I'm always just amazed at how our employees really just step up and get a lot of of taking satisfaction out care of our customers .
Speaker #3: So I feel good about our very good current position right now, given some very difficult conditions.
Tim Mullen: Great. Thanks. Congrats on a good quarter.
Timothy Mullen: Great. Thanks. Congrats on a good quarter.
Jeff Woosnam: Sure.
Jeff Woosnam: Sure.
Operator: Once again, if you have a question, please press star then one. At this point, there are nobody in the queue, so turn it back to Jeff Woosnam for any closing remarks. Please go ahead.
Operator: Once again, if you have a question, please press star then one. At this point, there are nobody in the queue, so turn it back to Jeff Woosnam for any closing remarks. Please go ahead.
Speaker #5: Great. Thanks. Congrats on the quarter.
Speaker #6: Sure .
Speaker #1: again , if you have a Once question , please press star . Then one . At this point nobody in there are the queue , so I'll turn it back to Jeffrey Woosnam for any closing remarks .
Jeff Woosnam: Well, thank you for taking the time to join us today and your ongoing interest in Star Group. We look forward to sharing our 2026 fiscal second quarter results in May. Thanks, everybody.
Jeff Woosnam: Well, thank you for taking the time to join us today and your ongoing interest in Star Group. We look forward to sharing our 2026 fiscal second quarter results in May. Thanks, everybody.
Speaker #1: Please go ahead .
Speaker #3: Well, thank you for taking the time to join us today and for your ongoing interest in Star Group. We look forward to sharing our 2026 fiscal results for the second quarter in May.
Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.
Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.
