{"url_path":"/sec/sgu/8-k/2026-02-04/body","section_key":"body","section_title":"Body","topic":"sec","document":{"doc_type":"8-K","doc_date":"2026-02-04","source_url":"https://www.sec.gov/Archives/edgar/data/1002590/0001171843-26-000628-index.html","accession_number":"0001171843-26-000628","cik":"0001002590","ticker":"SGU","issuer_name":"STAR GROUP, L.P.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1002590/0001171843-26-000628-index.html","primary_entity_key":"0001002590","primary_entity_name":"STAR GROUP, L.P."},"word_count":2115,"has_tables":true,"body_markdown":"EX-99.1\n2\nexh_991.htm\nEXHIBIT 99.1\n\nEdgarFiling\n**EXHIBIT 99.1**\n\n**Star Group, L.P. Reports Fiscal 2026 First Quarter Results**\n\n****\n\nSTAMFORD, Conn., Feb. 04, 2026 (GLOBE NEWSWIRE) -- Star Group, L.P. (the \"Company\" or \"Star\") (NYSE:SGU), a home energy distributor and services provider, today filed its fiscal 2026 quarterly report on Form 10-Q with the SEC and announced financial results for its fiscal 2026 first quarter, the three months ended December 31, 2025.\n\n**Three Months Ended December 31, 2025 Compared to the Three Months Ended December 31, 2024**\nFor the fiscal 2026 first quarter, Star reported a 10.5 percent increase in total revenue to $539.3 million compared with $488.1 million in the prior-year period, reflecting higher product volumes and an increase in service and installation revenue. The volume of home heating oil and propane sold during the fiscal 2026 first quarter rose by 11.5 million gallons, or 13.9 percent, to 93.9 million gallons, as the additional volume provided from acquisitions and colder temperatures was reduced by the impact of net customer attrition and other factors. Temperatures in Star's geographic areas of operation for the three months ended December 31, 2025 were 18.8 percent colder than the three months ended December 31, 2024 and 6.1 percent colder than normal, as reported by the National Oceanic and Atmospheric Administration.\n\nStar’s net income rose by $2.9 million in the quarter, to $35.8 million, primarily due to a $16.5 million increase in Adjusted EBITDA, partially offset by an unfavorable change in the fair value of derivative instruments of $10.7 million, a $1.4 million increase in income taxes, $0.9 million higher depreciation and amortization expense, and a $0.8 million increase in net interest expense.\n\nThe Company reported first quarter Adjusted EBITDA (a non-GAAP measure defined below) of $68.4 million, versus Adjusted EBITDA of $51.9 million in the first quarter of fiscal 2025, reflecting a $16.8 million increase in Adjusted EBITDA in the base business and $4.7 million increase in Adjusted EBITDA from recent acquisitions, partially offset by a $5.0 million increase in expense related to the Company's weather hedge contracts. Temperatures in Star’s geographic areas of operation, from November through December of 2025, were colder than the strike prices and, therefore, the Company recorded an expense under the weather hedge contracts of $5.0 million, as compared to no expense (or benefit) for the three months ended December 31, 2024.\n\n“Fiscal 2026 has started off very well, as our performance benefited from recent acquisitions, effective physical supply and per-gallon margin management, the continued expansion of our service and installation initiative and, last but not least, temperatures that were almost 20 percent colder than last year and 6 percent colder than normal. 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 percent year-over-year, net of a $5.0 million charge tied to our weather hedge program.” said Jeff Woosnam, Star Group’s President and Chief Executive Officer. “The cold weather has continued, thus far, into the second quarter, and I’m very proud of the way our employees have responded to the added demand. We remain vigilant in providing excellent customer service, keeping costs down, and growing installation & service profitability going forward.”\n\n**EBITDA and Adjusted EBITDA (Non-GAAP Financial Measures)**\nEBITDA (Earnings from continuing operations before net interest expense, income taxes, depreciation and amortization) and Adjusted EBITDA (Earnings from continuing operations before net interest expense, income taxes, depreciation and amortization, (increase) decrease in the fair value of derivatives, other income (loss), net, multiemployer pension plan withdrawal charge, gain or loss on debt redemption, goodwill impairment, and other non-cash and non-operating charges) are non-GAAP financial measures that are used as supplemental financial measures by management and external users of the Company’s financial statements, such as investors, commercial banks and research analysts, to assess Star’s position with regard to the following:\n\ncompliance with certain financial covenants included in our debt agreements;\n\nfinancial performance without regard to financing methods, capital structure, income taxes or historical cost basis;\n\noperating performance and return on invested capital compared to those of other companies in the retail distribution of refined petroleum products, without regard to financing methods and capital structure;\n\nability to generate cash sufficient to pay interest on our indebtedness and to make distributions to our partners; and\n\nthe viability of acquisitions and capital expenditure projects and the overall rates of return of alternative investment opportunities.\n\nThe method of calculating Adjusted EBITDA may not be consistent with that of other companies, and EBITDA and Adjusted EBITDA both have limitations as analytical tools and so should not be viewed in isolation but in conjunction with measurements that are computed in accordance with GAAP. Some of the limitations of EBITDA and Adjusted EBITDA are as follows:\n\nEBITDA and Adjusted EBITDA do not reflect cash used for capital expenditures;\n\nalthough depreciation and amortization are non-cash charges, the assets being depreciated or amortized often will have to be replaced and EBITDA and Adjusted EBITDA do not reflect the cash requirements for such replacements;\n\nEBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, working capital;\n\nEBITDA and Adjusted EBITDA do not reflect the cash necessary to make payments of interest or principal on indebtedness; and\n\nEBITDA and Adjusted EBITDA do not reflect the cash required to pay taxes.\n\n**REMINDER:**\nMembers of Star's management team will host a webcast and conference call at 11:00 a.m. Eastern Time tomorrow, February 5, 2026. The webcast will be accessible on the company’s website, at www.stargrouplp.com, and the telephone number for the conference call is 888-346-3470 (or 412-317-5169 for international callers).\n\n**About Star Group, L.P.**\nStar Group, L.P. is a full service provider specializing in the sale of home heating products and services to residential and commercial customers to heat their homes and buildings. The Company also sells and services heating and air conditioning equipment to its home heating oil and propane customers and, to a lesser extent, provides these offerings to customers outside of its home heating oil and propane customer base. Star also sells diesel, gasoline and home heating oil on a delivery only basis. We believe Star is the nation's largest retail distributor of home heating oil based upon 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 by obtaining the Company's SEC filings at www.sec.gov and by visiting Star's website at www.stargrouplp.com, where unit holders may request a hard copy of Star’s complete audited financial statements free of charge.\n\n**Forward Looking Information**\nThis news release includes \"forward-looking statements\" which represent the Company’s expectations or beliefs concerning future events that involve risks and uncertainties, including the impact of geopolitical events on wholesale product cost volatility, tariff regimes, including newly imposed U.S. tariffs and any additional responsive non-U.S. tariffs or additional U.S. tariffs, the price and supply of the products that we sell, our ability to purchase sufficient quantities of product to meet our customer’s needs, rapid increases in levels of inflation, the consumption patterns of our customers, our ability to obtain satisfactory gross profit margins, the effect of weather conditions on our financial performance, our ability to obtain new customers and retain existing customers, our ability to make strategic acquisitions, the impact of litigation, natural gas conversions and electrification of heating systems, pandemic and future global health pandemics, recessionary economic conditions, future union relations and the outcome of current and future union negotiations, the impact of current and future governmental regulations, including federal, state and municipal laws restricting greenhouse gases (\"GHG\") emissions and federal, state and local environmental, health, and safety regulations, the ability to attract and retain employees, customer credit worthiness, counterparty credit worthiness, marketing plans, cyber-attacks, global supply chain issues, labor shortages and new technology, including alternative methods for heating and cooling residences. All statements other than statements of historical facts included in this Report including, without limitation, the statements under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere herein, are forward-looking statements. Without limiting the foregoing, the words “believe,” “anticipate,” “plan,” “expect,” “seek,” “estimate,” and similar expressions are intended to identify forward-looking statements. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Actual results may differ materially from those projected as a result of certain risks and uncertainties. These risks and uncertainties include, but are not limited to, those set forth under the heading \"Risk Factors\" and \"Business Strategy\" in our Annual Report on Form 10-K (the \"Form 10-K\") for the fiscal year ended September 30, 2025. Important factors that could cause actual results to differ materially from the Company’s expectations (\"Cautionary Statements\") are disclosed in this news release and in the Company’s Form 10-K and our Quarterly Reports on Form 10-Q. 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 update or revise any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this news release.\n\n \n\n(financials follow)\n\n**STAR GROUP, L.P. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS**\n\n     \n\n  **December 31,** **September 30,**\n\n**(in thousands)** **2025**\n **2025**\n\n**ASSETS** **(unaudited)**  \n\n**Current assets**    \n\nCash and cash equivalents $19,857  $24,683 \n\nReceivables, net of allowance of $7,164 and $7,196, respectively  198,210   102,119 \n\nInventories  69,559   47,022 \n\nFair asset value of derivative instruments  —   790 \n\nPrepaid expenses and other current assets  37,190   32,667 \n\nTotal current assets  324,816   207,281 \n\nProperty and equipment, net  127,729   128,605 \n\nOperating lease right-of-use assets  97,508   93,264 \n\nGoodwill  293,350   293,350 \n\nIntangibles, net  120,099   124,892 \n\nRestricted cash  250   250 \n\nCaptive insurance collateral  78,997   78,189 \n\nDeferred charges and other assets, net  11,280   11,500 \n\nTotal assets $1,054,029  $937,331 \n\n**LIABILITIES AND PARTNERS’ CAPITAL**    \n\n**Current liabilities**    \n\nAccounts payable $54,551  $33,667 \n\nRevolving credit facility borrowings  71,870   — \n\nFair liability value of derivative instruments  8,388   1,398 \n\nCurrent maturities of long-term debt  21,000   21,000 \n\nCurrent portion of operating lease liabilities  21,376   19,934 \n\nAccrued expenses and other current liabilities  127,283   119,497 \n\nUnearned service contract revenue  77,994   66,927 \n\nCustomer credit balances  59,263   86,810 \n\nTotal current liabilities  441,725   349,233 \n\nLong-term debt  161,938   167,118 \n\nLong-term operating lease liabilities  80,239   77,206 \n\nDeferred tax liabilities, net  32,064   30,823 \n\nOther long-term liabilities  16,216   16,171 \n\n**Partners’ capital**    \n\nCommon unitholders  339,568   314,733 \n\nGeneral partner  (6,660)  (6,605)\n\nAccumulated other comprehensive loss, net of taxes  (11,061)  (11,348)\n\nTotal partners’ capital  321,847   296,780 \n\nTotal liabilities and partners’ capital $1,054,029  $937,331 \n\n   \n\n**STAR GROUP, L.P. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**\n\n   \n\n  **Three MonthsEnded December 31,**\n\n**(in thousands, except per unit data - unaudited)** **2025** **2024**\n\nSales:    \n\nProduct $447,983  $399,459 \n\nInstallations and services  91,273   88,604 \n\nTotal sales  539,256   488,063 \n\nCost and expenses:    \n\nCost of product  268,538   248,699 \n\nCost of installations and services  85,678   81,665 \n\n(Increase) decrease in the fair value of derivative instruments  5,395   (5,258)\n\nDelivery and branch expenses  109,937   99,327 \n\nDepreciation and amortization expenses  8,755   7,903 \n\nGeneral and administrative expenses  7,593   7,183 \n\nFinance charge income  (878)  (675)\n\nOperating income  54,238   49,219 \n\nInterest expense, net  (3,819)  (3,011)\n\nAmortization of debt issuance costs  (262)  (300)\n\nIncome before income taxes $50,157  $45,908 \n\nIncome tax expense  14,367   13,024 \n\nNet income $35,790  $32,884 \n\nGeneral Partner’s interest in net income  349   307 \n\nLimited Partners’ interest in net income $35,441  $32,577 \n\n     \n\n     \n\nPer unit data (Basic and Diluted):    \n\nNet income available to limited partners $1.07  $0.94 \n\nDilutive impact of theoretical distribution of earnings  0.18   0.15 \n\nBasic and diluted income per Limited Partner Unit: $0.89  $0.79 \n\n     \n\nWeighted average number of Limited Partner units outstanding (Basic and Diluted)  33,084   34,587 \n\n   \n\n**SUPPLEMENTAL INFORMATIONSTAR GROUP, L.P. AND SUBSIDIARIESRECONCILIATION OF EBITDA AND ADJUSTED EBITDA(Unaudited)**\n\n   \n\n  **Three MonthsEnded December 31,**\n\n**(in thousands)** **2025**  **2024** \n\nNet income $35,790  $32,884 \n\nPlus:    \n\nIncome tax expense  14,367   13,024 \n\nAmortization of debt issuance costs  262   300 \n\nInterest expense, net  3,819   3,011 \n\nDepreciation and amortization  8,755   7,903 \n\nEBITDA  62,993   57,122 \n\n(Increase) / decrease in the fair value of derivative instruments  5,395   (5,258)\n\nAdjusted EBITDA  68,388   51,864 \n\n**Add / (subtract)**    \n\nIncome tax expense  (14,367)  (13,024)\n\nInterest expense, net  (3,819)  (3,011)\n\n(Recovery) provision for losses on accounts receivable  (267)  182 \n\nIncrease in accounts receivables  (95,827)  (81,476)\n\nIncrease in inventories  (22,537)  (26,670)\n\nDecrease in customer credit balances  (27,547)  (16,199)\n\nChange in deferred taxes  1,142   2,667 \n\nChange in other operating assets and liabilities  39,652   21,103 \n\nNet cash used in operating activities $(55,182) $(64,564)\n\nNet cash used in investing activities $(4,959) $(4,652)\n\nNet cash provided by financing activities $55,315  $673 \n\n     \n\n     \n\nHome heating oil and propane gallons sold  93,900   82,400 \n\nOther petroleum products  29,900   30,700 \n\nTotal all products  123,800   113,100 \n\n     \n\nCONTACT: \n\nStar Group, L.P.Chris Witty\n\nInvestor RelationsDarrow Associates\n\n203/328-7310646/438-9385 or cwitty@darrowir.com"}