UGI CORP /PA/ (UGI)·Q1 2026 Earnings Summary

UGI Misses Q1 EPS Despite Colder Weather Boost; Utilities EBIT Grows 11%

February 5, 2026 · by Fintool AI Agent

UGI Corporation reported fiscal Q1 2026 results that missed analyst expectations, with adjusted diluted EPS of $1.26 falling short of the $1.30 consensus by 3.1% . Despite the EPS miss, total segment EBIT grew 5% year-over-year to $441M, benefiting from colder-than-normal weather and strength in Utilities (+$16M) and UGI International (+$14M), which more than offset declines in Midstream & Marketing and AmeriGas Propane . The stock traded up ~1% on February 5 to $40.41 as investors focused on operational progress.

Did UGI Beat Earnings?

No. UGI missed on both EPS and revenue:

The adjusted EPS of $1.26 compares to $1.37 in Q1 FY25, representing an 8% year-over-year decline . GAAP diluted EPS of $1.34 compared to $1.74 in the prior year, down 23% .

Beat/Miss History: UGI has beaten EPS estimates in each of the past four quarters:

Source: Benzinga

What Changed This Quarter?

Several key factors shaped Q1 FY26 results:

Weather Benefit: Significantly colder-than-normal weather boosted heating demand across segments:

• Utilities: 16.8% colder than normal, 21% colder than prior year (core market volumes +16%)
• Midstream & Marketing: 14.1% colder than normal, 18% colder than prior year
• AmeriGas Propane: 0.8% colder than normal, 8% colder than prior year

Portfolio Rationalization: UGI International continued streamlining operations, having divested LPG operations in 7 countries since FY25, generating ~$215M in cash proceeds .

Rate Case Filings: Subsequent to the quarter, UGI filed gas base rate cases requesting overall distribution rate increases of $99M at UGI Utilities and $27M at Mountaineer Gas .

New LNG Facility: The New Carlisle LNG storage and vaporization facility, underpinned by a long-term contract with Utilities, is now operational .

How Did Segments Perform?

Utilities (+$16M): Core value driver delivered strong growth from higher total margin (+$28M) driven by higher gas base rates in PA (effective October 2025) and colder weather, partially offset by higher operating expenses (+$9M) and depreciation (+$3M) .

UGI International (+$14M): Higher total margin (+$20M) from effective margin management and favorable foreign currency translation (~$24M), partially offset by lower retail volumes from divestitures and lower realized gains on FX contracts (-$7M) .

Midstream & Marketing (-$7M): Total margin comparable with prior year as colder weather was offset by lag in recovery of higher pipeline transportation costs. Higher OPEX (+$6M) from plants placed in service in September 2025 .

AmeriGas Propane (-$2M): Modest decline despite meaningful operational transformation progress. Higher opex (+$8M) from customer retention investments offset small margin gains (+$2M) .

What Is UGI's Guidance?

UGI reaffirmed its FY26 guidance provided in November 2025:

Long-Term Targets (FY24-FY29):

• EPS CAGR: 5-7%
• Rate Base Growth: 9%+
• Capital Expenditure (FY26-29): $4.5-$4.9B
• Target Leverage: ≤3.75x at UGI Corp, ≤4x at AmeriGas

To achieve the midpoint of FY26 guidance ($3.025), UGI needs to generate approximately $1.77 in adjusted EPS over the remaining three quarters, which appears achievable given typical seasonal patterns where Q2 (winter heating season) is the strongest quarter.

How Did the Stock React?

UGI shares closed at $40.01 on February 4, 2026 before the earnings release, then traded up ~1% to $40.41 on February 5, 2026 as the market digested results.

Key price levels:

• 52-Week High: $41.34
• 52-Week Low: $29.03
• 50-Day Average: $38.20
• 200-Day Average: $35.49
• Current Market Cap: ~$8.7B

The positive reaction reflects continued segment EBIT growth (+5% YoY) and maintained guidance despite the modest EPS miss. UGI shares have gained approximately 39% from their 52-week lows as the operational transformation at AmeriGas and utilities growth story continues to gain traction.

What's the AmeriGas Transformation Story?

One of the key narratives for UGI is the ongoing operational turnaround at AmeriGas Propane. Management highlighted meaningful progress in Q1 FY26:

Safety Improvements:

• 45% fewer recordable incidents year-over-year
• 60% less lost-time injuries
• Record low recordable injuries in AmeriGas history

Operational Metrics:

• Zero Fill Rate: Reduction in zero fill rates
• Miles Driven: Reduction in average miles driven while delivering slightly higher retail volumes
• Achieved highest Net Promoter Score since FY23 methodology launched
• Customer service call volumes down 17% vs prior year
• Better Business Bureau A-minus ranking achieved

Credit Improvement: Moody's upgraded AmeriGas outlook from "Negative" to "Positive" .

Management Targets: CEO Bob Flexon stated the goal is approximately 60% improved winter performance this year and 100% improvement by next winter .

These improvements demonstrate tangible progress on the cost transformation that management has been executing. While AmeriGas EBIT declined slightly (-$2M), the operational metrics suggest the foundation is being laid for more sustainable profitability.

Balance Sheet and Capital Allocation

UGI maintains a solid financial position with available liquidity of approximately $1.6B :

Q1 FY26 Capital Deployment: $225M, with 73% invested in regulated utilities businesses .

Debt Maturities: Well-laddered with manageable near-term obligations:

• FY26: $105M (AmeriGas)
• FY27: $662M (UGI International)
• FY28: $493M (Midstream & Marketing)
• FY29: $288M (Utilities)

What Did Analysts Ask About?

Gabriel Moreen (Mizuho) focused on winter performance and growth opportunities:

• AmeriGas Winter Stress: Management acknowledged seeing stress in certain geographic locations due to road conditions affecting deliveries during extreme weather. Resources from the warmer western U.S. have been redeployed to the colder east .
• PA Rate Case Timing: The rate case filing is not unusual and follows historical cadence. UGI remains focused on affordability and managing OpEx to benefit customer bills .
• Data Center Opportunities: NDAs with power providers and data centers are progressing. CEO Flexon expressed hope to announce deals during FY26, noting tailwinds from White House direction and 13 state governors around emergency power procurement .

Paul Zimbardo (Jefferies) inquired about strategic leadership and margins:

• New Chief Strategic Officer: Sid has been brought on board to focus on medium-term and longer-term strategy, including portfolio optimization, external opportunities, product development, and environmental/regulatory matters .
• Pipeline Cost Recovery: The ~$5M lag from FERC pipeline rate increases is expected to be substantially recovered during FY26 .

Forward Catalysts

Near-Term:

• Q2 FY26 results (typically strongest quarter due to winter heating season)
• Rate case outcomes at UGI Utilities ($99M request) and Mountaineer Gas ($27M request)
• Continued portfolio rationalization at UGI International
• Data center/power provider announcements potentially during FY26

Long-Term:

• Utilities rate base growth at 9%+ CAGR through FY29
• AmeriGas transformation completing with sustainable cost structure
• Pennsylvania energy expansion opportunities positioning UGI as key regional player
• New Chief Strategic Officer role supporting portfolio optimization and strategic growth initiatives

Key Takeaways

1. EPS Miss: Adjusted EPS of $1.26 missed consensus of $1.30 by 3%, though segment EBIT grew 5% YoY
2. Utilities Leading: Core regulated business delivered 11% EBIT growth; filed for $126M in rate increases
3. Transformation Progress: AmeriGas showing tangible operational improvements—record safety metrics, 17% fewer customer service calls, highest NPS since 2023, and BBB A-minus rating
4. Guidance Maintained: FY26 EPS target of $2.90-$3.15 reaffirmed with 5-7% EBIT growth expected
5. Data Center Upside: Management actively engaged with power providers and data centers; hopeful to announce deals in FY26
6. Strategic Evolution: New Chief Strategic Officer role created to drive medium-term portfolio optimization and growth

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View UGI Company Profile | Read Q1 FY26 Earnings Transcript | Previous Earnings: Q4 FY25