UGI Posts Record Earnings as Midstream Margins Tighten in Fiscal 2025

UGI delivered record adjusted earnings for fiscal 2025, though midstream results were weighed down by lower gathering and processing margins. The company issued fiscal 2026 guidance and noted continued investment in its energy infrastructure portfolio.

(P&GJ) — UGI Corporation reported strong fiscal 2025 financial results, posting record adjusted earnings despite softer performance in its Midstream & Marketing segment. The company announced adjusted net income of $728 million and adjusted diluted EPS of $3.32, both above the top end of its revised guidance.

Midstream & Marketing EBIT fell to $293 million from $313 million in the prior year, driven largely by lower natural gas gathering and processing margins and the absence of the Hunlock power generation asset, which was sold in late 2024. Segment margin declined $11 million year-over-year, offset partly by stronger gas marketing activity.

“UGI delivered an outstanding year with record adjusted earnings per share that exceeded our revised guidance range,” said Robert Flexon, President and CEO. “Our diversified portfolio demonstrated its strength… and drove exceptional results.”

Across the company, UGI strengthened liquidity to $1.6 billion and reported a leverage ratio of 3.9x at the corporate level. Free cash flow totaled roughly $530 million, including proceeds from asset sales.

UGI issued fiscal 2026 adjusted EPS guidance of $2.90–$3.15 and expects 5–7% EBIT growth across its reportable segments, assuming normal weather and the current tax regime.

The company said it continues to invest in operational improvements and workforce development, with Flexon noting progress across its propane and utilities businesses ahead of the winter season.