UGI CORP /PA/ (UGI)·Q4 2024 Earnings Summary

Executive Summary

• Fiscal Q4 2024 was seasonally weak with GAAP diluted EPS of -$1.27 vs $0.61 in Q4 2023 and total revenues of $1.242B vs $1.404B; total EBIT swung to -$256M from +$255M on higher Corporate & Other charges and AmeriGas softness .
• Full-year FY2024 improved: adjusted diluted EPS rose to $3.06 from $2.84; GAAP EPS rebounded to $1.25 from -$7.16; reportable segment EBIT reached $1.178B, up from $1.158B .
• FY2025 guidance: adjusted diluted EPS $2.75–$3.05, capex $800–$900M, and rate base growth 9%+; subsequent financing addressed $630M 2025 maturities and expanded AmeriGas’ revolver to $300M, bolstering liquidity .
• Management emphasized permanent cost reductions ($75M in FY2024), AmeriGas stabilization without parent equity, and portfolio optimization; narrative catalysts include balance sheet actions, LPG turnaround, RNG/LNG growth, and weather normalization impacts .

What Went Well and What Went Wrong

What Went Well

• Record performance at Utilities, Midstream & Marketing, and UGI International; reportable segment EBIT increased YoY to $1.178B and adjusted EPS to $3.06 despite LPG headwinds .
• Structural cost actions delivered $75M Opex reduction across segments and improved liquidity to ~$1.5B at FY-end; subsequent financing cleared near-term maturities (new $475M revolver, $400M term loan) .
• Management tone on reset and execution: “Fiscal 2024 was a pivotal year… Strong execution… record EBIT… sustainable reductions…” and new CEO focus “to create a culture that embodies high performance… operational excellence” .

What Went Wrong

• AmeriGas volumes fell 10% YoY; AmeriGas EBIT declined to $142M from $268M; Q4 AmeriGas EBIT -$40M vs +$28M prior year; total margin down $119M on lower volumes .
• Goodwill impairment (~$195M) and other Corporate & Other items drove a Q4 company EBIT of -$256M (vs +$255M prior year) and net loss of -$273M (vs income $131M) .
• Warmer-than-normal weather weighed across businesses: Utilities -16% vs normal; Midstream -13%; UGI International -12%; AmeriGas -8%, dampening volumes and quarterly earnings cadence .

Financial Results

Consolidated quarterly summary

Segment revenues – quarterly

Segment EBIT – quarterly

Annual summary

KPIs (FY2024, YoY where available)

Note: Estimates vs consensus for Q4 were unavailable to retrieve at the time of this analysis; comparisons to Wall Street expectations could not be performed.

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “Fiscal 2024 was a pivotal year… Strong execution against our strategy led to record EBIT… sustainable reductions in operating and administrative expenses, disciplined capital deployment, improved liquidity, and greater financial flexibility” — Mario Longhi, Board Chair .
• “Looking ahead, fiscal 2025 will be an important year as we continue to reset the business… build on operational capabilities… culture that embodies high performance, operational excellence…” — Robert Flexon, President & CEO .
• “UGI had a strong fiscal 2024, delivering record adjusted EPS of $3.06… segments delivered strongest EBIT on record… achieved a $75M reduction in operating and administrative expenses” — Sean O’Brien, CFO .
• “No equity going down to AmeriGas… it has to support itself… fix our business processes… stabilize the business” — Robert Flexon .

Q&A Highlights

• AmeriGas trajectory: Management reiterated no parent equity injections and a focus on stabilization; FY2025 assumes continued AmeriGas volume declines while pulling cost/capex levers to buffer financials .
• Midstream marketing normalization: Exceptional Q2 capacity/basis optimization not embedded in FY2025 baseline; LNG projects (Manning expansion, Carlyle start) and RNG plants staged through FY2025, with broader demand tailwinds (PJM, data centers) longer term .
• Valuation/portfolio stance: CEO highlighted top-decile utility attributes and synergy with Energy Services; sees stock multiple as undervalued vs utility peers, aiming to maximize value while prioritizing LPG performance improvements .
• Jetty damage (France): Repairs covered by insurance, with incremental distribution costs weighed in FY2025 guidance ($0.05–$0.08) .

Estimates Context

• Wall Street consensus (S&P Global) for Q4 2024 EPS and revenue was unavailable to retrieve at the time of this analysis due to access limits; as a result, explicit beat/miss vs estimates cannot be assessed. Guidance comparisons are presented based on company disclosures .

Key Takeaways for Investors

• FY2024 validates the reset: adjusted EPS +8% YoY to $3.06 with record segment EBIT and $75M permanent cost savings; however, Q4 highlighted LPG volume/weather sensitivity and Corporate & Other charges .
• FY2025 guide ($2.75–$3.05) embeds normalization in Midstream/Marketing and explicit cost/logistics headwinds; watch pacing of AmeriGas stabilization and the magnitude of LPG volume response to customer service initiatives .
• Balance sheet/liquidity improved materially; near-term maturities addressed and revolver capacity lifted, reducing covenant pressure and supporting operational execution through FY2025 .
• Natural gas growth vectors (rate base 9%+, LNG facilities, RNG projects) underpin medium-term earnings quality; portfolio skew further to natural gas should support more defensive cash generation .
• Weather normalization and capacity spreads remain external swing factors; capacity management upside is opportunistic and not in base plans—useful for potential upside surprise quarters .
• Strategic optionality persists for LPG assets; management favors operational improvement before reconsidering transactions, which may catalyze repricing if execution stabilizes churn and margins .
• Dividend remains a key commitment (flat through FY2026; 4% LT growth from FY2027), supporting income investor interest while capital is prioritized to delever and grow rate base .

Citations: Financials and guidance are sourced from UGI’s Q4/FY2024 8-K press release and exhibits, and Q2/Q3 filings and transcripts .