earnings
confidence high
sentiment negative
materiality 0.70
Star Group Q2 revenue up 29.5% to $782.5M, but net income falls to $81.4M; Adjusted EBITDA down $12M
STAR GROUP, L.P.
- Revenue increased 29.5% to $782.5M driven by higher selling prices; volumes down 5.5% to 148.9M gallons.
- Net income $81.4M, down $3.8M YoY; Adjusted EBITDA $107.7M, down $12.0M.
- Weather: temperatures 3% colder than prior year but 3.7% warmer than normal; weather hedge charge $1.1M.
- Accessed $100M seasonal working capital line increasing revolver to $400M amid wholesale cost volatility.
- Acquired two oil dealers adding ~5.5M gallons annual volume; continued M&A strategy.