How did Star Group's revenue and expenses shift in Q1 2025?
5/9/2025 01:16am
**Star Group's Revenue and Expenses Shift in Q1 2025**:
1. **Revenue Increase**: Star Group reported a total revenue of $743.05 million for the first quarter of fiscal 2025. This represents a significant surge in revenue compared to the previous year, primarily driven by lower average petroleum prices and an 18.4% decline in wholesale petroleum prices, which led to a cost of products sold decrease from $303.3 million to $248.7 million.
|code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|SGU|SGU.N|Star Group|2024 Q2|-9.704901052985493|6.66032E8|169|
|SGU|SGU.N|Star Group|2024 Q3|10.50209748734677|3.3164E8|169|
|SGU|SGU.N|Star Group|2024 Q4|-9.967145805939229|2.40331E8|169|
|SGU|SGU.N|Star Group|2025 Q1|-7.580629279524935|4.88063E8|169|
2. **Expenses Analysis**: The company's expenses were influenced by acquisition-related activities, leading to a 5.3% year-over-year increase in delivery and branch expenses, amounting to $99.3 million. Despite this, the overall financial performance showed a gross profit improvement in service and installation operations, reaching $6.9 million compared to $4.4 million in the prior year, reflecting enhanced operational performance and contributions from acquisitions.
3. **Comparative Performance**: Star Group's shares experienced a 1.5% decline since the earnings report, which compares favorably with the S&P 500's 0.6% decline over the same time frame. This indicates a relative strength of the stock despite the negative market sentiment, likely due to the strong revenue growth and operational improvements.
4. **Strategic Implications**: The acquisition of Cato's home heat and commercial fuels division in March 2025 is expected to further strengthen Star Group's position in the market, particularly in Maryland, Delaware, and Virginia. This strategic move is likely to bolster the company's customer base and market share, supporting continued revenue growth and operational efficiency.
In conclusion, Star Group demonstrated robust revenue growth in Q1 2025, driven by strategic acquisitions and favorable market conditions, while managing expenses effectively to enhance profitability.