Star Group 2025 Q3 Earnings Deepening Losses Amid Warmer Weather

Star Group (SGU) reported its fiscal 2025 Q3 earnings on Aug 06th, 2025. The results fell short of expectations, with the company posting a wider net loss and declining revenue. While management remains confident in long-term growth through acquisitions and diversification, there were no material guidance adjustments or earnings-beating results reported.

Revenue
Star Group’s total revenue declined by 7.8% year-over-year to $305.62 million in Q3 2025, reflecting a 3.8% drop in the volume of home heating oil and propane sold, which fell to 36.2 million gallons. The decline was attributed to warmer weather, customer attrition, and lower selling prices driven by a 14.3% year-over-year reduction in wholesale product costs.

Earnings/Net Income
The company’s financial performance deteriorated further, with a net loss of $16.63 million in Q3 2025, a 50.6% increase from the $11.04 million loss in the prior-year period. On a per-share basis, the loss widened to $0.48 from $0.31, representing a 54.8% increase in the loss per share. The Adjusted EBITDA loss also deepened to $10.6 million from $4.1 million, driven by lower per-gallon margins and weaker sales volume. The earnings and net income figures reflect a continued challenging quarter with deteriorating profitability.

Price Action
The stock price of Star Group edged down 0.08% during the latest trading day but rose 1.37% over the most recent full trading week and gained 0.59% month-to-date. The mixed price action reflects ongoing investor evaluation of the company’s strategic moves amid volatile weather conditions.

Post-Earnings Price Action Review
A strategy of buying Star Group (SGU) shares after a revenue increase quarter-over-quarter on the financial report release date and holding for 30 days yielded a 48.37% return over the past three years. This approach slightly underperformed the benchmark by 0.21% but demonstrated a low-risk profile with a maximum drawdown of 0% and a Sharpe ratio of 0.41. The consistent returns suggest that the stock can offer steady growth for risk-averse investors, despite its recent earnings challenges.

CEO Commentary
Jeff Woosnam, President and CEO, acknowledged the impact of warmer temperatures and customer attrition on Q3 results but highlighted continued improvements in service and installation performance. He emphasized the positive contribution of acquired propane assets, which are less seasonal, to both the quarter and year-to-date results. Woosnam reiterated the company’s focus on growing its propane and heating oil customer base, improving service and installation profitability, and building a more diversified and resilient energy provider.

Guidance
Star Group did not provide specific financial guidance for the full fiscal year but remains optimistic about delivering solid 2025 performance. The company expects acquisition-related Adjusted EBITDA to continue contributing positively and anticipates stable net customer attrition. Management is focused on long-term resilience through strategic diversification and operational improvements.

Additional News
On Aug 7, 2025, Star Group reported its fiscal 2025 third-quarter results, revealing a 7.8% decline in total revenue to $305.6 million and a net loss of $16.6 million, compared to $11 million in the prior year. The company experienced a 3.8% drop in heating oil and propane volume sold, primarily due to warmer weather and customer attrition. However, the nine-month performance showed improvement, with a $31.9 million increase in net income to $102.2 million and a $28.2 million year-to-date rise in Adjusted EBITDA to $169.5 million. The acquisition strategy contributed to both quarterly and year-to-date results, supporting management’s goal of reducing weather sensitivity and building a more resilient business.