VALLEY FORGE, PA — UGI Corporation (NYSE: UGI) reaffirmed its fiscal 2026 adjusted earnings outlook after posting a third-quarter loss, while a proposed $65 million Pennsylvania gas distribution rate increase moved closer to regulatory approval and refinancing actions reduced annualized borrowing costs.
UGI reported a GAAP diluted loss of $0.62 per share for the quarter ended June 30, compared with a loss of $0.76 per share a year earlier. Adjusted diluted loss widened to $0.20 per share from $0.01.
For the first nine months of the fiscal year, GAAP diluted earnings were $3.08 per share, down from $3.16 a year earlier. Adjusted diluted earnings declined to $3.17 from $3.55.
UGI maintained its revised fiscal 2026 adjusted diluted earnings guidance of $2.75 to $2.90 per share.
Year-to-date earnings before interest expense and income taxes across UGI’s reportable segments were $1.19 billion, essentially unchanged from $1.18 billion in the prior-year period. The company estimated that previously disclosed liquefied petroleum gas divestitures and warmer weather together reduced results by about $40 million.
The regulatory outlook for UGI’s Pennsylvania gas utility also advanced during the quarter. Administrative law judges on July 31 recommended approval, without modification, of a settlement in the utility’s pending gas base-rate proceeding.
If approved by the Pennsylvania Public Utility Commission, the settlement would permit a two-stage $65 million increase in distribution revenue. The first $40 million increase would take effect in October 2026, followed by another $25 million in October 2027.
The agreement would include a stay-out provision through January 2029. UGI expects a final PUC decision no later than October.
Chief Executive Officer Bob Flexon pointed to increasing natural gas demand associated with economic development, data centers and power generation as potential growth drivers across the company’s operating regions.
“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,” Flexon stated.
UGI also completed several debt transactions during the period at UGI International, AmeriGas Propane and UGI Energy Services. The company said the transactions extended maturities and lowered borrowing costs by approximately $30 million on an annualized basis.
UGI International produced year-to-date EBIT comparable with the prior-year period despite the effect of divestitures, according to the company.
At AmeriGas, management reported improving volume retention and favorable trends in several operating measures, including safety, customer satisfaction, delivery performance and out-of-gas incidents.
Flexon said UGI’s near-term operational priority is preparation for the winter heating season, particularly at AmeriGas.
“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,” Flexon stated.
UGI also released its eighth annual environmental, social and governance report, reporting that it had met its 2025 targets, including reductions in Scope 1 emissions, recordable injuries and accountable vehicle incidents.
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