Financial Performance - Year-to-date adjusted diluted EPS increased by 10% from $3.22 in FY24 to $3.55 in FY25[13] - Year-to-date FY25 GAAP diluted EPS is $3.16, compared to $2.52 in year-to-date FY24[14] - Year-to-date FY25 free cash flow is $558 million[14], an 11% increase compared to year-to-date FY24[15] - Available liquidity as of June 30, 2025, is $1.9 billion[14] - The company expects to achieve the top end of its FY25 adjusted EPS guidance range of $3.00 to $3.15 per share[15] Segment Results (Q3 FY25) - Utilities EBIT decreased from $39 million in Q3 FY24 to $30 million in Q3 FY25[22] - Midstream & Marketing EBIT decreased from $43 million in Q3 FY24 to $27 million in Q3 FY25[24] - UGI International EBIT increased from -$19 million in Q3 FY24 to $43 million in Q3 FY25[28] - AmeriGas Propane EBIT decreased from $9 million in Q3 FY24 to -$28 million in Q3 FY25[28, 32] Strategic Initiatives - The company is generating approximately $150 million of cash through LPG asset sales in Hawaii, Italy, and a small cylinder business in the UK[16] - Year-to-date capital expenditure is $605 million, with over 80% allocated to the natural gas businesses[16] - Utilities added approximately 9,000 residential heating and commercial customers year-to-date FY25[16] - AmeriGas is substantially exiting the wholesale business, which represented approximately 11% of total LPG gallons sold and was essentially a breakeven business in FY24[16]

[Executive Summary & Company Information](index=1&type=section&id=Executive%20Summary%20%26%20Company%20Information) [Company Overview](index=1&type=section&id=About%20UGI) UGI Corporation is a diversified energy company operating in the US and Europe, offering a range of energy products and services - UGI Corporation (NYSE: UGI) is a distributor and marketer of energy products and services in the US and Europe[4](index=4&type=chunk) - UGI offers safe, reliable, affordable, and sustainable energy solutions through subsidiaries providing natural gas transmission and distribution, electric generation and distribution, midstream services, propane distribution, renewable natural gas generation, distribution and marketing, and energy marketing services[4](index=4&type=chunk) [Third Quarter 2025 Highlights](index=1&type=section&id=HIGHLIGHTS) UGI reported Q3 2025 GAAP diluted EPS of $(0.76) and adjusted diluted EPS of $(0.01), alongside $150 million from strategic asset sales Q3 and YTD Financial Performance Highlights | Metric | Q3 2025 | Q3 2024 | Change (YoY) | YTD 2025 | YTD 2024 | Change (YoY) | | :----- | :------ | :------ | :----------- | :------- | :------- | :----------- | | GAAP diluted EPS | $(0.76) | $(0.23) | $(0.53) | $3.16 | $2.52 | $0.64 | | Adjusted diluted EPS | $(0.01) | $0.06 | $(0.07) | $3.55 | $3.22 | $0.33 | | Reportable segments EBIT | N/A | N/A | N/A | $1,184 million | $1,185 million | $(1) million | - Executed on strategic portfolio optimization initiative, generating approximately **$150 million** from asset sales in the Global LPG businesses (Hawaii, Italy, and a small cylinder business in the UK)[5](index=5&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Bob Flexon highlighted outstanding year-to-date results, attributing success to asset strength, operational excellence, and AmeriGas improvements - Achieved **outstanding year-to-date results** showcasing the strength of the asset portfolio and team's commitment to safely and reliably deliver energy solutions[2](index=2&type=chunk) - Unwavering focus on driving superior business performance, operational excellence, and creating greater financial flexibility[2](index=2&type=chunk) - Encouraged by the cultural transformation underway and customer-focused operational improvements being implemented at AmeriGas to strengthen performance[2](index=2&type=chunk) [Fiscal Year 2025 Outlook](index=1&type=section&id=Fiscal%20Year%202025%20Outlook) UGI anticipates Fiscal 2025 adjusted EPS to reach the top end of its guidance range - Expect to be at the **top end of Fiscal 2025 adjusted EPS guidance range of $3.00 - $3.15 per share**[5](index=5&type=chunk) [Important Disclosures](index=3&type=section&id=Important%20Disclosures) [Use of Non-GAAP Measures](index=3&type=section&id=USE%20OF%20NON-GAAP%20MEASURES) Management uses non-GAAP measures, such as 'adjusted net income' and 'adjusted diluted EPS,' for performance assessment, excluding derivative and discrete items - Management uses 'adjusted net income attributable to UGI Corporation' and 'adjusted diluted EPS' to evaluate UGI's overall performance[8](index=8&type=chunk) - Non-GAAP measures eliminate 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 affect period-over-period comparisons[8](index=8&type=chunk) - 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, comparable GAAP measures[9](index=9&type=chunk) [Use of Forward-Looking Statements](index=3&type=section&id=USE%20OF%20FORWARD-LOOKING%20STATEMENTS) This press release contains forward-looking statements, subject to risks and uncertainties, which UGI will not publicly update unless legally mandated - This press release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933)[11](index=11&type=chunk) - Actual results may differ significantly due to risks and uncertainties that are difficult to predict and many of which are beyond management's control[11](index=11&type=chunk) - UGI undertakes no obligation (and expressly disclaims any obligation) to update publicly any forward-looking statement, except as required by federal securities laws[11](index=11&type=chunk) [Segment Performance Analysis](index=4&type=section&id=SEGMENT%20RESULTS) [Utilities Segment](index=4&type=section&id=Utilities) The Utilities segment reported a 12% revenue increase but a 23% EBIT decrease in Q3 2025, primarily due to higher operating expenses and depreciation Utilities Segment Financials (Q3 YoY) | Metric | Q3 2025 ($M) | Q3 2024 ($M) | Change ($M) | Change (%) | | :----- | :----------- | :----------- | :---------- | :--------- | | Revenues | 287 | 257 | 30 | 12% | | Total margin | 168 | 164 | 4 | 2% | | Operating & admin expenses | 96 | 86 | 10 | 12% | | Operating income | 29 | 37 | (8) | (22)% | | EBIT | 30 | 39 | (9) | (23)% | | Capital expenditures | 146 | 126 | 20 | 16% | - Gas Utility service territory experienced temperatures **25% colder** than the prior-year period[12](index=12&type=chunk) - Total Gas Utility volumes increased **5%** largely due to an increase in large firm delivery service volumes[13](index=13&type=chunk) - Operating income decreased **$8 million** as higher total margin (**$4 million**) was more than offset by higher operating and administrative expenses (**$10 million**) and increased depreciation expense (**$2 million**)[14](index=14&type=chunk) [Midstream & Marketing Segment](index=4&type=section&id=Midstream%20%26%20Marketing) The Midstream & Marketing segment reported a 10% revenue increase but a 37% EBIT decrease in Q3 2025, driven by a 10% total margin decline from lower midstream and power generation margins Midstream & Marketing Segment Financials (Q3 YoY) | Metric | Q3 2025 ($M) | Q3 2024 ($M) | Change ($M) | Change (%) | | :----- | :----------- | :----------- | :---------- | :--------- | | Revenues | 278 | 253 | 25 | 10% | | Total margin | 77 | 86 | (9) | (10)% | | Operating & admin expenses | 32 | 30 | 2 | 7% | | Operating income | 27 | 41 | (14) | (34)% | | EBIT | 27 | 43 | (16) | (37)% | | Capital expenditures | 30 | 40 | (10) | (25)% | - Temperatures were **22% colder** than the prior-year period[15](index=15&type=chunk) - Total margin decreased **$9 million** largely due to lower midstream margins (**$7 million**) from reduced natural gas gathering and processing, and the absence of power generation margin (**$5 million**) associated with the sale of Hunlock Creek, partially offset by higher margins from gas marketing activities (**$4 million**)[16](index=16&type=chunk) - Operating income decreased **$14 million** largely due to lower total margin (**$9 million**), lower other operating income (**$6 million**), and higher operating and administrative expenses (**$2 million**)[17](index=17&type=chunk) [UGI International Segment](index=5&type=section&id=UGI%20International) UGI International reported a 4% revenue decrease and a 25% EBIT decrease in Q3 2025, mainly due to a 9% decline in retail LPG volumes and reduced unit margins UGI International Segment Financials (Q3 YoY) | Metric | Q3 2025 ($M) | Q3 2024 ($M) | Change ($M) | Change (%) | | :----- | :----------- | :----------- | :---------- | :--------- | | Revenues | 437 | 455 | (18) | (4)% | | Total margin | 192 | 211 | (19) | (9)% | | Operating & admin expenses | 129 | 138 | (9) | (7)% | | Operating income | 43 | 57 | (14) | (25)% | | EBIT | 43 | 57 | (14) | (25)% | | LPG retail gallons sold (millions) | 139 | 152 | (13) | (9)% | - Temperatures were **16% warmer** than the prior-year period[23](index=23&type=chunk) - Retail volumes were **9% lower** due to continued structural conservation, the absence of certain customers who previously converted from natural gas to LPG, and the effects of warmer weather[23](index=23&type=chunk) - Total margin decreased **$19 million** primarily due to lower retail volumes and reduced LPG unit margins, partially offset by the translation effects of stronger foreign currencies (**~$10 million**)[23](index=23&type=chunk) [AmeriGas Propane Segment](index=5&type=section&id=AmeriGas%20Propane) AmeriGas Propane reported a 2% revenue decrease and a 4% operating loss increase in Q3 2025, with retail gallons down 3% due to attrition, largely offset by higher LPG unit margins AmeriGas Propane Segment Financials (Q3 YoY) | Metric | Q3 2025 ($M) | Q3 2024 ($M) | Change ($M) | Change (%) | | :----- | :----------- | :----------- | :---------- | :--------- | | Revenues | 434 | 445 | (11) | (2)% | | Total margin | 227 | 228 | (1) | 0% | | Operating & admin expenses | 220 | 219 | 1 | 0% | | Operating loss / loss before interest expense and income taxes | (28) | (27) | (1) | 4% | | Retail gallons sold (millions) | 138 | 142 | (4) | (3)% | - Temperatures were **5% colder** than the prior-year period[21](index=21&type=chunk) - Retail gallons decreased **3%** due to the effect of net customer attrition[21](index=21&type=chunk) - Total margin was fairly comparable to prior year as the impact of lower LPG volumes was substantially offset by higher LPG unit margins[21](index=21&type=chunk) [Consolidated Financial Results](index=6&type=section&id=REPORT%20OF%20EARNINGS%20%E2%80%93%20UGI%20CORPORATION) [Consolidated Income Statement](index=6&type=section&id=Consolidated%20Income%20Statement) UGI Corporation reported a 1% revenue increase to $1,394 million in Q3 2025, but net loss widened to $(163) million, driven by a substantial decline in total EBIT Consolidated Revenues by Segment (Q3 & YTD YoY) | Segment | Q3 2025 ($M) | Q3 2024 ($M) | Change ($M) | Change (%) | YTD 2025 ($M) | YTD 2024 ($M) | Change ($M) | Change (%) | | :------ | :----------- | :----------- | :---------- | :--------- | :------------ | :------------ | :---------- | :--------- | | Utilities | 287 | 257 | 30 | 12% | 1,545 | 1,396 | 149 | 11% | | Midstream & Marketing | 278 | 253 | 25 | 10% | 1,232 | 1,130 | 102 | 9% | | UGI International | 437 | 455 | (18) | (4)% | 1,725 | 1,853 | (128) | (7)% | | AmeriGas Propane | 434 | 445 | (11) | (2)% | 1,909 | 1,869 | 40 | 2% | | Corporate & Other | (42) | (30) | (12) | (40)% | (321) | (280) | (41) | (15)% | | **Total revenues** | **1,394** | **1,380** | **14** | **1%** | **6,090** | **5,968** | **122** | **2%** | Consolidated Earnings (Loss) Before Interest Expense and Income Taxes (Q3 & YTD YoY) | Segment | Q3 2025 ($M) | Q3 2024 ($M) | Change ($M) | Change (%) | YTD 2025 ($M) | YTD 2024 ($M) | Change ($M) | Change (%) | | :------ | :----------- | :----------- | :---------- | :--------- | :------------ | :------------ | :---------- | :--------- | | Utilities | 30 | 39 | (9) | (23)% | 412 | 400 | 12 | 3% | | Midstream & Marketing | 27 | 43 | (16) | (37)% | 276 | 298 | (22) | (7)% | | UGI International | 43 | 57 | (14) | (25)% | 296 | 305 | (9) | (3)% | | AmeriGas Propane | (28) | (27) | (1) | 4% | 200 | 182 | 18 | 10% | | **Total reportable segments** | **72** | **112** | **(40)** | **(36)%** | **1,184** | **1,185** | **(1)** | **0%** | | Corporate & Other | (199) | (71) | (128) | (180)% | (96) | (195) | 99 | (51)% | | **Total EBIT** | **(127)** | **41** | **(168)** | **(410)%** | **1,088** | **990** | **98** | **10%** | Consolidated Net Income and EPS (Q3 & YTD YoY) | Metric | Q3 2025 | Q3 2024 | Change | YTD 2025 | YTD 2024 | Change | | :----- | :------ | :------ | :----- | :------- | :------- | :----- | | Net income (loss) attributable to UGI Corporation ($M) | (163) | (48) | (115) | 691 | 542 | 149 | | Diluted EPS | $(0.76) | $(0.23) | $(0.53) | $3.16 | $2.52 | $0.64 | [Non-GAAP Financial Reconciliations](index=7&type=section&id=Non-GAAP%20Financial%20Measures%20-%20Adjusted%20Net%20Income%20Attributable%20to%20UGI%20and%20Adjusted%20Diluted%20Earnings%20Per%20Share.) [Adjusted Net Income Attributable to UGI](index=7&type=section&id=Adjusted%20net%20income%20(loss)%20attributable%20to%20UGI%20Corporation) Adjusted net income attributable to UGI Corporation for Q3 2025 was $(3) million, a decrease from $12 million, primarily due to excluding net losses on derivatives and business disposals Adjusted Net Income Attributable to UGI Corporation (Q3 & YTD YoY) | Metric | Q3 2025 ($M) | Q3 2024 ($M) | Change ($M) | YTD 2025 ($M) | YTD 2024 ($M) | Change ($M) | | :----- | :----------- | :----------- | :---------- | :------------ | :------------ | :---------- | | Net income (loss) attributable to UGI Corporation | (163) | (48) | (115) | 691 | 542 | 149 | | Total adjustments | 160 | 60 | 100 | 85 | 151 | (66) | | **Adjusted net income (loss) attributable to UGI Corporation** | **(3)** | **12** | **(15)** | **776** | **693** | **83** | - Key adjustments for Q3 2025 included **$81 million** for net losses on commodity derivative instruments, **$18 million** for unrealized losses on foreign currency derivative instruments, and **$53 million** for loss on disposals of businesses[25](index=25&type=chunk) [Adjusted Diluted Earnings Per Share](index=7&type=section&id=Adjusted%20diluted%20earnings%20(loss)%20per%20share) Adjusted diluted EPS for Q3 2025 was $(0.01), a decrease from $0.06, while year-to-date adjusted diluted EPS improved to $3.55, reflecting non-GAAP adjustments Adjusted Diluted Earnings Per Share (Q3 & YTD YoY) | Metric | Q3 2025 | Q3 2024 | Change | YTD 2025 | YTD 2024 | Change | | :----- | :------ | :------ | :----- | :------- | :------- | :----- | | UGI Corporation earnings (loss) per share — diluted (GAAP) | $(0.76) | $(0.23) | $(0.53) | $3.16 | $2.52 | $0.64 | | Total adjustments (per share) | $0.75 | $0.29 | $0.46 | $0.39 | $0.70 | $(0.31) | | **Adjusted diluted earnings (loss) per share** | **$(0.01)** | **$0.06** | **$(0.07)** | **$3.55** | **$3.22** | **$0.33** | - The diluted loss per share for the three months ended June 30, 2024, excluded **3.82 million** dilutive shares as their impact would have been antidilutive due to the net loss for the period[26](index=26&type=chunk)

Group 1 - UGI reported a quarterly loss of $0.01 per share, better than the Zacks Consensus Estimate of a loss of $0.12, and compared to earnings of $0.06 per share a year ago, representing an earnings surprise of +91.67% [1] - The company posted revenues of $1.39 billion for the quarter ended June 2025, missing the Zacks Consensus Estimate by 3.44%, and this is a slight increase from year-ago revenues of $1.38 billion [2] - UGI shares have increased approximately 28.8% since the beginning of the year, outperforming the S&P 500's gain of 7.1% [3] Group 2 - The earnings outlook for UGI is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The trend for estimate revisions for UGI was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] - The current consensus EPS estimate for the upcoming quarter is -$0.37 on revenues of $1.64 billion, and for the current fiscal year, it is $3.13 on revenues of $7.81 billion [7] Group 3 - The Utility - Gas Distribution industry, to which UGI belongs, is currently in the top 25% of over 250 Zacks industries, suggesting a positive outlook for stocks in this sector [8] - Sempra, another company in the same industry, is expected to report quarterly earnings of $0.83 per share, reflecting a year-over-year change of -6.7%, with revenues anticipated to be $3.15 billion, up 4.7% from the previous year [9][10]

Core Insights - Wall Street is experiencing a strong rally, driven by solid corporate earnings, resilient economic data, the AI boom, and retail investor enthusiasm, despite concerns over trade policy and Federal Reserve actions [1] Dividend Growth Strategy - Dividend investing is gaining traction as it provides consistent income, especially in uncertain markets, with a focus on stocks that have a strong history of year-over-year dividend growth leading to higher returns [2][4] - Stocks with a solid dividend growth history are typically mature companies, offering downside protection and acting as a hedge against market volatility [4][5] - Selected dividend growth stocks include Boyd Gaming Corporation, TE Connectivity, UGI Corporation, NetEase Inc., and Garmin Ltd., which show strong earnings revisions and growth potential [3][9] Stock Selection Criteria - Stocks selected for dividend growth should have a 5-Year Historical Dividend Growth greater than zero, indicating a solid dividend growth history [6] - Additional criteria include 5-Year Historical Sales Growth and EPS Growth greater than zero, ensuring a strong record of revenue and earnings growth [7] - Valuation metrics such as Price/Cash Flow less than the industry average and a 52-Week Price Change greater than the S&P 500 are also important for stock selection [8] Company Profiles - **Boyd Gaming Corporation (BYD)**: A multi-jurisdictional gaming company with a positive earnings estimate revision of $0.31 and an earnings surprise of 9.12% over the past four quarters, holding a Zacks Rank 1 and a Growth Score of A [10][11] - **TE Connectivity (TEL)**: A global technology company with a solid earnings estimate revision of $0.22 and an estimated growth of 12.30%, also holding a Zacks Rank 1 and a Growth Score of B [11][12] - **UGI Corporation (UGI)**: A holding company for energy products with an estimated earnings growth rate of 2.29% and an average earnings surprise of 75.67%, holding a Zacks Rank 2 and a Growth Score of B [13] - **NetEase Inc. (NTES)**: An Internet technology company with a positive earnings estimate revision and an estimated earnings growth rate of 20.14%, holding a Zacks Rank 2 and a Growth Score of A [14] - **Garmin Ltd. (GRMN)**: An OEM of navigation equipment with a positive earnings estimate revision of $0.03 and an estimated earnings growth rate of 7.85%, holding a Zacks Rank 2 and a Growth Score of B [15]

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - Turnaround stocks, such as UGI Corp., can present significant investment opportunities if the underlying business fundamentals are strong [2] Group 2 - The article emphasizes the importance of performing due diligence and drawing independent conclusions before making investment decisions [4][5]

Core Insights - UGI Corporation (UGI) is positioned as a strong investment option in the utility sector due to strategic investments in infrastructure modernization, disciplined capital allocation, and operational improvements [1] Growth Projections - The Zacks Consensus Estimate for fiscal 2025 earnings per share (EPS) has increased by 2.3% to $3.13 over the past 90 days [2] - Projected sales for fiscal 2025 are $7.81 billion, reflecting a year-over-year increase of 8.4% [2] - UGI's long-term earnings growth rate is estimated at 5.2%, with a trailing four-quarter average earnings surprise of 75.7% [2] Return on Equity - UGI's return on equity (ROE) stands at 16.21%, surpassing the industry average of 9.24%, indicating more effective utilization of funds compared to peers [3] Liquidity Position - The company's current ratio is 1.23, which is significantly better than the industry average of 0.63, suggesting sufficient short-term assets to cover liabilities [4] Debt Management - UGI's total debt to capital ratio is 58.34%, which is lower than the sector average of 60.33% [5] - The time-to-interest earned ratio is 2.5, indicating the company's capability to meet future interest obligations comfortably [5] Strategic Investments - UGI is making strategic investments to enhance safety and reliability in natural gas production and storage, with $160 million invested in the fiscal second quarter, 79% of which was allocated to natural gas businesses [6][7] - The company plans to invest $800-$900 million in fiscal 2025 and $3.7-$4.1 billion through fiscal 2027 to strengthen operations [7] Dividend History - UGI has a long-standing history of paying dividends for 141 years, with a 10-year compound annual growth rate (CAGR) of 6% from fiscal 2014-2024 [10] - The current dividend yield is 4.17%, outperforming the Zacks S&P 500 composite's yield of 1.19% [10] Share Price Performance - Over the past three months, UGI shares have increased by 8.5%, compared to the industry's growth of 1.9% [11]

Core Insights - Dividend investing is gaining popularity in 2025 due to market volatility and uncertainties, with U.S. stocks near record highs driven by trade optimism, strong corporate earnings, and AI advancements [1][2] Group 1: Dividend Growth Strategy - Dividends provide a reliable income stream, making them appealing during uncertain times, and dividend-paying stocks tend to stabilize portfolios [2][9] - Companies with a history of increasing dividends are typically financially strong and offer better long-term capital appreciation, leading to a more resilient portfolio [3][4] - Focusing on dividend growth rather than just yield can enhance returns, as these stocks often have superior fundamentals, including sustainable business models and strong cash flows [5][6] Group 2: Stock Selection Criteria - Selected stocks for dividend growth include Agnico Eagle Mines Limited (AEM), UGI Corporation (UGI), Qifu Technology Inc. (QFIN), Taiwan Semiconductor Manufacturing Company Ltd. (TSM), and Group 1 Automotive (GPI), all showing strong earnings and sales growth [3][9] - Criteria for selection include positive historical dividend growth, sales growth, and earnings per share (EPS) growth, along with expected future EPS growth [7][8] - Stocks are also evaluated based on their price-to-cash flow ratio being less than the industry average and having outperformed the S&P 500 over the past year [8][9] Group 3: Individual Stock Highlights - AEM is a gold producer with a positive earnings estimate revision of $0.42 and an estimated earnings growth rate of 52.5%, holding a Zacks Rank 1 and a Growth Score of B [10][11] - UGI Corp. has an estimated earnings growth rate of 2.29% and an average earnings surprise of 75.67%, also holding a Zacks Rank 1 and a Growth Score of B [12][13] - Qifu Technology has an estimated earnings growth rate of 25.62% and a Zacks Rank 1 with a Growth Score of B [14][15] - TSM has an estimated earnings growth rate of 34.66% and holds a Zacks Rank 2 with a Growth Score of A [15] - Group 1 Automotive has an estimated earnings growth rate of 4.3% and holds a Zacks Rank 1 with a Growth Score of A [16]

Financial Performance & Targets - UGI Corporation's YTD FY25 GAAP diluted EPS is $3.93, compared to $2.74 in YTD FY24[39] - The company increased its Fiscal 2025 adjusted EPS guidance to a range of $3.00 - $3.15 per share[39] - The company targets a long-term EPS growth rate of 4-6%[18] - The company targets a rate base growth of 9%+[18] - The company's leverage ratio target is between 3.5 – 4.0x[23] Capital Allocation & Deployment - The company plans to deploy approximately $3.9 billion in capital from FY24-27[25] - Approximately 66% of the capital will be returned to shareholders[25] - Approximately 18% of the capital will be used for debt reduction[25] - Approximately 85% of total capital invested in natural gas businesses[26] ESG - The company targets a 55% reduction in 5-year Scope-1 GHG Emissions[31]

Core Insights - Dividend investing is gaining traction in the first half of 2025 due to market volatility and uncertainty, despite U.S. stocks nearing record highs driven by optimism in trade talks, corporate earnings, and AI momentum [1] - Stocks with a history of dividend growth tend to outperform in volatile markets, providing a more stable investment option compared to high-yield stocks [2][4] Dividend Growth Stocks - Five dividend growth stocks identified as solid investment choices for the second half of 2025 are Agnico Eagle Mines Limited (AEM), NetEase Inc. (NTES), Qifu Technology Inc. (QFIN), UGI Corporation (UGI), and McKesson Corporation (MCK) [3][9] - These stocks meet strict criteria for dividend, sales, and earnings growth, showing positive earnings revisions and strong Growth Scores [9] Investment Rationale - Stocks with a strong history of dividend growth are typically mature companies, providing a hedge against economic and political uncertainties [4] - These companies exhibit superior fundamentals, including sustainable business models, profitability, rising cash flows, and strong balance sheets, indicating potential for future dividend increases [5] Performance Metrics - Selected stocks have shown a 5-Year Historical Dividend Growth greater than zero, indicating a solid dividend growth history [6] - Additional criteria include positive historical sales and earnings growth, as well as expected future earnings growth, which supports sustained dividend payments [7] Valuation and Ranking - Stocks are evaluated based on Price/Cash Flow ratios being less than the industry average, indicating undervaluation [8] - The selected stocks have outperformed the S&P 500 over the past year and hold Zacks Rank 1 (Strong Buy) or 2 (Buy), suggesting strong market performance potential [8][10]

Core Viewpoint - UGI shares have shown strong performance, reaching a new 52-week high and significantly outperforming the broader utilities sector and gas distribution industry [1][2]. Financial Performance - UGI has consistently beaten earnings estimates, with the latest EPS reported at $2.21 against a consensus of $1.8 [2]. - For the current fiscal year, UGI is projected to earn $3.13 per share on revenues of $7.81 billion, reflecting a 2.29% increase in EPS and an 8.36% increase in revenues [3]. - The next fiscal year forecasts an EPS of $3.23 on revenues of $8.81 billion, indicating year-over-year changes of 3.19% and 12.76%, respectively [3]. Valuation Metrics - UGI's current trading metrics show a P/E ratio of 11.7X for the current fiscal year, below the industry average of 16.3X [7]. - The trailing cash flow basis shows UGI trading at 5.6X compared to the peer group's average of 8.1X [7]. - UGI has a PEG ratio of 2.24, positioning it favorably among value stocks [7]. Investment Style Scores - UGI holds a Value Score of A, with Growth and Momentum Scores of B, resulting in a combined VGM Score of A [6]. - The Zacks Rank for UGI is 2 (Buy), supported by rising earnings estimates, indicating potential for further gains [8].