UGI Corp's Q3 Earnings Call: Record EPS Amid Challenges

UGI Corp reported record year-to-date adjusted diluted EPS of $3.55, driven by customer growth in the Utilities segment. However, Q3 saw a decline in quarterly EPS, reduced volumes in UGI International, and increased operating expenses in Utilities. Strategic initiatives like asset sales and AmeriGas improvements are expected to positively impact the company's future outlook.

UGI Corporation (NYSE: UGI) reported its third-quarter financial results for the period ended June 30, 2025. The company noted a decline in quarterly earnings per share (EPS) compared to the prior-year period, driven by various factors. However, the company remains optimistic about its future prospects, citing strategic initiatives and operational improvements.

Key Highlights:

- Q3 GAAP diluted EPS: UGI reported a GAAP diluted EPS of $(0.76) and adjusted diluted EPS of $(0.01), compared to $(0.23) and $0.06 in the prior-year period, respectively.
- Year-to-Date (YTD) Performance: YTD GAAP diluted EPS was $3.16, while adjusted diluted EPS was $3.55, an improvement over the prior-year period's $2.52 and $3.22, respectively.
- Segment Performance:
- Utilities: Revenues increased by 12% to $287 million, but operating income decreased by 22% to $29 million due to higher operating and administrative expenses and increased depreciation.
- Midstream & Marketing: Revenues rose by 10% to $278 million, but operating income decreased by 34% to $27 million, primarily due to lower total margin and other operating income.
- UGI International: Revenues decreased by 4% to $437 million, with a 25% drop in operating income to $43 million, driven by lower retail volumes and reduced LPG unit margins.

Strategic Initiatives:

- UGI executed its strategic portfolio optimization initiative, generating approximately $150 million from asset sales in the Global LPG businesses, including Hawaii, Italy, and a small cylinder business in the UK.
- The company expects to be at the top end of its Fiscal 2025 adjusted EPS guidance range of $3.00 - $3.15 per share.
- Bob Flexon, President and Chief Executive Officer, highlighted the cultural transformation and customer-focused operational improvements at AmeriGas, which are expected to strengthen performance.

Outlook:

UGI Corporation's focus on driving superior business performance, operational excellence, and creating greater financial flexibility is evident in its strategic initiatives. The company's balanced approach to growth investment and shareholder returns aims to build a more resilient and profitable organization that creates sustainable value for shareholders.

Earnings Call:

UGI will hold a live Internet Audio Webcast of its conference call to discuss the quarterly earnings and other current activities at 9:00 AM ET on Thursday, August 7, 2025. Interested parties can listen to the audio webcast both live and in replay on the company's investor relations page.

References:

[1] https://www.ugicorp.com/news-releases/news-release-details/ugi-reports-third-quarter-results-2