STAR GROUP, L.P. Segments Disclosure
20) Segment Reporting
The Company operates as a operating and reportable segment, which is managed on a consolidated basis. Revenues are primarily derived from the sale of petroleum products, heating and air conditioning equipment, and related repair, maintenance, and other services. See Note 3 – Revenue Recognition for additional information.
The Company’s Chief Operating Decision Maker (“CODM”) is its . The CODM makes key operating decisions and evaluates financial performance based on Adjusted EBITDA, defined as earnings from continuing operations before net interest expense, income taxes, depreciation and amortization, (increase) decrease in the fair value of derivatives, other income (loss), net, multiemployer pension plan withdrawal charge, gain or loss on debt redemption, goodwill impairment, and other non-cash and non-operating charges). The CODM reviews net income and Adjusted EBITDA on a monthly basis to monitor performance, compare actual results to budgets and forecasts, and assess overall operating effectiveness. The CODM also monitors significant expenses, including: cost of product, cost of installations and service, general and administrative expenses as well as components of delivery and branch expenses.
Because the Company has only one reportable segment, the amounts reported in the consolidated financial statements also represent the segment information, including total assets.
The following table sets forth our segment financial information:
|
|
Year Ended September 30, |
|
|||||||||
(in thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Petroleum products sales: |
|
|
|
|
|
|
|
|
|
|||
Home heating oil and propane |
|
$ |
1,119,777 |
|
|
$ |
1,081,985 |
|
|
$ |
1,202,194 |
|
Motor fuel and other petroleum products |
|
|
317,824 |
|
|
|
366,807 |
|
|
|
448,547 |
|
Total petroleum products |
|
|
1,437,601 |
|
|
|
1,448,792 |
|
|
|
1,650,741 |
|
Installations and service sales: |
|
|
|
|
|
|
|
|
|
|||
Equipment installations |
|
|
135,149 |
|
|
|
123,493 |
|
|
|
114,756 |
|
Services |
|
|
211,668 |
|
|
|
193,814 |
|
|
|
187,365 |
|
Total installations and services |
|
|
346,817 |
|
|
|
317,307 |
|
|
|
302,121 |
|
Total sales |
|
|
1,784,418 |
|
|
|
1,766,099 |
|
|
|
1,952,862 |
|
Cost and expenses: |
|
|
|
|
|
|
|
|
|
|||
Cost of product |
|
|
912,391 |
|
|
|
980,831 |
|
|
|
1,204,184 |
|
Cost of installations |
|
|
110,915 |
|
|
|
100,938 |
|
|
|
95,196 |
|
Cost of service |
|
|
198,246 |
|
|
|
182,506 |
|
|
|
182,731 |
|
Delivery expenses |
|
|
116,136 |
|
|
|
105,696 |
|
|
|
108,896 |
|
Operations expenses |
|
|
75,035 |
|
|
|
68,724 |
|
|
|
69,774 |
|
Garage and plant expenses |
|
|
44,889 |
|
|
|
41,822 |
|
|
|
39,746 |
|
Sales and marketing expenses |
|
|
53,790 |
|
|
|
50,126 |
|
|
|
48,144 |
|
Customer service and credit expenses |
|
|
52,027 |
|
|
|
51,230 |
|
|
|
52,578 |
|
Insurance related expenses |
|
|
39,982 |
|
|
|
41,690 |
|
|
|
35,163 |
|
Information technology expenses |
|
|
15,863 |
|
|
|
14,591 |
|
|
|
11,813 |
|
Weather hedge contracts (gain) loss |
|
|
3,108 |
|
|
|
(7,498 |
) |
|
|
(12,500 |
) |
General and administrative expenses |
|
|
30,518 |
|
|
|
28,405 |
|
|
|
25,780 |
|
Finance charge income |
|
|
(4,915 |
) |
|
|
(4,576 |
) |
|
|
(5,515 |
) |
Adjusted EBITDA |
|
|
136,433 |
|
|
|
111,614 |
|
|
|
96,872 |
|
(Increase) decrease in the fair value of derivative instruments |
|
|
(13,390 |
) |
|
|
19,018 |
|
|
|
1,977 |
|
Depreciation and amortization expenses |
|
|
35,352 |
|
|
|
31,494 |
|
|
|
32,350 |
|
Operating Income |
|
|
114,471 |
|
|
|
61,102 |
|
|
|
62,545 |
|
Interest expense, net |
|
|
(14,323 |
) |
|
|
(11,560 |
) |
|
|
(15,532 |
) |
Amortization of debt issuance costs |
|
|
(1,068 |
) |
|
|
(988 |
) |
|
|
(1,084 |
) |
Other income, net |
|
|
3,822 |
|
|
|
— |
|
|
|
— |
|
Income before income taxes |
|
|
102,902 |
|
|
|
48,554 |
|
|
|
45,929 |
|
Income tax expense |
|
|
29,407 |
|
|
|
13,331 |
|
|
|
13,984 |
|
Net income |
|
$ |
73,495 |
|
|
$ |
35,223 |
|
|
$ |
31,945 |
|
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.