UGI Corp.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 21 November 2025: press release. Guidance figures: 1 raised, 2 new. The quarter’s numbers.

Key takeaways

Adjusted EPS above revised range: Adjusted diluted EPS was $3.32 against $3.06, above the top end of the revised guidance range issued May 7, 2025. GAAP diluted EPS was $3.09 against $1.25. Source
AmeriGas EBIT rose $24 million: AmeriGas Propane EBIT was $166 million against $142 million, on higher total margin, lower operating and administrative expenses, and higher fixed-asset sale gains. Source
Utilities EBIT and margin rose: Utilities EBIT was $403 million against $400 million. Total margin rose $39 million on higher core volumes, West Virginia base rates and customer growth. Source
Free cash flow about $530 million: Free cash flow was approximately $530 million, inclusive of cash from asset sales. Management also cited dividend payments to shareholders. Source
Liquidity and leverage reported: Available liquidity was approximately $1.6 billion. Leverage ratio was 3.9x at UGI Corporation and 4.9x at AmeriGas Propane. Source
Fiscal 2026 adjusted EPS range set: Fiscal 2026 adjusted diluted EPS guidance is $2.90 to $3.15 per diluted share, for the year ending September 30, 2026. Source
Long-term EPS growth target raised: Expected EPS compound annual growth rate increased and extended to 5% to 7% between FY24 and FY29. Source

“UGI delivered an outstanding year with record adjusted earnings per share that exceeded our revised guidance range,”
Robert Flexon, President and Chief Executive Officer of UGI Corporation

Guidance

Area	Period	Figure	Against last quarter
Adjusted diluted EPS Source	fiscal 2026 (year ending September 30, 2026)	$2.90 - $3.15	New
Reportable segments EBIT growth Source	fiscal 2026	5 - 7%	New
Adjusted EPS compound annual growth rate Source	FY24 to FY29	5 - 7%	Raised

What changed from last quarter

New guidance: Fiscal 2026 adjusted diluted EPS guidance range issued; the documents contain no earlier fiscal 2026 range. Source
Guidance raised: Expected EPS compound annual growth rate increased and extended to 5% to 7% between FY24 and FY29. Source

Full-year results and EPS

Net income rose to $678 million: GAAP net income was $678 million against $269 million; adjusted net income was $728 million against $658 million. Source
Adjusted EPS above revised range: Adjusted diluted EPS was $3.32 against $3.06, above the top end of the revised guidance range issued May 7, 2025. GAAP diluted EPS was $3.09 against $1.25. Source
Reportable segments EBIT little changed: Reportable segments EBIT was $1,176 million against $1,178 million. Corporate and other EBIT was a loss of $69 million against a loss of $444 million. Source
Tax benefits cited as a driver: Management cited significant tax benefits as one driver of results, alongside AmeriGas improvement and Utilities operating performance. Source
Non-GAAP adjustments were smaller: Adjustments reconciling GAAP net income to adjusted net income totaled $50 million in fiscal 2025 against $389 million in fiscal 2024. Source

Segment results and regions

AmeriGas EBIT rose $24 million: AmeriGas Propane EBIT was $166 million against $142 million, on higher total margin, lower operating and administrative expenses, and higher fixed-asset sale gains. Source
Utilities EBIT and margin rose: Utilities EBIT was $403 million against $400 million. Total margin rose $39 million on higher core volumes, West Virginia base rates and customer growth. Source
Midstream EBIT lower on margin: Midstream & Marketing EBIT was $293 million against $313 million. Lower gathering and processing margins and the absence of Hunlock power generation reduced total margin, partly offset by gas marketing gains. Source
International retail volumes lower: UGI International EBIT was $314 million against $323 million. Total margin fell $38 million on lower retail gallons, partly offset by higher average LPG unit margins and currency translation. Source

“This foundation is crucial as we enhance our operating processes, transform how we work across the organization, and optimize UGI's intrinsic value for all stakeholders.”
Robert Flexon, President and Chief Executive Officer of UGI Corporation

Costs, margins and weather

International operating expenses fell: UGI International operating and administrative expenses fell $35 million, mainly on lower personnel, distribution and maintenance costs and the exit of the energy marketing business. Source
Utilities operating costs rose: Utilities operating and administrative expenses rose $25 million on personnel, insurance and maintenance. Depreciation rose $12 million from distribution system capital spending. Source
AmeriGas unit margins higher: AmeriGas total margin rose $10 million, reflecting higher per-gallon margins; fee income fell and retail volumes were slightly lower. Source
Weather colder than prior year: In Utilities, temperatures were 11% colder than the prior year and 2% warmer than normal over the fiscal year. Source

Cash, capital and balance sheet

Free cash flow about $530 million: Free cash flow was approximately $530 million, inclusive of cash from asset sales. Management also cited dividend payments to shareholders. Source
Liquidity and leverage reported: Available liquidity was approximately $1.6 billion. Leverage ratio was 3.9x at UGI Corporation and 4.9x at AmeriGas Propane. Source
Utilities capital spending rose: Utilities capital expenditures were $556 million against $482 million, up 15%. Source

“I am particularly excited about the progress we've made at AmeriGas and anticipate that the winter season ahead will demonstrate the tangible impact of the initiatives underway.”
Robert Flexon, President and Chief Executive Officer of UGI Corporation

Guidance and EPS growth targets

Fiscal 2026 adjusted EPS range set: Fiscal 2026 adjusted diluted EPS guidance is $2.90 to $3.15 per diluted share, for the year ending September 30, 2026. Source
Segment EBIT growth expected 5% to 7%: Guidance includes expected growth of 5% to 7% in reportable segments EBIT for fiscal 2026. Source
Guidance assumes normal weather: Fiscal 2026 guidance assumes normal weather and the current tax regime. Source
Long-term EPS growth target raised: Expected EPS compound annual growth rate increased and extended to 5% to 7% between FY24 and FY29. Source

Strategy, people and leadership

Workforce upskilling and performance culture: Management said it invested this year in upskilling the workforce and a performance-driven culture aimed at breakthrough results in operating and supporting functions. Source
Operating processes and transformation agenda: Management described enhancing operating processes and changing how the organization works as the base for optimizing UGI's intrinsic value. Source
CEO on AmeriGas progress: Chief Executive Officer Robert Flexon said he is particularly excited about progress made at AmeriGas. Source

Coming up, as management said on 21 November 2025

Winter season to show AmeriGas initiatives: Management anticipates the winter season ahead will show the tangible impact of AmeriGas initiatives underway. Source

Risks management discussed

Demand: Management attributes lower LPG retail demand partly to continued structural conservation and customers converting away from LPG. Source
Financial: Management said GAAP net income can be volatile from gains and losses on commodity and certain foreign currency derivatives. Source

Earlier plans management reported on

Ahead: Earlier expectation was the top end of the fiscal 2025 adjusted EPS range; the results report adjusted EPS above the revised range.
Not stated: Earlier release described customer-focused operational improvements being implemented at AmeriGas to strengthen performance.

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

UGI Reports Strong Fiscal 2025 Results

Issues Fiscal 2026 Guidance

VALLEY FORGE, PA - UGI Corporation (NYSE: UGI) today reported financial results for the fiscal year ended September 30, 2025 and provided guidance for fiscal year 2026.

HEADLINES

GAAP net income of $678 million and adjusted net income of $728 million compared to GAAP net income of $269 million and adjusted net income of $658 million in the prior year.
GAAP diluted earnings per share (“EPS”) of $3.09 and adjusted diluted EPS of $3.32 compared to GAAP diluted EPS of $1.25 and adjusted diluted EPS of $3.06 in the prior year.
Reportable segments earnings before interest expense and income tax ("EBIT") of $1,176 million compared to $1,178 million in the prior year.
Delivered adjusted diluted EPS above the top end of our revised guidance range issued on May 7, 2025.
Strengthened the balance sheet with available liquidity of approximately $1.6 billion and a leverage ratio of 3.9x at UGI Corporation and 4.9x at AmeriGas Propane.
Issues fiscal 2026 adjusted diluted EPS guidance range of $2.90 - $3.15, inclusive of an expected 5 - 7% growth in reportable segments EBIT.
Increases and extends its expected EPS compound annual growth rate to 5 - 7% between FY24 and FY29.

“UGI delivered an outstanding year with record adjusted earnings per share that exceeded our revised guidance range," said Robert Flexon, President and Chief Executive Officer of UGI Corporation. "Our diversified portfolio demonstrated its strength as continued improvements at AmeriGas which led to its higher EBIT coupled with solid operational performance from our Utilities segment, and significant tax benefits, drove exceptional results. We strengthened our balance sheet, generated approximately $530 million of free cash flow inclusive of cash generated from asset sales, and returned value to shareholders through dividend payments.

"This year, we invested in upskilling our workforce and cultivating a performance-driven culture focused on driving breakthrough outcomes in our operating and supporting functions. This foundation is crucial as we enhance our operating processes, transform how we work across the organization, and optimize UGI's intrinsic value for all stakeholders. I am particularly excited about the progress we've made at AmeriGas and anticipate that the winter season ahead will demonstrate the tangible impact of the initiatives underway."

2026 OUTLOOK

UGI provides an adjusted EPS guidance range of $2.90 - $3.15 per diluted share for the fiscal year ending September 30, 2026. This guidance range assumes normal weather and the current tax regime.

EARNINGS CALL and WEBCAST

UGI Corporation will hold a live Internet Audio Webcast of its conference call to discuss Fiscal 2025 earnings and other current activities at 9:00 AM ET on Friday, November 21, 2025. Interested parties may listen to the audio webcast both live and in replay on the Internet at https://www.ugicorp.com/investors/financial-reports/presentations or by visiting the company website https://www.ugicorp.com and clicking on Investors and then Presentations. A replay of the webcast will be available after the event through to 11:59 PM ET November 19, 2026.

CONTACT INVESTOR RELATIONS

Tel: +1 610-337-1000

Tameka Morris, ext. 6297

Arnab Mukherjee, ext. 7498

ABOUT UGI

UGI Corporation (NYSE: UGI) is a distributor and marketer of energy products and services in the US and Europe. UGI offers safe, reliable, affordable, and sustainable energy solutions to customers through its subsidiaries, which provide natural gas transmission and distribution, electric generation and distribution, midstream services, propane distribution, renewable natural gas generation, distribution and marketing, and energy marketing services.

Comprehensive information about UGI Corporation is available on the Internet at https://www.ugicorp.com.

USE OF NON-GAAP MEASURES

Management uses “adjusted net income attributable to UGI Corporation” and "adjusted diluted earnings per share," both of which are non-GAAP financial measures, when evaluating UGI's overall performance. Management believes that these non-GAAP measures provide meaningful information to investors about UGI’s performance because they eliminate the impacts of (1) gains and losses on commodity and certain foreign currency derivative instruments not associated with current-period transactions and (2) other significant discrete items that can affect the comparison of period-over-period results. Volatility in net income attributable to UGI can occur as a result of gains and losses on commodity and certain foreign currency derivative instruments not associated with current-period transactions but included in earnings in accordance with U.S. generally accepted accounting principles ("GAAP").

Non-GAAP financial measures are not in accordance with, or an alternative to, GAAP and should be considered in addition to, and not as a substitute for, the comparable GAAP measures.

Tables on the last page of this press release reconcile net income attributable to UGI Corporation, the most directly comparable GAAP measure, to adjusted net income attributable to UGI Corporation, and diluted earnings per share, the most comparable GAAP measure, to adjusted diluted earnings per share, to reflect the adjustments referred to above.

Reportable segments' EBIT represents an aggregate of our reportable operating segment level EBIT as determined in accordance with GAAP.

Because we are unable to predict certain potentially material items affecting diluted earnings per share on a GAAP basis, principally mark-to-market gains and losses on commodity and certain foreign currency derivative instruments, we cannot reconcile the fiscal year 2026 adjusted diluted earnings per share, a non-GAAP measure, to diluted earnings per share, the most directly comparable GAAP measure, in reliance on the “unreasonable efforts” exception set forth in SEC rules.

USE OF FORWARD-LOOKING STATEMENTS

Forward-looking statements notice

This press release contains statements, estimates and projections that are forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended). Such statements use forward-looking words such as “believe,” “plan,” “anticipate,” “continue,” “estimate,” “expect,” “may,” or other similar words and terms of similar meaning, although not all forward-looking statements contain such words. These statements discuss plans, strategies, events or developments that we expect or anticipate will or may occur in the future. Management believes that these are reasonable as of today’s date only. Actual results may differ significantly because of risks and uncertainties that are difficult to predict and many of which are beyond management’s control; accordingly, there is no assurance that results will be realized. You should read UGI’s Annual Report on Form 10-K for a more extensive list of factors that could affect results. We undertake no obligation (and expressly disclaim any obligation) to update publicly any forward-looking statement, whether as a result of new information or future events, except as required by the federal securities laws.

SEGMENT RESULTS ($ in millions, except where otherwise indicated)

Utilities

For the year ended September 30,		2025		2024	Increase (Decrease)
Revenues	$1,761		$1,598		$163	10%
Total margin (a)	$963		$924		$39	4%
Operating and administrative expenses	$388		$363		$25	7%
Operating income	$397		$394		$3	1%
Earnings before interest expense and income taxes	$403		$400		$3	1%
Gas Utility system throughput - billions of cubic feet
Core market	102		93		9	10%
Total	378		378		-	- %
Natural gas heating degree days - % warmer than normal	(2.4)%		(16.0)%
Capital expenditures	$556		$482		$74	15%

Temperatures were 2% warmer than normal and 11% colder than the prior year.
Core market volumes were 10% higher largely reflecting the impact from the colder weather compared to the prior year.
Total margin increased $39 million primarily due to higher core market volumes, higher gas base rates in West Virginia, and continued customer growth.
Operating and administrative expenses increased $25 million reflecting, among other things, higher personnel expenses, higher general insurance costs and higher maintenance expenses.
Operating income increased $3 million due to the higher total margin largely offset by higher operating and administrative expenses and higher depreciation expense ($12 million) from continued distribution system capital expenditure activity.

(a) Total margin represents total revenue less total cost of sales. In the case of the Utilities, total margin is also reduced by certain revenue-related taxes.

Midstream & Marketing

For the year ended September 30,		2025		2024	Increase (Decrease)
Revenues	$1,483		$1,369		$114	8%
Total margin (a)	$494		$505		$(11)	(2)%
Operating and administrative expenses	$129		$125		$4	3%
Operating income	$288		$301		$(13)	(4)%
Earnings before interest expense and income taxes	$293		$313		$(20)	(6)%
Heating degree days - % warmer than normal	(0.4)%		(13.3)%
Capital expenditures	$114		$150		$(36)	(24)%

Temperatures were 12% colder than the prior year and fairly consistent with normal weather.
Total margin decreased $11 million reflecting lower midstream margins ($22 million), mainly from lower natural gas gathering and processing activities, and the absence of power generation associated with Hunlock that was sold in September 2024 ($16 million). These decreases were partially offset by higher total margin from gas marketing activities ($20 million).
Operating and administrative expenses increased $4 million reflecting, among other things, additional assets placed in service this year.
Operating income decreased $13 million due to lower total margin and higher operating and administrative expenses.
EBIT decreased $20 million primarily due to the decrease in operating income ($13 million) and lower income from equity investees ($4 million).

UGI International

For the year ended September 30,		2025		2024	Increase (Decrease)
Revenues	$2,119		$2,279		$(160)	(7)%
Total margin (a)	$940		$978		$(38)	(4)%
Operating and administrative expenses	$543		$578		$(35)	(6)%
Operating income	$305		$311		$(6)	(2)%
Earnings before interest expense and income taxes	$314		$323		$(9)	(3)%
LPG retail gallons sold (millions)	698		725		(27)	(4)%
Heating degree days - % warmer than normal	(3.3)%		(11.8)%
Capital expenditures	$93		$87		$6	7%

Base-currency results are translated into U.S. dollars based upon exchange rates experienced during the reporting periods. The functional currency of a significant portion of our UGI International results is the euro and, to a much lesser extent, the British pound sterling. During Fiscal 2025 and Fiscal 2024, the average unweighted euro-to-dollar translation rates were $1.11 and $1.08, respectively, and the average unweighted British pound sterling-to-dollar translation rate were $1.31 and $1.27, respectively.

Temperatures were 3% warmer than normal and 5% colder than the prior-year.
Retail volumes were 4% lower than the prior-year period largely due to continued structural conservation and the absence of certain customers who previously converted from natural gas to LPG, substantially offset by the effects of colder weather and higher crop drying campaigns.
Total margin decreased $38 million reflecting lower retail gallons, partially offset by higher average LPG unit margins and the translation effects of the stronger foreign currencies ($9 million).
Operating and administrative expenses decreased $35 million primarily due to lower personnel-related, distribution, maintenance and uncollectible account expenses, as well as from the exit of the energy marketing business. These decreases were partially offset by the translation effects of the stronger foreign currencies ($10 million).
Operating income decreased $6 million due to lower total margin ($38 million), partially offset by lower operating and administrative expenses ($35 million) and higher depreciation and amortization expense ($4 million).
EBIT decreased $9 million reflecting reduced operating income and lower realized gains on foreign currency exchange contracts ($5 million).

AmeriGas Propane

For the year ended September 30,		2025		2024	(Decrease) increase
Revenues	$2,276		$2,271		$5	- %
Total margin (a)	$1,222		$1,212		$10	1%
Operating and administrative expenses	$924		$933		$(9)	(1)%
Operating income / earnings before interest expense and income taxes	$166		$142		$24	17%
Retail gallons sold (millions)	733		737		(4)	(1)%
Heating degree days - % warmer than normal	(1.3)%		(8.0)%
Capital expenditures	$81		$86		$(5)	(6)%

Temperatures were 1% warmer than normal and 6% colder than the prior year.
Retail gallons sold decreased slightly as the effect of the colder than prior year weather was offset by customer attrition.
Total margin increased $10 million reflecting higher average LPG unit margins partially offset by lower fee income and slightly lower retail volumes sold.
Operating and administrative expenses decreased $9 million reflecting, among other things, lower uncollectible account expenses and vehicle fuel costs.
Operating income and EBIT increased $24 million largely due to higher total margin, reduced operating and administrative expenses and higher other operating income ($5 million), mainly resulting from higher gains on sales of fixed assets.

REPORT OF EARNINGS - UGI CORPORATION

(Millions of dollars, except per share) Unaudited	Three Months Ended September 30,				Twelve Months Ended September 30,
		2025		2024		2025		2024
Revenues:
Utilities	$216		$202		$1,761		$1,598
Midstream & Marketing	251		239		1,483		1,369
UGI International	394		426		2,119		2,279
AmeriGas Propane	367		402		2,276		2,271
Corporate & Other (a)	(31)		(27)		(352)		(307)
Total revenues	$1,197		$1,242		$7,287		$7,210
Earnings (loss) before interest expense and income taxes:
Utilities	$(9)		$ -		$403		$400
Midstream & Marketing	17		15		293		313
UGI International	18		18		314		323
AmeriGas Propane	(34)		(40)		166		142
Total reportable segments	(8)		(7)		1,176		1,178
Corporate & Other (a)	27		(249)		(69)		(444)
Total earnings (loss) before interest expense and income taxes	19		(256)		1,107		734
Interest expense:
Utilities	(25)		(24)		(100)		(93)
Midstream & Marketing	(14)		(12)		(49)		(41)
UGI International	(12)		(11)		(46)		(44)
AmeriGas Propane	(38)		(34)		(144)		(156)
Corporate & Other, net (a)	(17)		(17)		(72)		(60)
Total interest expense	(106)		(98)		(411)		(394)
Income (loss) before income taxes	(87)		(354)		696		340
Income tax benefit (expense )	74		81		(18)		(71)
Net income (loss) attributable to UGI Corporation	(13)		(273)		678		269
Earnings (loss) per share attributable to UGI Corporation shareholders:
Basic	$(0.06)		$(1.27)		$3.15		$1.27
Diluted	$(0.06)		$(1.27)		$3.09		$1.25
Weighted Average common shares outstanding (thousands):
Basic	215,093		214,905		214,945		211,309
Diluted	221,372		215,368		219,160		215,271
Supplemental information:
Net income (loss) attributable to UGI Corporation:
Utilities	$(23)		$(17)		$237		$237
Midstream & Marketing	11		4		269		238
UGI International	13		49		242		262
AmeriGas Propane	20		(40)		36		(23)
Corporate & Other (a)	(34)		(269)		(106)		(445)
Total net income (loss) attributable to UGI Corporation	$(13)		$(273)		$678		$269

(a)Corporate & Other includes specific items attributable to our reportable segments that are not included in profit measures used by our chief operating decision maker in assessing our reportable segments' performance or allocating resources. These specific items are shown in the section titled "Non-GAAP Financial Measures - Adjusted Net Income Attributable to UGI and Adjusted Diluted Earnings Per Share" below. Corporate & Other also includes the elimination of certain intercompany transactions.

Non-GAAP Financial Measures - Adjusted Net Income Attributable to UGI and Adjusted Diluted Earnings Per Share

(unaudited)

The following tables reconcile net income attributable to UGI Corporation, the most directly comparable GAAP measure, to adjusted net income attributable to UGI Corporation, and reconcile diluted earnings per share, the most comparable GAAP measure, to adjusted diluted earnings per share, to reflect the adjustments referred to previously:

Fiscal Year Ended September 30,		2025		2024
Adjusted net income attributable to UGI Corporation (millions):
Net income attributable to UGI Corporation	$678		$269
Net losses (gains) on commodity derivative instruments not associated with current-period transactions (net of tax of $(2) and $17, respectively)	7		(60)
Unrealized losses (gains) on foreign currency derivative instruments (net of tax of $(3) and $(9), respectively)	7		22
Loss associated with impairment of AmeriGas Propane goodwill (net of tax of $0 and $(3), respectively)	-		192
Loss on extinguishments of debt (net of tax of $(2) and $(3), respectively)	8		6
AmeriGas operations enhancement for growth project (net of tax of $0 and $(6), respectively)	-		19
Restructuring costs (net of tax of $0 and $(20), respectively)	-		56
Costs associated with exit of the UGI International energy marketing business (net of tax of $0 and $(15), respectively)	-		69
Net loss on disposals of businesses (net of tax of $2 and $(11), respectively)	38		55
Impairments of equity method investments and assets (net of tax of $0 and $(3), respectively)	-		30
Release of valuation allowance on certain deferred tax assets	(10)		-
Total adjustments (1) (2)	50		389
Adjusted net income attributable to UGI Corporation	$728		$658
Adjusted diluted earnings per share:
UGI Corporation earnings per share - diluted	$3.09		$1.25
Net losses (gains) on commodity derivative instruments not associated with current-period transactions	0.03		(0.28)
Unrealized losses (gains) on foreign currency derivative instruments	0.04		0.10
Loss associated with impairment of AmeriGas Propane goodwill	-		0.89
Loss on extinguishments of debt	0.04		0.03
AmeriGas operations enhancement for growth project	-		0.09
Restructuring costs	-		0.26
Costs associated with exit of the UGI International energy marketing business	-		0.32
Net loss on disposals of businesses	0.17		0.26
Impairments of equity method investments and assets	-		0.14
Release of valuation allowance on certain deferred tax assets	(0.05)		-
Total adjustments (1)	0.23		1.81
Adjusted diluted earnings per share	$3.32		$3.06

(1)Corporate & Other includes certain adjustments made to our reporting segments in arriving at net income attributable to UGI Corporation. These adjustments have been excluded from the segment results to align with the measure used by our chief operating decision maker in assessing segment performance and allocating resources.

(2)Income taxes associated with pre-tax adjustments determined using statutory business unit tax rates.