[Management View]
Star Group's management emphasized their strategic focus on improving service and installation performance, expanding HVAC offerings, and leveraging acquisitions to grow their heating oil and propane customer base. Investments in sales and technical training were highlighted as key initiatives.

[Outlook]
Management provided performance guidance indicating strong financial performance for fiscal 2025, driven by acquisitions and improved service offerings. Future plans include continued expansion of HVAC services and further integration of AI technology in customer interactions.

[Financial Performance]
For Q3 2025, home heating oil and propane volume decreased by 3.8% YoY to 36,000,000 gallons due to warmer weather and customer attrition. Product gross profit fell by 4% to $72,000,000. Service and installation gross profit increased by $600,000 to $14,000,000. Delivery, branch, and G&A expenses rose by $4,300,000, primarily due to acquisition-related costs. Net loss (GAAP) increased by $5,600,000 to $16,600,000. Adjusted EBITDA loss grew by $6,500,000 to $10,600,000.

[Q&A Highlights]
Question 1: Jeff, could you update us on the acquisition pipeline? And do you see any applications for AI in the business, particularly in customer service?

Answer: Jeff Woosnam: We've closed four transactions this fiscal year, with the last one in April. The team remains busy with opportunities, and we're pleased with our pipeline and recent sizable deals. Regarding AI, we've integrated some technology into our customer interface, balancing it with our service-first philosophy to maintain personal touch and customer comfort.

Question 2: Can you elaborate on the impact of recent acquisitions on your financial performance?

Answer: Rich Ambury: Recent acquisitions contributed positively to adjusted EBITDA, despite lower home heating oil and propane volumes in the base business. Acquisitions accounted for increased delivery, branch, and G&A expenses, as well as higher depreciation and amortization. The positive adjusted EBITDA from acquisitions was partly due to our recent propane acquisition.

[Sentiment Analysis]
Analysts showed interest in the company's acquisition strategy and AI integration, reflecting a positive outlook on these initiatives. Management maintained a confident and forward-looking tone, emphasizing strategic growth and service improvement.

[Quarterly Comparison]
| Metric | Q3 2025 | Q3 2024 | Change |
|-------------------------------|-----------------|-----------------|-----------------|
| Home Heating Oil & Propane | 36,000,000 gal | 37,500,000 gal | -3.8% |
| Product Gross Profit | $72,000,000 | $75,000,000 | -4% |
| Service & Installation Profit | $14,000,000 | $13,400,000 | +4.5% |
| Delivery, Branch, G&A Expenses| $31,500,000 | $27,200,000 | +15.8% |
| Net Loss (GAAP) | $16,600,000 | $11,000,000 | +50.9% |
| Adjusted EBITDA Loss | $10,600,000 | $4,100,000 | +158.5% |

[Risks and Concerns]
Risks include lower home heating oil and propane volumes due to warmer weather and customer attrition, increased acquisition-related financing costs, and higher delivery, branch, and G&A expenses. The impact of weather conditions on sales volume remains a significant concern.

[Final Takeaway]
Star Group's Q3 2025 performance was impacted by warmer weather and customer attrition, leading to decreased volumes and higher expenses. However, acquisitions contributed positively to adjusted EBITDA, and management remains optimistic about future growth through strategic initiatives and AI integration. Investors should monitor the company's ability to balance acquisition costs with operational improvements and weather-related risks.