VALLEY FORGE, PA — UGI Corporation (NYSE: UGI) lowered its fiscal 2026 adjusted earnings guidance after reporting softer year-to-date earnings, reflecting the impact of growth investment timing and ongoing operational changes at AmeriGas.
The energy distributor now expects fiscal 2026 adjusted diluted earnings per share between $2.75 and $2.90, down from prior expectations, even as the company reported higher second-quarter GAAP earnings and continued growth in segment operating profit.
UGI reported second-quarter GAAP diluted earnings per share of $2.33 for the quarter ended March 31, compared with $2.19 a year earlier. Adjusted diluted earnings per share fell to $2.09 from $2.21 in the prior-year period.
Year-to-date GAAP diluted earnings per share declined to $3.68 from $3.93, while adjusted diluted earnings per share fell to $3.35 from $3.58.
Reportable segment earnings before interest expense and income taxes increased to $1.129 billion year to date from $1.112 billion a year earlier.
Chief Executive Officer Bob Flexon attributed the reduced earnings outlook to the timing of investments within the company’s Midstream & Marketing segment and continued operational transformation efforts at AmeriGas.
“Near-term Fiscal 2026 earnings expectations have softened due to timing of growth investments in Midstream & Marketing and steady progression of the AmeriGas transformation,” Flexon said.
UGI highlighted several strategic initiatives announced after the quarter closed, including a partnership with Prime Data Centers to develop natural gas infrastructure in Pennsylvania’s northern tier to support large-scale artificial intelligence and high-performance computing facilities.
The company said projected natural gas demand associated with the project could exceed 100,000 dekatherms per day within three to five years.
UGI also entered into an agreement to sell its electric division for approximately $470 million, subject to working capital adjustments and regulatory approvals. The transaction is expected to close during the first quarter of calendar year 2027.
At AmeriGas, the company launched online propane cylinder sales through Amazon in selected cities as part of a broader direct-to-consumer expansion planned through fiscal 2026.
Flexon said AmeriGas continued making progress on operational restructuring efforts, including moving call center operations back to the United States and improving logistics and customer service performance ahead of the winter heating season.
UGI ended the quarter with approximately $2.1 billion in available liquidity and net leverage of 3.7 times. The company said its Pennsylvania utility operations also returned approximately $25 million to customers through the state’s weather normalization mechanism during the period.
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