Overview

• US energy distributor's fiscal Q2 revenue rose slightly yr/yr to $2.69 bln

• Adjusted diluted EPS for fiscal Q2 declined to $2.09 from $2.21 a year earlier

• Company agreed to sell electric division for $470 mln, closing expected in Q1 2027

Outlook

• UGI updates fiscal 2026 adjusted diluted EPS guidance to $2.75-$2.90 per share

• Company says near-term fiscal 2026 earnings expectations have softened due to timing of growth investments and AmeriGas transformation

Result Drivers

• UTILITIES BASE RATE INCREASE - Utilities segment benefited from higher gas base rates in Pennsylvania, partially offset by weather normalization adjustment

• WARMER WEATHER AND DIVESTITURES - UGI International's lower retail volumes and margin reflected divestitures in Italy and Austria and warmer weather

• AMERIGAS VOLUME DECLINE OFFSET - AmeriGas retail gallons fell due to warmer weather and customer attrition, but higher unit margins and fee income offset volume losses

Company press release: ID:nBwb1LPhCa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Revenue	Miss	$2.69 bln	$3.08 bln (1 Analyst)
Q2 Adjusted EPS	Miss	$2.09	$2.38 (1 Analyst)
Q2 EPS		$2.33

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the natural gas utilities peer group is "buy"

• Wall Street's median 12-month price target for UGI Corp is $42.00, about 19.8% above its May 6 closing price of $35.07

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 13 three months ago

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