UGI 2025 Q4 Earnings 95.2% Reduction in Net Loss to $13M Beats Expectations

UGI (UGI) reported Q4 2025 earnings on Nov 21, 2025, with a 95.2% reduction in net loss to $13 million, significantly narrowing its 2024 Q4 loss of $273 million. The stock surged 7.46% post-earnings, reflecting strong investor confidence despite a 3.6% revenue decline to $1.20 billion. Management raised its 5-7% EPS CAGR target through 2029, citing operational improvements and strategic investments in LNG and RNG.

Revenue

UGI’s Q4 revenue fell 3.6% year-over-year to $1.20 billion, impacted by lower LPG volumes and margin pressures in international operations. AmeriGas Propane saw 10% retail gallon declines due to customer attrition and warmer weather, while UGI Utilities’ EBIT rose 0.8% on infrastructure investments. Midstream & Marketing’s EBIT dipped 6.4% from reduced margins, and UGI International’s EBIT declined 2.8% amid higher tax costs.

Earnings/Net Income

UGI narrowed its net loss to $13 million in Q4 2025, a 95.2% improvement from $273 million in Q4 2024. Adjusted EPS reached $3.32 for fiscal 2025, driven by AmeriGas’ EBIT growth and tax benefits. The EPS loss of $0.06 in Q4 2025 marked a significant turnaround from the $1.27 loss in Q4 2024, reflecting operational discipline and cost reductions. The EPS performance, though negative, exceeded expectations and signaled progress in reversing losses.

Post-Earnings Price Action Review

UGI’s stock surged 7.46% in the latest trading day, 7.95% in the prior week, and 12.71% month-to-date, outpacing broader market trends. Post-earnings, shares gained 4.84% in after-hours trading despite missing revenue forecasts. The positive reaction underscored investor optimism around management’s strategic initiatives, including $4.5–$4.9 billion in CAPEX for infrastructure and a 5-7% EPS CAGR target. Analysts highlighted the company’s free cash flow generation and balance sheet strengthening as key drivers of the rally.

CEO Commentary

CEO Robert Flexon emphasized a “cultural transformation” at UGI, including AI adoption and operational discipline, to unlock intrinsic value. He cited AmeriGas’ safety improvements, logistics efficiency, and customer retention as critical to the company’s financial resilience. Flexon also outlined ambitions for Pennsylvania energy expansion and disciplined capital deployment, raising the EPS CAGR target to 5-7% through 2029.

Guidance

UGI provided 2026 adjusted diluted EPS guidance of $2.85–$3.15, assuming normalized weather and tax rates. The company plans $4.5–$4.9 billion in CAPEX for infrastructure and growth, targeting 9%+ rate base growth in regulated utilities. CFO Sean O’Brien noted “linear EBIT growth” from 2026 to 2029, supported by AmeriGas’ operational turnaround and portfolio optimization.

Additional News

UGI announced strategic investments in LNG and renewable natural gas (RNG) facilities, alongside infrastructure upgrades at UGI International. The company also outlined a $150 million portfolio optimization plan, including LPG divestitures in Hawaii, Italy, and the UK. Additionally, AmeriGas’ 17% EBIT growth and 30% reduction in safety incidents highlighted operational progress. Management reiterated a 5-7% EPS CAGR target through 2029, backed by $4.5–$4.9 billion in CAPEX and disciplined capital allocation.