UGI's Q4 Loss Narrower Than Expected, Revenues Fall Short of Estimates

Core Insights - UGI Corporation reported a narrower fourth-quarter fiscal 2025 operating loss of 23 cents per share, better than the Zacks Consensus Estimate of a loss of 44 cents, and an improvement from a loss of 16 cents in the same quarter last year [1] - The company’s GAAP loss per share for the fourth quarter was 6 cents, compared to a loss of $1.27 in the year-ago quarter [1] - Adjusted earnings for fiscal 2025 were $3.32 per share, reflecting an 8.5% increase from $3.06 in fiscal 2024 [1] Revenue Performance - UGI's total revenues for the fourth quarter were $1.20 billion, missing the Zacks Consensus Estimate of $1.72 billion by 30.5%, and decreased 3.6% from $1.24 billion in the year-ago quarter [2] - For fiscal 2025, total revenues reached $7.29 billion, a slight increase of 1.1% from $7.21 billion in fiscal 2024 [2] Investment and Expenses - The company invested $882 million in fiscal 2025, with 80% allocated to the natural gas business, primarily in regulated utilities [3] - Interest expenses rose to $106 million from $98 million in the year-ago quarter [3] - Earnings before interest expense and income tax for the fourth quarter were $19 million, a significant improvement from a loss of $256 million in the previous year [3] Segment Performance - AmeriGas Propane reported operating income before interest expense and income taxes of $166 million in fiscal 2025, up 16.9% from the previous year [4] - UGI International's EBIT was $314 million, down 2.8% from the year-ago level [4] - Midstream & Marketing's EBIT declined 6.4% to $293 million [4] - UGI Utilities reported EBIT of $403 million, a slight increase of 0.8% from the previous year [4] Future Guidance - UGI anticipates adjusted earnings for fiscal 2026 to be in the range of $2.90-$3.15 per share, with the Zacks Consensus Estimate at $3.21 [5] - The company plans to invest between $1 billion and $1.1 billion in fiscal 2026 to strengthen operations [5] - UGI expects a long-term earnings growth rate of 5-7% and plans to invest $4.5 billion to $4.9 billion during fiscal 2026-2029 [5][6]