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

UGI Misses Q1 EPS on Warmer Weather; Utilities Strength Offset by Segment Declines

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, driven by strength in Utilities (+$16M) and UGI International (+$14M), which more than offset declines in Midstream & Marketing and AmeriGas Propane . The stock fell ~1.4% in after-hours trading to $39.45.

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 Impact: Significantly warmer-than-normal weather pressured volumes across segments:

• Utilities: 16.8% warmer than normal, 21% warmer than prior year
• Midstream & Marketing: 14.1% warmer than normal, 17.5% warmer than prior year
• AmeriGas Propane: 0.8% warmer than normal, 7.9% warmer 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) partially offset by higher operating expenses (+$9M) and depreciation (+$3M). Customer growth and infrastructure investments continue to pay off .

UGI International (+$14M): Higher total margin (+$20M) from improved LPG pricing and operational efficiency, partially offset by unfavorable other income items (-$6M) .

Midstream & Marketing (-$7M): Lower EBIT driven by reduced capacity management revenues and higher operating expenses (-$6M) .

AmeriGas Propane (-$2M): Modest decline despite meaningful operational transformation progress. Higher opex (+$8M) 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, then fell ~1.4% in after-hours trading to $39.45 following the earnings release.

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 muted reaction reflects the modest EPS miss offset by continued segment EBIT growth and maintained guidance. UGI shares have gained approximately 35% 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

Operational Metrics:

• Zero Fill Rate: 12% reduction
• Miles Driven: 5% reduction while delivering higher volumes
• Achieved highest Net Promoter Score since FY23

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

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)

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

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

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 despite flat EBIT
4. Guidance Maintained: FY26 EPS target of $2.90-$3.15 reaffirmed with 5-7% EBIT growth expected
5. Stock Reaction: Shares down ~1.4% after-hours, reflecting the modest miss

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