UGI (UGI) - 2025 Q3 - Quarterly Results

Executive Summary & Company Information Company Overview 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] - 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] Third Quarter 2025 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] CEO Commentary 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] - Unwavering focus on driving superior business performance, operational excellence, and creating greater financial flexibility[2] - Encouraged by the cultural transformation underway and customer-focused operational improvements being implemented at AmeriGas to strengthen performance[2] Fiscal Year 2025 Outlook 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 - $3.15 per share[5] Important Disclosures Use of Non-GAAP Measures Management uses non-GAAP measures, such as 'adjusted net income' and 'adjusted diluted EPS,' for performance assessment, excluding derivative and discrete items - Management uses 'adjusted net income attributable to UGI Corporation' and 'adjusted diluted EPS' to evaluate UGI's overall performance[8] - Non-GAAP measures eliminate impacts of (1) gains and losses on commodity and certain foreign currency derivative instruments not associated with current-period transactions and (2) other significant discrete items that affect period-over-period comparisons[8] - Non-GAAP financial measures are not in accordance with, or an alternative to, GAAP and should be considered in addition to, and not as a substitute for, comparable GAAP measures[9] Use of Forward-Looking Statements This press release contains forward-looking statements, subject to risks and uncertainties, which UGI will not publicly update unless legally mandated - This press release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933)[11] - Actual results may differ significantly due to risks and uncertainties that are difficult to predict and many of which are beyond management's control[11] - UGI undertakes no obligation (and expressly disclaims any obligation) to update publicly any forward-looking statement, except as required by federal securities laws[11] Segment Performance Analysis Utilities Segment The Utilities segment reported a 12% revenue increase but a 23% EBIT decrease in Q3 2025, primarily due to higher operating expenses and depreciation Utilities Segment Financials (Q3 YoY) | Metric | Q3 2025 ($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] - Total Gas Utility volumes increased 5% largely due to an increase in large firm delivery service volumes[13] - 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 ($2 million)[14] Midstream & Marketing Segment The Midstream & Marketing segment reported a 10% revenue increase but a 37% EBIT decrease in Q3 2025, driven by a 10% total margin decline from lower midstream and power generation margins Midstream & Marketing Segment Financials (Q3 YoY) | Metric | Q3 2025 ($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] - 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] - 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 ($2 million)[17] UGI International Segment UGI International reported a 4% revenue decrease and a 25% EBIT decrease in Q3 2025, mainly due to a 9% decline in retail LPG volumes and reduced unit margins UGI International Segment Financials (Q3 YoY) | Metric | Q3 2025 ($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] - 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] - 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 (~$10 million)[23] AmeriGas Propane Segment AmeriGas Propane reported a 2% revenue decrease and a 4% operating loss increase in Q3 2025, with retail gallons down 3% due to attrition, largely offset by higher LPG unit margins AmeriGas Propane Segment Financials (Q3 YoY) | Metric | Q3 2025 ($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] - Retail gallons decreased 3% due to the effect of net customer attrition[21] - Total margin was fairly comparable to prior year as the impact of lower LPG volumes was substantially offset by higher LPG unit margins[21] Consolidated Financial Results Consolidated Income Statement 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 Adjusted Net Income Attributable to UGI 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] Adjusted Diluted Earnings Per Share 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]