Star Group, L.P. Q3 FY2025 earnings call

Management Statement and Operational Highlights

• Jeff noted the third quarter was negatively impacted by lower volume due to warmer temperatures, but service and installation performance improved, and adjusted EBITDA from acquisitions contributed. The company is dedicated to superior service to drive retention and revenue, investing in training for sales and technical teams.
• Rich discussed third quarter financials: net loss of $16.6 million, adjusted EBITDA loss increased to $10.6 million. Year-to-date, volume increased, product gross profit rose, service and installation gross profit improved, but expenses related to weather hedging and acquisitions increased.

Segment Performance

• Third Quarter (Fiscal 2025): Home heating oil and propane volume decreased by 1.5 million gallons or 3.8% to 36 million gallons. Product gross profit decreased by $3 million or 4% to $72 million. Service and installation gross profit was $14 million, $600,000 higher than the prior year's comparable quarter.
• Year-to-Date (Fiscal 2025): Home heating oil and propane volume increased by 28 million gallons or 12% to 263 million gallons. Product gross profit rose by $55 million or 13% to $480 million. Service and installation gross profit increased by $4.8 million year-to-date, with $2.7 million from acquisitions and $2.1 million from base business initiatives.

Guidance

• Jeff stated the company is on track for strong financial performance in fiscal 2025. The company looks forward to sharing fiscal 2025 fiscal fourth quarter results in December.

Risks

• Forward-looking statements involve risks and uncertainties, including factors that could cause actual results to differ materially from expectations, as disclosed in the company's SEC filings.

Question and Answer

Q: Update on acquisition pipeline and AI applications.

A: Jeff said 4 acquisitions closed so far in fiscal year, with an active pipeline. Regarding AI, they use it in customer interface, balancing personal touch with AI assistance to serve customers as they prefer.