Star Group 2025 Q2 Earnings Strong Performance as Net Income Climbs 25.6%

Star Group (SGU) reported its fiscal 2025 Q2 earnings on May 7th, 2025. The company recorded an 11.6% revenue increase, reaching $743.04 million, up from $666.03 million in 2024 Q2. Net income rose by $17.54 million to $85.91 million, reflecting a 25.6% increase. The earnings per share (EPS) rose to $2.01, marking a 28.8% improvement from $1.56 in the previous year. The results were in line with expectations, showcasing the company's consistent growth and strategic acquisitions.

Revenue
Star Group's revenue reached $743.04 million in Q2 2025, an 11.6% increase from the previous year. The product segment was the major contributor, generating $665.11 million, while installations and services added $77.94 million. This diverse revenue stream highlights the company's robust performance across its business segments.

Earnings/Net Income
In Q2 2025, Star Group's net income grew to $85.91 million, a 25.6% increase from $68.37 million in Q2 2024. The EPS also saw a significant rise of 28.8%, reaching $2.01 from the previous year's $1.56. These results indicate strong financial health and effective growth strategies.

Price Action
The stock price of Star Group has edged up 0.72% during the latest trading day, has edged up 1.37% during the most recent full trading week, and has dropped 3.15% month-to-date.

Post-Earnings Price Action Review
Over the past five years, buying Star Group shares post-revenue increase and holding them for 30 days has yielded a notable return of 111.12%, significantly outperforming the US market's 9.3% return. This strategy leverages the company's consistent quarterly revenue growth, which averaged 10.6% annually, providing a reliable catalyst for stock price appreciation. This approach has proven effective due to the immediate market optimism following revenue announcements, indicating strong future prospects. Consequently, Star Group's revenue growth is not only robust but also positively reflected in its stock performance, making it an appealing investment for those seeking growth and liquidity.

CEO Commentary
Star Group, L.P. President and Chief Executive Officer Jeff Woosnam noted that the company's performance in the second quarter was positively impacted by colder weather and recent acquisitions, leading to a nearly 23 percent increase in home heating oil and propane volumes. He highlighted that the company completed $126.5 million in acquisitions since February 1, 2024, and recently raised the annual dividend by 5 cents to 74 cents per unit. Woosnam emphasized a focus on operational execution, efficiency, and customer service as the company approaches the end of the heating season, expressing satisfaction with year-to-date results and anticipation for future service enhancements.

Guidance
Star Group anticipates continued operational focus and efficiency as it approaches the end of the heating season. The company remains committed to expanding its HVAC business and enhancing customer service while managing the impacts of recent acquisitions and weather conditions on performance. The outlook is characterized by optimism regarding growth potential and the ability to navigate challenges stemming from market dynamics and pricing pressures.

Additional News
In recent developments, Star Group has been actively enhancing its strategic position through acquisitions. Since February 2024, the company has completed $126.5 million in acquisitions, bolstering its market presence and operational capacity. Additionally, in a move reflecting confidence in its financial stability and growth, Star Group announced a 5-cent increase in its annual dividend, raising it to 74 cents per unit. This marks the 13th consecutive year of dividend growth, underscoring the company's commitment to delivering value to its shareholders.