Star Group, L.P. (NYSE: SGU) reported higher consolidated revenue and net income for the first quarter of fiscal 2026, driven by increased product volumes and higher service and installation revenue.
For the three months ended Dec. 31, 2025, consolidated revenue rose 10.5% year over year to $539.3 million, compared with $488.1 million in the prior-year period. Net income increased to $35.8 million from $32.9 million a year earlier. Net income attributable to limited partners was $35.4 million, compared with $32.6 million in the prior year.
Sales of home heating oil and propane increased to 93.9 million gallons, up 13.9% from the prior year. The increase reflected additional volumes from acquisitions and colder temperatures, partly offset by customer attrition and other factors. Temperatures in the company’s operating regions were 18.8% colder than the year-earlier period and 6.1% colder than normal.
Adjusted EBITDA for the quarter increased to $68.4 million from $51.9 million a year earlier. The increase included contributions from the base business and recent acquisitions, partly offset by higher costs related to weather hedge contracts.
Segment and operating details
Product sales revenue increased to $448.0 million from $399.5 million in the prior year. Installations and services revenue rose to $91.3 million from $88.6 million. Cost of product sold increased to $268.5 million from $248.7 million, while delivery and branch expenses rose to $109.9 million from $99.3 million.
Operating income increased to $54.2 million from $49.2 million. Interest expense, net, rose to $3.8 million from $3.0 million. Depreciation and amortization expense increased to $8.8 million from $7.9 million.
The company recorded an expense of $5.0 million under its weather hedge contracts during the quarter, compared with no expense or benefit in the prior-year period.
Full-year context
The company did not provide full-year fiscal 2026 revenue or profit figures in the filing. The quarterly results reflect growth relative to the same period of fiscal 2025.
Business and operations update
Star Group reported continued expansion of its service and installation initiatives during the quarter. The company also cited the impact of colder-than-normal temperatures on product demand. No new regulatory changes or operational restructuring were disclosed in the filing.
M&A and strategic activity
The company referenced recent acquisitions contributing to quarterly volumes and Adjusted EBITDA. No new transactions were announced in the filing.
Guidance and outlook
The filing did not include numerical financial guidance. Management referenced ongoing operational focus areas, including customer service, cost control, and installation and service profitability. Forward-looking statements were noted as subject to risks and uncertainties.
Performance summary
Star Group reported higher first-quarter revenue and net income year over year. Product volumes increased, supported by colder weather and acquisitions. Adjusted EBITDA rose from the prior year. Operating expenses and interest costs increased. The company reiterated operational priorities without issuing formal guidance
