UGI Reports Q1 Earnings: EPS Meets Expectations but Revenue Misses
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Should l Buy UGI?
Source: seekingalpha
- Earnings Performance: UGI's Q1 non-GAAP EPS of $1.26 aligns with market expectations, indicating stability in profitability, although overall revenue fell short of projections.
- Revenue Figures: The reported revenue of $2.08 billion represents a 2.5% year-over-year increase, yet it missed market expectations by $410 million, reflecting volatility in market demand.
- Market Reaction: Despite the revenue miss, UGI is viewed as an undervalued utility company, particularly with catalysts from data centers suggesting potential for future growth.
- Strategic Divestiture: UGI announced the sale of its Eastern European LPG business for €48 million, aiming to optimize asset allocation and focus on more strategically significant markets.
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Analyst Views on UGI
Wall Street analysts forecast UGI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for UGI is 44.50 USD with a low forecast of 44.00 USD and a high forecast of 45.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 37.830
Low
44.00
Averages
44.50
High
45.00
Current: 37.830
Low
44.00
Averages
44.50
High
45.00
About UGI
UGI Corporation is a holding company that distributes, stores, transports, and markets energy products and related services. In the United States, it owns and operates natural gas and electric distribution utilities, energy marketing, midstream infrastructure, storage, natural gas gathering and processing, natural gas production and energy services businesses, and a retail propane marketing and distribution business. In Europe, it markets and distributes propane and other LPG, and markets other energy products and services. Its Utilities segment consists of the regulated natural gas and electric distribution businesses. Its Midstream & Marketing segment consists of energy-related businesses. Its UGI International segment consists of LPG distribution businesses in Austria, Belgium, the Czech Republic, Denmark, Finland, France, Hungary, Luxembourg, the Netherlands, Norway, Poland, and others. The AmeriGas Propane segment consists of the propane distribution business of AmeriGas Partners.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
UGI Corporation Reports Q1 2026 Earnings with Strong EBIT Growth
- EBIT Growth: UGI Corporation reported total reportable segment EBIT of $441 million for Q1 2026, reflecting a 5% year-over-year increase driven by higher gas base rates in Pennsylvania and colder weather, thereby enhancing the company's financial stability and competitive position in the market.
- Safety Metrics Improvement: AmeriGas achieved a 45% reduction in recordable incidents and a 60% decrease in lost time injuries, earning a higher customer satisfaction rating and an A- ranking, which demonstrates significant enhancements in operational efficiency and customer service, further solidifying its market position.
- Capital Expenditure Optimization: UGI deployed $225 million in capital during the quarter, with 73% allocated to infrastructure replacement and system betterment in its utility businesses, indicating the company's commitment to disciplined capital allocation to support future growth demands.
- LPG Business Divestiture: The rationalization of UGI International's LPG portfolio is substantially complete, expected to generate approximately $215 million in cash proceeds, a strategic move that will help optimize the asset portfolio and enhance financial flexibility to adapt to future market changes.
See More
UGI Corporation Appoints New Chief Strategy Officer
- Executive Appointment: UGI Corporation has appointed Sidd Manjeshwar as Chief Strategy Officer, responsible for formulating and driving the enterprise vision and strategy, which is expected to enhance the company's growth potential and long-term sustainability.
- Strategic Context: Over the past year, UGI has focused on operational excellence and business turnaround to drive intrinsic value, and Manjeshwar's addition will provide crucial support for this strategy, particularly in assessing growth opportunities.
- Extensive Experience: With over 25 years in investment banking and corporate leadership, Manjeshwar previously served as CFO at AdvanSix, overseeing key functions, which is anticipated to bring valuable strategic insights to UGI.
- Educational Background: Manjeshwar holds a B.E. in Electronics from the University of Mumbai, an M.S. in Computer Science from James Madison University, and an MBA from Georgetown University, indicating a solid professional foundation that will support UGI's future development.
See More
UGI Reports Q1 Earnings: EPS Meets Expectations but Revenue Misses
- Earnings Performance: UGI's Q1 non-GAAP EPS of $1.26 aligns with market expectations, indicating stability in profitability, although overall revenue fell short of projections.
- Revenue Figures: The reported revenue of $2.08 billion represents a 2.5% year-over-year increase, yet it missed market expectations by $410 million, reflecting volatility in market demand.
- Market Reaction: Despite the revenue miss, UGI is viewed as an undervalued utility company, particularly with catalysts from data centers suggesting potential for future growth.
- Strategic Divestiture: UGI announced the sale of its Eastern European LPG business for €48 million, aiming to optimize asset allocation and focus on more strategically significant markets.
See More
UGI Corporation Reports Strong Q1 2026 Financial Results with 5% EBIT Growth
- Strong Financial Performance: UGI Corporation reported a 5% growth in total reportable segment EBIT for Q1 2026, aligning with expectations, driven by robust results in its natural gas business, particularly from the positive impact of the gas base rate case at its Pennsylvania utility.
- Operational Efficiency Gains: The company effectively offset the impact of divestitures through disciplined margin management and cost control, enhancing operational efficiency in its Global LPG business, ensuring profitability even amid adverse weather conditions.
- Increased Capital Expenditures: UGI's capital expenditures reached $133 million in Q1 2025, a 25% increase year-over-year, indicating the company's ongoing investment in infrastructure and business expansion to support future growth strategies.
- Positive Future Outlook: UGI remains focused on operational excellence and disciplined capital deployment, with management expressing optimism about future business processes, safety, and cultural transformation, believing these foundational efforts will unlock additional intrinsic value for shareholders.
See More
iShares U.S. Utilities ETF Sees Unusual Trading Volume Surge
- Volume Surge: The iShares U.S. Utilities ETF experienced an unusual trading volume of over 805,000 shares on Thursday afternoon, significantly exceeding the three-month average of about 213,000 shares, indicating heightened market interest in the ETF.
- Component Performance: Pacific Gas & Electric saw over 10.9 million shares traded, with a price increase of approximately 0.9%, making it the most actively traded component, reflecting investor optimism about its outlook.
- Other Component Dynamics: UGI's stock rose about 1.1%, outperforming other components, while AES fell approximately 1.9% on over 5 million shares traded, showcasing market divergence in sentiment towards different companies.
- Market Sentiment Analysis: Despite the surge in overall ETF trading volume, IDU's stock price dipped about 0.1%, suggesting that while trading is active, market confidence in the ETF remains cautious.
See More
Utilities Stocks Flash Warning Signals for Momentum Investors
- UGI International Divestiture: On January 15, UGI International agreed to sell its LPG businesses in the Czech Republic, Hungary, Poland, and Slovakia for approximately €48 million, significantly completing its portfolio optimization program aimed at focusing on markets with competitive advantages and growth opportunities, thereby driving sustainable value creation.
- UGI Stock Performance: UGI's shares gained around 6% over the past five days, reaching a 52-week high of $39.92, with an RSI value of 76.7 indicating an overbought condition, suggesting potential short-term pullback risks.
- Kenon Quarterly Earnings Decline: On December 3, Kenon Holdings reported quarterly earnings of 45 cents per share, down from 81 cents per share in the same period last year, reflecting profitability pressures despite an 11% stock gain over the past five days.
- Kenon Stock Dynamics: Kenon Holdings' shares rose 1.5% to close at $74.21 on Monday, with an RSI value of 72.3 indicating overbought status, which may influence investors' short-term decisions.
See More
UGI Corporation Reports Q1 2026 Earnings with Strong EBIT Growth
- EBIT Growth: UGI Corporation reported total reportable segment EBIT of $441 million for Q1 2026, reflecting a 5% year-over-year increase driven by higher gas base rates in Pennsylvania and colder weather, thereby enhancing the company's financial stability and competitive position in the market.
- Safety Metrics Improvement: AmeriGas achieved a 45% reduction in recordable incidents and a 60% decrease in lost time injuries, earning a higher customer satisfaction rating and an A- ranking, which demonstrates significant enhancements in operational efficiency and customer service, further solidifying its market position.
- Capital Expenditure Optimization: UGI deployed $225 million in capital during the quarter, with 73% allocated to infrastructure replacement and system betterment in its utility businesses, indicating the company's commitment to disciplined capital allocation to support future growth demands.
- LPG Business Divestiture: The rationalization of UGI International's LPG portfolio is substantially complete, expected to generate approximately $215 million in cash proceeds, a strategic move that will help optimize the asset portfolio and enhance financial flexibility to adapt to future market changes.
See More
UGI Corporation Appoints New Chief Strategy Officer
- Executive Appointment: UGI Corporation has appointed Sidd Manjeshwar as Chief Strategy Officer, responsible for formulating and driving the enterprise vision and strategy, which is expected to enhance the company's growth potential and long-term sustainability.
- Strategic Context: Over the past year, UGI has focused on operational excellence and business turnaround to drive intrinsic value, and Manjeshwar's addition will provide crucial support for this strategy, particularly in assessing growth opportunities.
- Extensive Experience: With over 25 years in investment banking and corporate leadership, Manjeshwar previously served as CFO at AdvanSix, overseeing key functions, which is anticipated to bring valuable strategic insights to UGI.
- Educational Background: Manjeshwar holds a B.E. in Electronics from the University of Mumbai, an M.S. in Computer Science from James Madison University, and an MBA from Georgetown University, indicating a solid professional foundation that will support UGI's future development.
See More
UGI Reports Q1 Earnings: EPS Meets Expectations but Revenue Misses
- Earnings Performance: UGI's Q1 non-GAAP EPS of $1.26 aligns with market expectations, indicating stability in profitability, although overall revenue fell short of projections.
- Revenue Figures: The reported revenue of $2.08 billion represents a 2.5% year-over-year increase, yet it missed market expectations by $410 million, reflecting volatility in market demand.
- Market Reaction: Despite the revenue miss, UGI is viewed as an undervalued utility company, particularly with catalysts from data centers suggesting potential for future growth.
- Strategic Divestiture: UGI announced the sale of its Eastern European LPG business for €48 million, aiming to optimize asset allocation and focus on more strategically significant markets.
See More
UGI Corporation Reports Strong Q1 2026 Financial Results with 5% EBIT Growth
- Strong Financial Performance: UGI Corporation reported a 5% growth in total reportable segment EBIT for Q1 2026, aligning with expectations, driven by robust results in its natural gas business, particularly from the positive impact of the gas base rate case at its Pennsylvania utility.
- Operational Efficiency Gains: The company effectively offset the impact of divestitures through disciplined margin management and cost control, enhancing operational efficiency in its Global LPG business, ensuring profitability even amid adverse weather conditions.
- Increased Capital Expenditures: UGI's capital expenditures reached $133 million in Q1 2025, a 25% increase year-over-year, indicating the company's ongoing investment in infrastructure and business expansion to support future growth strategies.
- Positive Future Outlook: UGI remains focused on operational excellence and disciplined capital deployment, with management expressing optimism about future business processes, safety, and cultural transformation, believing these foundational efforts will unlock additional intrinsic value for shareholders.
See More
iShares U.S. Utilities ETF Sees Unusual Trading Volume Surge
- Volume Surge: The iShares U.S. Utilities ETF experienced an unusual trading volume of over 805,000 shares on Thursday afternoon, significantly exceeding the three-month average of about 213,000 shares, indicating heightened market interest in the ETF.
- Component Performance: Pacific Gas & Electric saw over 10.9 million shares traded, with a price increase of approximately 0.9%, making it the most actively traded component, reflecting investor optimism about its outlook.
- Other Component Dynamics: UGI's stock rose about 1.1%, outperforming other components, while AES fell approximately 1.9% on over 5 million shares traded, showcasing market divergence in sentiment towards different companies.
- Market Sentiment Analysis: Despite the surge in overall ETF trading volume, IDU's stock price dipped about 0.1%, suggesting that while trading is active, market confidence in the ETF remains cautious.
See More
Utilities Stocks Flash Warning Signals for Momentum Investors
- UGI International Divestiture: On January 15, UGI International agreed to sell its LPG businesses in the Czech Republic, Hungary, Poland, and Slovakia for approximately €48 million, significantly completing its portfolio optimization program aimed at focusing on markets with competitive advantages and growth opportunities, thereby driving sustainable value creation.
- UGI Stock Performance: UGI's shares gained around 6% over the past five days, reaching a 52-week high of $39.92, with an RSI value of 76.7 indicating an overbought condition, suggesting potential short-term pullback risks.
- Kenon Quarterly Earnings Decline: On December 3, Kenon Holdings reported quarterly earnings of 45 cents per share, down from 81 cents per share in the same period last year, reflecting profitability pressures despite an 11% stock gain over the past five days.
- Kenon Stock Dynamics: Kenon Holdings' shares rose 1.5% to close at $74.21 on Monday, with an RSI value of 72.3 indicating overbought status, which may influence investors' short-term decisions.
See More
