Issues Fiscal 2025 Guidance
UGI Corporation (NYSE: UGI) today reported financial results for
the fiscal year ended September 30, 2024 and provided guidance for
fiscal year 2025.
HEADLINES
- GAAP net income of $269 million and adjusted net income of $658
million compared to GAAP net loss of $(1,502) million and adjusted
net income of $613 million in the prior year.
- GAAP diluted earnings per share (“EPS”) of $1.25 and adjusted
diluted EPS of $3.06 compared to GAAP diluted (loss) EPS of $(7.16)
and adjusted diluted EPS of $2.84 in the prior year.
- Solid growth in reportable segments earnings before interest
expense and income tax1 ("EBIT"), delivering $1,178 million
compared to $1,158 million in the prior year.
- Achieved $75 million reduction in operating and administrative
expenses across all segments, when compared to the prior year.
- Deployed ~$900 million of capital with 80% allocated in
aggregate to the regulated utilities, primarily for infrastructure
replacement and betterment, and the Midstream and Marketing
segment.
- Paid dividends for the 140th consecutive year, delivering a
10-year compound annual growth rate of 6%.
- Issues fiscal 2025 adjusted diluted EPS guidance range of $2.75
- $3.052.
“Fiscal 2024 was a pivotal year for UGI as we embarked on a
multi-year journey to unlock greater value for shareholders," said
Mario Longhi, Board Chair of UGI Corporation. "Strong execution
against our strategy led to record EBIT from our natural gas
businesses, sustainable reductions in operating and administrative
expenses, disciplined capital deployment, improved liquidity, and
greater financial flexibility within our balance sheet. We have
laid a solid foundation and with Bob's leadership, I am confident
in UGI’s ability to create further value for our customers,
employees and shareholders."
Robert Flexon, President and Chief Executive Officer of UGI
Corporation said, "Looking ahead, fiscal 2025 will be an important
year as we continue to reset the business and better position UGI
to advance on its value creation strategy. We must leverage our
highly attractive asset base and build on operational capabilities
and strengths to drive meaningful improvement in the company's
financial profile. I am excited to work with the team to create a
culture that embodies high performance, operational excellence,
superior customer service and a relentless desire for sustainable
growth.
2025 OUTLOOK
UGI provides an adjusted EPS guidance range of $2.75 - $3.052
per diluted share for the fiscal year ending September 30, 2025.
This guidance range assumes normal weather and the current tax
regime.
EARNINGS CALL and WEBCAST
UGI Corporation will hold a live Internet Audio Webcast of its
conference call to discuss Fiscal 2024 earnings and other current
activities at 9:00 AM ET on Friday, November 22, 2024. Interested
parties may listen to the audio webcast both live and in replay on
the Internet at
https://www.ugicorp.com/investors/financial-reports/presentations
or by visiting the company website https://www.ugicorp.com and
clicking on Investors and then Presentations. A replay of the
webcast will be available after the event through to 11:59 PM ET
November 21, 2025.
ABOUT UGI
UGI Corporation (NYSE: UGI) is a distributor and marketer of
energy products and services in the US and Europe. UGI offers safe,
reliable, affordable, and sustainable energy solutions to customers
through its subsidiaries, which provide natural gas transmission
and distribution, electric generation and distribution, midstream
services, propane distribution, renewable natural gas generation,
distribution and marketing, and energy marketing services.
Comprehensive information about UGI Corporation is available on
the Internet at https://www.ugicorp.com.
USE OF NON-GAAP MEASURES
Management uses “adjusted net income attributable to UGI
Corporation” and "adjusted diluted earnings per share," both of
which are non-GAAP financial measures, when evaluating UGI's
overall performance. Management believes that these non-GAAP
measures provide meaningful information to investors about UGI’s
performance because they eliminate the impacts of (1) gains and
losses on commodity and certain foreign currency derivative
instruments not associated with current-period transactions and (2)
other significant discrete items that can affect the comparison of
period-over-period results. Volatility in net income attributable
to UGI can occur as a result of gains and losses on commodity and
certain foreign currency derivative instruments not associated with
current-period transactions but included in earnings in accordance
with U.S. generally accepted accounting principles ("GAAP").
Non-GAAP financial measures are not in accordance with, or an
alternative to, GAAP and should be considered in addition to, and
not as a substitute for, the comparable GAAP measures.
Tables on the last page of this press release reconcile net
income attributable to UGI Corporation, the most directly
comparable GAAP measure, to adjusted net income attributable to UGI
Corporation, and diluted earnings per share, the most comparable
GAAP measure, to adjusted diluted earnings per share, to reflect
the adjustments referred to above.
1Reportable segments' EBIT represents an aggregate of our
reportable operating segment level EBIT as determined in accordance
with GAAP.
2Because we are unable to predict certain potentially material
items affecting diluted earnings per share on a GAAP basis,
principally mark-to-market gains and losses on commodity and
certain foreign currency derivative instruments, we cannot
reconcile the fiscal year 2025 adjusted diluted earnings per share,
a non-GAAP measure, to diluted earnings per share, the most
directly comparable GAAP measure, in reliance on the “unreasonable
efforts” exception set forth in SEC rules.
USE OF FORWARD-LOOKING STATEMENTS
This press release contains statements, estimates and
projections that are forward-looking statements (as defined in
Section 21E of the Securities Exchange Act of 1934, as amended, and
Section 27A of the Securities Act of 1933, as amended). Such
statements use forward-looking words such as “believe,” “plan,”
“anticipate,” “continue,” “estimate,” “expect,” “may,” or other
similar words and terms of similar meaning, although not all
forward-looking statements contain such words. These statements
discuss plans, strategies, events or developments that we expect or
anticipate will or may occur in the future. Management believes
that these are reasonable as of today’s date only. Actual results
may differ significantly because of risks and uncertainties that
are difficult to predict and many of which are beyond management’s
control; accordingly, there is no assurance that results will be
realized. You should read UGI’s Annual Report on Form 10-K for a
more extensive list of factors that could affect results. We
undertake no obligation (and expressly disclaim any obligation) to
update publicly any forward-looking statement, whether as a result
of new information or future events, except as required by the
federal securities laws.
SEGMENT RESULTS ($ in millions, except where otherwise
indicated)
Utilities
For the year ended September 30,
2024
2023
Increase (Decrease)
Revenues
$
1,598
$
1,854
$
(256
)
(14
)%
Total margin (a)
$
924
$
877
$
47
5
%
Operating and administrative expenses
$
363
$
368
$
(5
)
(1
)%
Operating income
$
394
$
357
$
37
10
%
Earnings before interest expense and
income taxes
$
400
$
365
$
35
10
%
Gas Utility system throughput - billions
of cubic feet
Core market
93
96
(3
)
(3
)%
Total
378
375
3
1
%
Natural gas heating degree days - % warmer
than normal
(16.0
)%
(11.7
)%
Capital expenditures
$
482
$
563
$
(81
)
(14
)%
- Temperatures were 16% warmer than normal and 5% warmer than the
prior-year period.
- Core market volumes slightly declined as the effect of warmer
weather was largely offset by growth in core market customers.
- Total margin increased $47 million primarily due to higher gas
and electric base rates, higher Distribution System Improvement
Charge (DSIC) benefits, and continued customer growth.
- Operating and administrative expenses decreased $5 million
reflecting reduced uncollectible accounts expenses.
- Operating income increased $37 million due to the higher total
margin ($47 million) and lower operating and administrative
expenses, partially offset by higher depreciation expense ($14
million) from continued distribution system capital expenditure
activity.
(a) Total margin represents total revenue less total cost of sales.
In the case of the Utilities, total margin is also reduced by
certain revenue-related taxes.
Midstream & Marketing
For the year ended September 30,
2024
2023
Increase (Decrease)
Revenues
$
1,369
$
1,847
$
(478
)
(26
)%
Total margin (a)
$
505
$
487
$
18
4
%
Operating and administrative expenses
$
125
$
133
$
(8
)
(6
)%
Operating income
$
301
$
285
$
16
6
%
Earnings before interest expense and
income taxes
$
313
$
291
$
22
8
%
Heating degree days - % warmer than
normal
(13.3
)%
(11.0
)%
Capital expenditures
$
150
$
130
$
20
15
%
- Temperatures were 13% warmer than normal and 5% warmer than the
prior-year period.
- Total margin increased $18 million reflecting increased margins
from capacity management due to higher basis and storage values
($31 million), partially offset by lower margin from renewable
energy marketing activities ($8 million) and natural gas gathering
contracts ($7 million).
- Operating and administrative expenses decreased $8 million
reflecting lower salaries and benefits and maintenance
expenses.
- Operating income increased $16 million due to higher total
margin and reduced operating and administrative expenses, partially
offset by lower other operating income ($10 million) primarily from
storage farmout contracts.
- EBIT increased $22 million due to an increase in operating
income and higher income from equity method investments ($5
million) largely associated with the Pine Run midstream natural gas
gathering system.
UGI International
For the year ended September 30,
2024
2023
Increase (Decrease)
Revenues
$
2,279
$
2,965
$
(686
)
(23
)%
Total margin (a)
$
978
$
920
$
58
6
%
Operating and administrative expenses
$
578
$
623
$
(45
)
(7
)%
Operating income
$
311
$
215
$
96
45
%
Earnings before interest expense and
income taxes
$
323
$
234
$
89
38
%
LPG retail gallons sold (millions)
725
729
(4
)
(1
)%
Heating degree days - % warmer than
normal
(11.8
)%
(10.5
)%
Capital expenditures
$
87
$
129
$
(42
)
(33
)%
Base-currency results are translated into U.S. dollars based
upon exchange rates experienced during the reporting periods. The
functional currency of a significant portion of our UGI
International results is the euro and, to a much lesser extent, the
British pound sterling. During Fiscal 2024 and Fiscal 2023, the
average unweighted euro-to-dollar translation rates were $1.08 and
$1.07, respectively, and the average unweighted British pound
sterling-to-dollar translation rate were $1.27 and $1.23,
respectively.
- Temperatures were 12% warmer than normal and 2% warmer than the
prior-year period.
- Retail gallons were comparable as the effects of warmer weather
were partially offset by higher volumes from natural gas to LPG
conversions and autogas customers.
- Total margin increased $58 million reflecting higher LPG unit
margins, the translation effects of the stronger foreign currencies
($20 million) and, to a much lesser extent, increased total margin
from energy marketing operations.
- Operating and administrative expenses decreased $45 million
primarily due to the effect of exiting the non-core energy
marketing business and lower personnel-related, maintenance and
advertising expenses. These decreases were partially offset by the
translation effects of the stronger foreign currencies ($12
million).
- Operating income increased $96 million due to higher total
margin ($58 million), lower operating and administrative expenses
($45 million) and higher gain from asset sales ($4 million),
partially offset by lower foreign currency transaction gains ($6
million) and lower cylinder deposit income ($6 million).
- Earnings before interest expense and income taxes increased $89
million reflecting higher operating income partially offset by
lower realized gains on foreign currency exchange contracts ($4
million).
AmeriGas Propane
For the year ended September 30,
2024
2023
(Decrease) increase
Revenues
$
2,271
$
2,581
$
(310
)
(12
)%
Total margin (a)
$
1,212
$
1,331
$
(119
)
(9
)%
Operating and administrative expenses
$
933
$
950
$
(17
)
(2
)%
Operating income / earnings before
interest expense and income taxes
$
142
$
268
$
(126
)
(47
)%
Retail gallons sold (millions)
737
823
(86
)
(10
)%
Heating degree days - % colder (warmer)
than normal
(8.0
)%
0.5
%
Capital expenditures
$
86
$
134
$
(48
)
(36
)%
- Temperatures were 8% warmer than normal and the prior-year
period.
- Retail gallons sold decreased 10% largely due to the
continuation of customer attrition and the effects of the warmer
weather.
- Total margin decreased $119 million reflecting lower retail
volumes sold.
- Operating and administrative expenses decreased $17 million
reflecting, among other things, lower compensation expenses and
advertising expenses.
- Operating income and EBIT decreased $126 million due to lower
total margin and a decrease in other income ($23 million)
associated with lower gains on asset sales, partially offset by
reduced operating and administrative expenses.
REPORT OF EARNINGS - UGI CORPORATION
(Millions of dollars, except per
share)
Unaudited
Three Months Ended
September 30,
Twelve Months Ended
September 30,
2024
2023
2024
2023
Revenues:
Utilities
$
202
$
210
$
1,598
$
1,854
Midstream & Marketing
239
261
1,369
1,847
UGI International
426
529
2,279
2,965
AmeriGas Propane
402
434
2,271
2,581
Corporate & Other (a)
(27
)
(30
)
(307
)
(319
)
Total revenues
$
1,242
$
1,404
$
7,210
$
8,928
(Loss) earnings before interest expense
and income taxes:
Utilities
$
—
$
(2
)
$
400
$
365
Midstream & Marketing
15
38
313
291
UGI International
18
18
323
234
AmeriGas Propane
(40
)
28
142
268
Total reportable segments
(7
)
82
1,178
1,158
Corporate & Other (a)
(249
)
173
(444
)
(2,616
)
Total (loss) earnings before interest
expense and income taxes
(256
)
255
734
(1,458
)
Interest expense:
Utilities
(24
)
(20
)
(93
)
(82
)
Midstream & Marketing
(12
)
(12
)
(41
)
(45
)
UGI International
(11
)
(11
)
(44
)
(37
)
AmeriGas Propane
(34
)
(41
)
(156
)
(163
)
Corporate & Other, net (a)
(17
)
(14
)
(60
)
(52
)
Total interest expense
(98
)
(98
)
(394
)
(379
)
(Loss) income before income taxes
(354
)
157
340
(1,837
)
Income tax benefit (expense )
81
(26
)
(71
)
335
Net (loss) income attributable to UGI
Corporation
(273
)
131
269
(1,502
)
(Loss) earnings per share attributable to
UGI Corporation shareholders:
Basic
$
(1.27
)
$
0.62
$
1.27
$
(7.16
)
Diluted
$
(1.27
)
$
0.61
$
1.25
$
(7.16
)
Weighted Average common shares outstanding
(thousands):
Basic
214,905
209,767
211,309
209,806
Diluted
215,368
215,371
215,271
209,806
Supplemental information:
Net (loss) income attributable to UGI
Corporation:
Utilities
$
(17
)
$
(15
)
$
237
$
219
Midstream & Marketing
4
28
238
193
UGI International
49
22
262
172
AmeriGas Propane
(40
)
(16
)
(23
)
71
Corporate & Other (a)
(269
)
112
(445
)
(2,157
)
Total net (loss) income attributable to
UGI Corporation
$
(273
)
$
131
$
269
$
(1,502
)
(a)
Corporate & Other includes specific items attributable to our
reportable segments that are not included in profit measures used
by our chief operating decision maker in assessing our reportable
segments' performance or allocating resources. These specific items
are shown in the section titled "Non-GAAP Financial Measures -
Adjusted Net Income Attributable to UGI and Adjusted Diluted
Earnings Per Share" below. Corporate & Other also includes the
elimination of certain intercompany transactions.
Non-GAAP Financial Measures - Adjusted
Net Income Attributable to UGI and Adjusted Diluted Earnings Per
Share (unaudited)
The following tables reconcile net income attributable to UGI
Corporation, the most directly comparable GAAP measure, to adjusted
net income attributable to UGI Corporation, and reconcile diluted
earnings per share, the most comparable GAAP measure, to adjusted
diluted earnings per share, to reflect the adjustments referred to
previously:
Fiscal Year Ended September 30,
2024
2023
Adjusted net income (loss) attributable
to UGI Corporation (millions):
Net income (loss) attributable to UGI
Corporation
$
269
$
(1,502
)
Net (gains) losses on commodity derivative
instruments not associated with current-period transactions (net of
tax of $17 and $(419), respectively)
(60
)
1,225
Unrealized losses on foreign currency
derivative instruments (net of tax of $(9) and $(11),
respectively)
22
27
Loss associated with impairment of
AmeriGas Propane goodwill (net of tax of $(3) and $4,
respectively)
192
660
Loss on extinguishment of debt (net of tax
of $(3) and $(2), respectively)
6
7
Business transformation expenses (net of
tax of $0 and $(3), respectively)
—
7
AmeriGas operations enhancement for growth
project (net of tax of $(6) and $(6), respectively)
19
18
Restructuring costs (net of tax of $(20)
and $0, respectively)
56
—
Costs associated with exit of the UGI
International energy marketing business (net of tax of $(15) and
$(67), respectively)
69
181
Net gain on sale of UGI headquarters
building (net of tax of $0 and $4, respectively)
—
(10
)
Loss on disposal of UGID (net of tax of
$(11) and $0, respectively)
55
—
Impairment of equity method investments
and assets (net of tax of $(3) and $0, respectively)
30
—
Total adjustments (1) (2)
389
2,115
Adjusted net income attributable to UGI
Corporation
$
658
$
613
Adjusted diluted earnings per
share:
UGI Corporation earnings (loss) per share
- diluted (3)
$
1.25
$
(7.16
)
Net losses (gains) losses on commodity
derivative instruments not associated with current-period
transactions
(0.28
)
5.77
Unrealized losses on foreign currency
derivative instruments
0.10
0.13
Loss associated with impairment of
AmeriGas Propane goodwill
0.89
3.14
Loss on extinguishment of debt
0.03
0.03
Business transformation expenses
—
0.03
AmeriGas operations enhancement for growth
project
0.09
0.09
Restructuring costs
0.26
—
Cost associated with exit of the UGI
International energy marketing business
0.32
0.86
Net gain on sale of UGI headquarters
building
—
(0.05
)
Loss on disposal of UGID
0.26
—
Impairment of equity method investments
and assets
0.14
—
Total adjustments (1)
1.81
10.00
Adjusted diluted earnings per share
(3)
$
3.06
$
2.84
(1)
Corporate & Other includes certain adjustments made to our
reporting segments in arriving at net income attributable to UGI
Corporation. These adjustments have been excluded from the segment
results to align with the measure used by our chief operating
decision maker in assessing segment performance and allocating
resources.
(2)
Income taxes associated with pre-tax adjustments determined using
statutory business unit tax rates.
(3)
The loss per share for Fiscal 2023, was determined excluding the
effect of 6.13 million dilutive shares as the impact of such shares
would have been antidilutive due to the net loss for the period,
while the adjusted earnings per share for Fiscal 2023, was
determined based upon fully diluted shares of 215.94 million.
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CONTACT INVESTOR RELATIONS Tel: +1 610-337-1000 Tameka
Morris, ext. 6297 Arnab Mukherjee, ext. 7498
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