UGI Corporation reported fiscal 2025 results that marked a sharp turnaround from the prior year, with GAAP net income rising to $678 million from $269 million and adjusted net income climbing to $728 million from $658 million. GAAP diluted earnings per share reached $3.09, up from $1.25, while adjusted diluted EPS climbed to $3.32, compared with $3.06 in 2024. The company’s free‑cash‑flow for the year totaled roughly $530 million, a notable increase that supports its ongoing dividend policy and balance‑sheet strengthening.
In the fourth quarter, UGI posted a non‑GAAP loss per share of –$0.23, beating the consensus estimate of –$0.42 by $0.19. However, revenue for the quarter fell to $1.197 billion, missing the analyst consensus of $1.513 billion by $316 million. The revenue shortfall was driven by weaker demand in the utilities and midstream segments, coupled with pricing pressure in the propane market, which offset the gains from AmeriGas’s improved EBIT. The narrower loss reflects disciplined cost management and the company’s ability to contain operating expenses even as top‑line growth slowed.
Segment‑level analysis shows that the utilities division delivered a 5 % increase in revenue, supported by higher residential gas usage, while the midstream segment saw a 3 % decline due to lower pipeline throughput. AmeriGas Propane posted a 17 % rise in EBIT to $166 million, driven by higher unit margins and reduced operating costs, underscoring the company’s strategic shift toward natural‑gas infrastructure. International operations contributed modest growth, but the propane segment’s revenue dip highlighted the need for continued pricing discipline.
UGI’s balance sheet remained robust, with liquidity of approximately $1.6 billion and a leverage ratio of 3.9×. The company generated $530 million in free cash flow, which supports its dividend program and provides flexibility for future capital expenditures. Management reiterated its commitment to returning value to shareholders while investing in high‑return natural‑gas projects.
For fiscal 2026, UGI guided adjusted diluted EPS in the range of $2.90 to $3.15, with expected EBIT growth of 5‑7 %. The guidance is more conservative than the analyst consensus of $3.23, reflecting management’s caution amid the Q4 revenue miss and broader market uncertainty. Investors reacted with a muted after‑hours response, as the EPS beat was tempered by the revenue shortfall and the cautious outlook.
CEO Robert Flexon said, “UGI delivered an outstanding year with record adjusted earnings per share that exceeded our revised guidance range. Improvements at AmeriGas, solid performance from our utilities segment, and significant tax benefits drove exceptional results. We strengthened our balance sheet, generated approximately $530 million of free cash flow, and returned value to shareholders through dividend payments.” Flexon added that the company remains focused on its natural‑gas strategy and anticipates that the winter season will further demonstrate the impact of its initiatives.
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