UGI

Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” second-quarter 2026 investor letter.  A copy of the letter can be downloaded here. The Fund returned 27.02% in the first half of 2026, outperforming the Russell 2000 Value Index’s 22.99% gain and the S&P 600 Index’s 23.90% return. Small-cap earnings growth also began accelerating relative to large caps, while the small-cap technology sector surged nearly 100% in 26H1. The fund’s technology holdings gained 72.39%, contributing 14.87 percentage points, compared with a 95.27% return and 7.10-point contribution from the benchmark’s technology sector. Excluding IT and cash, the Fund contributed 12.73% versus 15.89% for the Russell 2000 Value Index; on a fully invested basis, the figures were 16.62% and 17.59%, respectively. The portfolio continued to trim appreciated technology holdings amid the AI-driven rally, while maintaining a bottom-up approach and avoiding beaten-down SaaS stocks due to the widening range of AI-related outcomes. The fund also eliminated about $62 million in capital gains during Q2 and approximately $140 million year-to-date through July, while ending the quarter with 10.2% in cash. In addition, please check the Fund’s top five holdings to know its best picks in 2026. In its second-quarter 2026 investor letter, FPA Queens Road Small Cap Value Fund highlighted stocks like UGI Corporation (NYSE:UGI). UGI Corporation (NYSE:UGI) is a diversified energy company involved in natural gas distribution, energy marketing, and propane distribution businesses. The one-month return of UGI Corporation (NYSE:UGI) was 6.13% while its shares traded between $31.62 and $41.34 over the last 52 weeks. On August 28, 2026, UGI Corporation (NYSE:UGI) stock closed at approximately $38.01 per share, with a market capitalization of about $8.25 billion. FPA Queens Road Small Cap Value Fund stated the following regarding UGI Corporation (NYSE:UGI) in its Q2 2026 investor letter: UGI Corporation (NYSE:UGI) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 43 hedge fund portfolios held UGI Corporation (NYSE:UGI) at the end of the first quarter, which was 41 in the previous quarter. While we acknowledge the risk and potential of UGI Corporation (NYSE:UGI) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered UGI Corporation (NYSE:UGI) and shared our outlook on the company. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors. READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years Disclosure: None. This article is originally published at Insider Monkey.

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. UGI (UGI) is back on investors’ radar after reporting third quarter 2026 results that showed a smaller net loss alongside steady nine month earnings, while also affirming its regular quarterly dividend. See our latest analysis for UGI. At a share price of $35.26, UGI has seen a 3.74% 90 day share price return and a 2.82% 1 year total shareholder return, which points to steady but moderate momentum after the earnings update and dividend affirmation. If you are weighing UGI against other income oriented utilities and infrastructure plays, it can help to scan opportunities in power infrastructure and grid technology through the 35 power grid technology and infrastructure stocks Bulls see UGI as a steady earner with an affirmed dividend and a share price still below analyst targets. Bears point to recent losses and flat nine month profit. Which side does current valuation support next? UGI’s most followed valuation narrative currently places fair value at about $41.33 per share, compared with the latest close at $35.26. This suggests a meaningful gap that hinges on how its future earnings profile plays out. Read the complete narrative. Want to see what kind of earnings and margin path needs to sit behind that fair value? The narrative leans heavily on regulated returns, cleaner gas projects, and a firmer profit multiple that is still below industry levels. The detailed playbook is in the full breakdown. Result: Fair Value of $41.33 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, UGI still faces pressure from structural declines in LPG demand and rising utility operating costs, which could weigh on margins if regulators do not fully approve rate requests. Find out about the key risks to this UGI narrative. The earlier narrative for UGI leans on earnings and a $41.33 fair value, but the Simply Wall St DCF model points in the opposite direction. On that cash flow view, UGI at $35.26 is well above an estimated future cash flow value of $14.29, which frames the stock as overvalued rather than 14.7% undervalued. Which lens do you trust more: earnings power or cash generation? Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out UGI for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 51 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. Balancing the mix of UGI risks and rewards will feel different for every investor, so move quickly to test your own thesis against the data, and then review the 4 key rewards and 2 important warning signs If UGI has sharpened your focus on what matters, do not stop here. Use targeted stock lists to pressure test your next income or growth idea. Target reliable cash generators by scanning companies with healthy payouts and balance sheets using the 11 dividend fortresses. Hunt for quality on sale by checking the 51 high quality undervalued stocks that combine solid fundamentals with appealing pricing. Spot tomorrow’s potential leaders early through the screener containing 18 high quality undiscovered gems before the crowd turns its attention their way. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include UGI. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 9:00 a.m. ET Investor Relations - Tameka Morris President and Chief Executive Officer - Robert Flexon Chief Financial Officer - Sean O'Brien Operator: Good day, and thank you for standing by. Welcome to the UGI Corporation Q3 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Tameka Morris. Tameka Morris: Good morning, everyone. Thank you for joining our fiscal 2026 third quarter earnings call. With me today are Bob Flexon, President and CEO; and Sean O'Brien, CFO. On today's call, we will review our third quarter and year-to-date financial results, along with other key business highlights before concluding with a question-and-answer session. Before we begin, let me remind you that our comments today include certain forward-looking statements, which management believes to be reasonable as of today's date only. Actual results may differ significantly because of risks and uncertainties that are difficult to predict. Please read our earnings release and our annual report for an extensive list of factors that could affect results. We assume no duty to update or revise forward-looking statements to reflect events or circumstances that are different from expectations. We will also describe our business using certain non-GAAP financial measures. Reconciliations of these measures to the comparable GAAP measures are available within our presentation. And now I'll turn the call over to Bob. Robert Flexon: Thanks, Tameka, and good morning. Fiscal 2026 continues to be a year of disciplined execution against the strategic priorities we laid out at the start of the year. That focus is reflected in our financial performance, where solid operational results have absorbed the impact of portfolio actions, unfavorable weather and slower growth in our domestic propane business. On a year-to-date basis, UGI delivered reportable segment EBIT of $1.2 billion, modestly ahead of the prior year period. This improvement resulted from growth at our utilities, which more than offset roughly $40 million in year-over-year decline from the previously announced LPG divestitures and the effects of warmer weather across our LPG service territories. Importantly, the fundamentals of each of our businesses remain intact and the operational and financial progress we've made this year continues to strengthen the foundation of the company and support our long-term value creation strategy. Year-to-date, we directed approximately 76% of total capital expenditures to our natural gas businesses, advancing our commitment to pipeline safety, reliability and modernization while adding more than 8,500 new heating customers across our regulated utilities service territories. Of note, we completed our cast iron replacement commitment several months ahead of schedule, reflecting our continued focus on safety. On July 31, the administrative law judges recommended approval of UGI Utilities' joint petition for settlement of our gas rate case without modification. Pending approval by the Pennsylvania Public Utility Commission, the settlement would permit a 2-step rate increase of $65 million with approximately $40 million effective in October 2026 and approximately $25 million in October 2027 with a stay-out provision through January 2029. The terms of the settlement provide the company with the revenue needed to continue investing in its system, including maintaining its accelerated replacement of vintage materials while providing substantial benefits and protections to customers. As an example, the settlement includes a pilot that extends meaningful debt relief to a group of vulnerable customers who have historically fallen through the cracks, specifically individuals earning between 150% and 300% of the federal poverty level. These are households that don't qualify under the existing program, and so the pilot will help customers experiencing trouble paying their bills by providing an avenue to maintain service and manage their bills while mitigating bad debt risk for UGI. Combined with our increased contributions to Operation Share, where the company will ensure that a minimum of $1.5 million is available every year, we believe this settlement reflects a balanced outcome that strengthens the long-term relationship between the utility and the communities we serve. Beyond our regulated utilities, we also continue to position the midstream business for growth with several well-pad expansions planned on the UGI Appalachia system to increase throughput. These investments position us to capitalize on rising natural gas demand across the region, driven by continued economic development and the growing energy needs of data centers and power generation, ensuring we have the capacity in place to serve our customers and support long-term growth. Turning to Slide 5. At AmeriGas, the transformation is taking hold, driving improved volume retention and favorable trends across several leading indicators. The team continues to strengthen the foundation of the business, materially improving trends in retail volumes sold when compared to pre-fiscal 2025 levels as well as the balance sheet and free cash flow generation capabilities. When compared to fiscal 2024, on a year-to-date basis, lost time injuries are down 50%, recordable injuries are down 44%, out-of-gas events are down 21% and zero fills are down 17%, while our average Net Promoter Score is up 63%. This is meaningful and measurable progress. We remain focused on executing our active work streams across multiple focus areas. And with our call centers now back in the U.S., we are ramping up sales and marketing efforts, expanding our sales channels and targeting new residential and B2B customers. These improvements all demonstrate that AmeriGas is now well positioned for the anticipated return of distributions to UGI Corporation in fiscal 2027. Moving to UGI International. This year, the team has done a tremendous job to offset the impact of non-core divestitures to deliver comparable year-to-date EBIT on a year-over-year basis. All while delivering a strong 23% EBITDA margin, which speaks to the quality and resilience of this business. With a leading market position across our remaining geographies, over 90% tank ownership and a strong track record of operational excellence, the business continues to experience long-standing customer relationships, strong customer retention rates, top-tier return on capital employed and attractive free cash flow conversion rates. The embedded value and market potential of UGI International was recently underscored by an announced take-private transaction in Europe involving one of our primary competitors, a company with a similar business and a comparable footprint across our key markets. The valuation implied by that announcement reinforces the significant value in our international platform and the opportunity that lies ahead. As we move forward, the team is focused on achieving organic growth through multiple initiatives, including heating oil to LPG conversion where the market is roughly 4x the size of the addressable LPG market. Additionally, we will look to further optimize our operations to improve margins while maintaining the reliability and service our customers expect. And with that, I'll hand the call over to Sean to walk through the financial results in more detail. Sean O’Brien: Thanks, Bob, and good morning. I'll now provide more details on our financial performance. For the third quarter, UGI delivered total reportable segment EBIT of $58 million compared to $72 million in the prior year period. The year-over-year change reflects warmer weather across the U.S., primarily in April and lower growth at AmeriGas, partially offset by continued strength at our utilities. The Utilities segment was up $10 million, reflecting higher gas base rates that went into effect in October 2025. Midstream & Marketing was up $3 million, driven by higher total margin from capacity management activities. UGI International was down $2 million as lower retail volumes from the previously announced non-core divestitures were partially offset by higher unit margins. And AmeriGas was down $25 million, reflecting lower retail propane volumes from warmer weather and continuing customer attrition, along with lower fee income. Turning to the quarterly results for each reportable segment. At the Utilities, EBIT was up $10 million versus the prior year period as increased margin from higher gas base rates was partially offset by increased depreciation and amortization expense, reflecting the effects of continued investment in pipeline replacement activity. At the Midstream & Marketing segment, EBIT increased $3 million on a year-over-year basis. Total margin increased $13 million, largely due to the timing of capacity margin and the recovery of higher pipeline costs as previously anticipated. Operating and administrative expenses were $8 million higher, primarily due to LNG and renewable energy projects placed in service last year. Turning to the global LPG businesses. At UGI International, EBIT was $41 million for the quarter compared to $43 million in the prior year period. Retail volumes were 10% lower, driven by the recent LPG divestitures in Austria and Eastern Europe. Total margin decreased $6 million, primarily reflecting the lower retail volumes sold, which were partially offset by higher average unit margins and the translation effects of the stronger foreign currencies. Operating and administrative expenses were lower, reflecting the impact of the aforementioned divestitures and lower personnel expenses, substantially offset by the translation effects of stronger foreign currencies. At AmeriGas, EBIT was down $25 million over the prior year period, largely due to the decrease in total margin stemming from lower volumes. Retail gallons decreased 10%, reflecting April temperatures, which were 16% warmer than the prior year as well as continuing customer attrition. On a weather-adjusted basis and excluding the Hawaii divestiture, retail gallons decreased 6% versus the prior year period and 2% on a year-to-date basis when compared to the prior year. While the seasonally weak third quarter pressured near-term earnings, the continuing operational improvement actions at AmeriGas better positions the business for the upcoming heating season. Turning to the fiscal year-to-date performance. Total EBIT from our reportable segments was $1.187 billion, up $3 million over the prior year period. As higher Pennsylvania gas base rates and increased LPG unit margins more than offset the impact of lower production volumes in the Appalachian region, warmer weather, several LPG divestitures and continuing low single-digit customer attrition at AmeriGas. On a per share basis, year-to-date adjusted diluted EPS was $3.17 compared to $3.55 in the prior year period. The year-over-year decline in adjusted EPS was largely driven by the absence of investment tax credits realized last year and higher interest expense as previously anticipated. In addition, the business saw approximately $0.05 of weather headwind across all segments when compared to the prior year period and $0.11 when compared to normal weather patterns. As we look ahead to close fiscal 2026, we are reaffirming our adjusted diluted EPS guidance range of $2.75 to $2.90. The fundamentals of our business remain intact and the strategic actions and operational progress we have made this year underscore our confidence in the long-term growth trajectory of the company. Moving to the balance sheet. We continue to make strong progress against our objectives, building financial strength and flexibility. This year, we've completed several strategic debt transactions to extend our maturity profile and reduce borrowing costs by approximately $30 million on an annualized basis, and this included transactions at AmeriGas, UGI International and UGI Energy Services. To give you a few highlights, at AmeriGas, our most recent transaction enabled us to issue debt at 6.875% and take out its 2027 maturity as well as a portion of their 2028 senior notes that had a coupon of 9.375%. Through these transactions, we reduced net debt at AmeriGas by approximately $270 million versus the prior quarter. Additionally, we amended UGI Energy Services term loan credit agreement to reduce its applicable interest rate margin, saving approximately $4 million on an annualized basis. We closed the quarter with consolidated leverage of 3.8x and AmeriGas Propane's leverage at 4.3x, the lowest point in 10 years, reflecting the continued deleveraging and capital structure actions underway across our global LPG platform. And with that, I'll turn the call over to Bob for his closing remarks. Robert Flexon: Thanks, Sean. Before we move to Q&A, I want to leave you with a few key takeaways. As you see on the slide, our diversified energy footprint is a platform for creating sustainable long-term shareholder value. Our regulated natural gas businesses deliver weather-hedged earnings with a long runway of organic growth opportunities as regional demand for gas continues to increase. At UGI International, we remain the #1 distributor in key markets, generating attractive returns and approximately 95% free cash flow conversion. We also have tangible growth levers ahead. For instance, the heating oil to LPG conversion opportunity alone addresses a market several times the size of where we compete today. And I point to the progress we've made at AmeriGas. Over the past 2 years, this team has done meaningful work to stabilize the business with improvements in customer service and retention and a more disciplined operating model. Our focus is on finishing fiscal 2026 strong. As you know, this is a highly seasonal business where winter matters. So a lot of the team's energy is focused on operational and winter preparedness to deliver through the upcoming heating season. Thank you for your time with us today, and we will open the line for questions. Operator: [Operator Instructions] Our first question comes from the line of Constantine Lednev with Wells Fargo Securities. Whitney Mutalemwa: It's actually Whitney Mutalemwa on for Constantine. On midstream, the guidance cut was primarily tied to delays in growth investments and lower Appalachian production volumes. You're now showing well pad expansions on the system as well as that growth plan. Has that delay been resolved? Or does it push into fiscal year '27? And just a follow-on, does that change your confidence in the 5% to 7% consolidated EPS CAGR through '29? Robert Flexon: Thanks, Whitney. So what we're seeing is more production coming out of the Appalachia Basin. So we have a couple of well pad expansions, one that starts early in fiscal '27, a second one that starts towards the latter part of fiscal '27. We have the Auburn Pipeline that's going to be FERC regulated that we expect also towards the end of '27 as well. So we're seeing a good return of production to the territory from what we saw in the current year. So we feel good about the growth prospects for our midstream business. And you add to that, the demand for power generation that will come later in the decade. We're seeing a good funnel of opportunities for our midstream business. Sean O’Brien: And Whitney, this is Sean. Maybe in terms of the 5% to 7%, I'll give you a little bit of color, but we'll give more, obviously, at the end of the year when we give guidance. But the 5% to 7% remains intact. There are moving pieces. We've seen some of the business units even since we gave that guidance with stronger outlooks. I would say midstream in the long run, the outlook still remains very strong based on the comments Bob made. And even as we think about potential opportunities in the future, which they have a pretty good pipeline. But I do think the midstream is still -- if I was looking at their long-term growth, it's a little more mid- to back-end loaded than it would have been. But for the company, we have -- and again, more guidance down the road, other divisions that have probably make up some of that in the interim. Whitney Mutalemwa: I see. And then just a tiny question, if I could squeeze in. Just on AmeriGas performance, can you help us reconcile that with the improving volume retention that you're describing? Is this quarter's result solely weather? Or are there more moving pieces to consider? Robert Flexon: The way that I think about it, Whitney, is that I look at what's going on, on a year-to-date basis. Year-to-date, our net attrition of lost customers about 2%, which is about the lowest it's been for a very long time. So we're in the planning process for AmeriGas now. I think we've positioned the business very well for this coming winter. Next week, I'm on the road visiting our sales -- different sales channels that we're pursuing. So our goal for this coming winter is to take it from net attrition to net growth. And I'm optimistic from the standpoint, our attrition is getting much, much better. That's what's driving it down. And as we approach the winter, when we see customers coming online, that should start using the volume lever as well. So between March and April and April being -- both March, end of March and April at the beginning being considerably warmer than normal, there's some volumes that kind of straddle the end of the quarter. But that's why I look at things on a year-to-date basis. And I think showing that we have a net attrition of 2% reinforces that we have absolutely stabilized this business. And you take a look at a lot of the things that I view as leading indicators, safety being one, certainly, our Net Promoter Scores, if I compare to where we were in July of 2024, significantly better, a 63% uptick. If I look at a year earlier than that in July '23 year-to-date versus where we are today, 4.5x better. So with the call centers back in the U.S., safety better, we're ahead where we were last year on having sufficient drivers, and we're actively preparing our drivers for the coming winter. I feel so much better going into this winter than I did last winter. And last winter, we are in better shape than the prior. So I think we've positioned it well. And I think the net 2% decline, I'm certainly not happy with that, but glad to see the attrition is definitely slowing down. And then we're targeting volume growth for the winter. So we'll see what happens, but we're working on the processes that will deliver that. Operator: Our next question comes from the line of Julien Dumoulin-Smith of Jefferies. Luke Fenker: Luke Fenker on for Julien. You highlighted recent take-private activity among your European LPG peers as evidence of value in your international platform. Any change in how you think about potential divestitures within international? Or should we assume the portfolio pruning is largely complete at this point? Robert Flexon: Well, it's a good question, Luke, and I kind of expected this one because of the light that's been shined on our main competitor. The international business is a very good business and very, very proud of our team over based in France on how they've kind of changed the paradigm there from a shrinking business to one with growth as we look to expand into the heating oil market. We constantly will look and evaluate our portfolio on what's the best thing to do for the overall portfolio for the company and what drives the most shareholder value. So I wouldn't say now the direction what we would do. Certainly, we're focused on having that business prepared as we go into the winter and expanding the growth. But it is a very valuable franchise. And I would also say that because of what's happened with our main competitor over there that we do get some calls as well because there's just -- people are recognizing the value of the franchise over there and the stability of the business, the strength of the business and the model is very efficient over there over in Paris, and our team runs it very well. So again, just to summarize, I mean, we always want to look at our portfolio to see what's the best way to drive our shareholder value. And the International -- the value of that has been somewhat hidden in the proposed transaction with DCC highlighted recently with KKR and ECP, which are both two fabulous investors and companies, a lot of smart mind sees the value of this business. DCC is a good competitor and run very well. And yes, it's good to see the value being shown for what this business is really worth and how well our team runs it over there. Luke Fenker: Totally, yes. And then maybe on Utilities. With the gas settlement, including a stay out through January '29, how important is using the DSIC as sort of bridge recovery in '28 and '29. Is there any potential for maybe changing CapEx during the stay out? Robert Flexon: Well, I think you hit it right on the -- nail right on the head on that, Luke. It is important in the latter part of the years for the DSIC to kick in. And so it's been structured that way where we've got the 2-stage increase. But after the second tranche kicks in, then we'll be relying in the third year on the DSIC. Operator: [Operator Instructions] our next question comes from the line of Gabriel Moreen of Mizuho. Gabriel Moreen: Just a quick follow-up question on APU. I think, Bob, you had mentioned the expectation that AmeriGas will be in a position to be -- to distribute cash upstairs to UGI in '27. Can you talk about how that may work? Would that be a formula to the extent that AmeriGas' leverage is 4x or lower, I guess, given the variability in AmeriGas' results even from things like weather? And then also as a follow-up to that, your view on whether you need to put any growth capital into AmeriGas as results hopefully continue to improve there? Robert Flexon: Thanks, Gabe. And I'll make a quick comment and I'll turn it to Sean. I'm glad you asked that question because it really shows that we have stabilized this business. We plan on having meaningful cash distributions to the parent in 2027, which is something that hasn't been done for some time. But let me turn it to Sean to give you a little bit more color. Sean O’Brien: Yes. Maybe to reiterate what Bob said, in my tenure here, this would be -- that would be the first time the dividends are going from AmeriGas to the parent. So Gabe, a couple of things. In terms of the formulaic nature, obviously, we have -- and we'll share more at the end of the year, we have an outlook. I'll point out AmeriGas is generating meaningful cash this year, over $100 million of free cash flow this year, but we're utilizing that still one more year to delever. So I think a couple of things to keep in mind, and we've told you -- we've given you some indicators. We think the leverage -- we're very confident the leverage is going to be sub 4. We got closer in Q3. We think by the end of the year, we have a shot to be sub 4, we'll be really close, and that's a key milestone. And then I think that continues to build as we go into next year and we continue to approach even the mid- to low 3s at some point. So I feel very comfortable with the outlook we have on the leverage side that it's time to start returning distributions. You mentioned weather we always have that as a lever. That doesn't just apply to AmeriGas. That applies to international to Energy Services. If one is having a really tough weather year, we can always look at where we're pulling the distributions from. But with a very modest weather outlook, I think we still feel pretty comfortable that we're going to be pulling the distributions out of AmeriGas in 2027. Robert Flexon: And Gabe, on your other question regarding CapEx, when I think about allocating capital to AmeriGas, thinking of it this way, we want to continue to bring the average age of our delivery fleet down. So we continue to do that each year, and we're making good progress with that. And then also, I want AmeriGas to be the gold standard out there of propane companies. And I want our facilities to look good. I want to make sure we're making the right investment into how we appear towards the public. We're a local business. We're becoming more local and doing what we need to do to drive efficiency in the business. There's no big spikes in CapEx that I'd expect at all in AmeriGas. It's just kind of a continued modest level of investment to get AmeriGas back to where it should be. And again, we'll just keep doing that day in and day out along with driving how we perform in our processes every single day to get that business better. There's some physical improvements that we'll make as well to some of our delivery equipment and our facilities, our storage facilities and the like. But nothing extraordinary, nothing that really stands out as significant, but just a continued focus on that business to let it be what it can be. Operator: I'm showing no further questions at this time. I would now like to turn it back to Bob Flexon for closing remarks. Robert Flexon: Thank you, Olivia. I just want to focus on a couple of things. First and foremost, AmeriGas, which certainly gets a lot of attention. We've done an awful lot over the past 1.5 years to 2 years on improving the outlook for this business. I feel very good in terms of our winter preparation. I've been talking about that a lot to our investors over the past year. We're ready. We've got the call centers back. Our call centers, the employees trained. We're becoming a local business again like we should be. Our customer Net Promoter Scores are surging. Our safety is dramatically better. We're listening to our customers. We're fixing the things that tend to be irritations to them. So we're really focused on driving the processes in that business. As Gabe just asked and Sean and myself answered, we expect meaningful cash distributions to the parent in 2027, something, as Sean highlighted, it's not something he's seen since he's been here. He's been here longer than me. I appreciate also the question on International. Again, excited about International with the mindset over there shifting from -- we're no longer shrinking. We have an opportunity to grow. We have a diesel heating market -- heating oil market that is significantly larger than the LPG market. And the LPG market offers environmental advantages over there and even more price stability. So we see some really good opportunities to grow that business with a return on capital employed in the mid-teens and EBITDA margin in the low to mid-20s, free cash flow conversion of 95%. It's a stellar business. And then finally, on the Natural Gas side, we have the utilities in for the rate case settlement. We expect the PUC to take that up in end of September, early October. We've tried to be sensitive and thoughtful on that rate case to listen to what the governor is saying about affordability and supporting households that need the support. So we've tried to be very thoughtful on this rate case. And listen to what the governor and Governor's team has to say. So we're optimistic that, that comes through. And finally, on Midstream business, again, we see the need for power within the state of Pennsylvania over the coming years for general power demand consumption. You see the capacity clears that PJM keep clearing at the max. You got obviously data centers. And our midstream business is right in the center of all of that. So we've got a pretty large funnel of opportunities. And I think as Sean highlighted, while a lot of that tends to be a little bit later in our planning horizon because we've got to get the power generation and the like needs to go through their permitting processes and interconnection processes. We're very well positioned within our midstream business to really benefit that in the years to come. So I'm very bullish on the outlook, very excited where we are, and we are absolutely focused on having a great winter and with that, Olivia, I will conclude the call and thank everyone for dialing in, listening and the questions that we received. Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. Before you buy stock in UGI, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and UGI wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. UGI (UGI) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in UGI Corporation? Here are five stocks we like better. UGI reaffirmed fiscal 2026 adjusted EPS guidance of $2.75–$2.90, despite third-quarter segment EBIT falling to $58 million from $72 million due largely to warmer weather and weaker AmeriGas propane volumes. UGI’s Utilities and Midstream businesses posted improved results, while a proposed Pennsylvania rate settlement could provide approximately $65 million in two-step rate increases in 2026 and 2027. AmeriGas EBIT declined $25 million as retail propane gallons fell 10%, but management expects more than $100 million in fiscal 2026 free cash flow and highlighted significant safety and customer-service improvements. UGI also reduced AmeriGas net debt by about $270 million and lowered leverage to 4.3 times. Powering Up: UGI Banks $685M in Strategic Turnaround UGI (NYSE:UGI) reported fiscal 2026 third-quarter reportable segment EBIT of $58 million, down from $72 million a year earlier, as warmer weather and lower retail propane volumes at AmeriGas weighed on results. The company said year-to-date reportable segment EBIT increased modestly to $1.187 billion, up $3 million from the prior-year period. President and CEO Bob Flexon said the company’s operating performance had absorbed the effects of LPG divestitures, unfavorable weather and slower domestic propane growth. UGI estimated that weather created an approximately $0.05 per-share headwind compared with the prior year and a $0.11 headwind compared with normal weather patterns. → No Hangover: Revisiting Microsoft One Week After Earnings This ETF Will Benefit From Americans' Higher Energy Bills Year-to-date adjusted diluted earnings per share were $3.17, compared with $3.55 in the prior-year period. CFO Sean O’Brien said the decline largely reflected the absence of investment tax credits recognized last year and higher interest expense. UGI reaffirmed its fiscal 2026 adjusted diluted EPS guidance range of $2.75 to $2.90. UGI’s Utilities segment posted a $10 million year-over-year increase in third-quarter EBIT, supported by higher gas base rates that became effective in October 2025. Those gains were partly offset by higher depreciation and amortization expenses associated with pipeline replacement investments. → MarketBeat Week in Review – 08/03 - 08/07 During the year, UGI directed about 76% of capital expenditures toward its natural gas businesses and added more than 8,500 new heating customers across its regulated utility territories. Flexon said the company completed its cast iron replacement commitment several months ahead of schedule. On July 31, administrative law judges recommended approval without modification of UGI Utilities’ joint settlement petition for its gas rate case. If approved by the Pennsylvania Public Utility Commission, the agreement would allow a two-step $65 million rate increase, including approximately $40 million in October 2026 and about $25 million in October 2027. The settlement includes a stay-out provision through January 2029. → Why the Landlord of the AI Boom Could Outlast the Chipmakers The proposed settlement also includes a pilot program intended to provide debt relief to customers earning between 150% and 300% of the federal poverty level. UGI said it will also ensure that at least $1.5 million annually is available for Operation Share, a customer-assistance program. Midstream and Marketing EBIT rose $3 million in the quarter. Total margin increased $13 million, primarily due to the timing of capacity margin and recovery of higher pipeline costs. Operating and administrative expenses increased $8 million, largely because LNG and renewable-energy projects entered service last year. Management said it sees additional Appalachian production opportunities, with one well-pad expansion expected to begin early in fiscal 2027 and another planned for later in the year. The company also expects its FERC-regulated Auburn pipeline project toward the end of fiscal 2027. Flexon cited prospective power-generation and data-center demand as longer-term growth drivers for the midstream business. AmeriGas recorded a $25 million year-over-year decline in third-quarter EBIT. Retail propane gallons fell 10%, reflecting April temperatures that were 16% warmer than the prior year as well as ongoing customer attrition. Lower fee income also contributed to the decline. Excluding the Hawaii divestiture and adjusting for weather, AmeriGas retail gallons declined 6% in the quarter and were down 2% year to date, according to the company. Flexon said customer attrition was about 2% year to date, which he described as the lowest level in a long time. Management highlighted several operational indicators at AmeriGas compared with fiscal 2024: Lost-time injuries decreased 50%. Recordable injuries declined 44%. Out-of-gas events fell 21%. Zero fills decreased 17%. Average Net Promoter Score increased 63%. Flexon said AmeriGas has returned its call centers to the U.S. and is increasing sales and marketing activity, expanding sales channels and targeting residential and business-to-business customers. The company is aiming to move from net customer attrition to net growth during the upcoming winter heating season. O’Brien said AmeriGas is expected to generate more than $100 million of free cash flow in fiscal 2026, which UGI intends to use for another year of deleveraging. He said management expects the business to be positioned for meaningful cash distributions to UGI’s parent company in fiscal 2027, subject to its outlook and weather conditions. UGI International generated third-quarter EBIT of $41 million, compared with $43 million a year earlier. Retail volumes declined 10%, primarily due to LPG divestitures in Austria and Eastern Europe. Lower volumes reduced total margin by $6 million, though higher average unit margins and stronger foreign currencies partly offset the impact. Flexon said UGI International delivered a 23% EBITA margin year to date and has opportunities to grow through conversions from heating oil to LPG. He said the heating-oil market is roughly four times the size of the addressable LPG market. Management also pointed to a recently announced European take-private transaction involving a primary competitor as evidence of the value of its international platform, while reiterating that it continues to evaluate its portfolio for shareholder-value opportunities. UGI completed debt transactions at AmeriGas, UGI International and UGI Energy Services during the year, extending maturities and reducing annualized borrowing costs by approximately $30 million. At AmeriGas, the company issued debt at 6.875% and used proceeds to address 2027 maturities and a portion of 2028 senior notes carrying a 9.375% coupon. The company said AmeriGas net debt declined approximately $270 million from the prior quarter. UGI ended the quarter with consolidated leverage of 3.8 times and AmeriGas leverage of 4.3 times, which O’Brien said was the lowest level at AmeriGas in 10 years. UGI Corporation (NYSE: UGI) is a publicly traded energy distribution company headquartered in King of Prussia, Pennsylvania. Founded in 1882 as the United Gas Improvement Company, UGI has grown into a diversified provider of energy products and services. The company's operations are organized into three primary segments—AmeriGas Propane, UGI Utilities and UGI International—each focused on the delivery of propane, natural gas and related services to residential, commercial and industrial customers. AmeriGas Propane, UGI's largest segment, is the leading retail propane distributor in the United States with a network of dealers serving customers in all 50 states. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "UGI Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by growth in regulated utilities, which successfully absorbed the impact of non-core LPG divestitures and unfavorable warmer weather patterns. Management attributed the utility segment's strength to higher gas base rates and a disciplined capital allocation strategy, with 76% of year-to-date capex directed toward natural gas infrastructure. AmeriGas is undergoing a fundamental transformation, shifting from a period of high attrition to a stabilized model with a 50% reduction in lost time injuries and a 63% improvement in Net Promoter Scores. The international segment maintained a 23% EBITDA margin despite divestitures, benefiting from high tank ownership and a strategic pivot toward the large heating oil-to-LPG conversion market. Midstream performance was bolstered by capacity management activities and the recovery of pipeline costs, despite lower production volumes in the Appalachian region during the quarter. The company successfully executed a series of debt transactions to extend maturity profiles and reduce annualized borrowing costs by approximately $30 million. Management reaffirmed the fiscal 2026 adjusted diluted EPS guidance range of $2.75 to $2.90, citing intact business fundamentals and operational progress. AmeriGas is positioned to resume meaningful cash distributions to UGI Corporation in fiscal 2027, marking a significant milestone in the business's deleveraging and stabilization journey. The 5% to 7% consolidated EPS CAGR through 2029 remains intact, though management noted that midstream growth may be more weighted toward the middle and back end of the planning horizon. Future midstream growth is expected to be driven by rising natural gas demand from regional data centers and power generation needs, supported by upcoming well-pad expansions. The pending Pennsylvania gas rate case settlement is expected to provide a two-step rate increase totaling $65 million, with the first phase effective in October 2026. The utility rate settlement includes a novel pilot program providing debt relief to 'vulnerable' customers earning 150% to 300% of the federal poverty level to mitigate bad debt risk. A recent take-private transaction of a European competitor has highlighted the significant embedded value and market potential of UGI's international platform. The company completed its cast iron replacement commitment several months ahead of schedule, reducing long-term safety and regulatory risk. Weather headwinds impacted year-to-date adjusted EPS by $0.11 when compared to normal weather patterns, highlighting the portfolio's ongoing sensitivity to seasonal temperatures. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed that well-pad expansions are slated for early and late fiscal 2027, alongside the FERC-regulated Auburn Pipeline. The 5% to 7% EPS CAGR remains the target, though the midstream contribution is shifting toward the back half of the decade due to power generation and data center timelines. Net customer attrition has slowed to 2%, the lowest level in years, which management views as a primary indicator of business stabilization. The quarterly volume decline was attributed to exceptionally warm weather in March and April rather than structural customer loss. Management acknowledged that the recent DCC/KKR/ECP transaction in Europe validates the high value of their own international franchise. While focused on organic growth in the heating oil conversion market, the company remains open to evaluating the portfolio to maximize shareholder value. AmeriGas is expected to reach a leverage ratio below 4x by the end of the fiscal year, enabling the resumption of dividends to the parent company in 2027. Capital expenditures at AmeriGas will remain modest, focused on fleet modernization and facility improvements rather than large-scale growth projects.

UGI Corporation UGI reported a third-quarter fiscal 2026 adjusted loss of 20 cents per share, which was 42.86% narrower than the Zacks Consensus Estimate of a loss of 35 cents. However, the adjusted loss widened from the year-ago loss of 1 cent per share.GAAP loss per share in the fiscal third quarter was 62 cents compared with a loss of 76 cents in the year-ago quarter. Revenues of $1.33 billion missed the Zacks Consensus Estimate of $1.55 billion by 14.02%. The top line also decreased 4.5% from the year-ago quarter’s $1.39 billion. Lower propane volumes pressured results, with retail gallons sold falling 10% at both AmeriGas Propane and UGI International. UGI Corporation price-consensus-eps-surprise-chart | UGI Corporation Quote UGI’s loss before interest expense and income tax (EBIT) for the third quarter of fiscal 2026 was $52 million, down 59% from $127 million in the prior year.The company’s interest expenses were $109 million, up 7.9% from $101 million in the year-ago quarter.On July 31, 2026, Administrative Law Judges recommended approval of a $65 million two-phase Pennsylvania gas rate settlement, with $40 million effective in October 2026 and $25 million in October 2027, pending PUC approval. AmeriGas Propane revenues declined 14% year over year to $372 million, while its EBIT loss widened 89% to $53 million. Retail gallons sold fell 10% to 124 million, reflecting unusually warm April weather and continued customer attrition. UGI International revenues remained essentially flat at $436 million compared with $437 million a year ago, while EBIT declined 5% to $41 million. Retail LPG volumes declined 10% to 125 million gallons, largely due to the divestitures of businesses in Italy, Austria and Eastern Europe.Midstream & Marketing revenues declined 10% year over year to $249 million, while EBIT increased 11% to $30 million from $27 million despite a higher cost base.UGI Utilities revenues increased 5% year over year to $302 million, while EBIT increased 33% to $40 million. Core market throughput remained flat at 12 billion cubic feet, while total throughput declined 11% to 73 billion cubic feet. The company ended June with $1.9 billion of available liquidity, including $500 million in cash and cash equivalents. UGI completed debt transactions expected to reduce annualized borrowing costs by approximately $30 million. Corporate leverage was 3.8 times, while AmeriGas's leverage stood at 4.3 times. UGI reaffirmed its fiscal 2026 adjusted EPS guidance of $2.75-$2.90. The Zacks Consensus Estimate for earnings is pegged at $2.87, which is above the midpoint of the company’s guided range. UGI currently has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Algonquin Power & Utilities Corp. AQN is scheduled to report second-quarter results on Aug. 7. The Zacks Consensus Estimate for second-quarter EPS is pinned at 5 cents, which implies a year-over-year increase of 25%.The Zacks Consensus Estimate for second-quarter sales is pegged at $552.5 million, which suggests year-over-year growth of 4.68%.PPL Corporation PPL is scheduled to report second-quarter results on Aug. 7. The Zacks Consensus Estimate for earnings is pegged at 35 cents per share, which implies year-over-year growth of 9.38%.The Zacks Consensus Estimate for second-quarter sales is pinned at $2.18 billion, which suggests year-over-year growth of 7.50%.Vistra VST is scheduled to report second-quarter 2026 results on Aug. 7. The Zacks Consensus Estimate for earnings is pegged at $1.54 per share, which implies year-over-year growth of 52.48%.The Zacks Consensus Estimate for second-quarter sales is pinned at $6.29 billion, which suggests year-over-year growth of 48.07%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report UGI Corporation (UGI) : Free Stock Analysis Report PPL Corporation (PPL) : Free Stock Analysis Report Algonquin Power & Utilities Corp. (AQN) : Free Stock Analysis Report Vistra Corp. (VST) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

VALLEY FORGE, Pa., August 05, 2026--(BUSINESS WIRE)--UGI Corporation (NYSE: UGI) today reported financial results for the fiscal quarter ended June 30, 2026. HIGHLIGHTS Q3 GAAP diluted earnings per share ("EPS") of $(0.62) and adjusted diluted EPS of $(0.20) compared to GAAP diluted EPS of $(0.76) and adjusted diluted EPS of $(0.01) in the prior-year period. Year-to-date (YTD) GAAP diluted EPS of $3.08 and adjusted diluted EPS of $3.17 compared to GAAP diluted EPS of $3.16 and adjusted diluted EPS of $3.55 in the prior-year period. YTD reportable segments earnings before interest expense and income taxes1 ("EBIT") of $1,187 million compared to $1,184 million in the prior-year period, despite the ~$40 million impact of both the previously announced LPG divestitures and warmer than prior year weather. On July 31, 2026, the Administrative Law Judges to the gas base rate proceeding issued a Recommended Decision accepting the joint petition for settlement of the gas rate case with no modifications. Pending approval by the PA Public Utility Commission ("PA PUC"), the settlement would permit a two-phase, $65 million distribution rate increase, with the first phase of $40 million effective in October 2026 and a second phase of $25 million effective in October 2027, with a stay-out through January 2029. A final PA PUC decision is expected no later than October 2026. Completed several debt transactions to extend maturities and reduce borrowing costs by approximately $30 million on an annualized basis at UGI International, AmeriGas Propane and UGI Energy Services. Released the eighth annual ESG report, "Together for a Safe, Reliable, and Sustainable Future," marking a milestone year in which UGI achieved all of its 2025 ESG commitments, including surpassing its goals to reduce Scope 1 emissions by 55%, Total Recordable Injuries by 35%, and Accountable Vehicle Incidents by 50%. Reaffirming the revised fiscal 2026 adjusted diluted EPS guidance range of $2.75 - $2.902 per share. Bob Flexon, President and Chief Executive Officer, said, "The fundamentals across our businesses remain strong. With rising natural gas demand across our regions driven by economic development and load growth from data centers and power generation, we see meaningful opportunities ahead. At our PA Gas Utility, we reached a settlement in the gas base rate case, subject to final approval, which reinforces the focus of our business on customer affordability and investments that drive safety and reliability." "UGI International offset the impact of divestitures to deliver comparable year-to-date EBIT on a year-over-year basis, while continuing to generate top-tier return on capital employed and free cash flow conversion. At AmeriGas, the transformation is taking hold and this is driving improved volume retention and favorable trends across several leading indicators, including safety, net promoter score, zero fills, and out-of-gas incidents." "As we finish fiscal 2026, our focus is on being fully prepared for the upcoming winter heating season across all segments, and at AmeriGas in particular. With our portfolio of well-positioned businesses and through disciplined execution, we are building a more resilient and profitable UGI that will create long-term value for shareholders." EARNINGS CALL AND WEBCASTUGI 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 6, 2026. 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 5, 2027. ABOUT UGIUGI 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 MEASURESManagement uses "adjusted net income attributable to UGI Corporation" and "adjusted diluted EPS", each 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, principally mark-to-market gains and losses on commodity and certain foreign currency derivative instruments, we cannot reconcile fiscal year 2026 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 STATEMENTSThis 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 6% colder than the prior-year period. Notwithstanding the colder weather, Gas Utility core market volumes were comparable to the prior-year period. Total margin increased $13 million primarily due to the effect of higher gas base rates that went into effect in PA. Operating income increased $10 million as higher total margin ($13 million) was partially offset by increased depreciation expense ($3 million) from continued distribution system capital expenditure activity. Midstream & Marketing Temperatures were 5% warmer than the prior-year period. Total margin increased $13 million largely due to the timing of capacity margin and recovery of higher pipeline costs, as previously anticipated. Operating and administrative expenses increased $8 million primarily due to plants placed in service last year. Operating income increased $4 million as higher total margin ($13 million) was partially offset by increased operating and administrative expenses. 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 2026 and 2025 three-month periods, the average unweighted euro-to-dollar translation rates were approximately $1.16 and $1.13, respectively, and the average unweighted British pound sterling-to-dollar translation rates were approximately $1.34 in both periods. Temperatures were 2% warmer than the prior-year period. Retail volumes were 10% lower than the prior-year period due to divesting the LPG businesses in Italy, Austria and Eastern Europe. Total margin decreased $6 million as the effects of higher average unit margins and the translation effects of the stronger foreign currencies (~$5 million) were more than offset by the impact of the divestitures. Operating and administrative expenses decreased $3 million as the impact of the aforementioned divestitures, as well as lower personnel expenses, were largely offset by the translation effects of the stronger foreign currencies (~$3 million). EBIT decreased $2 million largely reflecting the effects of the aforementioned divestitures. AmeriGas Propane Temperatures for the quarter were comparable to the prior-year period. Retail gallons decreased 10%, primarily reflecting April temperatures that were 16% warmer than the prior year and continuing customer attrition. On a weather-adjusted basis and excluding the Hawaii divestiture, retail gallons decreased 6% versus the prior-year period and 2% on a year-to-date basis when compared to the prior year. Total margin decreased $26 million largely due to lower retail gallons and reduced fee income. EBIT decreased $25 million largely reflecting lower total margin. 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: View source version on businesswire.com: https://www.businesswire.com/news/home/20260805356044/en/ Contacts CONTACT INVESTOR RELATIONS Tel: +1 610-337-1000Tameka Morris, ext. 6297Arnab Mukherjee, ext. 7498

New Jersey Resources (NJR) came out with quarterly earnings of $0.11 per share, beating the Zacks Consensus Estimate of $0.06 per share. This compares to earnings of $0.06 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +83.33%. A quarter ago, it was expected that this energy services holding company would post earnings of $1.89 per share when it actually produced earnings of $2.2, delivering a surprise of +16.4%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. New Jersey Resources, which belongs to the Zacks Utility - Gas Distribution industry, posted revenues of $349.18 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.27%. This compares to year-ago revenues of $298.95 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. New Jersey Resources shares have added about 25.5% since the beginning of the year versus the S&P 500's gain of 9.4%. While New Jersey Resources has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for New Jersey Resources was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.16 on $379.41 million in revenues for the coming quarter and $3.58 on $2.24 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Utility - Gas Distribution is currently in the bottom 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, UGI (UGI), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This natural gas and electric utilities operator. is expected to post quarterly loss of $0.35 per share in its upcoming report, which represents a year-over-year change of -3400%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. UGI's revenues are expected to be $1.55 billion, up 11.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NewJersey Resources Corporation (NJR) : Free Stock Analysis Report UGI Corporation (UGI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research