What is the market's earnings forecast for UGI next quarter?

What is UGI's gross profit margin?

What does UGI do and what are its main business segments?

What were the key takeaways from UGI's earnings call?

What guidance did UGI's management provide for the next earnings period?

What is UGI's latest dividend and current dividend yield?

What factors drove the changes in UGI's revenue and profit?

Did UGI beat or miss consensus estimates last quarter?

- **Record EPS and Cash Flow**: FY2025 adjusted EPS of $3.32, $530M free cash flow, and $320M returned to shareholders.
- **AmeriGas Transformation**: 17% EBIT growth, 10% fuel cost savings via dynamic routing, and 30% safety incident reduction.
- **Long-Term Growth Target**: 5-7% EPS CAGR driven by $4.5-4.9B capital plan and RNG expansion.
- **Leverage Reduction**: AmeriGas leverage target sub-4.0x, supported by EBIT growth and debt deleveraging.
- **Pennsylvania Expansion**: 50+ NDAs for projects leveraging Pennsylvania's energy infrastructure boom.

**【CEO Summary Section】**
- UGI reported record adjusted EPS of $3.32 for FY2025, exceeding the revised guidance range of $3.00-$3.15.
- Generated $530 million in free cash flow, including $150 million from LPG divestitures, and returned $320 million to shareholders via dividends.
- Invested $900 million in natural gas infrastructure, including RNG facilities, and completed 130 miles of pipeline replacement.
- Raised long-term EPS growth target to 5-7% CAGR, driven by operational improvements and portfolio optimization.
- AmeriGas achieved a 30% reduction in safety incidents and implemented AI-driven process efficiencies.

**【AmeriGas Propane Update】**
- AmeriGas delivered 17% EBIT growth ($166 million) through operational transformation, including exiting unprofitable wholesale business (11% of volumes).
- Introduced dynamic routing, reducing fuel costs by 10%, and reshored 40-50% of call center operations.
- Targets sustained EBIT growth through customer retention, supply chain optimization, and AI adoption.

**【CFO Financial Commentary】**
- FY2025 financial highlights: 
  - Utilities EBIT: $403 million (+3% YoY)
  - Midstream & Marketing EBIT: $293 million (-$20 million YoY)
  - UGI International EBIT: $314 million (-$9 million YoY)
  - AmeriGas EBIT: $166 million (+$24 million YoY)
- FY2026 guidance: Adjusted EPS $2.85-$3.15 (5-7% growth), assuming normal weather and current tax environment.
- Capital plan for FY2026-FY2029: $4.5-4.9 billion, focused on regulated utility growth (9%+ rate base CAGR).
- Leverage targets: 3.75x for UGI, 4.0x for AmeriGas.

**【Q&A Highlights】**
- **Midstream & LPG Growth**: CEO expects low double-digit EBIT growth across all segments, with 50+ NDAs for Pennsylvania projects.
- **AmeriGas Leverage**: Target sub-4.0x leverage through EBIT growth ($24 million in FY2025) and debt reduction ($200 million YoY).
- **Tax Credits**: FY2025 benefited from $0.40 in RNG ITCs; FY2026+ will rely on $0.09 in PTCs and normalized tax rates.
- **CapEx Allocation**: Prioritize utility infrastructure modernization (e.g., replacing 130 miles of pipeline) and midstream fee-based growth.


UGI Corporation (UGI) Q4 2025 Earnings Call Transcript

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