Ugi Stock Earnings Reports

UGI reported a strong fiscal Q2 driven by colder winter weather and operational execution across all businesses. Adjusted diluted EPS improved 12% year-over-year to $2.21, prompting management to raise full-year fiscal 2025 adjusted diluted EPS guidance to $3.00–$3.15. All four segments contributed to EBIT growth; key highlights include peak LNG infrastructure utilization, completion (now commissioning) of the Manning liquefaction expansion (expected fully operational by fiscal 2026), $160 million of quarter capital deployment (primarily natural gas businesses), and continued utility customer growth (+6,600 YTD). AmeriGas showed improving operations (lower attrition) driven by process initiatives such as the POD model and five targeted business-process projects; management sees material upside from supplier consolidation and better propane hedging. UGI International reduced the previously estimated OpEx headwind from jetty damage and continues cost discipline despite lower LPG volumes. Balance sheet and cash generation strengthened: available liquidity was $1.9 billion, net debt/EBITDA declined to 3.8x, and year-to-date free cash flow rose ~55% to ~$490 million, supporting deleveraging (AmeriGas net debt/EBITDA down to 5.4x) and refinancing plans for 2026 maturities. Key investor considerations: raised guidance and strong cash generation are positive; results remain winter/weather-driven with some timing of OpEx and CapEx pushed into H2; AmeriGas turnaround is early-stage and execution-dependent; management expects ongoing capital allocation toward regulated natural gas growth and continued focus on cost and process optimization.