"UGI delivered adjusted diluted EPS of $2.21, $0.24 above the prior year period. The Utility segment was up $0.04, given the colder weather, partially offset by higher operating and administrative expenses. Midstream & Marketing increased $0.13 as the business benefited from the effects of higher investment tax credits associated with the RNG projects being placed in service this fiscal year. UGI International was consistent year-over-year as lower operating and administrative expenses were more than offset by reduced tax benefits. At AmeriGas, while EBIT was up $16 million over the prior year period, largely due to colder weather, the effect of higher income tax expense led to a $0.06 decline in adjusted diluted EPS."
— Bob Flexon
03Detailed Report
UGI
Company UGI
Period
Q2 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 26, 2026
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Executive Summary
UGI Corporation reported a solid QQ2 2025 performance driven by colder-than-normal weather, which amplified demand across its utilities and gas distribution businesses and supported higher throughputs. Consolidated revenue reached $2.666 billion, with gross profit of $1.365 billion and operating income of $700 million. Net income totaled $0.479 billion, yielding an adjusted diluted EPS of $2.21 for the quarter. The company raised its full-year 2025 adjusted diluted EPS guidance to a range of $3.00-$3.15, underscoring management’s confidence in the underlying cash-generating capacity of its diversified natural gas portfolio.
UGI highlighted meaningful progress across segments: Utility EBIT rose to $241 million aided by colder weather and higher margins (offset by weather normalization effects in PA/WV); Midstream & Marketing EBIT stayed robust at $154 million, supported by capacity management and RNG-related investment tax credits; UGI International delivered stable results with cost discipline offsetting some currency translation headwinds; AmeriGas benefited from colder weather, improving LPG volumes and overall margins, while implementing strategic process improvements aimed at reducing attrition and strengthening cash flow. Management stressed that capital allocation remained focused on natural gas infrastructure and rate-base growth, with Manning LNG expansion commissioning anticipated by fiscal 2026.
On the balance sheet, UGI demonstrated liquidity strength (approximately $1.9 billion in available liquidity) and a net debt to EBITDA ratio of 3.8x as of March 31, 2025, reflecting ongoing deleveraging. Year-to-date free cash flow stood at roughly $490 million, up 55% year over year, with AmeriGas contributing to debt reductions and improved cash generation. Looking ahead, management cautioned that some higher-cost investments were pulled forward into the second half to support winter readiness, but expressed optimism that operational improvements at AmeriGas and favorable weather will support continued earnings growth and deleveraging in the back half of FY2025.
Key Performance Indicators
Revenue
Increasing
2.67B
QoQ: 31.33% | YoY: 8.02%
Gross Profit
Increasing
1.37B
51.20% margin
QoQ: 23.31% | YoY: 7.14%
Operating Income
Increasing
700.00M
QoQ: 43.74% | YoY: 2.49%
Net Income
Decreasing
479.00M
QoQ: 27.73% | YoY: -3.43%
EPS
Decreasing
2.23
QoQ: 28.16% | YoY: -5.51%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue and profitability metrics (USD):
- Revenue: $2.666 billion; YoY +8.0%; QoQ +31.3%
- Gross Profit: $1.365 billion; YoY +7.1%; QoQ +23.3%
- Operating Income: $0.700 billion; YoY +2.5%; QoQ +43.7%
- Net Income: $0.479 billion; YoY -3.4%; QoQ +27.7%
- Earnings per Share (Diluted): $2.19 (GAAP); Adjusted Diluted EPS: $2.21; YoY +12% (adjusted); QoQ +X% (not disclosed in press deck, alignment with quarterly EPS commentary)
- EBITDA: $0.838 billion; EBITDA Margin: 31.4% (EBITDARatio 0.3143)
- Net Debt to EBITDA: 3.8x as of 3/31/2025 (down from 4.0x at end of fiscal 2024)
- Free Cash Flow (YTD): ~$490 million, up ~55% YoY; 2Q cash provided by operating activities: $684 million; Free cash flow per share: $2.50; Operating cash flow per share: $3.18
- Cash and liquidity: Available liquidity ~$1.9 billion; Cash at end of period: ~$438 million; Net debt: $6.605 billion; Total debt: $7.031 billion
- Capital expenditures (quarter): $160 million; (LNG/Midstream expansion and utility infrastructure ongoing)
- Payout/Capital allocation: Dividend payout ratio 16.7%; Cash returned to shareholders via capex and potential debt reduction; 2Q free cash flow and deleveraging highlighted by management
Notes: All figures in USD. Ratios and margins reflect quarter-to-quarter data and segment mix; YoY and QoQ comparisons derive from the company-reported figures and the provided percent changes in the earnings transcript and metrics table.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
2.67B
8.02%
31.33%
Gross Profit
1.37B
7.14%
23.31%
Operating Income
700.00M
2.49%
43.74%
Net Income
479.00M
-3.43%
27.73%
EPS
2.23
-5.51%
28.16%
Key Financial Ratios
Gross Profit Margin
Good
51.20%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Excellent
26.30%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Good
18.00%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Fair
3.04%
Return on assets is acceptable but below top-tier companies
Return on Equity
Fair
9.56%
Return on equity is acceptable but below top-tier companies
Current Ratio
Adequate
1.23
Current ratio meets minimum requirements but limited cushion
Debt to Equity
High Risk
1.40
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Value
3.71x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
Fair Value
1.42x
Price-to-book ratio reasonable for profitable companies
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