Core Viewpoint - Wall Street is experiencing volatility due to uncertainty surrounding the new U.S. administration's economic tariffs, prompting investors to seek stability through dividend investing [1][2]. Investment Strategy - Dividend investing is highlighted as a strategy that offers income and stability, especially in a rocky market, despite not providing dramatic price appreciation [2]. - Stocks with a history of dividend growth are recommended for building a healthy portfolio with potential for capital appreciation [3][4]. Selected Dividend Growth Stocks - Four dividend growth stocks are identified as compelling picks: - NetEase Inc. (NTES) with an expected earnings growth rate of 10.6% and a Zacks Rank 1 [10]. - Fox Corporation (FOX) with an expected earnings growth rate of 32.4% and a Zacks Rank 1 [11]. - Qifu Technology Inc. (QFIN) with an expected earnings growth rate of 22.6% and a Zacks Rank 2 [12][13]. - UGI Corporation (UGI) with a positive earnings estimate revision and a Zacks Rank 2 [14][15]. Stock Selection Criteria - Stocks selected for dividend growth should have: - 5-Year Historical Dividend Growth greater than zero [6]. - 5-Year Historical Sales Growth greater than zero [7]. - 5-Year Historical EPS Growth greater than zero [7]. - Next 3-5 Year EPS Growth Rate greater than zero [7]. - Price/Cash Flow less than M-Industry [8]. - 52-Week Price Change greater than S&P 500 [8]. - Top Zacks Rank of 1 or 2 [8]. - Growth Score of B or better [9]. Company Fundamentals - Companies with strong fundamentals are characterized by sustainable business models, profitability, rising cash flows, good liquidity, and strong balance sheets, making them promising long-term investments [5].

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the short term [2][3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Style Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [3] Growth Score - The Growth Style Score assesses a company's future earnings, sales, and cash flow to find stocks with sustainable growth potential [4] Momentum Score - The Momentum Style Score evaluates price trends and earnings estimate changes to identify favorable buying opportunities for high-momentum stocks [5] VGM Score - The VGM Score combines Value, Growth, and Momentum Scores, providing a comprehensive indicator for stock selection [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] Stock Selection Strategy - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize potential returns [9][10] Company Spotlight: UGI Corporation - UGI Corporation is a holding company involved in the distribution and marketing of energy products, serving over 2.6 million customers [11] - UGI holds a Zacks Rank of 2 (Buy) and has a VGM Score of A, indicating strong investment potential [12] - The company has a forward P/E ratio of 11.45 and has seen upward revisions in earnings estimates, with a Zacks Consensus Estimate of $3.11 per share for fiscal 2025 [12][13]

Core Insights - The article emphasizes the importance of fundamental analysis in identifying undervalued assets that offer a favorable risk/reward profile [1] - It highlights the use of options strategies, such as covered calls and writing puts, as effective investment techniques for managing positions [1] Investment Strategy - The investment approach focuses on individual issues and asset classes that are currently out of favor, suggesting a contrarian strategy [1] - The analyst has over 20 years of investment experience, indicating a deep understanding of market dynamics and investment opportunities [1] Educational Background - The analyst holds an MBA in Finance from NYU Stern and an undergraduate degree in Computer Science, showcasing a strong educational foundation that supports their investment analysis [1]

Company Performance - UGI shares have increased by 12.8% over the past month and reached a new 52-week high of $35.41 [1] - Year-to-date, UGI has gained 23.7%, outperforming the Zacks Utilities sector's 6.4% and the Zacks Utility - Gas Distribution industry's -0.5% return [1] Earnings and Revenue - UGI has consistently exceeded earnings consensus estimates, reporting EPS of $2.21 against a consensus of $1.8 in its last earnings report [2] - For the current fiscal year, UGI is projected to earn $3.06 per share on revenues of $7.79 billion, reflecting a 0% change in EPS and a 7.98% increase in revenues [3] - The next fiscal year forecasts earnings of $3.12 per share on $8.59 billion in revenues, indicating a year-over-year change of 1.96% in EPS and 10.34% in revenues [3] Valuation Metrics - UGI's current trading metrics show a P/E ratio of 11.4X for the current fiscal year, below the peer industry average of 16.2X [7] - The stock trades at a trailing cash flow basis of 5.3X compared to the peer group's average of 8.5X, with a PEG ratio of 2.19 [7] Zacks Rank and Style Scores - UGI holds a Zacks Rank of 2 (Buy) due to rising earnings estimates, making it a suitable choice for investors [8] - The company has a Value Score of A, Growth Score of C, and Momentum Score of D, resulting in a VGM Score of B [6] Industry Comparison - The Utility - Gas Distribution industry is performing well, ranking in the top 14% of all industries, providing favorable conditions for UGI and its peers [11] - Southwest Gas Corporation (SWX), a competitor, has a Zacks Rank of 1 (Strong Buy) and has shown strong earnings performance, indicating a competitive landscape [9][10]

Core Insights - UGI Corporation reported strong second-quarter fiscal 2025 operating earnings of $2.21 per share, exceeding the Zacks Consensus Estimate of $1.80 by 22.8% and up from $1.97 in the same quarter last year [1] - Total revenues for the quarter were $2.67 billion, slightly missing the Zacks Consensus Estimate of $2.70 billion by 1.1%, but representing an 8.1% increase from $2.47 billion in the prior year [2] Financial Performance - UGI's GAAP earnings per share for the second quarter were $2.19, down from $2.30 in the year-ago quarter [1] - Earnings before interest expense and income tax (EBIT) for the quarter were $696 million, a decrease of 4.5% from $729 million in the previous year [4] Segment Performance - AmeriGas Propane reported EBIT of $154 million, an increase of 11.6% year-over-year [5] - UGI International's EBIT was $143 million, up 9.2% from the previous year [5] - Midstream & Marketing segment reported EBIT of $154 million, a slight increase of 0.7% year-over-year [5] - UGI Utilities achieved EBIT of $241 million, reflecting a 6.6% increase from the prior year [5] Investment and Growth - UGI invested $160 million in the second quarter, with 79% allocated to natural gas [3] - The company added over 6,600 residential heating and commercial customers year-to-date [3] - UGI completed the construction of the Manning LNG facility, doubling its capacity to 20,000 dekatherms per day [3] Guidance and Outlook - UGI raised its fiscal 2025 adjusted earnings guidance to a range of $3-$3.15 per share, up from the previous range of $2.75-$3.05, with the Zacks Consensus Estimate at $3.06 per share [6] - The increase in guidance is attributed to colder-than-normal weather, operational improvements at AmeriGas, and minimal impact from facility damage at UGI International [6] Market Position - UGI currently holds a Zacks Rank 2 (Buy), indicating a favorable outlook in the market [7]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission file number 1-11071 UGI CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction ...

Financial Data and Key Metrics Changes - UGI reported a 12% year-over-year increase in adjusted diluted EPS for the fiscal second quarter, achieving the highest adjusted diluted EPS in the company's history [5] - The fiscal 2025 guidance range for adjusted diluted EPS has been increased to $3.00 to $3.15, driven by favorable weather conditions and operational improvements [8][10] - The balance sheet showed $1,900,000,000 in available liquidity and a leverage ratio of 3.8 times at the end of the quarter [5][18] Business Line Data and Key Metrics Changes - The Utility segment's EBIT was $241,000,000, up $15,000,000 year-over-year, primarily due to colder weather [13] - Midstream and Marketing reported EBIT of $154,000,000, comparable to the prior year, with total margin increasing by $2,000,000 [14] - AmeriGas experienced a $16,000,000 increase in EBIT, largely due to colder weather, although adjusted diluted EPS declined by $0.06 due to higher income tax expenses [12][17] Market Data and Key Metrics Changes - Regional natural gas demand continues to show robust growth, with the LNG infrastructure operating at peak capacity during colder weather [6] - UGI International's LPG volumes declined by 4%, but operational efficiencies led to a $12,000,000 increase in EBIT [15][16] Company Strategy and Development Direction - The company is focusing on operational excellence and strategic infrastructure investments, particularly in the regulated utility business [19] - AmeriGas is implementing business process improvements to enhance customer retention and operational efficiency [20] - The company is well-positioned to capitalize on the growing demand for natural gas in the Appalachia region [41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying strength of the business and the ability to execute strategic priorities in the second half of the year [10] - The company is optimistic about improving AmeriGas operations and enhancing customer service ahead of the next winter season [29][30] Other Important Information - The company deployed $160,000,000 in capital investment during the quarter, primarily in natural gas businesses [7] - Free cash flow for the year to date was approximately $490,000,000, up 55% year-over-year [17] Q&A Session Summary Question: Can you discuss the learnings from AmeriGas and refinancing plans? - Management highlighted the focus on improving AmeriGas business processes and targeting operational efficiencies, with ongoing efforts to refinance the 2026 maturities [24][34] Question: What is UGI's positioning regarding Appalachian natural gas demand? - Management noted ongoing discussions with potential generators and data centers, emphasizing the company's strategic location and capital allocation towards natural gas [40][41] Question: Can you quantify the incremental margin or EBITDA from AmeriGas for fiscal 2026? - Management refrained from providing specific numbers but emphasized the need to strengthen business processes and focus on high-margin customers [47][48] Question: What are the fiscal second half drivers? - Management explained that colder weather in the first half led to a strong performance, but some capital and operational expenses were pushed to the second half, affecting earnings timing [51][52]

Financial Data and Key Metrics Changes - UGI reported a 12% year-over-year increase in adjusted diluted EPS for the fiscal second quarter, achieving the highest adjusted diluted EPS in the company's history [5] - The fiscal 2025 guidance range for adjusted diluted EPS has been increased to $3.00 to $3.15, driven by favorable weather conditions and operational improvements [8][11] - The balance sheet showed $1,900,000,000 in available liquidity and a leverage ratio of 3.8 times at the end of the quarter [5][19] Business Line Data and Key Metrics Changes - The Utility segment reported EBIT of $241,000,000, up $15,000,000 year-over-year, primarily due to colder weather [14] - Midstream and Marketing segment EBIT was $154,000,000, comparable to the prior year, with total margin increasing by $2,000,000 [15] - AmeriGas reported EBIT of $154,000,000, an increase of $16,000,000 year-over-year, driven by higher LPG volumes due to colder weather [18] Market Data and Key Metrics Changes - Regional natural gas demand continues to show robust growth, particularly in response to colder weather patterns [6] - UGI International experienced a 4% decline in LPG volumes, impacted by structural conservation and customer conversions from LPG to natural gas [16] Company Strategy and Development Direction - The company is focusing on operational excellence and strategic infrastructure investments, particularly in the regulated utility business [21] - AmeriGas is implementing process improvements to enhance customer retention and operational efficiency [21] - The company is well-positioned to leverage its infrastructure for growth in natural gas demand, particularly in the Appalachian region [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying strength of the business and the ability to execute strategic priorities in the second half of the fiscal year [11] - The company is optimistic about improving AmeriGas operations and enhancing customer service ahead of the next winter season [30] Other Important Information - The company deployed $160,000,000 in capital investment during the quarter, primarily in natural gas businesses [7] - Free cash flow for the year to date was approximately $490,000,000, up 55% year-over-year [19] Q&A Session Summary Question: Can you discuss the learnings from AmeriGas this winter and targets for the upcoming fiscal year? - Management highlighted the focus on improving business processes and operational efficiency, with several key projects underway to enhance service and reduce costs [25][26] Question: Update on refinancing the 2026 maturities? - Management confirmed that objectives remain unchanged, with a focus on addressing the $664,000,000 due in late August [32] Question: Thoughts on UGI's positioning regarding Appalachian natural gas demand? - Management noted ongoing discussions with potential generators and data centers, emphasizing the company's strategic location and infrastructure [38] Question: Quantification of incremental margin or EBITDA from AmeriGas for fiscal 2026? - Management refrained from providing specific numbers but emphasized the importance of strengthening business processes and focusing on high-margin customers [45][46] Question: Comments on fiscal second half drivers and implied net loss? - Management explained that colder weather in the first half led to a shift in capital and operational expenditures to the second half, impacting earnings timing [49][50]

[UGI Corporation Q2 2025 Earnings Release](index=1&type=section&id=UGI%20Corporation%20Q2%202025%20Earnings%20Release) [Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) The company reported strong Q2 FY2025 results with a 12% YoY increase in adjusted diluted EPS, leading to raised full-year guidance Q2 & YTD FY2025 Key Financial Metrics | Metric | Q2 FY2025 | Q2 FY2024 | YTD FY2025 | YTD FY2024 | | :--- | :--- | :--- | :--- | :--- | | **GAAP Diluted EPS** | $2.19 | $2.30 | $3.93 | $2.74 | | **Adjusted Diluted EPS** | $2.21 | $1.97 | $3.58 | $3.16 | - The company increased its Fiscal 2025 adjusted EPS guidance to a range of **$3.00 - $3.15 per share**[7](index=7&type=chunk) - Year-to-date reportable segments' EBIT reached **$1,112 million**, compared to $1,073 million in the prior-year period[7](index=7&type=chunk) - As of March 31, 2025, UGI maintained available liquidity of approximately **$1.9 billion**[7](index=7&type=chunk) - Strong results were attributed to effective management of higher demand from colder weather and cost efficiency, with natural gas businesses as the primary growth engine[4](index=4&type=chunk)[5](index=5&type=chunk) [Segment Performance Analysis](index=4&type=section&id=Segment%20Performance%20Analysis) All business segments showed YoY EBIT growth or stability, driven by colder weather benefiting Utilities and AmeriGas Propane [Utilities](index=4&type=section&id=Utilities) The segment's EBIT grew 7% to $241 million, driven by colder weather that increased core market throughput by 18% Utilities Segment Q2 Performance (YoY) | Metric | Q2 2025 | Q2 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $773M | $646M | +$127M | +20% | | **EBIT** | $241M | $226M | +$15M | +7% | | **Core Market Throughput (bcf)** | 53 | 45 | +8 | +18% | - The service territory experienced temperatures that were **15% colder** than the prior-year period, significantly boosting core market volumes[15](index=15&type=chunk)[16](index=16&type=chunk) [Midstream & Marketing](index=4&type=section&id=Midstream%20%26%20Marketing) The segment's EBIT remained stable at $154 million as higher marketing margins were offset by lower midstream margins and higher expenses Midstream & Marketing Segment Q2 Performance (YoY) | Metric | Q2 2025 | Q2 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $587M | $483M | +$104M | +22% | | **EBIT** | $154M | $153M | +$1M | +1% | - Total margin increased by $2 million, but this was offset by a $2 million increase in operating and administrative expenses, resulting in **flat operating income**[20](index=20&type=chunk)[21](index=21&type=chunk) [UGI International](index=5&type=section&id=UGI%20International) EBIT increased 9% to $143 million, driven by an 8% reduction in operating expenses that offset lower volumes and negative currency effects UGI International Segment Q2 Performance (YoY) | Metric | Q2 2025 | Q2 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $650M | $673M | -$23M | -3% | | **EBIT** | $143M | $131M | +$12M | +9% | | **LPG Retail Gallons Sold (M)** | 213 | 221 | -8 | -4% | - Operating and administrative expenses **decreased by $13 million (8%)**, reflecting strong cost control and favorable currency translation effects (~$6 million)[22](index=22&type=chunk)[26](index=26&type=chunk) - Weaker foreign currencies (primarily the euro) **negatively impacted total margin by approximately $9 million**[26](index=26&type=chunk) [AmeriGas Propane](index=5&type=section&id=AmeriGas%20Propane) The segment's EBIT grew 12% to $154 million, driven by 11% colder weather that boosted retail volumes and unit margins AmeriGas Propane Segment Q2 Performance (YoY) | Metric | Q2 2025 | Q2 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $848M | $795M | +$53M | +7% | | **EBIT** | $154M | $138M | +$16M | +12% | | **Retail Gallons Sold (M)** | 269 | 261 | +8 | +3% | - Temperatures were **11% colder** than the prior-year period, which was the primary driver for the 3% increase in retail volumes[25](index=25&type=chunk) [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) Consolidated Q2 revenues increased to $2.67 billion, while GAAP net income attributable to UGI slightly decreased to $479 million Consolidated Statement of Earnings (Q2 YoY) | Metric ($ in millions) | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | **Total Revenues** | $2,666 | $2,467 | | **Total EBIT** | $696 | $729 | | **Income Before Income Taxes** | $594 | $629 | | **Net Income Attributable to UGI** | $479 | $496 | Consolidated Earnings Per Share (Q2 YoY) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | **Basic EPS** | $2.23 | $2.36 | | **Diluted EPS** | $2.19 | $2.30 | [Reconciliation of Non-GAAP Measures](index=8&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) The reconciliation from GAAP to non-GAAP measures shows Q2 adjusted net income of $484 million and adjusted diluted EPS of $2.21 Q2 EPS Reconciliation (GAAP to Adjusted) | Metric (per share) | Q2 FY2025 | Q2 FY2024 | | :--- | :--- | :--- | | **Diluted EPS (GAAP)** | **$2.19** | **$2.30** | | Net gains on commodity derivatives | ($0.03) | ($0.50) | | Unrealized losses on currency derivatives | $0.05 | $0.00 | | Other adjustments | $0.00 | $0.17 | | **Total Adjustments** | **$0.02** | **($0.33)** | | **Adjusted Diluted EPS** | **$2.21** | **$1.97** | Q2 Net Income Reconciliation (GAAP to Adjusted) | Metric ($ in millions) | Q2 FY2025 | Q2 FY2024 | | :--- | :--- | :--- | | **Net Income (GAAP)** | **$479** | **$496** | | Total Adjustments | $5 | ($73) | | **Adjusted Net Income** | **$484** | **$423** |

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 forward-looking statements contain such words. These s ...