UGI Reports Third Quarter Results

UGI Corporation (NYSE:UGI) today reported financial results for the fiscal quarter ended June 30, 2025.

HIGHLIGHTS

• Q3 GAAP diluted earnings per share ("EPS") of $(0.76) and adjusted diluted EPS of $(0.01) compared to GAAP diluted EPS of $(0.23) and adjusted diluted EPS of $0.06 in the prior-year period.
• Year-to-date GAAP diluted EPS of $3.16 and adjusted diluted EPS of $3.55 compared to GAAP diluted EPS of $2.52 and adjusted diluted EPS of $3.22 in the prior-year period.
• Year-to-date reportable segments earnings before interest expense and income taxes¹ ("EBIT") of $1,184 million compared to $1,185 million in the prior-year period.
• Executed on our strategic portfolio optimization initiative, generating approximately $150 million from asset sales in the Global LPG businesses, specifically in Hawaii, Italy, and a small cylinder business in the UK.
• Expect to be at the top end of our Fiscal 2025 adjusted EPS guidance range of $3.00 - $3.15² per share.

"We have achieved outstanding year-to-date results that showcase the strength of our asset portfolio and our team's commitment to safely and reliably deliver energy solutions to our customers," said Bob Flexon, President and Chief Executive Officer. "Our focus on driving superior business performance, operational excellence and creating greater financial flexibility is unwavering. We are particularly encouraged by the cultural transformation underway throughout the organization, as well as the customer-focused operational improvements being implemented at AmeriGas to strengthen performance. Through our balanced approach to growth investment and shareholder returns, we are building a more resilient and profitable UGI that creates sustainable value for shareholders."

EARNINGS CALL AND WEBCAST

UGI Corporation will hold a live Internet Audio Webcast of its conference call to discuss the quarterly earnings and other current activities at 9:00 AM ET on Thursday, August 7, 2025. Interested parties may listen to the audio webcast both live and in replay on the Internet at https://www.ugicorp.com/investors/financial-reports/presentations or by visiting the company website at https://www.ugicorp.com and clicking on Investors and then Presentations. A replay of the webcast will be available after the event until 11:59 PM ET August 6, 2026.

ABOUT UGI

UGI Corporation (NYSE:UGI) is a distributor and marketer of energy products and services in the US and Europe. UGI offers safe, reliable, affordable, and sustainable energy solutions to customers through its subsidiaries, which provide natural gas transmission and distribution, electric generation and distribution, midstream services, propane distribution, renewable natural gas generation, distribution and marketing, and energy marketing services.

Comprehensive information about UGI Corporation is available on the Internet at https://www.ugicorp.com.

USE OF NON-GAAP MEASURES

Management uses "adjusted net income attributable to UGI Corporation" and "adjusted diluted EPS," both of which are non-GAAP financial measures, when evaluating UGI's overall performance. Management believes that these non-GAAP measures provide meaningful information to investors about UGI's performance because they eliminate the impacts of (1) gains and losses on commodity and certain foreign currency derivative instruments not associated with current-period transactions and (2) other significant discrete items that can affect the comparison of period-over-period results. Volatility in net income attributable to UGI can occur as a result of gains and losses on commodity and certain foreign currency derivative instruments not associated with current-period transactions but included in earnings in accordance with U.S. generally accepted accounting principles ("GAAP").

Non-GAAP financial measures are not in accordance with, or an alternative to, GAAP and should be considered in addition to, and not as a substitute for, the comparable GAAP measures.

The tables on the last page of this press release reconcile net income attributable to UGI Corporation, the most directly comparable GAAP measure, to adjusted net income attributable to UGI Corporation, and diluted EPS, the most comparable GAAP measure, to adjusted diluted EPS, to reflect the adjustments referred to above.

¹ Reportable segments' EBIT represents an aggregate of our reportable operating segment level EBIT, as determined in accordance with GAAP.

² Because we are unable to predict certain potentially material items affecting diluted EPS on a GAAP basis and principally mark-to-market gains and losses on commodity and certain foreign currency derivative instruments, we cannot reconcile fiscal year 2025 adjusted diluted EPS, a non-GAAP measure, to diluted EPS, the most directly comparable GAAP measure, in reliance on the "unreasonable efforts" exception set forth in SEC rules.

USE OF FORWARD-LOOKING STATEMENTS

This press release contains statements, estimates and projections that are forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended). Such statements use forward-looking words such as "believe," "plan," "anticipate," "continue," "estimate," "expect," "may," or other similar words and terms of similar meaning, although not all forward-looking statements contain such words. These statements discuss plans, strategies, events or developments that we expect or anticipate will or may occur in the future. Management believes that these are reasonable as of today's date only. Actual results may differ significantly because of risks and uncertainties that are difficult to predict and many of which are beyond management's control; accordingly, there is no assurance that results will be realized. You should read UGI's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q for a more extensive list of factors that could affect results. We undertake no obligation (and expressly disclaim any obligation) to update publicly any forward-looking statement, whether as a result of new information or future events, except as required by the federal securities laws.

SEGMENT RESULTS ($ in millions, except where otherwise indicated)

Utilities

• Gas Utility service territory experienced temperatures that were 25% colder than the prior-year period.
• Total Gas Utility volumes increased 5% largely due to an increase in large firm delivery service volumes.
• Total margin increased $4 million primarily due to benefits from the Infrastructure Replacement and Expansion Program (IREP) at the West Virginia Gas Utility.
• Operating and administrative expenses increased $10 million primarily reflecting, among other things, higher personnel related and maintenance expenses.
• Operating income decreased $8 million as higher total margin ($4 million) was more than offset by higher operating and administrative expenses ($10 million) and increased depreciation expense ($2 million) from continued distribution system capital expenditure activity.

Midstream & Marketing

• Temperatures were 22% colder than the prior-year period.
• Total margin decreased $9 million largely due to lower midstream margins ($7 million) which arose mainly from lower natural gas gathering and processing activities and the absence of power generation margin ($5 million) associated with the sale of Hunlock Creek in September 2024, partially offset by higher margins from gas marketing activities ($4 million).
• Operating income decreased $14 million largely due to lower total margin ($9 million), lower other operating income primarily from storage farmout payments in the prior year ($6 million) and higher operating and administrative expenses ($2 million).

UGI International

UGI International base-currency results are translated into U.S. dollars based upon exchange rates experienced during the reporting periods. Differences in these translation rates affect the comparison of line item amounts presented in the table above. The functional currency of a significant portion of our UGI International results is the euro and, to a much lesser extent, the British pound sterling. During the 2025 and 2024 three-month periods, the average unweighted euro-to-dollar translation rates were approximately $1.13 and $1.08, respectively, and the average unweighted British pound sterling-to-dollar translation rates were approximately $1.34 and $1.26, respectively.

• Temperatures were 16% warmer than the prior-year period.
• Retail volumes were 9% lower than the prior-year period largely due to continued structural conservation, the absence of certain customers who previously converted from natural gas to LPG, and the effects of warmer weather.
• Total margin decreased $19 million primarily due to lower retail volumes and reduced LPG unit margins, partially offset by the translation effects of the stronger foreign currencies (~$10 million).
• Operating and administrative expenses decreased $9 million reflecting lower personnel-related and distribution expenses, partially offset by the translation effects of the stronger foreign currencies (~$8 million).
• Operating income decreased $14 million reflecting lower total margin ($19 million), partially offset by lower operating and administrative expenses ($9 million) and higher depreciation and amortization expenses ($2 million).

AmeriGas Propane

• Temperatures were 5% colder than the prior-year period.
• Retail gallons decreased 3% due to the effect of net customer attrition.
• Total margin was fairly comparable to prior year as the impact of lower LPG volumes was substantially offset by higher LPG unit margins.
• Operating loss was largely consistent with the prior year as slightly lower total margin and slightly higher operating and administrative expenses were partially offset by higher gains on asset sales.

REPORT OF EARNINGS – UGI CORPORATION

(Millions of dollars, except per share)

(Unaudited)

Non-GAAP Financial Measures - Adjusted Net Income Attributable to UGI and Adjusted Diluted Earnings Per Share.

The following tables reconcile net income attributable to UGI Corporation, the most directly comparable GAAP measure, to adjusted net income attributable to UGI Corporation, and reconcile diluted EPS, the most comparable GAAP measure, to adjusted diluted EPS, to reflect the adjustments referred to previously:

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