UGI (UGI) - 2025 Q2 - Quarterly Results

UGI Corporation Q2 2025 Earnings Release Financial and Operational Highlights 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] - Year-to-date reportable segments' EBIT reached $1,112 million, compared to $1,073 million in the prior-year period[7] - As of March 31, 2025, UGI maintained available liquidity of approximately $1.9 billion[7] - 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][5] Segment Performance Analysis All business segments showed YoY EBIT growth or stability, driven by colder weather benefiting Utilities and AmeriGas Propane 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][16] Midstream & Marketing 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][21] UGI International 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][26] - Weaker foreign currencies (primarily the euro) negatively impacted total margin by approximately $9 million[26] AmeriGas Propane 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] Consolidated Financial Statements 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 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 |