UGI (UGI) investor relations material

Executive summary

• Q1 2026 reportable segment EBIT grew 5% year-over-year to $441 million, driven by strong natural gas demand, operational excellence, and safety improvements across all business segments.

• GAAP diluted EPS was $1.34 and adjusted diluted EPS was $1.26, both down from $1.74 and $1.37, respectively, year-over-year, reflecting the absence of prior investment tax credits, higher interest expense, and lost earnings from divestitures.

• Net income attributable to shareholders was $297 million, with adjusted net income at $279 million, both down year-over-year.

• Portfolio optimization and rationalization in LPG is nearly complete, with divestitures in several European countries expected to generate $215 million in cash proceeds.

• Operational improvements at AmeriGas led to better efficiency, customer satisfaction, and a 45% reduction in recordable incidents.

Financial highlights

• Total revenues for Q1 were $2,083 million, up from $2,030 million year-over-year.

• Adjusted EBITDA for Q1 FY26 was $581 million, up from $557 million in Q1 FY25.

• Utilities EBIT rose to $157 million, up $16 million, driven by colder weather and higher gas base rates.

• UGI International EBIT increased by $14 million to $124 million, benefiting from higher margins and favorable currency effects.

• Available liquidity at quarter-end was $1.6 billion, up $100 million year-over-year.

Outlook and guidance

• Management remains focused on operational excellence, disciplined capital allocation, and executing long-term growth strategy, especially in natural gas and international LPG markets.

• Anticipates continued strong demand through winter and is positioned to capture growth in natural gas infrastructure.

• Pipeline rate increases in Midstream are expected to be recovered over time, with a significant portion in fiscal 2026.

• Pending regulatory rate cases in Pennsylvania and West Virginia could impact future revenues.