UGI (UGI) Q4 2025 earnings summary

Executive summary

• Achieved record adjusted diluted EPS of $3.32, up from $3.06, and GAAP diluted EPS of $3.09 versus $1.25, reflecting strong operational execution and AmeriGas EBIT growth, utility performance, and significant tax benefits.

• Generated $530 million in free cash flow, including proceeds from LPG asset sales, and returned $320 million to shareholders via dividends.

• Advanced portfolio optimization, investing $900 million primarily in natural gas businesses and achieving $150 million from LPG divestitures.

• Embedded operational discipline and technological adoption, including AI, to drive efficiency and long-term shareholder value.

• Raised long-term EPS CAGR target to 5%-7% through 2029, reflecting confidence in strategic execution and intrinsic growth opportunities.

Financial highlights

• Adjusted diluted EPS of $3.32, up $0.26 year-over-year; GAAP diluted EPS of $3.09, up from $1.25.

• Reportable segments EBIT was $1,176 million, nearly flat year-over-year.

• 42% total shareholder return for the year, outperforming the S&P 500 TSR of 19%.

• Free cash flow exceeded $500 million; leverage reduced to 3.9x at the corporate level and 4.9x at AmeriGas.

• Adjusted EBITDA reached $1,733 million; net income attributable to the corporation at $678 million.

Outlook and guidance

• Fiscal 2026 adjusted diluted EPS guidance set at $2.90–$3.15, assuming normal weather and current tax environment.

• Expecting 5%-7% year-over-year EBIT growth across reportable segments.

• Targeting EPS CAGR of 5%-7% through 2029, supported by $4.5-$4.9 billion in capital investments.

• Utility segment to benefit from higher base rates and continued customer growth; AmeriGas expects year-over-year EBIT and volume growth.

• UGI International projected to remain stable as margin management offsets structural conservation.