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.