STAR GROUP, L.P.
For the period ended Sep 30, 2025. Filed Dec 9, 2025.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2025 · Filed Dec 9, 2025
SGU$13.18+0.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2024-09-30; filed 2024-12-04.
0000950170-24-133269
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-K
Period ended 2025-09-30; filed 2025-12-09.
0001193125-25-311490
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 137 previous paragraphs and 145 current paragraphs.
91 unchanged; 43 reworded; 10 added; 3 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 13 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
New Federal Income Tax Legislation
Current report
On July 4, 2025, the One Big Beautiful Bill Act was signed into law in the U.S., which contains several changes to corporate taxation including changes to depreciation deductions, deductions for interest expense and reinstated 100% bonus depreciation on fixed assets acquired and placed in service after January 19, 2025.
Current report
Tariffs
Current report
In April 2025, the U.S. government announced a baseline tariff of 10% on certain products imported from all countries and an additional individualized reciprocal tariff on some countries, including Canada and China. Current uncertainties about tariffs and their effects on trading relationships may affect the cost and availability of the Company's assets, such as trucks, and potentially the products and services we sell as well as potentially contribute to inflation in the markets in which we operate. Although we are continuing to monitor the economic effects of such announcements, as well as opportunities to mitigate their related impacts, costs and other effects associated with the tariffs remain uncertain.
Current report
Increases in State Law Minimum Biofuel Blending Requirements
Current report
Commencing July 1, 2025, the minimum percentage of biodiesel that is required be blended with home heating oil sold for heating purposes in buildings located in the States of New York and Connecticut (where a significant portion of our customers are located) was increased from 5% to 10%. In Rhode Island, the minimum required biodiesel blend increased from 10% to 20%, also commencing July 1, 2025. Depending upon the relationship of home heating oil and biodiesel, these regulations may decrease or increase the cost of home heating oil for Star and our competition in New York, Connecticut or Rhode Island.
Current report
Other Income, Net
Current report
Other income, net for fiscal 2025 of $3.8 million represents the net gain on the sale of land and building at a New Jersey operating location with a carrying value of $1.0 million for net cash proceeds of $4.8 million.
Current report
During fiscal 2025, cash provided by operating activities decreased $40.0 million to $71.0 million, compared to $111.0 million provided by operating activities during fiscal 2024, as a $17.3 million increase in cash flows from operations and a $5.5 million increase of cash from the timing of accounts payable payments was more than offset by an increase in net trade receivables on a comparable basis (including accounts receivable and customer credit balance accounts) that drove a $28.9 million reduction in cash provided by operating activities. The 8.2% colder weather experienced throughout fiscal 2025, additional volume from acquisitions, and a 3.1% increase in sales for the fourth quarter of fiscal 2025 drove an increase in net trade receivables as compared to the prior year. Days sales outstanding increased slightly by 1.5 days to 37.9 days as of September 30, 2025 compared to 36.4 days as of September 30, 2024. The timing of inventory purchases further drove a $21.7 million increased cash usage compared to the prior year as we entered the 2025 heating season with a lower level of inventory than in fiscal 2024, as well as a $7.5 million reduction in cash required for collateral and settlement liabilities at derivative counterparties in the prior fiscal year that did not repeat in the current fiscal year, and $4.7 million of other net changes in working capital.
Current report
During fiscal 2025, the Company acquired certain intangible and fixed assets for $7.7 million and sold certain assets for cash proceeds of $0.3 million. The Company also sold fixed assets for cash proceeds of $5.5 million, including $4.8 million of net cash proceeds from the sale of a New Jersey operating location.
Removed paragraphs (3)
Previous report
Sale of Certain Assets
Previous report
In October 2022 we sold certain assets, which included a customer list of approximately 6,500 customers, for $2.7 million (including a deferred purchase price of $0.5 million). The following table details sales generated from the assets sold:
Previous report
During fiscal 2023, cash provided by operating activities increased $89.8 million to $123.7 million, compared to $33.9 million provided by operating activities during fiscal 2022. The increase was driven by an increase in collection of trade receivables on a comparable basis (including accounts receivable and customer credit balance accounts) of $70.8 million and a $48.1 million decrease in cash required to purchase liquid product inventory on-hand at fiscal year end primarily driven by a reduction in cost of recent inventory purchases compared to the prior year. Further contributing to the increase was a $14.0 million decrease in net cash paid for certain hedge positions and $2.5 million increase in collection of derivative settlement receivables on a comparative basis. The increase was partially offset by a $25.9 million unfavorable change in accounts payable due to the pricing and timing of inventory purchases, an $11.7 million decrease in cash flows from operations, $5.2 million more in payroll taxes paid in the first fiscal quarter of 2023 versus the first fiscal quarter of 2022 as the result of deferring payment of certain payroll tax withholdings in first quarter of fiscal 2021 to the first fiscal quarter of fiscal 2023, and $2.8 million of other net changes in working capital.
Reworded paragraphs (43)
Previous wording
This Annual Report on Form 10-K (this “Report”) includes “forward-looking statements” which represent our expectations or beliefs concerning future events that involve risks and uncertainties, including the impact of geopolitical events on wholesale product cost volatility, 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 climate change, 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 in this Report under the headings “Risk Factors,” “Business Strategy” and “Management’s Discussion and Analysis of Financial Condition and Results of Operation.” Important factors that could cause actual results to differ materially from our expectations (“Cautionary Statements”) are disclosed in this Report. 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, we undertake 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 Report.
Current wording
This Annual Report on Form 10-K (this “Report”) includes “forward-looking statements” which represent our 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 in this Report under the headings “Risk Factors,” “Business Strategy” and “Management’s Discussion and Analysis of Financial Condition and Results of Operation.” Important factors that could cause actual results to differ materially from our expectations (“Cautionary Statements”) are disclosed in this Report. 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, we undertake no obligation to update or revise …
Excerpt shortened here; the source contains the full paragraph.
Previous wording
On November 30, 2024, the NYMEX ultra low sulfur diesel contract closed at $2.19 per gallon.
Current wording
On November 28, 2025, the NYMEX ultra low sulfur diesel contract closed at $2.33 per gallon.
Previous wording
The amount of cash flow generated in any given year depends upon a variety of factors including the amount of cash income taxes required, which will increase as depreciation and amortization decreases. The amount of depreciation and amortization that we deduct for book (i.e., financial reporting) purposes will differ from the amount that the Company can deduct for Federal tax purposes. The table below compares the estimated depreciation and amortization for book purposes to the amount that we expect to deduct for Federal tax purposes, based on currently owned assets. While we file our tax returns based on a calendar year, the amounts below are based on our September 30 fiscal year, and the tax amounts include any bonus depreciation available for fixed assets purchased. However, this table does not include any forecast of future annual capital purchases.
Current wording
The amount of our cash flow generated in any given year depends upon a variety of factors including the amount of our cash income taxes. The amount of depreciation and amortization that we deduct for book (i.e., financial reporting) purposes differs from the amount that the Company can deduct for Federal tax purposes. The table below compares the estimated depreciation and amortization for book purposes to the amount that we expect to deduct for Federal tax purposes, based on currently owned assets. While we file our tax returns based on a calendar year, the amounts below are based on our September 30 fiscal year, and the tax amounts include any bonus depreciation available for fixed assets purchased and placed in service. However, this table only includes assets purchased to date, and does not include any forecast for future annual capital purchases.
Previous wording
The Company entered into weather hedge contracts for fiscal years 2023 and 2024. The hedge period runs from November 1 through March 31, taken as a whole. The “Payment Thresholds,” or strikes, are set at various levels and are referenced against degree days for the prior ten year average. Under these contracts the maximum amount the Company can receive is $12.5 million annually. For the contracts applicable to fiscal 2023, we were additionally obligated to make an annual payment capped at $5.0 million if degree days exceeded the Payment Threshold. This obligation does not exist under the contract applicable to fiscal year 2024.
Current wording
The Company entered into weather hedge contracts for fiscal year 2025 and 2024. The hedge period runs from November 1 through March 31, taken as a whole. The “Payment Thresholds,” or strikes, are set at various levels and are referenced against degree days for the prior ten year average. Under these contracts, the maximum amount the Company could have received was $15.0 million for fiscal 2025 and $12.5 million for fiscal 2024. For the contracts applicable to fiscal 2025, we were additionally obligated to make an annual payment capped at $5.0 million if degree days exceeded the Payment Threshold. This obligation did not exist under the contract applicable for fiscal 2024.
Previous wording
The temperatures experienced during the hedge period through March 31, 2024 and March 31, 2023 were warmer than the strikes in the weather hedge contracts. As a result for fiscal 2024 and 2023, the Company reduced delivery and branch expenses for the gains realized under those contracts of $7.5 million and $12.5 million, respectively. The amounts were received in full in April 2024 and April 2023, respectively.
Current wording
The temperatures experienced during the hedge period through March 31, 2025 were colder than the strikes in the weather hedge contracts. As a result in fiscal 2025, we increased delivery and branch expense by $3.1 million under those weather hedge contracts, and paid the amount in full in April 2025. By comparison, the temperatures experienced during the hedge period through March 31, 2024 were warmer than the strikes in the weather hedge contract. In fiscal 2024, we reduced delivery and branch expenses by $7.5 million under those weather hedge contracts, and received the amount in full in April 2024.
Previous wording
For fiscal 2025, the Company entered into weather hedge contracts with the similar hedge period described above. The maximum that the Company can receive is $15.0 million annually and we are additionally obligated to make an annual payment capped at $5.0 million if degree days exceed the Payment Threshold. If we had this same amount of coverage in place during fiscal 2024 we would have received $7.5 million more in April 2024.
Current wording
For fiscal 2026, the Company entered into weather hedge contracts with the similar hedge period described above. The maximum that the Company can receive is $15.0 million annually and we are obligated to make an annual payment capped at $5.0 million if degree days exceed the Payment Threshold.
Previous wording
We measure net customer attrition on an ongoing basis for our full service residential and commercial home heating oil and propane customers. Net customer attrition is the difference between gross customer losses and customers added through marketing efforts. Customers added through acquisitions are not included in the calculation of gross customer gains. However, additional customers that are obtained through marketing efforts or lost at newly acquired businesses are included in these calculations from the point of closing going forward. Customer attrition percentage calculations include customers added through acquisitions in the denominators of the calculations on a weighted average basis from the closing date. Gross customer losses are the result of a number of factors, including price competition, move-outs, credit losses, conversions to natural gas and service disruptions. When a customer moves out of an existing home, we count the “move out” as a loss, and if we are successful in signing up the new homeowner, the “move in” is treated as a gain. The impact of certain geopolitical forces on liquid product prices could increase future attrition due to higher losses from credit related issues.
Current wording
We measure net customer attrition on an ongoing basis for our full service residential and commercial home heating oil and propane customers. Net customer attrition is the difference between gross customer losses and customers added through marketing efforts. Customers added through acquisitions are not included in the calculation of gross customer gains. However, additional customers that are obtained through marketing efforts or lost at newly acquired businesses are included in these calculations from the point of closing going forward. Customer attrition percentage calculations include customers added through acquisitions in the denominators of the calculations on a weighted average basis from the closing date. Gross customer losses are the result of a number of factors, including price competition, move-outs, credit losses, conversions to natural gas and service disruptions. When a customer moves out of an existing home, we count the “move out” as a loss, and if we are successful in signing up the new homeowner, the “move in” is treated as a gain. Customers sourced by our buying group and association partners are included in our home heating oil and propane customer base. Therefore, any changes in the relationships with these partners could impact gross customer gains and losses going forward.
Previous wording
For fiscal 2023, the Company lost 14,800 accounts (net), or 3.6%, of its home heating oil and propane customer base, compared to 15,600 accounts lost (net), or 3.7%, of its home heating oil and propane customer base, during fiscal 2022. Gross customer gains were 300 accounts lower than the prior year’s comparable period, and gross customer losses were 1,100 accounts lower primarily due to reduction in the number of customer relocations.
Current wording
For fiscal 2025, the Company lost 19,600 accounts (net), or 4.7%, of its home heating oil and propane customer base, compared to 16,600 accounts lost (net), or 4.2%, of its home heating oil and propane customer base, during fiscal 2024. Gross customer gains were 2,200 accounts less than the prior year’s comparable period and gross customer losses were 800 accounts higher due largely to an increase in credit losses.
Previous wording
During fiscal 2024, we estimate that we lost (1.4%) of our home heating oil and propane accounts to natural gas and electricity conversions versus (1.6%) for fiscal 2023 and (1.5%) for fiscal 2022. Losses to natural gas and electricity in our footprint for the heating oil and propane industry could be greater or less than the Company’s estimates.
Current wording
During fiscal 2025, we estimate that we lost (1.3%) of our home heating oil and propane accounts to natural gas and electricity conversions versus (1.4%) for fiscal 2024 and (1.6%) for fiscal 2023. Losses to natural gas and electricity in our footprint for the heating oil and propane industry could be greater or less than the Company’s estimates.
Previous wording
The timing of acquisitions and the types of products sold by acquired companies impact year-over-year comparisons. Subsequent to September 30, 2024 the Company acquired a heating oil business for approximately $0.7 million. During fiscal 2024, the Company acquired one propane and four heating oil businesses for approximately $49.4 million. During fiscal 2023, the Company acquired two heating oil businesses and one propane business for approximately $19.8 million. The following tables detail the Company’s acquisition activity and the associated volume sold during the 12-month period prior to the date of acquisition.
Current wording
The timing of acquisitions and the types of products sold by acquired companies impact year-over-year comparisons. During fiscal 2025, the Company acquired one heating oil business and three propane businesses for approximately $80.5 million. During fiscal 2024, the Company acquired one propane business and four heating oil businesses for approximately $49.4 million. The following tables detail the Company’s acquisition activity and the associated volume sold during the 12-month period prior to the date of acquisition.
Previous wording
For fiscal 2024, the retail volume of home heating oil and propane sold decreased by 5.8 million gallons, or 2.2%, to 253.4 million gallons, compared to 259.2 million gallons for fiscal 2023. For those locations where we had existing operations during both periods, which we sometimes refer to as the “base business” (i.e., excluding acquisitions), temperatures (measured on a heating degree day basis) for fiscal 2024 were less than 0.1% warmer than fiscal 2023 and 15.1% warmer than normal, as reported by NOAA. For fiscal 2024, net customer attrition for the base business was 4.2%. The impact of fuel conservation, along with any period-to-period differences in delivery scheduling, the timing of accounts added or lost during the fiscal years, equipment efficiency, and other volume variances not otherwise described, are included in the chart below under the heading “Other.” An analysis of the change in the retail volume of home heating oil and propane, which is based on management’s estimates, sampling, and other mathematical calculations and certain assumptions, is found below:
Current wording
For fiscal 2025, the retail volume of home heating oil and propane sold increased by 29.2 million gallons, or 11.5%, to 282.6 million gallons, compared to 253.4 million gallons for fiscal 2024. For those locations where we had existing operations during both periods, which we sometimes refer to as the “base business” (i.e., excluding acquisitions), temperatures (measured on a heating degree day basis) for fiscal 2025 were 8.2% colder than fiscal 2024 but 8.3% warmer than normal, as reported by NOAA. For fiscal 2025, net customer attrition for the base business was 4.7%. The impact of fuel conservation, along with any period-to-period differences in delivery scheduling, the timing of accounts added or lost during the fiscal years, equipment efficiency, and other volume variances not otherwise described, are included in the chart below under the heading “Other.” An analysis of the change in the retail volume of home heating oil and propane, which is based on management’s estimates, sampling, and other mathematical calculations and certain assumptions, is found below:
Previous wording
The following chart sets forth the percentage by volume of total home heating oil sold to residential variable-price customers, residential price-protected customers, and commercial/industrial/other customers for fiscal 2024 compared to fiscal 2023:
Current wording
The following chart sets forth the percentage by volume of total home heating oil and propane sold to residential variable-price customers, residential price-protected customers, and commercial/industrial/other customers for fiscal 2025 compared to fiscal 2024:
Previous wording
Volume of motor fuel and other petroleum products sold decreased by 9.9 million gallons, or 7.1%, to 129.1 million gallons for fiscal 2024, compared to 139.0 million gallons for fiscal 2023.
Current wording
Volume of motor fuel and other petroleum products sold decreased by 5.2 million gallons, or 4.0%, to 123.9 million gallons for fiscal 2025, compared to 129.1 million gallons for fiscal 2024.
Previous wording
For fiscal 2024, product sales decreased $201.9 million, or 12.2%, to $1,448.8 million, compared to $1,650.7 million in fiscal 2023, due to a decrease in average selling prices and a decrease in total volume sold of 3.9%. Selling prices decreased largely due to a decrease in wholesale product cost of $0.4602 per gallon, or 15.2%. Product volumes and wholesale product cost include heating oil, propane, motor fuels and other petroleum products.
Current wording
For fiscal 2025, product sales decreased $11.2 million, or 0.8%, to $1,437.6 million, compared to $1,448.8 million in fiscal 2024, due to a decrease in average selling prices that was slightly offset by an increase in total volume sold of 6.3%. Selling prices decreased largely due to a decrease in wholesale product cost of $0.3199 per gallon, or 12.5%, compared to fiscal 2024. Product volumes and wholesale product cost include heating oil, propane, motor fuels and other petroleum products.
Previous wording
For fiscal 2024, installation and service sales increased $15.2 million, or 5.0%, to $317.3 million, compared to $302.1 million for fiscal 2023. Installation sales increased by $8.8 million, or 7.6%, and service sales increased by $6.4 million, or 3.4%. The increase was partially driven by $5.2 million of sales generated from recent acquisitions, and the remainder was driven by a concerted effort to expand these offerings to our customers as well as annual price increases.
Current wording
For fiscal 2025, installation and service sales increased $29.5 million, or 9.3%, to $346.8 million, compared to $317.3 million for fiscal 2024. Installation sales increased by $11.7 million, or 9.5%, and service sales increased by $17.8 million, or 9.2%. The increase was driven by $22.6 million of sales generated from recent acquisitions, and the remainder was driven by a concerted effort to expand these offerings to our customers as well as annual price increases.
Previous wording
For fiscal 2024, cost of product decreased $223.4 million, or 18.5%, to $980.8 million, compared to $1,204.2 million for fiscal 2023, due to a decrease in wholesale product cost of $0.4602 per gallon, or 15.2% and a decrease in total volume sold of 3.9%. Product volumes and wholesale product cost include heating oil, propane, motor fuels and other petroleum products.
Current wording
For fiscal 2025, cost of product decreased $68.4 million, or 7.0%, to $912.4 million, compared to $980.8 million for fiscal 2024, due to a decrease in wholesale product cost of $0.3199 per gallon, or 12.5%, slightly offset by an increase in total volume sold of 6.3%. Product volumes and wholesale product cost include heating oil, propane, motor fuels and other petroleum products.
Previous wording
The table below calculates our per gallon margins and reconciles product gross profit for home heating oil and propane and motor fuel and other petroleum products. We believe the change in home heating oil and propane margins should be evaluated before the effects of increases or decreases in the fair value of derivative instruments, as we believe that realized per gallon margins should not include the impact of non-cash changes in the market value of hedges before the settlement of the underlying transaction. On that basis, home heating oil and propane margins for fiscal 2024 increased by $0.1304 per gallon, or 8.4%, to $1.6800 per gallon, from $1.5496 per gallon during fiscal 2023. We cannot assume that the per gallon margins realized during fiscal 2024 are sustainable for future periods. Product sales and cost of product include home heating oil, propane, motor fuel, other petroleum products and liquidated damages billings.
Current wording
The table below calculates our per gallon margins and reconciles product gross profit for home heating oil and propane and motor fuel and other petroleum products. We believe the change in home heating oil and propane margins should be evaluated before the effects of increases or decreases in the fair value of derivative instruments, as we believe that realized per gallon margins should not include the impact of non-cash changes in the market value of hedges before the settlement of the underlying transaction. On that basis, home heating oil and propane margins for fiscal 2025 increased by $0.0222 per gallon, or 1.3%, to $1.7022 per gallon, from $1.6800 per gallon during fiscal 2024. In the base business, home heating and propane margins for fiscal 2025 increased by $0.0512 per gallon, or 3.1% to $1.7312 per gallon. We cannot assume that the per gallon margins realized during fiscal 2025 are sustainable for future periods. Product sales and cost of product include home heating oil, propane, motor fuel, other petroleum products and liquidated damages billings.
Previous wording
For fiscal 2024, total product gross profit was $468.0 million, which was $21.5 million, or 4.8%, higher than fiscal 2023, due to an increase in home heating oil and propane margins ($33.2 million) that was partially offset by a decrease in home heating oil and propane volume sold ($9.0 million) and decrease in gross profit from other petroleum products ($2.7 million).
Current wording
For fiscal 2025, total product gross profit was $525.2 million, which was $57.2 million, or 12.2%, higher than fiscal 2024, due to an increase in home heating oil and propane volume sold ($49.0 million), an increase in home heating oil and propane margins ($6.3 million) and an increase in gross profit from other petroleum products ($1.9 million).
Previous wording
Total installation costs for fiscal 2024 increased by $5.7 million or 6.0%, to $100.9 million, compared to $95.2 million of installation costs for fiscal 2023, primarily due to higher installation revenues of $8.8 million. Installation costs as a percentage of installation sales were 81.7% for fiscal 2024 and 83.0% for fiscal 2023. Gross profit from installations increased by $3.0 million due to an increase in sales dollars and an improvement in the gross profit margin realized on installation sales.
Current wording
Total installation costs for fiscal 2025 increased by $10.0 million or 9.9%, to $110.9 million, compared to $100.9 million of installation costs for fiscal 2024. This increase was largely due to the higher installation sales from recent acquisitions. Installation costs as a percentage of installation sales were 82.1% for fiscal 2025 and 81.7% for fiscal 2024. The gross profit from installations increased by $1.7 million.
Previous wording
Service expense decreased by $0.2 million, or 0.1%, to $182.5 million for fiscal 2024, representing 94.2% of service sales, versus $182.7 million, or 97.5% of service sales, for fiscal 2023. While service revenues increased by $6.4 million, service costs decreased by $0.3 million which led to an increase in gross profit from service of $6.7 million. In fiscal 2024, the company undertook certain steps to improve service performance which favorably impacted service costs when compared to fiscal 2023. In addition, a large proportion of our service expenses are incurred under fixed-fee prepaid service contract arrangements, therefore trends in service expenses may not directly correlate to trends in the related revenues especially given the warmer than normal weather conditions in fiscal 2024 and fiscal 2023. In both fiscal 2024 and 2023, the demand for service was less than expected due to the warmer than normal weather conditions.
Current wording
Service expense increased by $15.7 million, or 8.6%, to $198.2 million for fiscal 2025, representing 93.7% of service sales, versus $182.5 million, or 94.2% of service sales, for fiscal 2024. The increase was largely due to higher service sales from recent acquisitions. In addition, a large proportion of our service expenses are incurred under fixed-fee prepaid service contract arrangements, therefore trends in service expenses may not directly correlate to trends in the related revenues. In fiscal 2025, the demand for service was greater than fiscal 2024 due to colder weather conditions. The gross profit from service increased by $2.1 million.
Previous wording
We realized a combined gross profit from services and installations of $33.9 million for fiscal 2024 compared to a combined gross profit of $24.2 million for fiscal 2023, a $9.7 million increase in profitability.
Current wording
We realized a combined gross profit from services and installations of $37.7 million for fiscal 2025 compared to a combined gross profit of $33.9 million for fiscal 2024, a $3.8 million increase in profitability.
Previous wording
During fiscal 2023, the change in the fair value of derivative instruments resulted in a $2.0 million charge as an increase in the market value for unexpired hedges (a $3.9 million credit) was more than offset by a $5.9 million charge due to the expiration of certain hedged positions.
Current wording
During fiscal 2025, the change in the fair value of derivative instruments resulted in a $13.4 million credit as a decrease in the market value for unexpired hedges (a $1.0 million charge) was more than offset by a $14.4 million credit due to the expiration of certain hedged positions.
Previous wording
For fiscal 2024, delivery and branch expenses increased $12.8 million to $366.4 million, compared to $353.6 million for fiscal 2023. During fiscal 2024, the company recorded a benefit under the weather hedge of $7.5 million compared to a benefit of $12.5 million during fiscal 2023 that accounts for a $5.0 million increase in expense. The increase was also driven by $6.4 million of expenses from recent acquisitions and a $1.4 million, or 0.4% increases in base business expenses. In the base business, a $6.0 million increase in insurance claim costs and premiums and $0.9 million of other net expense increases was partially offset by a $5.5 million, or 5.1% decrease in delivery expenses driven by the 4.2% decline in home heating oil and propane volume sold in the base business.
Current wording
For fiscal 2025, delivery and branch expenses increased $34.4 million to $400.8 million, compared to $366.4 million for fiscal 2024. The temperatures experienced from November 2024 through March 2025 (the weather hedge period) were colder than the strike prices and, therefore, the Company recorded an expense under those weather hedge contracts of $3.1 million. This compares to the prior-year period which, due to warmer weather, the Company recorded a credit of $7.5 million under its weather hedge contract. The increase was also driven by $23.1 million of expenses from recent acquisitions and a $0.7 million increase in net base business expenses. The increase in the base business expenses was driven by a $2.3 million, or 2.2%, increase in delivery expenses due to a 4.1 million gallon, or 1.6%, increase in home heating oil and propane volume sold in the base business compared to the prior year and $2.6 million of other net expense increases that were partially offset by a $4.2 million decrease in insurance related costs.
Previous wording
For fiscal 2024, depreciation and amortization expense decreased $0.9 million, or 2.6%, to $31.5 million, compared to $32.4 million for fiscal 2023, primarily due to intangible assets that fully amortized in the prior fiscal year.
Current wording
For fiscal 2025, depreciation and amortization expense increased $3.9 million, or 12.2%, to $35.4 million, compared to $31.5 million for fiscal 2024, primarily due to acquisitions.
Previous wording
For fiscal 2024, general and administrative expenses increased $2.6 million, or 10.2%, to $28.4 million, compared to $25.8 million for fiscal 2023, due to a $0.9 million increase in profit sharing expense, a $0.9 million increase in salaries and benefits expenses and a $0.8 million reduction in the gain on the sale of fixed assets. The Company accrues approximately 6.0% of Adjusted EBITDA as defined in its profit sharing plan for distribution to its employees. This amount is payable when the Company achieves Adjusted EBITDA of at least 70% of the amount budgeted. The dollar amount of the profit sharing pool adjusts accordingly based on Adjusted EBITDA levels achieved.
Current wording
For fiscal 2025, general and administrative expenses increased $2.1 million, or 7.4%, to $30.5 million, compared to $28.4 million for fiscal 2024, due to a $1.5 million increase in profit sharing expense and a $0.6 million increase salaries and benefits expenses. The Company accrues approximately 6.0% of Adjusted EBITDA as defined in its profit sharing plan for distribution to its employees. This amount is payable when the Company achieves Adjusted EBITDA of at least 70% of the amount budgeted. The dollar amount of the profit sharing pool adjusts accordingly based on Adjusted EBITDA levels achieved.
Previous wording
For fiscal 2024, finance charge income decreased by $0.9 million, or 17.0%, to $4.6 million compared to $5.5 million for fiscal 2023, due to less late customer payment charges on reduced aged receivables that was partially driven by the reduction in sales.
Current wording
For fiscal 2025, finance charge income increased by $0.3 million, or 7.4%, to $4.9 million compared to $4.6 million for fiscal 2024, primarily due to higher customer late payment charges.
Previous wording
For fiscal 2024, net interest expense decreased by $3.9 million, or 25.6%, to $11.6 million compared to $15.5 million for fiscal 2023. The year-over-year change was driven by a decrease in average borrowings of $52.8 million from $211.7 million for the fiscal 2023 to $158.9 million for fiscal 2024 that was partially offset by an increase in the weighted average interest rate from 6.5% for fiscal 2023 to 7.3% for fiscal 2024. To hedge against rising interest rates, the Company utilizes interest rate swaps. At September 30, 2024, approximately 25% of borrowings under Star's variable-rate long term debt were not subject to interest rate increases as a result of interest rate swaps.
Current wording
For fiscal 2025, net interest expense increased by $2.7 million, or 23.9%, to $14.3 million compared to $11.6 million for fiscal 2024. The year-over-year change was driven by an increase in average borrowings of $58.2 million from $158.9 million for the fiscal 2024 to $217.1 million for fiscal 2025 that was partially offset by a decrease in the weighted average interest rate from 7.3% for fiscal 2024 to 7.1% for fiscal 2025. To hedge against rising interest rates, the Company utilizes interest rate swaps. At September 30, 2025, approximately 39% of borrowings under Star's variable-rate long term debt were not subject to interest rate increases as a result of interest rate swaps.
Previous wording
For fiscal 2024, amortization of debt issuance costs decreased to $1.0 million from $1.1 million for fiscal 2023.
Current wording
For fiscal 2025, amortization of debt issuance costs increased to $1.1 million from $1.0 million for fiscal 2024.
Previous wording
For fiscal 2024, the Company’s income tax expense decreased by $0.7 million to $13.3 million, from $14.0 million for fiscal 2023. The decrease was driven by a decrease in the effective income tax rate from 30.4% for fiscal 2023 to 27.5% for fiscal 2024 due primarily to a reduction in state taxes and a decrease in valuation allowance that was partially offset by a $2.6 million increase in income before income taxes.
Current wording
For fiscal 2025, the Company’s income tax expense increased by $16.1 million to $29.4 million, from $13.3 million for fiscal 2024. The increase was driven by a $54.3 million increase in income before income taxes and an increase in the effective income tax rate from 27.5% for fiscal 2024 to 28.6% for fiscal 2025 due primarily to an increase in state taxes.
Previous wording
For fiscal 2024, net income increased $3.3 million, or 10.3%, to $35.2 million, primarily due to a $14.7 million increase in Adjusted EBITDA, a $3.9 million decrease in interest expense, a $0.9 million decrease in depreciation and amortization expenses and a decrease in income tax expense of $0.7 million that was partially offset by a $17.0 million unfavorable change in the fair value of derivative instruments.
Current wording
For fiscal 2025, net income increased $38.3 million, or 108.7%, to $73.5 million, primarily due to a $32.4 million favorable change in the fair value of derivative instruments, a $24.8 million increase in Adjusted EBITDA and a $3.8 million gain on the sale of land and a building at a New Jersey operating location that was partially offset by a $16.1 million increase in income tax expense, a $3.9 million increase in depreciation and amortization expenses and a $2.7 million increase in interest expense.
Previous wording
For fiscal 2024, Adjusted EBITDA increased by $14.7 million, or 15.2%, to $111.6 million compared to fiscal 2023, as an increase in home heating oil and propane per gallon margins, an increase in service and installation profitability and the additional Adjusted EBITDA from acquisitions more than offset a reduction in home heating oil and propane volume sold in the base business and a decrease in the weather hedge benefit of $5.0 million year-over-year.
Current wording
For fiscal 2025, Adjusted EBITDA increased by $24.8 million, or 22.2%, to $136.4 million compared to fiscal 2024, primarily due to an $18.5 million increase in Adjusted EBITDA in the base business and a $16.9 million increase in Adjusted EBITDA from recent acquisitions that was partially offset by a $10.6 million increase in expense related to the Company's weather hedge contracts. The increase in Adjusted EBITDA in the base business was driven by an increase in home heating oil and propane per gallon margins, higher home heating oil and propane volume sold due to colder weather and an improvement in service and installation profitability.
Previous wording
During fiscal 2024, cash provided by operating activities decreased $12.7 million to $111.0 million, compared to $123.7 million provided by operating activities during fiscal 2023. The decrease was driven by a decrease in collection of trade receivables on a comparable basis (including accounts receivable and customer credit balance accounts) of $37.4 million that was partially offset by a $14.2 million increase in cash flows from operations, $5.2 million less payroll taxes paid in the first fiscal quarter of 2024 versus the first fiscal quarter of 2023 as the result of deferring payment of certain payroll tax withholdings in first quarter of fiscal 2021 to the first fiscal quarter of fiscal 2023, a $2.1 million decrease in cash required to purchase product inventory and $3.2 million of other net changes in working capital.
Current wording
During fiscal 2024, cash provided by operating activities decreased $12.7 million to $111.0 million, compared to $123.7 million provided by operating activities during fiscal 2023. The decrease was driven by a decrease in collection of trade receivables on a comparable basis (including accounts receivable and customer credit balance accounts) of $37.4 million that was partially offset by a $14.2 million increase in cash flows from operations, $5.2 million less payroll taxes paid in the first fiscal quarter of 2024 versus the first fiscal quarter of 2023 as the result of deferring payment of certain payroll tax withholdings in first quarter of fiscal 2021 to the first fiscal quarter of fiscal
Previous wording
Our capital expenditures for fiscal 2023 totaled $9.0 million, as we invested in our fleet and other equipment ($5.5 million), refurbished certain physical plants ($1.4 million), expanded our propane operations ($1.0 million) and invested in computer hardware and software ($1.1 million).
Current wording
Our capital expenditures for fiscal 2025 totaled $14.9 million, as we invested in our fleet and other equipment ($9.1 million), refurbished certain physical plants ($2.2 million), expanded our propane operations ($1.7 million) and invested in computer hardware and software ($1.9 million).
Previous wording
During fiscal 2024, $1.7 million of earnings were reinvested into an irrevocable trust to secure certain liabilities for our captive insurance company. The cash deposited into the trust is shown on our balance sheet as captive insurance collateral and, correspondingly, reduced cash on our balance sheet. We believe that investments into the irrevocable trust will lower our letter of credit fees, increase interest income on invested cash balances, and provide us with certain tax advantages attributable to a captive insurance company.
Current wording
During fiscal 2025, $2.6 million of earnings were reinvested into an irrevocable trust to secure certain liabilities for our captive insurance company. The cash deposited into the trust is shown on our balance sheet as captive insurance collateral and, correspondingly, reduced cash on our balance sheet. We were not required to make any additional funding into the captive due in part to our historical and projected claims experience and the interest income generated in fiscal 2025.
Previous wording
During fiscal 2023, the Company acquired one propane and two heating oil businesses for approximately $19.8 million in cash. The gross purchase price was allocated $10.4 million to intangible assets, $8.0 million to goodwill, $2.3 million to fixed assets, and reduced by $0.9 million in negative working capital.
Current wording
During fiscal 2025, the Company acquired one heating oil business and three propane businesses for approximately $80.5 million in cash. The gross purchase price was allocated $38.7 million to intangible assets, $17.7 million to goodwill, $25.2 million to fixed assets, and reduced by $1.1 million in negative working capital.
Previous wording
During fiscal 2023, we deposited $1.6 million, and invested another $0.9 million, into an irrevocable trust to secure certain liabilities for our captive insurance company.
Current wording
During fiscal 2024, $1.7 million of earnings were reinvested into an irrevocable trust to secure certain liabilities for our captive insurance company.
Previous wording
During fiscal 2024, the Company acquired one propane and four heating oil businesses for approximately $49.4 million in cash. The gross purchase price was allocated $40.4 million to intangible assets, $13.7 million to goodwill, $4.9 million to fixed assets, and reduced by $9.6 million in negative working capital.
Current wording
During fiscal 2024, the Company acquired one propane business and four heating oil businesses for approximately $49.4 million in cash. The gross purchase price was allocated $40.4 million to intangible assets, $13.7 million to goodwill, $4.9 million to fixed assets, and reduced by $9.6 million in negative working capital.
Previous wording
During fiscal 2023, we repaid $16.5 million of our term loan, borrowed $125.6 million under our revolving credit facility and subsequently repaid $145.6 million. We also repurchased 0.5 million Common Units for $4.5 million in connection with our unit repurchase plan, and paid distributions of $22.5 million to our Common Unit holders and $1.2 million to our General Partner unit holders (including $1.16 million of incentive distributions as provided in our Partnership Agreement).
Current wording
During fiscal 2025, we repaid $21.0 million of our term loan, borrowed $75.4 million under our revolving credit facility and subsequently repaid $75.4 million. We also repurchased 1.3 million Common Units for $15.6 million in connection with our unit repurchase plan, and paid distributions of $24.5 million to our Common Unit holders and $1.6 million to our General Partner unit holders (including $1.5 million of incentive distributions as provided in our Partnership Agreement).
Previous wording
Our primary uses of liquidity are to provide funds for our working capital, capital expenditures, distributions on our units, acquisitions and unit repurchases. Our ability to provide funds for such uses depends on our future performance, which will be subject to prevailing economic, financial, geopolitical and business conditions, weather, the ability to collect current and future accounts receivable, the ability to pass on the full impact of high product costs to customers, the effects of high net customer attrition, conservation, inflation and other factors.
Current wording
Our primary uses of liquidity are to provide funds for our working capital, capital expenditures, distributions on our units, acquisitions and unit repurchases. Our ability to provide funds for such uses depends on our future performance, which will be subject to prevailing economic, financial, geopolitical and business conditions, tariff regimes, weather, the ability to collect current and future accounts receivable, the ability to pass on the full impact of high product costs to customers, the effects of high net customer attrition, conservation, inflation and other factors.
Previous wording
Funding for capital requirements, at least in the near term, are expected to be funded by cash flows from operating activities, cash on hand as of September 30, 2024 ($117.3 million) or a combination thereof. We believe that these cash sources will also be sufficient to satisfy our capital requirements in the longer-term. However, if they are not sufficient, we anticipate that working capital will be financed by our revolving credit facility, as discussed below, and from subsequent seasonal reductions in inventory and accounts receivable. As of September 30, 2024, we had accounts receivable of $95.0 million of which $63.5 million is due from residential customers and $31.5 million is due from commercial customers. Our ability to borrow from our bank group is based in part on the aging of these accounts receivable. If these balances do not meet the eligibility tests as defined in our credit agreement, our ability to borrow will be reduced and our anticipated cash flow from operating activities will also be reduced. As of September 30, 2024, we had less than $0.1 million borrowings under our revolving credit facility, $210.0 million outstanding under our term loan, $5.2 million in letters of credit outstanding and $14.2 million hedge positions were secured under the credit agreement.
Current wording
Funding for capital requirements, at least in the near term, are expected to be funded by cash flows from operating activities, cash on hand as of September 30, 2025 ($24.7 million) or a combination thereof. We believe that these cash sources will also be sufficient to satisfy our capital requirements in the longer-term. However, if they are not sufficient, we anticipate that working capital will be financed by our revolving credit facility, as discussed below, and from subsequent seasonal reductions in inventory and accounts receivable. As of September 30, 2025, we had accounts receivable of $102.1 million of which $67.6 million is due from residential customers and $34.5 million is due from commercial customers. Our ability to borrow from our bank group is based in part on the aging of these accounts receivable. If these balances do not meet the eligibility tests as defined in our credit agreement, our ability to borrow will be reduced and our anticipated cash flow from operating activities will also be reduced. As of September 30, 2025, we had no borrowings under our revolving credit facility, $189.0 million outstanding under our term loan, $5.1 million in letters of credit outstanding and $1.3 million hedge positions were secured under the credit agreement.
Showing the first 40 of 43 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
2023, a $2.1 million decrease in cash required to purchase product inventory and $3.2 million of other net changes in working capital.