Star Group, L.P. reported a significant deterioration in profitability for the third quarter of fiscal year 2026 (Q3FY26), with earnings per share (EPS) loss widening by 75 percent to $(0.84) from $(0.48) in the prior-year period. Despite top-line growth, total revenue rose 17.2 percent to $358.1 million, primarily driven by higher wholesale product costs passed through to average selling prices rather than volume growth. The divergence between revenue and earnings highlights margin pressure and operational challenges during the non-heating season, as net customer attrition offset benefits from colder temperatures and acquisitions.

The company’s net loss increased by $11.4 million to $28.0 million, largely attributed to an unfavorable $8.6 million change in the fair value of derivative instruments and a $7.1 million increase in Adjusted EBITDA loss. Operational headwinds included a 9.4 percent decline in home heating oil and propane volumes sold, which fell to 32.8 million gallons compared to 36.2 million gallons in Q3FY25. Although temperatures were 15.9 percent colder than the prior year, the impact was muted in the shoulder months of April and May, leading to lower demand than expected.

Financial Performance Overview

The key financial metrics for Star Group’s third quarter are detailed below:

What the Numbers Show

The most critical observation is the inverse relationship between revenue performance and profitability, exacerbated by non-operational factors. While revenue grew significantly, it was price-driven rather than volume-driven, indicating that Star Group successfully passed on higher wholesale costs but failed to convert this into operational profit. The $8.6 million hit from derivative fair value changes underscores the volatility inherent in energy hedging strategies. Furthermore, the $6.2 million increase in insurance-related expenses within operating costs suggests rising structural overheads that are eroding margins even as per-gallon margins on home heating oil improved slightly. Investors should monitor whether these cost pressures persist into the peak heating season.

Nine-Month Perspective

For the nine months ended June 30, 2026, Star Group reported a more favorable trend, with net income increasing by $13.9 million to $116.1 million. Revenue for the period rose 8.3 percent to $1.7 billion, supported by higher product volumes sold overall, including an 8.6 million gallon increase in home heating oil and propane. Adjusted EBITDA for the nine-month period increased by $19.9 million to $189.3 million, reflecting stronger performance during the winter months when colder weather drove higher demand. This contrast highlights the seasonal nature of the business, where Q3 results are typically weaker due to reduced heating needs.

Jeff Woosnam, President and Chief Executive Officer of Star Group, noted that the quarterly results reflected typical seasonal factors and net attrition. He emphasized that the company is actively assessing acquisition opportunities and investing in its service and installation business to prepare for the upcoming winter months, aiming to streamline operations and improve efficiency.

Star Group, L.P., a leading home energy distributor and services provider, will release its fiscal 2026 third quarter results after the close of trading on August 5, 2026. The announcement follows the conclusion of the three months ended June 30, 2026. Investors and analysts will gain insight into the company’s performance in the home heating oil and propane sectors during this period.

To discuss the financial results, members of Star’s management team will host a webcast and conference call at 11:00 a.m. Eastern Time on August 6, 2026. The webcast will be accessible on the company’s website at www.stargrouplp.com . Participants can join the conference call by dialing 888-346-3470, or 412-317-5169 for international callers.

Event Details

The following table outlines the key dates and access information for the earnings release and subsequent management discussion:

Business Overview

Star Group, L.P. specializes in the sale of home heating products and services to residential and commercial customers. The company sells and services heating and air conditioning equipment to its home heating oil and propane customers. Additionally, Star provides these offerings to a lesser extent to customers outside its core base. The company also sells diesel, gasoline, and home heating oil on a delivery-only basis.

Star believes it is the nation’s largest retail distributor of home heating oil based on sales volume. Including its propane locations, Star serves customers in the more northern and eastern states within the Northeast and Mid-Atlantic U.S. regions. Additional information is available through the company’s SEC filings at www.sec.gov and its website.

Forward-Looking Statements

The news release includes forward-looking statements representing the company’s expectations concerning future events. These statements involve risks and uncertainties, including the impact of geopolitical events on wholesale product cost volatility, tariff regimes, and newly imposed U.S. tariffs. Other factors include the price and supply of products, inflation levels, customer consumption patterns, and weather conditions.

Further risks cited include the ability to obtain satisfactory gross profit margins, retain customers, make strategic acquisitions, and manage litigation. The company also notes potential impacts from natural gas conversions, electrification of heating systems, pandemics, recessionary economic conditions, union relations, and governmental regulations restricting greenhouse gas emissions. These statements are qualified by cautionary disclosures in the company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2025, and Quarterly Reports on Form 10-Q.