Financial Performance - Net income attributable to UGI Corporation for the three-month period ended December 31, 2025, was $297 million, or $1.34 per diluted share, compared to $375 million, or $1.74 per diluted share, for the same period in 2024[145]. - Adjusted net income attributable to UGI Corporation for the three-month period ended December 31, 2025, was $279 million, or $1.26 per diluted share, compared to $295 million, or $1.37 per diluted share, for the same period in 2024[147]. - The Utilities segment's adjusted net income increased by $9 million during the 2025 period, primarily due to higher total margin[148]. - The Midstream & Marketing segment's adjusted net income decreased by $28 million during the 2025 period, mainly due to higher income tax expenses[148]. - UGI International's adjusted net income increased by $3 million during the 2025 period, attributed to higher total margin offset by increased income tax expenses[149]. - AmeriGas Propane's adjusted net income increased by $70 million during the 2025 period, primarily due to significantly lower income tax expenses[149]. Revenue and Volume Changes - Utilities revenues increased by $106 million (22%) in the 2025 three-month period compared to 2024, primarily driven by higher Gas Utility revenues of $103 million[150]. - Gas Utility core market volumes rose by 16% during the 2025 period, reflecting colder weather conditions, while total Gas Utility volume increased by 3%[151]. - Midstream & Marketing revenues increased by $60 million (16%) in the 2025 period, mainly due to higher revenues from natural gas marketing activities[157]. - UGI International revenues decreased by $63 million (10%) in the 2025 period, attributed to lower LPG retail volumes sold and lower LPG prices[163]. - AmeriGas Propane revenues decreased by $27 million (4%) in the 2025 period, primarily due to lower wholesale revenues and lower average retail propane selling prices[171]. Operating Income and Margins - Utilities operating income increased by $17 million (12%) in the 2025 period, reflecting a rise in total margin[155]. - UGI International total margin increased by $20 million (8%) during the 2025 period, driven by higher average unit margins and favorable currency translation effects[168]. - AmeriGas Propane total margin increased by $2 million (1%) in the 2025 period, despite lower fee income[175]. Cash Flow and Liquidity - Cash flow from operating activities was $66 million in the 2025 three-month period, down from $164 million in the 2024 period, while cash flow before changes in working capital increased to $438 million from $427 million[206]. - Cash used in investing activities was $145 million in the 2025 three-month period, compared to $232 million in the 2024 period, with cash expenditures for property, plant, and equipment at $221 million[207]. - Cash flow used by financing activities was $6 million in the 2025 three-month period, down from cash flow provided of $95 million in the 2024 period, including the issuance of $150 million in senior notes[209]. - Total available liquidity, including cash and cash equivalents and available borrowing capacity, was approximately $1.6 billion as of December 31, 2025[181]. - As of December 31, 2025, UGI Corporation had $251 million in cash and cash equivalents, down from $335 million as of September 30, 2025[184]. Debt and Financing - The total long-term debt of UGI Corporation was $6,773 million as of December 31, 2025, compared to $6,648 million as of September 30, 2025[186]. - UGI Corporation's total debt, including short-term borrowings, was $7,214 million as of December 31, 2025, compared to $7,134 million as of September 30, 2025[186]. - The company has $700 million in outstanding 5.00% Senior Notes due June 2028, which are convertible from January 1, 2026, to March 31, 2026[189][190]. - UGI Utilities issued $150 million of 5.10% Senior Notes due November 15, 2030, and $125 million of 5.68% Senior Notes due November 15, 2035, in November 2025[188]. - The average daily short-term borrowings for UGI Corporation were $251 million for the three months ended December 31, 2025, with a peak of $288 million[199]. Shareholder Actions - The company declared a cash dividend of $0.375 per common share on November 20, 2025, payable on January 1, 2026[202]. - UGI purchased 0.3 million shares of Common Stock for a total price of $12 during the three months ended December 31, 2025, and extended its share repurchase program for up to 8 million shares until February 2030[203]. Regulatory and Market Risks - PA Gas Utility filed a request to increase its base operating revenues by $99 million annually, effective March 29, 2026, to fund system improvements[211]. - WV Gas Utility submitted a base rate case seeking a net revenue increase of $27 million, with new rates requested to be effective March 5, 2026[213]. - A 10% decline in foreign currencies against the USD would reduce the net book value of UGI International operations by approximately $165 million[230]. - UGI maintains credit policies to mitigate derivative instrument credit risk, evaluating counterparties' financial conditions and credit ratings[232]. - As of December 31, 2025, the maximum potential loss from derivative counterparties failing to perform is $83 million[233]. Derivative Instruments and Risk Management - UGI Corporation uses derivative financial instruments to hedge against commodity price risk, including forward purchase contracts and options[223]. - The company has diversified its supplier base to mitigate risks associated with fixed-price sales contracts for natural gas[225]. - UGI Corporation employs forward foreign currency exchange contracts to hedge approximately 90% of anticipated foreign currency earnings before income taxes[231]. - The fair value change due to commodity price risk was a decrease of $52 million, reflecting a 10% adverse change in market prices[235]. - The fair value change due to interest rate risk was a decrease of $10 million, reflecting a 50 basis point adverse change in prevailing market interest rates[236]. - The fair value change due to foreign currency exchange rate risk was a decrease of $12 million, reflecting a 10% adverse change in the value of the Euro and British pound sterling against the USD[236].

Core Insights - UGI Corporation reported fiscal first-quarter 2026 earnings of $1.26 per share, missing the Zacks Consensus Estimate of $1.50 by 16% and down 8.03% from $1.37 per share in the same quarter last year [1][9] - Total revenues for the quarter were $2.08 billion, falling short of the Zacks Consensus Estimate of $2.13 billion by 2.07%, but representing a 2.61% increase from $2.03 billion in the prior year [2][9] Financial Performance - Earnings before interest expense and income tax (EBIT) for the fiscal first quarter of 2026 were $462 million, an 11% decline from $519 million in the year-ago quarter [3] - Interest expenses increased to $111 million, up 8.82% from $102 million in the previous year [3] Strategic Developments - UGI filed new gas base rate cases for UGI Utilities and Mountaineer Gas, seeking overall distribution rate increases of $99 million and $27 million, respectively [3] - The company entered into agreements for the divestiture of LPG businesses in several countries for an enterprise value of nearly $56.59 million, contributing to $215 million in cash proceeds from divestitures since fiscal 2025 [4] - UGI invested $225 million in the fiscal first quarter of 2026, with 73% allocated to regulated utilities [4] Operational Highlights - The New Carlisle LNG storage and vaporization facility commenced operations in the fiscal first quarter of 2026 [5] - Segment performance showed mixed results: - AmeriGas Propane EBIT was $72 million, down 2.70% year-over-year - UGI International EBIT increased by 12.7% to $124 million - Midstream & Marketing EBIT declined by 7.37% to $88 million - UGI Utilities EBIT rose 10.2% to $157 million [6][7]

UGI (NYSE:UGI) Q1 2026 Earnings call February 05, 2026 09:00 AM ET Company ParticipantsBob Flexon - President and CEOGabriel Moreen - Managing DirectorSean O’Brien - CFOTameka Morris - VP of Investor Relations and ESGConference Call ParticipantsPaul Zimbardo - Managing Director and Senior Equity Research Analyst on UtilitiesOperatorGood day, and thank you for standing by. Welcome to the UGI Corporation Q1 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the spea ...

UGI (NYSE:UGI) Q1 2026 Earnings call February 05, 2026 09:00 AM ET Company ParticipantsBob Flexon - President and CEOGabriel Moreen - Managing DirectorSean O’Brien - CFOTameka Morris - VP of Investor Relations and ESGConference Call ParticipantsPaul Zimbardo - Managing Director and Senior Equity Research Analyst on UtilitiesOperatorGood day, and thank you for standing by. Welcome to the UGI Corporation Q1 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the spea ...

UGI (NYSE:UGI) Q1 2026 Earnings call February 05, 2026 09:00 AM ET Speaker2Good day, and thank you for standing by. Welcome to the UGI Corporation Q1 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, ...

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Fiscal 2026 First Quarter Earnings Presentation February 5, 2026 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, althou ...

EARNINGS CALL AND WEBCAST Press Release UGI Reports First Quarter Results February 4, 2026 VALLEY FORGE, PA - UGI Corporation (NYSE: UGI) today reported financial results for the fiscal quarter ended December 31, 2025. HIGHLIGHTS Bob Flexon, President and Chief Executive Officer, said, "UGI had a solid start to fiscal 2026, delivering 5% growth in total reportable segment EBIT in line with our expectation. Our natural gas businesses produced strong results, driven by strong gas demand and the impact of the ...

Core Viewpoint - UGI reported quarterly earnings of $1.26 per share, missing the Zacks Consensus Estimate of $1.50 per share, representing a year-over-year decrease from $1.37 per share [1]. Financial Performance - The company posted revenues of $2.08 billion for the quarter ended December 2025, which was 2.08% below the Zacks Consensus Estimate and slightly above the year-ago revenues of $2.03 billion [2]. - Over the last four quarters, UGI has surpassed consensus EPS estimates three times but has not beaten consensus revenue estimates during the same period [2]. Stock Performance - UGI shares have increased approximately 6.9% since the beginning of the year, outperforming the S&P 500's gain of 1.1% [3]. - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6]. Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.34 on revenues of $3.18 billion, while for the current fiscal year, the estimate is $3.10 on revenues of $8.32 billion [7]. - The trend of estimate revisions for UGI was unfavorable prior to the earnings release, which may impact future stock movements [6]. Industry Context - The Utility - Gas Distribution industry, to which UGI belongs, is currently ranked in the bottom 32% of over 250 Zacks industries, suggesting potential challenges ahead [8]. - Sempra, another company in the same industry, is expected to report quarterly earnings of $1.13 per share, reflecting a year-over-year decline of 24.7% [9].

Manjeshwar holds a B.E. in Electronics from the University of Mumbai, a M.S. in Computer Science from James Madison University, and an M.B.A. from Georgetown University's McDonough School of Business. About UGI Corporation UGI Corporation (NYSE: UGI) is a distributor and marketer of energy products and services in the U.S. and Europe. UGI offers safe, reliable, affordable, and sustainable energy solutions to customers through its subsidiaries, which provide natural gas transmission and distribution, electri ...