UGI Corporation Reports Solid Start to Fiscal 2026 with Strong Segment Performance and Strategic Divestitures
UGI Corporation today announced its financial results for the fiscal quarter ended December 31, 2025, reflecting steady growth across its key business segments, continued operational improvements, and strategic portfolio actions aimed at strengthening long-term shareholder value.
Quarterly Financial Highlights
For the first quarter of fiscal 2026, UGI reported GAAP diluted earnings per share (EPS) of $1.34, while adjusted diluted EPS came in at $1.26. This compares to GAAP diluted EPS of $1.74 and adjusted diluted EPS of $1.37 for the same quarter in the prior year. Despite the year-over-year decrease in EPS, the company achieved notable growth in its reportable segment earnings before interest and taxes (EBIT), which reached $441 million for the quarter, up from $420 million in the prior-year period, representing approximately 5% growth.
The company attributed the improvement in segment EBIT to strong performance across its natural gas and Global LPG businesses. UGI’s natural gas operations benefited from robust gas demand and the positive impact of the Pennsylvania utility base rate case. Meanwhile, the Global LPG segment offset the effect of recent divestitures through operational improvements, effective margin management, disciplined cost control, and favorable weather conditions in certain U.S. regions.
Strategic Divestitures and Portfolio Optimization
In January 2026, UGI International executed definitive agreements to divest its LPG businesses in the Czech Republic, Hungary, Poland, Slovakia, and Romania, generating an enterprise value of approximately €48 million. These divestitures are part of a broader portfolio optimization strategy, which began in fiscal 2025, and have now resulted in agreements to exit LPG operations in seven countries, representing roughly 5% of the fiscal 2025 EBIT for the segment. The transactions are expected to generate approximately $215 million in cash proceeds, which will provide the company with additional financial flexibility for strategic investments and operational initiatives.
Credit Rating Upgrade
Reflecting the company’s strong operational performance and strategic positioning, Moody’s upgraded the outlook for AmeriGas from negative to positive in January 2026. This upgrade underscores UGI’s disciplined capital management, operational execution, and solid performance across its U.S. LPG and natural gas operations.
Regulatory Filings and Infrastructure Investments
UGI continues to invest in upgrading its energy infrastructure to ensure safe, reliable, and affordable service for customers. Following the close of the quarter, UGI Utilities and Mountaineer Gas filed gas base rate cases requesting overall distribution rate increases of $99 million and $27 million, respectively. These filings are intended to recover investments in aging infrastructure while supporting long-term operational sustainability and customer service reliability.
Executive Commentary
Bob Flexon, President and Chief Executive Officer of UGI Corporation, commented on the results:
UGI had a solid start to fiscal 2026, delivering 5% growth in total reportable segment EBIT, in line with our expectations. Our natural gas businesses produced strong results, driven by robust demand and the impact of the Pennsylvania utility base rate case. Across our Global LPG businesses, favorable weather conditions in certain U.S. regions, along with operational improvements and disciplined cost control, more than offset the impact of divestitures.”
Flexon further emphasized the company’s ongoing focus on foundational improvements:
Importantly, we continue to make meaningful progress on our business processes, safety initiatives, and cultural transformation. These efforts position UGI to unlock incremental intrinsic value. As we look ahead, we remain committed to operational excellence, disciplined capital deployment, and executing our long-term growth strategy to drive continued shareholder value.”
Earnings Call and Webcast Information
UGI Corporation will host a live Internet Audio Webcast to discuss the quarterly earnings results and provide an update on the company’s activities at 9:00 AM ET on Thursday, February 5, 2026. Interested parties may access the webcast live or replay it via the company’s investor website at www.ugicorp.com/investors/financial-reports/presentations. A replay of the webcast will be available until 11:59 PM ET on February 4, 2027.
ABOUT UGI
UGI Corporation (NYSE: UGI) is a distributor and marketer of energy products and services in the US and Europe. UGI offers safe, reliable, affordable, and sustainable energy solutions to customers through its subsidiaries, which provide natural gas transmission and distribution, electric generation and distribution, midstream services, propane distribution, renewable natural gas generation, distribution and marketing, and energy marketing services.
Comprehensive information about UGI Corporation is available on the Internet at https://www.ugicorp.com.
USE OF NON-GAAP MEASURES
Management uses “adjusted net income attributable to UGI Corporation” and “adjusted diluted EPS”, each of which are non-GAAP financial measures, when evaluating UGI’s overall performance. Management believes that these non-GAAP measures provide meaningful information to investors about UGI’s performance because they eliminate the impacts of (1) gains and losses on commodity and certain foreign currency derivative instruments not associated with current-period transactions and (2) other significant discrete items that can affect the comparison of period-over-period results. Volatility in net income attributable to UGI can occur as a result of gains and losses on commodity and certain foreign currency derivative instruments not associated with current-period transactions but included in earnings in accordance with U.S. generally accepted accounting principles (“GAAP”).
Non-GAAP financial measures are not in accordance with, or an alternative to, GAAP and should be considered in addition to, and not as a substitute for, the comparable GAAP measures.
The tables on the last page of this press release reconcile net income attributable to UGI Corporation, the most directly comparable GAAP measure to adjusted net income attributable to UGI Corporation, and diluted EPS, the most comparable GAAP measure to adjusted diluted EPS, to reflect the adjustments referred to above.
1 Reportable segments’ EBIT represents an aggregate of our reportable operating segment level EBIT, as determined in accordance with GAAP.
