UGI (UGI) investor relations material

Executive summary

• Year-to-date adjusted diluted EPS was $3.17, down from $3.55 in the prior year, with GAAP diluted EPS at $3.08 versus $3.16, reflecting lower contributions from Midstream & Marketing and UGI International, but higher results from Utilities and AmeriGas Propane.

• Fiscal 2026 YTD reportable segment EBIT reached $1.2 billion, nearly flat year-over-year despite a $40 million impact from LPG divestitures and warmer weather.

• Strategic focus on disciplined execution, operational improvements, and portfolio actions has strengthened the business foundation and supports long-term value creation.

• AmeriGas transformation is yielding improved volume retention, safety, and customer satisfaction, positioning it for resumed distributions in FY 2027.

• The company completed several strategic divestitures in its global LPG business, including sales in Central/Eastern Europe, Romania, Austria, the UK, Hawaii, and Italy, resulting in a net pre-tax loss of $42 million for the nine months.

Financial highlights

• Revenues for the nine months were $6.10 billion, nearly flat year-over-year.

• Q3 reportable segment EBIT was $58 million, down from $72 million year-over-year, mainly due to warmer weather and lower AmeriGas growth, partially offset by utility strength.

• Utilities EBIT rose $10 million, reflecting higher gas base rates; Midstream and Marketing EBIT increased $3 million due to capacity management.

• YTD adjusted diluted EPS was $3.17, down from $3.55, mainly due to the absence of prior-year investment tax credits and higher interest expense.

• Cash flow from operating activities was $972 million for the nine months, down from $1.14 billion in the prior year, mainly due to changes in working capital.

Outlook and guidance

• Fiscal 2026 adjusted diluted EPS guidance is reaffirmed at $2.75–$2.90 per share.

• Long-term consolidated EPS CAGR target of 5%-7% through 2029 remains intact, with midstream growth expected to be more back-end loaded.

• AmeriGas expected to resume meaningful cash distributions to the parent in 2027 as leverage approaches sub-4x.

• Utilities segment anticipates phased rate increases pending regulatory approval, with a two-step $65 million increase and ongoing rate cases for Electric and WV Gas Utilities.