UGI 2025 Q4 Earnings 95.2% Reduction in Net Loss

UGI (UGI) reported fiscal 2025 Q4 earnings on Nov 21, 2025, with results showing a significant improvement in profitability. The company narrowed its net loss to $-13 million, a 95.2% reduction from $-273 million in 2024 Q4, and raised its long-term EPS CAGR target to 5%-7%. While revenue declined 3.6% to $1.20 billion, the EPS beat expectations by 29.85%. Management also outlined $4.5B-$4.9B in 2026 CAPEX and a focus on portfolio optimization.

Revenue

UGI’s total revenue fell to $1.20 billion in 2025 Q4, a 3.6% decrease from $1.24 billion in the prior-year period. Segment performance varied: AmeriGas Propane reported a 16.9% increase in operating income before interest and taxes (EBIT) to $166 million, while UGI International’s EBIT declined 2.8% to $314 million. The Midstream & Marketing segment saw a 6.4% drop in EBIT to $293 million, and UGI Utilities’ EBIT rose 0.8% to $403 million.

Earnings/Net Income

UGI reduced its net loss to $-13 million in 2025 Q4, a 95.2% improvement from $-273 million in 2024 Q4. The loss per share narrowed to $0.06 from $1.27, driven by operational improvements and tax benefits. Despite the revenue decline, the EPS beat was notable, with adjusted EPS reaching $3.32 for fiscal 2025. The EPS beat indicates strong cost management and strategic initiatives.

Post-Earnings Price Action Review

UGI’s stock surged 7.46% during the latest trading day, 7.95% in the most recent full week, and 12.71% month-to-date. Post-earnings, the stock rose 4.84% in after-hours trading, despite missing revenue estimates. The positive price action reflects investor confidence in UGI’s operational turnaround, strategic investments in LNG/RNG, and improved profitability. Management’s emphasis on free cash flow generation ($530 million in Q4) and shareholder returns via dividends further bolstered market sentiment.

CEO Commentary

CEO Robert Flexon highlighted record adjusted EPS of $3.32 for fiscal 2025, driven by AmeriGas’ EBIT growth, utility segment improvements, and tax benefits. He emphasized strategic investments in natural gas infrastructure and AI-driven efficiency, positioning AmeriGas for industry leadership. Flexon raised the EPS CAGR target to 5%-7% through 2029, citing intrinsic value opportunities and confidence in executing strategic priorities.

Guidance

CFO Sean O’Brien outlined fiscal 2026 guidance: adjusted EPS of $2.85-$3.15, 5%-7% segment EBIT growth, and $4.5B-$4.9B in CAPEX. The company anticipates normalized tax rates post-2025 ITC benefits and linear EBIT growth from utility rate base expansion. AmeriGas’ operational improvements and midstream fee-based margins are expected to drive consistent growth.

Additional News

UGI announced strategic portfolio optimization, including $150 million in LPG divestitures in 2025 and a pending Austrian asset sale. The company raised its long-term EPS CAGR target to 5%-7% through 2029, supported by $4.5B-$4.9B in 2026 CAPEX. Additionally, UGI plans to strengthen its balance sheet through disciplined capital deployment and operational efficiency, aiming for sustained growth across all segments.

UGI’s focus on natural gas infrastructure and renewable energy projects, such as LNG/RNG facilities, underscores its commitment to long-term value creation. The company’s $530 million in free cash flow and $3.32 adjusted EPS for fiscal 2025 highlight its financial resilience. With a 5%-7% EPS CAGR target and a $4.5B-$4.9B capital program, UGI is positioned to capitalize on energy transition trends while enhancing shareholder returns.

UGI’s Q4 2025 earnings demonstrated a remarkable turnaround, with a 95.2% reduction in net losses and a 29.85% EPS beat. The stock’s post-earnings rally reflects optimism in management’s strategic direction and operational improvements. As the company executes its capital-intensive projects and portfolio optimization, investors may see continued momentum in 2026.