UGI: Fiscal Q4 Earnings Snapshot

UGI Corporation (NYSE: UGI) reported strong fiscal Q4 earnings on November 21, 2024, with adjusted diluted EPS of $3.06, up from $2.84 in the prior year. The company's earnings were driven by solid growth in reportable segments' EBIT, which delivered $1,178 million, a 1.7% increase from the prior year. UGI achieved a $75 million reduction in operating and administrative expenses across all segments, contributing to its strong financial performance. Additionally, the company deployed approximately $900 million in capital, with 80% allocated to regulated utilities and the Midstream and Marketing segment, primarily for infrastructure replacement and betterment.

UGI's regulated utilities segment, which includes natural gas transmission and distribution, significantly contributed to Q4 earnings. This segment delivered record EBIT, driven by higher unit margins and increased volumes, particularly in UGI International. The segment's strong performance, despite warmer-than-normal weather across service territories, highlights its resilience and growth potential.



UGI International contributed significantly to UGI's Q4 financial performance, with a 77% increase in EBIT compared to the prior year. This growth was driven by the continued exit of the non-core energy marketing business, higher LPG volumes, and increased unit margins.

UGI Corporation's Q4 earnings report showed a significant reduction in operating and administrative expenses, totaling $75 million across all segments compared to the prior year. This cost-cutting measure contributed to the company's solid financial performance, with adjusted diluted EPS of $3.06, a 7.7% increase from the prior year. Additionally, UGI deployed approximately $900 million in capital, with 80% allocated to regulated utilities and the Midstream and Marketing segment, primarily for infrastructure replacement and betterment. This strategic capital allocation further enhanced UGI's financial profile and positioned the company for sustainable growth.

UGI reported strong fiscal Q4 earnings, with adjusted diluted EPS of $3.06, up from $2.84 in the prior year. The company also announced a 10-year compound annual growth rate of 6% for its dividends, paid for the 140th consecutive year. For fiscal 2025, UGI provided adjusted diluted EPS guidance of $2.75-$3.05, indicating a continuation of its earnings momentum. This guidance suggests that UGI's dividend payout and earnings performance are aligned, with the company expecting to maintain its strong financial position and deliver value to shareholders in the coming year.

In conclusion, UGI Corporation's fiscal Q4 earnings report demonstrates the company's resilience and growth potential. With solid performance in its regulated utilities segment, cost-cutting measures, and strategic capital deployment, UGI is well-positioned to continue delivering value to shareholders. As the company looks ahead to fiscal 2025, investors can expect a strong earnings performance and dividend growth.