UGI (UGI) Q3 2026 earnings summary

Executive summary

• Fiscal 2026 featured disciplined execution of strategic priorities, with operational results absorbing impacts from portfolio actions, unfavorable weather, and slower propane growth.

• Year-to-date adjusted diluted EPS was $3.17, down from $3.55, mainly due to absence of prior year tax credits and higher interest expense.

• Utilities and international segments offset AmeriGas softness, with leverage and cash flow improving.

• Over 76% of capital expenditures were directed to natural gas businesses, with 8,500+ new heating customers added at regulated utilities.

• Completion of cast iron replacement ahead of schedule, emphasizing safety focus.

Financial highlights

• Year-to-date reportable segment EBIT reached $1.2 billion, nearly flat year-over-year despite a $40 million impact from LPG divestitures and warmer weather.

• Revenues for the nine months were $6.10 billion, nearly flat year-over-year.

• Cash flow from operating activities was $972 million for the nine months, down from $1.14 billion in the prior year, mainly due to changes in working capital.

• Interest expense increased to $331 million for the nine months, up from $305 million year-over-year.

• Q3 reportable segment EBIT was $58 million, down from $72 million year-over-year due to warmer weather and AmeriGas softness.

Outlook and guidance

• Adjusted diluted EPS guidance for fiscal 2026 reaffirmed at $2.75–$2.90.

• 5%-7% consolidated EPS CAGR through 2029 remains intact, with midstream growth more back-end loaded.

• AmeriGas expected to resume cash distributions to parent in 2027 as leverage approaches sub-4x.

• Utilities segment anticipates phased rate increases for PA Gas Utility and ongoing rate cases for Electric Utility and WV Gas Utility.

• Management expects continued strong fundamentals, with growth opportunities from rising natural gas demand and data center expansion.