The U.S. stock market staged a notable rebound on Friday, November 21, 2025, with major indexes closing significantly higher, recouping a portion of the sharp losses experienced earlier in the week. This resurgence was largely driven by renewed optimism surrounding potential interest rate cuts by the Federal Reserve, a sentiment bolstered by comments from a key Fed official. However, underlying concerns about artificial intelligence (AI) valuations continued to create volatility, particularly within the tec ...

Financial Agreements and Investments - UGI Corporation entered into a $700 million convertible senior notes agreement with a maturity date in June 2028[28]. - The company is focused on driving reliable earnings growth through strong operational performance and robust investments in its regulated utilities businesses[40]. - UGI Corporation aims to reduce Scope 1 GHG emissions by 55% by 2025, using Fiscal 2020 as a baseline, and plans to invest $500 million into renewable energy solutions by 2025[42]. - The company is pursuing operational efficiencies to improve cost agility and enhance its capital structure for greater financial flexibility[40]. Business Divestitures and Operations - The company completed the divestiture of its LPG distribution business in Italy and announced plans to divest its LPG distribution business in Austria as part of its global LPG business portfolio optimization efforts[36]. - AmeriGas OLP, the largest retail propane distributor in the U.S., completed the sale of its propane business in Hawaii, including approximately 750,000 gallons of propane storage facilities[37]. Emission Reduction Commitments - UGI Corporation has established a commitment to reduce methane emissions by 92% by 2030 and 95% by 2040[42]. - Compliance with increasing GHG emissions regulations may lead to higher operating costs if these costs cannot be passed on to customers[169]. Utility Operations and Customer Base - PA Gas Utility serves approximately 694,000 customers across 46 counties in Pennsylvania, with a system throughput of approximately 322 Bcf for Fiscal 2025[50]. - For Fiscal 2025, approximately 60% of PA Gas Utility's sales volume and 93% of its operating income were generated during the peak heating season from October through March[53]. - Mountaineer serves approximately 210,000 customers in West Virginia, with system throughput of approximately 56 Bcf for Fiscal 2025[65]. - During Fiscal 2025, PA Gas Utility connected over 1,260 new commercial and industrial customers and added more than 9,000 residential heating customers, with over 55% converting from other energy sources[59]. Natural Gas Supply and Purchases - PA Gas Utility purchased approximately 88 Bcf of natural gas for retail core-market customers during Fiscal 2025, with 97% supplied under agreements with ten suppliers[52]. - Mountaineer purchased approximately 23 Bcf of natural gas for retail core-market customers during Fiscal 2025, with 84% supplied under agreements with ten suppliers[67]. Rate Increases and Infrastructure Investments - On September 11, 2025, the PAPUC approved a $69.5 million annual base distribution rate increase for PA Gas Utility, effective October 28, 2025[74]. - PA Gas Utility plans to spend approximately $1.7 billion on DSIC-eligible property from 2025 to 2029 as part of its long-term infrastructure improvement plan[73]. - Mountaineer requested a revenue increase of approximately $13.9 million, resulting in an overall revenue increase of 4.16% approved by the WVPSC[80]. - Electric Utility filed for a base rate increase resulting in a revenue increase of approximately $8.5 million effective October 1, 2023[82]. Energy Services and Operations - Energy Services serves approximately 9,700 customers across 37,000 locations, distributing natural gas through 38 local utilities and supplying power through 20 utility systems[96]. - Energy Services manages natural gas pipeline and storage contracts for utility customers, including UGI Utilities, and has a total underground natural gas storage capacity of 15 million dekatherms[101]. - UGI Appalachia's assets provide natural gas gathering and processing services with gathering capacity of approximately 3,500,000 dekatherms per day and processing capacity of approximately 240,000 dekatherms per day[106]. LPG Distribution and Sales - UGI International sold approximately 820 million gallons of LPG throughout Europe during Fiscal 2025[119]. - Approximately 48% of UGI International's LPG volume was sold to commercial and industrial customers, 16% to residential, 13% to agricultural, and 24% to wholesale and other customers[119]. - UGI International had approximately 400,000 bulk LPG customers and sold approximately 534 million gallons of bulk LPG during Fiscal 2025[121]. - At September 30, 2025, UGI International had more than 20 million cylinders in circulation and sold approximately 126 million gallons of LPG in cylinders during Fiscal 2025[122]. Employee and Corporate Culture - As of September 30, 2025, the General Partner had nearly 4,600 employees, with a significant portion not represented by unions[170]. - UGI and its subsidiaries had approximately 9,400 employees as of September 30, 2025[174]. - UGI emphasizes a robust safety culture, integrating safety performance into core business activities and making it a component of short-term incentive plans for employees[178]. - UGI conducted enterprise-wide leadership training sessions throughout Fiscal 2025 to strengthen company culture and performance[187]. Diversity and Inclusion - UGI is committed to diversity in its Board of Directors, which currently comprises ten directors, nine of whom are independent[189]. - The company prioritizes competitive compensation, technical skills training, and professional growth opportunities to attract and retain talent[185]. - UGI's employee resource groups promote an inclusive environment and enhance employee engagement[188].

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Financial Data and Key Metrics Changes - UGI Corporation achieved record-adjusted earnings per share (EPS) of $3.32, exceeding the revised guidance range of $3.00 to $3.15, driven by strong operational performance and tax benefits [4][17] - Free cash flow generated was approximately $530 million, which included cash from asset sales [4][22] - Total shareholder return for the year was 42%, reflecting strong operational strategy [22] Business Line Data and Key Metrics Changes - AmeriGas reported EBIT of $166 million, a 17% increase year-over-year, with a 30% reduction in recordable incidents enhancing safety [17][22] - The regulated utilities segment achieved record EBIT of $403 million, up $3 million from the previous year, supported by a 10% increase in core market volumes [18] - Midstream and Marketing segment EBIT was $293 million, down $20 million due to lower margins and reduced income from equity method investments [19] Market Data and Key Metrics Changes - UGI International reported EBIT of $314 million, a decrease of $9 million from the prior year, attributed to lower margins and reduced LPG volumes [19][21] - LPG volumes declined by 4% due to structural conservation and customer conversions to natural gas, partially offset by colder weather [21] Company Strategy and Development Direction - The company is focusing on operational excellence and portfolio optimization, with a long-term EPS growth target of 5%-7% [5][25] - Investments of approximately $900 million were deployed, primarily in natural gas businesses, to enhance infrastructure and system reliability [7][23] - AmeriGas is undergoing a transformation to improve customer service and operational efficiency, with a focus on safety and financial discipline [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, anticipating a 5%-7% increase in reportable segment EBIT year-over-year [24][25] - The company expects to maintain strong operational performance despite anticipated higher interest expenses and normalization of the effective tax rate [24][25] - Future capital investments are projected between $4.5 billion and $4.9 billion to support strategic growth opportunities [25][26] Other Important Information - The company is committed to maintaining a leverage ratio at or below 3.75x for UGI Corporation and 4.0x for AmeriGas to ensure financial flexibility [26] - The operational and financial improvements at AmeriGas are expected to drive organic growth in the coming years [28] Q&A Session Summary Question: Guidance for midstream and LPG businesses - Management expects low double-digit growth across all business lines over the planning horizon, including midstream and LPG [34][35] Question: Update on NDAs and data center activity - There is significant ongoing activity with over 50 NDAs signed, indicating strong interest in growth opportunities in Pennsylvania [38] Question: Comments on potential electric utility market - The company continuously evaluates its portfolio for optimization opportunities but did not provide specific comments on the electric utility [40] Question: AmeriGas leverage targets - AmeriGas aims to achieve a leverage ratio below 4.5, driven by EBIT growth and deleveraging efforts [50][51] Question: Consistency of tax credits - Management confirmed that there will be no ongoing one-time tax credit items affecting future forecasts, leading to a normalized run rate [54] Question: CapEx and shareholder returns - Utility CapEx is expected to remain consistent or slightly increase, with a commitment to dividends in the future [56][57]

Financial Data and Key Metrics Changes - UGI Corporation achieved record-adjusted earnings per share (EPS) of $3.32, exceeding the revised guidance range of $3.00 to $3.15, representing a $0.26 increase from the prior year [4][17] - The company generated approximately $530 million in free cash flow and returned about $320 million to shareholders through dividends [4][22] - The leverage ratio for UGI Corporation was reported at 3.9 times, while AmeriGas stood at 4.9 times, reflecting disciplined debt reduction and improved performance [22][26] Business Line Data and Key Metrics Changes - AmeriGas reported EBIT of $166 million, a 17% increase year-over-year, driven by operational momentum and tax benefits [17][22] - The regulated utilities segment achieved record EBIT of $403 million, up $3 million from the previous year, with a total margin increase of $39 million due to a 10% rise in core market volumes [18] - The midstream and marketing segment's EBIT decreased by $20 million to $293 million, primarily due to lower margins and reduced income from equity method investments [19] Market Data and Key Metrics Changes - UGI International's EBIT declined by $9 million to $314 million, impacted by reduced margins and lower realized gains on foreign currency exchange [19][21] - LPG volumes decreased by 4% due to structural conservation and customer conversions from LPG to natural gas, although colder weather partially offset this decline [21] Company Strategy and Development Direction - The company is focusing on transforming its culture and operational discipline to enhance competitive advantage and drive sustainable growth [5][8] - UGI is raising its long-term EPS growth expectations to a compound annual growth rate target of 5-7%, supported by a robust capital investment program of $4.5 to $4.9 billion [5][25] - The strategic vision includes optimizing the portfolio and enhancing system reliability, particularly in the natural gas sector, to capitalize on energy expansion opportunities [9][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational and financial improvements at AmeriGas, which are expected to drive organic growth in the coming years [28] - The company anticipates continued growth in all business lines, with a focus on low double-digit growth over the planning horizon [36][37] - Future guidance for fiscal 2026 projects adjusted diluted EPS in the range of $2.85 to $3.15, assuming normal weather and current tax conditions [23][24] Other Important Information - The company has successfully implemented stringent project management disciplines and increased technological adoption, including AI, to drive efficiency [8][10] - UGI is committed to maintaining financial discipline, targeting a leverage ratio at or below 3.75 times for UGI Corporation and 4.0 times for AmeriGas [26] Q&A Session Summary Question: Expectations for midstream and LPG businesses in the five-year plan - Management expects low double-digit growth across all business lines during the planning horizon, including midstream and LPG [36] Question: Update on natural gas activities and data center investments - Management confirmed ongoing significant discussions with over 50 counterparties regarding natural gas activities in Pennsylvania [40] Question: Comments on potential electric utility market considerations - Management stated that portfolio optimization remains a continuous focus, evaluating opportunities for value creation [42] Question: AmeriGas targets and deleveraging strategy - Management highlighted that AmeriGas has opportunities to drive value through operational improvements, expecting to approach a leverage ratio of 4.5 in the near future [49][53] Question: Consistency of earnings excluding one-time tax credits - Management confirmed that there will be no ongoing detriment or benefit from previous tax credits, indicating a normalized run rate for future earnings [56][58] Question: Changes in capital expenditure and shareholder returns - Management indicated that utility capital expenditures are expected to remain consistent or slightly increase, with a commitment to dividends in the future [60][61]

Core Insights - UGI Corporation reported a narrower fourth-quarter fiscal 2025 operating loss of 23 cents per share, better than the Zacks Consensus Estimate of a loss of 44 cents, and an improvement from a loss of 16 cents in the same quarter last year [1] - The company’s GAAP loss per share for the fourth quarter was 6 cents, compared to a loss of $1.27 in the year-ago quarter [1] - Adjusted earnings for fiscal 2025 were $3.32 per share, reflecting an 8.5% increase from $3.06 in fiscal 2024 [1] Revenue Performance - UGI's total revenues for the fourth quarter were $1.20 billion, missing the Zacks Consensus Estimate of $1.72 billion by 30.5%, and decreased 3.6% from $1.24 billion in the year-ago quarter [2] - For fiscal 2025, total revenues reached $7.29 billion, a slight increase of 1.1% from $7.21 billion in fiscal 2024 [2] Investment and Expenses - The company invested $882 million in fiscal 2025, with 80% allocated to the natural gas business, primarily in regulated utilities [3] - Interest expenses rose to $106 million from $98 million in the year-ago quarter [3] - Earnings before interest expense and income tax for the fourth quarter were $19 million, a significant improvement from a loss of $256 million in the previous year [3] Segment Performance - AmeriGas Propane reported operating income before interest expense and income taxes of $166 million in fiscal 2025, up 16.9% from the previous year [4] - UGI International's EBIT was $314 million, down 2.8% from the year-ago level [4] - Midstream & Marketing's EBIT declined 6.4% to $293 million [4] - UGI Utilities reported EBIT of $403 million, a slight increase of 0.8% from the previous year [4] Future Guidance - UGI anticipates adjusted earnings for fiscal 2026 to be in the range of $2.90-$3.15 per share, with the Zacks Consensus Estimate at $3.21 [5] - The company plans to invest between $1 billion and $1.1 billion in fiscal 2026 to strengthen operations [5] - UGI expects a long-term earnings growth rate of 5-7% and plans to invest $4.5 billion to $4.9 billion during fiscal 2026-2029 [5][6]

Financial Data and Key Metrics Changes - UGI Corporation achieved record-adjusted earnings per share (EPS) of $3.32, exceeding the revised guidance range of $3.00 to $3.15, representing a $0.26 increase from the prior year [4][17] - The company generated approximately $530 million in free cash flow and returned about $320 million to shareholders through dividends [4][21] - The leverage ratio for UGI Corporation was 3.9 times, while AmeriGas stood at 4.9 times, reflecting disciplined debt reduction and improved performance [21][25] Business Line Data and Key Metrics Changes - AmeriGas reported EBIT of $166 million, a 17% increase year-over-year, driven by operational momentum and tax benefits [17][21] - The regulated utilities segment achieved record EBIT of $403 million, up $3 million from the previous year, with a total margin increase of $39 million due to a 10% rise in core market volumes [18] - UGI International's EBIT declined by $9 million to $314 million, impacted by higher income tax expenses and lower margin contributions [19][20] Market Data and Key Metrics Changes - The utility segment added over 11,500 residential heating and commercial customers, increasing the customer base to approximately 967,000 across Pennsylvania, West Virginia, and Maryland [18] - LPG volumes at UGI International decreased by 4%, influenced by structural conservation and customer conversions from LPG to natural gas [20] Company Strategy and Development Direction - UGI is focusing on portfolio optimization to enhance resource utilization in core customer segments, aiming for a long-term EPS growth target of 5-7% [5][24] - The company is investing in critical pipeline infrastructure and new LNG and renewable natural gas facilities to expand revenue-generating capabilities [4][9] - AmeriGas is undergoing operational transformation to improve efficiency and customer service, with a focus on safety and financial discipline [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth outlook for all business lines, expecting low double-digit growth over the planning horizon [34] - The company anticipates continued earnings growth in the midstream and marketing segment, supported by fee-based margins and limited commodity exposure [23] - UGI International is expected to maintain performance in line with the current year, driven by strong margin management and organic growth initiatives [24] Other Important Information - UGI deployed approximately $900 million in capital, primarily in natural gas businesses, to position for future earnings growth [21][22] - The company is committed to maintaining a leverage ratio at or below 3.75 times for UGI Corporation and 4.0 times for AmeriGas to ensure financial flexibility [25] Q&A Session Summary Question: Expectations for midstream and LPG businesses in the five-year plan - Management expects low double-digit growth across all business lines during the planning horizon, with consistent growth rates anticipated [34][35] Question: Update on NDAs and data center activity - Management confirmed ongoing discussions with over 50 counterparties regarding various projects, indicating significant activity in Pennsylvania [37] Question: Comments on potential sale of electric utility and portfolio optimization - Management stated that portfolio optimization remains a continuous focus, evaluating opportunities for value creation through holding or divesting assets [39][40] Question: AmeriGas targets for leverage and growth - Management highlighted opportunities for growth in AmeriGas through operational improvements, with expectations for EBIT growth to continue [44][49] Question: Clarification on tax credits and future expectations - Management confirmed that the bulk of investment tax credits received in fiscal 2025 will not recur, leading to a normalized run rate for future earnings [52][53] Question: Changes in CapEx and shareholder returns - Management indicated that utility CapEx is expected to remain consistent or slightly increase, with a commitment to dividends in the coming years [56]

Fiscal 2025 Earnings Presentation November 21, 2025 About This Presentation This presentation 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 fo ...

Financial Performance - UGI Corporation reported GAAP net income of $678 million and adjusted net income of $728 million for fiscal 2025, compared to $269 million and $658 million in the prior year, respectively[6]. - Adjusted diluted EPS for fiscal 2025 was $3.32, exceeding the top end of the revised guidance range, compared to $3.06 in the prior year[6]. - Net income attributable to UGI Corporation for the fiscal year 2025 was $678 million, compared to $269 million in 2024, representing a significant increase of 151.7%[23]. - Adjusted net income attributable to UGI Corporation for 2025 was $728 million, up from $658 million in 2024, reflecting a growth of 10.6%[24]. - Diluted earnings per share for Q4 2025 were $3.09, compared to $1.25 in Q4 2024, marking a substantial increase of 147.2%[24]. - Adjusted diluted earnings per share for 2025 were $3.32, compared to $3.06 in 2024, indicating an increase of 8.5%[24]. Revenue and Segment Performance - The Utilities segment generated revenues of $1,761 million, a 10% increase from $1,598 million in the prior year, with total margin rising by 4% to $963 million[13]. - UGI International revenues decreased by 7% to $2,119 million, with total margin down 4% to $940 million[18]. - Total revenues for Q4 2025 were $1,197 million, a decrease of 3.6% from $1,242 million in Q4 2024[23]. - UGI International reported revenues of $394 million in Q4 2025, down 7.5% from $426 million in Q4 2024[23]. - AmeriGas Propane segment experienced a revenue decline to $367 million in Q4 2025 from $402 million in Q4 2024, a decrease of 8.7%[23]. Cash Flow and Shareholder Returns - The company generated approximately $530 million of free cash flow, including cash from asset sales, and returned value to shareholders through dividend payments[3]. Capital Expenditures and Balance Sheet - Capital expenditures for the Utilities segment increased by 15% to $556 million, up from $482 million in the prior year[13]. - UGI's balance sheet was strengthened with available liquidity of approximately $1.6 billion and a leverage ratio of 3.9x[6]. Future Outlook - UGI provided adjusted EPS guidance for fiscal 2026 in the range of $2.90 - $3.15, assuming normal weather and a 5 - 7% growth in reportable segments EBIT[5][6]. - UGI anticipates that the initiatives at AmeriGas will have a tangible impact during the upcoming winter season[4]. Interest Expense and Losses - Interest expense for the fiscal year 2025 totaled $411 million, an increase from $394 million in 2024[23]. - The company reported a net loss of $13 million in Q4 2025, a significant improvement from a net loss of $273 million in Q4 2024[23]. Other Financial Metrics - The total earnings before interest expense and income taxes for the reportable segments in Q4 2025 was $19 million, compared to a loss of $256 million in Q4 2024[23]. - AmeriGas reported a total margin decrease of $38 million, attributed to lower retail gallons sold, partially offset by higher average LPG unit margins[21].

Core Viewpoint - UGI reported a quarterly loss of $0.23 per share, which was better than the Zacks Consensus Estimate of a loss of $0.44, indicating a positive earnings surprise of +47.73% [1] Financial Performance - The company posted revenues of $1.2 billion for the quarter ended September 2025, missing the Zacks Consensus Estimate by 30.48%, compared to $1.24 billion in revenues a year ago [2] - UGI has surpassed consensus EPS estimates for the last four quarters, but has not beaten revenue estimates during the same period [2] Stock Performance - UGI shares have increased by approximately 23.4% since the beginning of the year, outperforming the S&P 500's gain of 12.9% [3] Future Outlook - The company's earnings outlook will be crucial for determining the sustainability of its stock price movement, with current consensus EPS estimates at $1.32 for the coming quarter and $3.21 for the current fiscal year [4][7] - The estimate revisions trend for UGI was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell), suggesting expected underperformance in the near future [6] Industry Context - The Utility - Gas Distribution industry, to which UGI belongs, is currently ranked in the bottom 32% of over 250 Zacks industries, indicating potential challenges for stock performance [8]