UGI 2025 Q4 Earnings Sharp Loss Narrowing Amid 3.6% Revenue Drop

UGI (UGI) reported its fiscal 2025 Q4 earnings on Nov 21, 2025, with mixed results. While revenue declined by 3.6% year-over-year, the company significantly narrowed its net loss by 95.2% to $-13 million and raised its long-term EPS growth target to 5-7%.

Revenue

UGI’s total revenue fell to $1.20 billion in Q4 2025, a $40 million decrease from $1.24 billion in Q4 2024. Segment performance varied: AmeriGas Propane drove growth with operational improvements, while UGI International and Midstream & Marketing faced margin pressures.

Earnings/Net Income

The company reduced its net loss to $-13 million in Q4 2025, up from $-273 million in Q4 2024, marking a 95.2% improvement. Adjusted EPS hit a record $3.32, driven by AmeriGas’ 17% EBIT growth and tax benefits. Despite the revenue decline, UGI’s earnings reflect strong cost discipline and strategic initiatives. This performance underscores the company’s progress in stabilizing operations and enhancing profitability.

Post-Earnings Price Action Review

UGI’s stock surged 7.46% in the latest trading day, 7.95% for the week, and 12.71% month-to-date. The post-earnings rally suggests investor confidence in the company’s operational turnaround and long-term guidance.

CEO Commentary

CEO Robert Flexon highlighted record adjusted EPS of $3.32, driven by AmeriGas’ EBIT growth, infrastructure upgrades, and tax benefits. Strategic priorities include portfolio optimization (e.g., $150M from LPG divestitures), operational discipline (30% reduction in AmeriGas’ recordable incidents), and AI-driven cultural transformation. Flexon emphasized intrinsic value opportunities in AmeriGas and Pennsylvania’s energy expansion.

Guidance

CFO Sean O’Brien outlined 2026 guidance: adjusted EPS of $2.85–$3.15 (5-7% EBIT growth), $4.5–4.9B CAPEX, and leverage targets (3.75x for UGI, 4.0x for AmeriGas). The 2026–2029 plan targets 5-7% EPS CAGR, supported by 9%+ rate base growth in utilities and disciplined debt reduction.

Additional News

UGI announced $150 million in proceeds from LPG divestitures and a pending Austrian asset sale, signaling continued portfolio optimization. AmeriGas’ 30% reduction in recordable incidents and operational efficiency gains underscored its transformation. The company also emphasized strategic investments in LNG and renewable energy, aligning with long-term growth targets. Analysts noted UGI’s strong free cash flow generation and balance sheet resilience, with a 5-7% EPS CAGR outlook through 2029.

Additional News

UGI’s Q4 2025 earnings call transcript revealed a $0.25 EPS beat (vs. -0.3564 forecast) and a 20% revenue miss ($1.2B vs. $1.5B). Despite the revenue shortfall, the stock rose 4.84% post-earnings, reflecting optimism around AmeriGas’ margin expansion and infrastructure projects. Management reiterated a 5-7% EPS CAGR target through 2029, supported by $4.5–4.9B in CAPEX and 9%+ utility rate base growth.

Additional News

UGI’s $882 million fiscal 2025 capital expenditure focused on natural gas infrastructure, with 80% allocated to regulated utilities. The company plans $1–1.1B in 2026 investments, targeting normalized tax rates and stable midstream margins. Analysts highlighted UGI’s 15.73% ROE and 5.70% net margin, though mixed sentiment persisted due to revenue volatility and guidance conservatism.