UGI (NYSE: UGI) Q2 earnings, new guidance and $470M division sale
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
UGI Corporation reported higher GAAP earnings but lower adjusted profits for its fiscal second quarter ended March 31, 2026. GAAP diluted EPS was $2.33 compared with $2.19 a year earlier, while adjusted diluted EPS was $2.09 versus $2.21 as commodity and FX mark‑to‑market gains boosted GAAP results.
Year‑to‑date reportable segments EBIT rose slightly to $1,129 million from $1,112 million, showing broadly stable operating performance across Utilities, Midstream & Marketing, UGI International and AmeriGas Propane. UGI reported available liquidity of about $2.1 billion and net leverage of 3.7x as of March 31, 2026.
Strategically, UGI agreed to sell its electric division for approximately $470 million, with closing targeted for the first quarter of calendar 2027, and announced a partnership with Prime Data Centers to develop natural gas infrastructure in Pennsylvania’s northern tier with expected demand above 100,000 dekatherms per day within three to five years. The company updated its Fiscal 2026 adjusted diluted EPS guidance to $2.75–$2.90 per share.
Positive
- None.
Negative
- None.
Insights
UGI posts steady operations, refines portfolio and guidance.
UGI delivered modest operational growth with year‑to‑date reportable segments EBIT at $1,129 million versus $1,112 million a year ago, while Q2 adjusted diluted EPS softened to $2.09 from $2.21. Headline GAAP EPS of $2.33 benefited from derivative mark‑to‑market effects.
The agreement to sell the electric division for about $470 million and the gas‑infrastructure partnership with Prime Data Centers reorient the portfolio toward natural gas and midstream. Available liquidity of roughly $2.1 billion and net leverage of 3.7x as of March 31 2026 support this repositioning.
Management updated Fiscal 2026 adjusted diluted EPS guidance to $2.75–$2.90 per share, noting softer near‑term earnings expectations as it funds growth in Midstream & Marketing and continues the AmeriGas transformation. Subsequent disclosures in company filings may provide more detail on timing and scale of these initiatives.
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q2 GAAP diluted EPS: $2.33 per share
Q2 adjusted diluted EPS: $2.09 per share
Quarterly total revenues: $2.685 billion
+5 more
8 metrics
Q2 GAAP diluted EPS
$2.33 per share
Quarter ended March 31, 2026; vs $2.19 prior-year quarter
Q2 adjusted diluted EPS
$2.09 per share
Quarter ended March 31, 2026; vs $2.21 prior-year quarter
Quarterly total revenues
$2.685 billion
Quarter ended March 31, 2026; vs $2.666 billion prior-year quarter
YTD reportable segments EBIT
$1,129 million
Six months ended March 31, 2026; vs $1,112 million prior-year period
Available liquidity
approximately $2.1 billion
As of March 31, 2026
Net leverage
3.7x
As of March 31, 2026, net debt to adjusted EBITDA
Electric division sale price
approximately $470 million
Definitive agreement to sell electric division, subject to adjustment
Fiscal 2026 adjusted EPS guidance
$2.75–$2.90 per share
Updated Fiscal 2026 adjusted diluted EPS range
Key Terms
adjusted diluted EPS, reportable segments earnings before interest expense and income taxes, weather normalization rider, free cash flow, +2 more
6 terms
adjusted diluted EPS financial
"Q2 GAAP diluted earnings per share ("EPS") of $2.33 and adjusted diluted EPS of $2.09 compared to GAAP diluted EPS of $2.19 and adjusted diluted EPS of $2.21"
Adjusted diluted EPS is a company’s profit per share after adding back or removing one-time items (like restructuring costs or gains) and dividing by the number of shares including potential shares from options and convertible securities. Investors use it as a cleaner view of ongoing earnings—like looking at a car’s regular fuel efficiency rather than a trip boosted by downhill coasting—to judge underlying performance and compare companies without temporary distortions.
reportable segments earnings before interest expense and income taxes financial
"YTD reportable segments earnings before interest expense and income taxes1 ("EBIT") of $1,129 million compared to $1,112 million in the prior-year period."
weather normalization rider financial
"our natural gas businesses delivered a solid performance, supported by higher gas base rates at our Utilities where we have also returned approximately $25 million to customers through our Pennsylvania weather normalization rider."
A weather normalization rider is a contract or regulatory adjustment that removes the financial impact of unusually hot or cold weather from a utility or energy provider’s billed revenues. It works like a smoothing mechanism—comparing actual weather-driven usage with a long-term “normal” and adding or subtracting a small amount so earnings and customer charges don’t swing wildly with one extreme season. For investors, it reduces short-term volatility and makes revenue and profit trends easier to compare and forecast.
free cash flow financial
"UGI International continued to generate strong free cash flow while navigating a dynamic operating environment."
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
forward-looking statements regulatory
"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)."
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
non-GAAP financial measures financial
"Management uses "adjusted net income attributable to UGI Corporation" and "adjusted diluted EPS", each of which are non-GAAP financial measures, when evaluating UGI's overall performance."
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Earnings Snapshot
Total revenue: $2.685 billion · Guidance included
quarter ended March 31, 2026
Total revenue
$2.685 billion
vs $2.666 billion in the prior-year quarter
GAAP diluted EPS
$2.33
vs $2.19 in the prior-year quarter
Adjusted diluted EPS
$2.09
vs $2.21 in the prior-year quarter
Reportable segments EBIT
$688 million (Q2), $1,129 million YTD
vs $692 million Q2 and $1,112 million YTD in prior-year period
Guidance
Fiscal 2026 adjusted diluted EPS guidance updated to a range of $2.75–$2.90 per share.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 6, 2026
(Exact Name of Registrant as Specified in Its Charter)
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
(Address of Principal Executive Offices) (Zip Code)
Registrant’s Telephone Number, Including Area Code: 610 337-1000
Not Applicable
Former Name or Former Address, if Changed Since Last Report
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Emerging growth company | |||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On May 6, 2026, UGI Corporation (the “Company”) issued a press release announcing financial results for the Company for the fiscal quarter ended March 31, 2026. A copy of the press release is furnished as Exhibit 99.1 to this report and is incorporated herein by reference.
Item 7.01 Regulation FD Disclosure.
On May 7, 2026, the Company will hold a live Internet Audio Webcast of its conference call to discuss its financial results for the fiscal quarter ended March 31, 2026.
Presentation materials containing certain historical and forward-looking information relating to the Company (the “Presentation Materials”) have been made available on the Company’s website. A copy of the Presentation Materials is furnished as Exhibit 99.2 to this report and is incorporated herein by reference in this Item 7.01. All information in Exhibit 99.2 is presented as of the particular dates referenced therein, and the Company does not undertake any obligation to, and disclaims any duty to, update any of the information provided.
In accordance with General Instruction B.2 of Form 8-K, the information in this report, including Exhibits 99.1 and 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and will not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in that filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits. The following exhibits are being furnished herewith:
| 99.1 | Press Release of UGI Corporation dated May 6, 2026. | ||||
| 99.2 | Presentation of UGI Corporation dated May 7, 2026. | ||||
| 104 | Cover Page Interactive Data File (formatted as inline XBRL) | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| UGI Corporation | ||||||||
| May 7, 2026 | By: | /s/ Sean P. O'Brien | ||||||
| Name: | Sean P. O'Brien | |||||||
| Title: | Chief Financial Officer | |||||||
Press ReleaseUGI Reports Second Quarter Results
May 6, 2026
VALLEY FORGE, PA - UGI Corporation (NYSE: UGI) today reported financial results for the fiscal quarter ended March 31, 2026.
HIGHLIGHTS
•Q2 GAAP diluted earnings per share ("EPS") of $2.33 and adjusted diluted EPS of $2.09 compared to GAAP diluted EPS of $2.19 and adjusted diluted EPS of $2.21 in the prior-year period.
•Year-to-date (YTD) GAAP diluted EPS of $3.68 and adjusted diluted EPS of $3.35 compared to GAAP diluted EPS of $3.93 and adjusted diluted EPS of $3.58 in the prior-year period.
•YTD reportable segments earnings before interest expense and income taxes1 ("EBIT") of $1,129 million compared to $1,112 million in the prior-year period.
•Available liquidity of approximately $2.1 billion and net leverage of 3.7x as of March 31, 2026.
•Subsequent to the quarter,
◦Announced a strategic partnership with Prime Data Centers to develop major natural gas supply infrastructure in Pennsylvania's northern tier, with expected demand exceeding 100,000 dekatherms per day within three to five years.
◦Executed a definitive agreement to sell our electric division for approximately $470 million, subject to working capital adjustment. The transaction is expected to close in the first quarter of calendar year 2027, subject to customary closing conditions and applicable regulatory approvals.
◦Launched online sale of AmeriGas propane cylinders in selected cities on Amazon, phasing in service across existing home-delivery markets during Fiscal 2026 and leveraging our established direct-to-consumer delivery infrastructure.
•Updates Fiscal 2026 adjusted diluted EPS guidance to a range of $2.75 - $2.902 per share.
"Our year-to-date results reflect the continued execution of our strategic priorities, with reportable segment EBIT ahead of the prior year," said Bob Flexon, President and Chief Executive Officer. "Our natural gas businesses delivered a solid performance, supported by higher gas base rates at our Utilities where we have also returned approximately $25 million to customers through our Pennsylvania weather normalization rider. UGI International continued to generate strong free cash flow while navigating a dynamic operating environment. At AmeriGas, we made tangible progress on our operational turnaround, including on-shoring our call center and driving year-over-year improvement in safety, customer satisfaction, routing and logistics efficiencies, as we better position the business for the upcoming heating season. We were also pleased to end the quarter with consolidated leverage below our targeted range for Fiscal 2026.
"Looking beyond the quarter, I am increasingly confident in our ability to create long-term value. Although near-term Fiscal 2026 earnings expectations have softened due to timing of growth investments in Midstream & Marketing and steady progression of the AmeriGas transformation, we remain firmly committed to our long-term trajectory and growth targets. We are optimally situated to serve the growing demand for safe, reliable and affordable energy solutions across our service territories, reinforced by our recent strategic partnerships. At the same time, the
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transformation underway at AmeriGas, disciplined capital allocation approach and continued improvement in leverage and liquidity are strengthening our foundation. Together, these advantages position UGI to deliver sustainable returns for our shareholders over the long-term."
EARNINGS CALL AND WEBCAST
UGI Corporation will hold a live Internet Audio Webcast of its conference call to discuss the quarterly earnings and other current activities at 9:00 AM ET on Thursday, May 7, 2026. 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 at https://www.ugicorp.com and clicking on Investors and then Presentations. A replay of the webcast will be available after the event until 11:59 PM ET May 6, 2027.
CONTACT INVESTOR RELATIONS
Tel: +1 610-337-1000
Tameka Morris, ext. 6297
Arnab Mukherjee, ext. 7498
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 EPS", each 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.
The 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 EPS, the most comparable GAAP measure to adjusted diluted EPS, to reflect the adjustments referred to above.
1 Reportable segments' EBIT represents an aggregate of our reportable operating segment level EBIT, as determined in accordance with GAAP.
2 Because we are unable to predict certain potentially material items affecting diluted EPS on a GAAP basis, principally mark-to-market gains and losses on commodity and certain foreign currency derivative instruments, we cannot reconcile fiscal year 2026 adjusted diluted EPS, a non-GAAP measure, to diluted EPS, 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
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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.
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SEGMENT RESULTS ($ in millions, except where otherwise indicated)
Utilities
| For the fiscal quarter ended March 31, | 2026 | 2025 | (Decrease) Increase | |||||||||||||||||||||||
| Revenues | $ | 880 | $ | 773 | $ | 107 | 14 | % | ||||||||||||||||||
| Total margin (a) | $ | 408 | $ | 385 | $ | 23 | 6 | % | ||||||||||||||||||
| Operating and administrative expenses | $ | 111 | $ | 103 | $ | 8 | 8 | % | ||||||||||||||||||
| Operating income | $ | 249 | $ | 240 | $ | 9 | 4 | % | ||||||||||||||||||
| Earnings before interest expense and income taxes | $ | 250 | $ | 241 | $ | 9 | 4 | % | ||||||||||||||||||
| Gas Utility system throughput - billions of cubic feet | ||||||||||||||||||||||||||
| Core market | 53 | 53 | — | — | % | |||||||||||||||||||||
| Total | 129 | 128 | 1 | 1 | % | |||||||||||||||||||||
| Gas Utility degree days—% colder than normal (b) | 7.1 | % | 0.3 | % | ||||||||||||||||||||||
| Capital expenditures | $ | 127 | $ | 100 | $ | 27 | 27 | % | ||||||||||||||||||
•Gas Utility service territory experienced temperatures that were 4% colder than the prior-year period.
•Total margin increased $23 million primarily due to the effect of higher gas base rates that went into effect in PA which was partially offset by the impact of the weather normalization adjustment mechanism ($19 million).
•Operating and administrative expenses increased $8 million primarily reflecting, among other things, higher personnel and uncollectible account expenses.
•Operating income increased $9 million as higher total margin ($23 million) was partially offset by higher operating and administrative expenses ($8 million) and increased depreciation expense ($4 million) from continued distribution system capital expenditure activity.
Midstream & Marketing
| For the fiscal quarter ended March 31, | 2026 | 2025 | (Decrease) Increase | |||||||||||||||||||||||
| Revenues | $ | 715 | $ | 587 | $ | 128 | 22 | % | ||||||||||||||||||
| Total margin (a) | $ | 203 | $ | 202 | $ | 1 | — | % | ||||||||||||||||||
| Operating and administrative expenses | $ | 36 | $ | 31 | $ | 5 | 16 | % | ||||||||||||||||||
| Operating income | $ | 145 | $ | 151 | $ | (6) | (4) | % | ||||||||||||||||||
| Earnings before interest expense and income taxes | $ | 150 | $ | 154 | $ | (4) | (3) | % | ||||||||||||||||||
| Heating degree days - % colder than normal (b) | 8.5 | % | 2.5 | % | ||||||||||||||||||||||
| Capital expenditures | $ | 5 | $ | 27 | $ | (22) | (81) | % | ||||||||||||||||||
•Temperatures were 3% colder than the prior-year period.
•Total margin was comparable with the prior-year period as higher peaking margins were substantially offset by lower margin from capacity management activities.
•Operating and administrative expenses increased $5 million primarily due to plants placed in service last year.
•Operating income decreased $6 million largely reflecting higher operating and administrative expenses.
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UGI International
| For the fiscal quarter ended March 31, | 2026 | 2025 | (Decrease) Increase | |||||||||||||||||||||||
| Revenues | $ | 621 | $ | 650 | $ | (29) | (4) | % | ||||||||||||||||||
| Total margin (a) | $ | 298 | $ | 302 | $ | (4) | (1) | % | ||||||||||||||||||
| Operating and administrative expenses (a) | $ | 141 | $ | 142 | $ | (1) | (1) | % | ||||||||||||||||||
| Operating income | $ | 136 | $ | 139 | $ | (3) | (2) | % | ||||||||||||||||||
| Earnings before interest expense and income taxes | $ | 132 | $ | 143 | $ | (11) | (8) | % | ||||||||||||||||||
| LPG retail gallons sold (millions) | 197 | 213 | (16) | (8) | % | |||||||||||||||||||||
| Heating degree days - % (warmer) than normal (b) | (6.0) | % | (2.2) | % | ||||||||||||||||||||||
| Capital expenditures | $ | 19 | $ | 17 | $ | 2 | 12 | % | ||||||||||||||||||
UGI International base-currency results are translated into U.S. dollars based upon exchange rates experienced during the reporting periods. Differences in these translation rates affect the comparison of line item amounts presented in the table above. 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 the 2026 and 2025 three-month periods, the average unweighted euro-to-dollar translation rates were approximately $1.17 and $1.05, respectively, and the average unweighted British pound sterling-to-dollar translation rates were approximately $1.35 and $1.26, respectively.
•Temperatures were 5% warmer than the prior-year period.
•Retail volumes were 8% lower than the prior-year period largely due to divesting the LPG businesses in Italy and Austria and the effects of warmer weather.
•Total margin decreased $4 million as the translation effects of the stronger foreign currencies (~$30 million) was more than offset by the impact of the divestitures and the warmer weather.
•Operating and administrative expenses were comparable to the prior-year period as the impact of the aforementioned divestitures, as well as lower distribution expenses, were largely offset by the translation effects of the stronger foreign currencies (~$15 million).
•EBIT decreased $11 million largely reflecting lower realized gains on foreign currency exchange contracts ($8 million) and reduced total margin ($4 million).
AmeriGas Propane
| For the fiscal quarter ended March 31, | 2026 | 2025 | (Decrease) Increase | |||||||||||||||||||||||
| Revenues | $ | 759 | $ | 848 | $ | (89) | (10) | % | ||||||||||||||||||
| Total margin (a) | $ | 448 | $ | 446 | $ | 2 | — | % | ||||||||||||||||||
| Operating and administrative expenses | $ | 259 | $ | 257 | $ | 2 | 1 | % | ||||||||||||||||||
| Operating income / earnings before interest expense and income taxes | $ | 156 | $ | 154 | $ | 2 | 1 | % | ||||||||||||||||||
| Retail gallons sold (millions) | 256 | 269 | (13) | (5) | % | |||||||||||||||||||||
| Heating degree days - % colder (warmer) than normal (b) | (2.4) | % | 2.8 | % | ||||||||||||||||||||||
| Capital expenditures | $ | 29 | $ | 16 | $ | 13 | 81 | % | ||||||||||||||||||
•Temperatures were 2% warmer than normal and 5% warmer than the prior-year period.
•Retail gallons decreased 5%, primarily reflecting temperatures that were 12% warmer than the prior year in the western U.S. and continuing customer attrition. On a weather-adjusted basis and excluding the Hawaii divestiture, retail gallons were comparable to the prior-year period.
•Total margin increased $2 million as the impact of higher average LPG unit margins and increased fee income were largely offset by lower retail gallons.
•Operating and administrative expenses increased $2 million largely due to continued investment in customer-facing initiatives resulting in higher compensation and advertising expenses.
•EBIT increased $2 million as lower depreciation and amortization expenses and higher total margin were partially offset by higher operating and administrative expenses and lower gain from asset sales.
(a)Total margin represents total revenue less total cost of sales. In the case of Utilities, total margin is also reduced by certain revenue-related taxes.
(b)Deviation from average heating degree days is determined on a 10-year period utilizing volume-weighted weather data.
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REPORT OF EARNINGS – UGI CORPORATION
(Millions of dollars, except per share)
(Unaudited)
| Three Months Ended March 31, | Six Months Ended March 31, | Twelve Months Ended March 31, | |||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||
| Utilities | $ | 880 | $ | 773 | $ | 1,471 | $ | 1,258 | $ | 1,974 | $ | 1,717 | |||||||||||||||||||||||
| Midstream & Marketing | 715 | 587 | 1,142 | 954 | 1,671 | 1,446 | |||||||||||||||||||||||||||||
| UGI International | 621 | 650 | 1,196 | 1,288 | 2,027 | 2,169 | |||||||||||||||||||||||||||||
| AmeriGas Propane | 759 | 848 | 1,359 | 1,475 | 2,160 | 2,322 | |||||||||||||||||||||||||||||
| Corporate & Other (a) | (290) | (192) | (400) | (279) | (473) | (336) | |||||||||||||||||||||||||||||
| Total revenues | $ | 2,685 | $ | 2,666 | $ | 4,768 | $ | 4,696 | $ | 7,359 | $ | 7,318 | |||||||||||||||||||||||
| Earnings before interest expense and income taxes: | |||||||||||||||||||||||||||||||||||
| Utilities | $ | 250 | $ | 241 | $ | 407 | $ | 382 | $ | 428 | $ | 421 | |||||||||||||||||||||||
| Midstream & Marketing | 150 | 154 | 238 | 249 | 282 | 307 | |||||||||||||||||||||||||||||
| UGI International | 132 | 143 | 256 | 253 | 317 | 328 | |||||||||||||||||||||||||||||
| AmeriGas Propane | 156 | 154 | 228 | 228 | 166 | 161 | |||||||||||||||||||||||||||||
| Total reportable segments | 688 | 692 | 1,129 | 1,112 | 1,193 | 1,217 | |||||||||||||||||||||||||||||
| Corporate & Other (a) | 83 | 4 | 104 | 103 | (68) | (217) | |||||||||||||||||||||||||||||
| Total earnings before interest expense and income taxes | 771 | 696 | 1,233 | 1,215 | 1,125 | 1,000 | |||||||||||||||||||||||||||||
| Interest expense: | |||||||||||||||||||||||||||||||||||
| Utilities | (30) | (25) | (59) | (51) | (108) | (97) | |||||||||||||||||||||||||||||
| Midstream & Marketing | (15) | (12) | (29) | (24) | (54) | (45) | |||||||||||||||||||||||||||||
| UGI International | (11) | (11) | (22) | (21) | (47) | (43) | |||||||||||||||||||||||||||||
| AmeriGas Propane | (37) | (37) | (75) | (70) | (149) | (145) | |||||||||||||||||||||||||||||
| Corporate & Other, net (a) | (18) | (17) | (37) | (38) | (71) | (68) | |||||||||||||||||||||||||||||
| Total interest expense | (111) | (102) | (222) | (204) | (429) | (398) | |||||||||||||||||||||||||||||
| Income before income taxes | 660 | 594 | 1,011 | 1,011 | 696 | 602 | |||||||||||||||||||||||||||||
| Income tax expense | (140) | (115) | (194) | (157) | (55) | (69) | |||||||||||||||||||||||||||||
| Net income attributable to UGI Corporation | $ | 520 | $ | 479 | $ | 817 | $ | 854 | $ | 641 | $ | 533 | |||||||||||||||||||||||
| Earnings per share attributable to UGI shareholders: | |||||||||||||||||||||||||||||||||||
| Basic | $ | 2.42 | $ | 2.23 | $ | 3.80 | $ | 3.97 | $ | 2.98 | $ | 2.49 | |||||||||||||||||||||||
| Diluted | $ | 2.33 | $ | 2.19 | $ | 3.68 | $ | 3.93 | $ | 2.89 | $ | 2.46 | |||||||||||||||||||||||
| Weighted Average common shares outstanding (thousands): | |||||||||||||||||||||||||||||||||||
| Basic | 214,833 | 214,976 | 214,844 | 214,965 | 214,918 | 213,897 | |||||||||||||||||||||||||||||
| Diluted | 222,705 | 218,944 | 222,068 | 217,331 | 221,563 | 216,319 | |||||||||||||||||||||||||||||
| Supplemental information: | |||||||||||||||||||||||||||||||||||
| Net income attributable to UGI Corporation: | |||||||||||||||||||||||||||||||||||
| Utilities | $ | 171 | $ | 166 | $ | 269 | $ | 255 | $ | 251 | $ | 251 | |||||||||||||||||||||||
| Midstream & Marketing | 109 | 150 | 170 | 239 | 200 | 265 | |||||||||||||||||||||||||||||
| UGI International | 103 | 93 | 206 | 193 | 255 | 281 | |||||||||||||||||||||||||||||
| AmeriGas Propane | 85 | 25 | 109 | (21) | 166 | (97) | |||||||||||||||||||||||||||||
| Total reportable segments | 468 | 434 | 754 | 666 | 872 | 700 | |||||||||||||||||||||||||||||
| Corporate & Other (a) | 52 | 45 | 63 | 188 | (231) | (167) | |||||||||||||||||||||||||||||
| Total net income attributable to UGI Corporation | $ | 520 | $ | 479 | $ | 817 | $ | 854 | $ | 641 | $ | 533 | |||||||||||||||||||||||
(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.
7
Non-GAAP Financial Measures - Adjusted Net Income Attributable to UGI and Adjusted Diluted Earnings Per Share.
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 EPS, the most comparable GAAP measure, to adjusted diluted EPS, to reflect the adjustments referred to previously:
| Three Months Ended March 31, | Six Months Ended March 31, | Twelve Months Ended March 31, | ||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||||
| Adjusted net income attributable to UGI Corporation (millions): | ||||||||||||||||||||||||||||||||||||||
| Net income attributable to UGI Corporation | $ | 520 | $ | 479 | $ | 817 | $ | 854 | $ | 641 | $ | 533 | ||||||||||||||||||||||||||
Net losses (gains) on commodity derivative instruments not associated with current-period transactions (net of tax of $25, $15, $26, $29, $(5) and $45, respectively) | (109) | (5) | (97) | (69) | (21) | (96) | ||||||||||||||||||||||||||||||||
Unrealized losses (gains) on foreign currency derivative instruments (net of tax of $4, $(3), $5, $3, $(1) and $0, respectively) | (7) | 10 | (11) | (6) | 2 | 3 | ||||||||||||||||||||||||||||||||
Loss associated with impairment of AmeriGas Propane goodwill (net of tax of $0, $0, $0, $0, $0, and $(3), respectively) | — | — | — | — | — | 192 | ||||||||||||||||||||||||||||||||
Loss on extinguishment of debt (net of tax of $0, $0, $0, $0, $(2) and $(3), respectively) | — | — | — | — | 8 | 6 | ||||||||||||||||||||||||||||||||
Impairments of equity method investments and assets (net of tax of $0, $0, $0, $0, $0 and $(1), respectively) | — | — | — | — | — | 25 | ||||||||||||||||||||||||||||||||
Costs associated with exit of the UGI International energy marketing business (net of tax of $0, $0, $0, $0, $0 and $(1), respectively) | — | — | — | — | — | 3 | ||||||||||||||||||||||||||||||||
Net loss (gain) on disposals of businesses (net of tax of $0, $0, $1, $0, $3 and $(11), respectively) | 62 | — | 36 | — | 74 | 55 | ||||||||||||||||||||||||||||||||
| Impact of change in tax law | — | — | — | — | (10) | — | ||||||||||||||||||||||||||||||||
AmeriGas operations enhancement for growth project (net of tax of 0, 0, $0, $0, $0 and $(3), respectively) | — | — | — | — | — | 9 | ||||||||||||||||||||||||||||||||
Restructuring costs (net of tax of $0, $(2), $0, $0, $0 and $(10), respectively) | — | — | — | — | — | 26 | ||||||||||||||||||||||||||||||||
| Total adjustments (1) | (54) | 5 | (72) | (75) | 53 | 223 | ||||||||||||||||||||||||||||||||
| Adjusted net income attributable to UGI Corporation | $ | 466 | $ | 484 | $ | 745 | $ | 779 | $ | 694 | $ | 756 | ||||||||||||||||||||||||||
| Adjusted diluted earnings per share: | ||||||||||||||||||||||||||||||||||||||
| UGI Corporation earnings per share — diluted | $ | 2.33 | $ | 2.19 | $ | 3.68 | $ | 3.93 | $ | 2.89 | $ | 2.46 | ||||||||||||||||||||||||||
| Net losses (gains) on commodity derivative instruments not associated with current-period transactions | (0.49) | (0.03) | (0.44) | (0.32) | (0.09) | (0.44) | ||||||||||||||||||||||||||||||||
| Unrealized losses (gains) on foreign currency derivative instruments | (0.03) | 0.05 | (0.05) | (0.03) | 0.01 | 0.01 | ||||||||||||||||||||||||||||||||
| Loss associated with impairment of AmeriGas Propane goodwill | — | — | — | — | — | 0.89 | ||||||||||||||||||||||||||||||||
| Loss on extinguishment of debt | — | — | — | — | 0.04 | 0.03 | ||||||||||||||||||||||||||||||||
| Impairments of equity method investments and assets | — | — | — | — | — | 0.12 | ||||||||||||||||||||||||||||||||
| Costs associated with the exit of the UGI International energy marketing business | — | — | — | — | — | 0.01 | ||||||||||||||||||||||||||||||||
| Net loss (gain) on disposals of businesses | 0.28 | — | 0.16 | — | 0.33 | 0.25 | ||||||||||||||||||||||||||||||||
| Impact of change in tax law | — | — | — | — | (0.05) | — | ||||||||||||||||||||||||||||||||
| AmeriGas operations enhancement for growth project | — | — | — | — | — | 0.04 | ||||||||||||||||||||||||||||||||
| Restructuring costs | — | — | — | — | — | 0.12 | ||||||||||||||||||||||||||||||||
| Total adjustments | (0.24) | 0.02 | (0.33) | (0.35) | 0.24 | 1.03 | ||||||||||||||||||||||||||||||||
| Adjusted diluted earnings per share | $ | 2.09 | $ | 2.21 | $ | 3.35 | $ | 3.58 | $ | 3.13 | $ | 3.49 | ||||||||||||||||||||||||||
(1)Income taxes associated with pre-tax adjustments determined using statutory business unit tax rates.
8
Fiscal 2026 Second Quarter Earnings Presentation May 7, 2026
About This Presentation This presentation 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. Management uses “UGI Corporation adjusted net income”, “UGI Corporation adjusted diluted earnings per share (“EPS”)”, “UGI Corporation adjusted EBITDA”, “UGI International free cash flow”, and “UGI International adjusted EBITDA”, each 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. The tables in the Appendix reconcile UGI Corporation adjusted net income, UGI Corporation adjusted diluted EPS, UGI Corporation adjusted EBITDA, UGI International free cash flow and UGI International adjusted EBITDA to their nearest GAAP measures. 2
Bob Flexon President & Chief Executive Officer Sean O’Brien Chief Financial Officer
4 Driving Performance Across the Portfolio Adjusted Diluted EPS4 Reportable Segments EBIT6 $3.58 $3.35 YTD FY25 YTD FY26 YTD FY26 GAAP diluted EPS of $3.68 vs. $3.93 in YTD FY25 ($ in Million) $1,112 $1,129 YTD FY25 YTD FY26 1. YTD signifies the 6-month period ended March 31. 2. Available liquidity comprised of cash and cash equivalents and available borrowing capacity on revolving credit facilities. 3. Leverage defined as net debt to Adjusted EBITDA. Adjusted EBITDA is a non-GAAP measure. Metric differs from relevant debt agreement due to cash eligibility within net debt and other adjustments. Leverage under the relevant debt agreement is 4.1x. 4. Adjusted diluted EPS is a non-GAAP measure. See Appendix for reconciliation. 5. The $0.23 decline in EPS is attributable to $0.17 of tax impact and $0.06 of interest expense impact. 6. Reportable Segments EBIT stands for UGI Corporation’s Earnings before interest expense and income taxes excluding EBIT related to Corporate & Other. 55 Solid YTD¹ Financial Results • Delivered underlying earnings growth in a dynamic operating environment, supported by disciplined execution across the portfolio and continued strength in our businesses Sustained Investment and Customer Focus at the Utilities • ~$280M of capital expenditures deployed in our regulated utilities, advancing our commitment for pipeline safety and reliability, while adding 6,000+ new heating customers • $26M returned to customer through the weather normalization riders in PA ($25M) and WV • UGI Utilities recognized among 38 utility companies nationwide as "Easiest to do Business With" in a recent Cogent Syndicated 2026 study Strong Execution at UGI International • Effective margin management and strong free cash flow generation; no anticipated full- year margin impact from the Middle East conflict given contract structure and supply mix Online cylinder sale live on Amazon in select markets • Leveraging 6+ years of Cynch consumer propane expertise to execute effectively on a scalable market opportunity Continued strengthening of our balance sheet • Available liquidity of ~$2.1B as of March 31, 2026² • Leverage 3.7x as of March 31, 2026³
5 Advancing Our Strategy and Building Long-Term Value Unlocking Value Through Strategic Actions at the Utilities Agreement to sell UGI Utilities' Electric Division 63,000+ Electric Customers ✓ After-tax proceeds to reduce UGI debt and for general corporate purposes, strengthening balance sheet ✓ Expected close: Q1 CY2027, subject to regulatory approvals ✓ Sharpens UGI's focus in its area of greatest competitive advantage ✓ Reduces debt and provides greater financial flexibility for natural gas capital investment $470M Purchase Price1 ✓ New strategic partnership between UGI Energy Services and Prime Data Centers to develop major natural gas supply infrastructure in Pennsylvania’s northern tier ➢ 100,000+ dekatherms/day of expected demand within 3–5 years, anchoring long-term midstream growth ➢ Differentiated supply position via abundant local gas, multiple interstate pipelines, and our distribution network Advancing Midstream Growth Platform Strategic Partnership with Prime Data Centers 1. Subject to working capital adjustments. ✓ UGI intends to expand its Auburn pipeline with a new interconnection to allow movement of gas between the Tennessee and Transcontinental gas pipeline, pending FERC approval ✓ Ran a successful, oversubscribed open season for the Auburn pipeline, underscoring robust customer demand for expanded capacity Auburn Pipeline Expansion
6 UGI International - Disciplined Execution Driving Sustainable Free Cash Generation Reduction in Accountable Vehicle Incidents (AVI) Continuous improvement across the fleet 25% Improvement in Customer Service Scores5 Strengthening customer relationships Operational Excellence & Customer Satisfaction – YTD FY26 compared to YTD FY24 73% Operating a capital-efficient business with consistently strong free cash flow conversion that creates value for shareholders 1. Return on Capital Employed (ROCE) calculated as EBIT/(Total Assets-Current Liabilities-Customer tank and cylinder deposits) See Appendix for computation. 2. Free Cash Flow defined as Net Cash from Operating Activities less Capital Expenditures. Free Cash Flow is a non-GAAP measure. See Appendix for reconciliation. 3. Leverage defined as net debt to Adjusted EBITDA. Adjusted EBITDA is a non-GAAP measure. See Appendix for reconciliation. 4. Adjusted to exclude the divested businesses - energy marketing business in the Netherlands, LPG operations in Italy, Austria and Romania, and the cylinder business in the United Kingdom. 5. Outcome of annual survey. Represents improvement between 2023 and 2025. Financial Performance – YTD FY26 compared to YTD FY24 ~15% ROCE1 3-Year LTM Average $800M+ Free Cash Flow2 3-Year LTM Total 1.2x Leverage3 As of March 31, 2026 5% EBIT Growth4 Retained Businesses Reduction in Total Recordable Injuries (RI) Building on an already strong safety baseline 20%
7 Progressing on the Operational Transformation at AmeriGas Achieving sustainable operational improvements through 18 active workstreams1 across multiple focus areas that better position the business to capitalize on sustained market demand. 1. This reflects active workstreams as of Q2 FY2026. Additional improvement opportunities are actively evaluated on an ongoing basis. 2. Q2 FY26 compared to Q2 FY24. 3. Adjusted to exclude LPG operations in Hawaii divested in September 2025. 49% RI Rate Operational Improvements: YTD FY26 compared to YTD FY24 Key Initiatives to Unlock Intrinsic Value1 Recently Completed In Progress U.S. Call Centers — Fully Reshored ✓ Route Optimization — Implemented ✓ Customer Segmentation, Pricing & Billing Service Operations Improvement Supply Chain & Inventory Modernization Safety Operations Customer Satisfaction 52% LTI Rate 25% AVI Rate 27% % Out of Gas2 18% % Zero Fill Stops 8% Miles Driven 32% Call Volume 67% Net Promoter Score 2% Average Handle Time 2% OPEX 1% Retail Gallons3 9% EBIT Measurable Outcomes: YTD FY26 compared to YTD FY24
Q2 and YTD FY26 Financial Update
$0.11 $0.38 $0.42 $0.46 $0.69 $0.49 $0.76 $0.77 Q2 FY25 Q2 FY26 $9 $(4) $(11) $2 Q2 FY25 EBIT Utilities Midstream & Marketing UGI International AmeriGas Propane Q2 FY26 EBIT Q2 FY26 Financial Results 1. Excludes Corporate and Other. 2. Adjusted Diluted EPS is a non-GAAP measure. See Appendix for reconciliation. 3. Includes Corporate & other of $0.23. 4. Includes Corporate & other of ($0.01). Q2 FY26 Reportable Segments EBIT1 vs Q2 FY25 Q2 FY26 Adjusted Diluted EPS2 vs Q2 FY25 ($ in Million) Utilities Midstream & Marketing UGI International AmeriGas Propane $2.21 $2.09 9 3 4 $154 $143 $154 $241 $692 $156 $132 $150 $250 $688 Q2 FY26 GAAP diluted EPS of $2.33 vs. $2.19 in Q2 FY25.
Q2 FY26 Segment Results Recap – Natural Gas Q2 FY26 EBIT - Comparison with Q2 FY25 ($ in Million) Utilities Midstream & Marketing Weather Total margin represents total revenue less total cost of sales. In the case of Utilities, the total margin is also reduced by certain revenue-related taxes. OPEX stands for Operating & Administrative Expenses, and D&A stands for Depreciation and Amortization. Key Drivers • Core market volumes were comparable to Q2 FY25 • Margin increased largely reflects higher Gas Utility total margin primarily due to the increase in the PA Gas Utility base rates (effective October 2025), partially offset by the effects of the weather normalization adjustments ($19M). • Higher OPEX reflects, among other things, higher personnel expenses and uncollectible accounts expenses • Higher D&A expense reflects the effects of continued distribution system capital expenditure activity 7.1% 4.1% Vs. Normal Vs. PY Increase Decrease WarmerColder Weather Key Drivers • Margin was slightly higher as higher peaking margins were substantially offset by lower total margin from capacity management activities • Higher OPEX due to operating expenses related to new assets placed in service 8.5% 3.1% Vs. Normal Vs. PY Q2 FY25 EBIT Q2 FY26 EBIT Total Margin OPEX D&A Other Q2 FY25 EBIT Q2 FY26 EBIT Total Margin OPEX D&A Other 10 $241 $23 ($8) ($4) ($2) $250 $154 $1 ($5) ($2) $2 $150
Q2 FY26 Segment Results Recap – Global LPG Q2 FY26 EBIT - Comparison with Q2 FY25 ($ in Million) UGI International AmeriGas Propane Weather Key Drivers • Retail volumes were 8% lower than the prior-year period largely due to divesting the LPG businesses in Italy and Austria and the effects of warmer weather • Margin decrease primarily reflects the lower LPG retail volumes sold, substantially offset by the translation effects of the stronger foreign currencies ($30M) • Other expenses largely reflect lower realized gains on foreign currency exchange contracts ($8M) Increase Decrease WarmerColder Weather Key Drivers • Retail gallons decreased 5% primarily reflecting 12% warmer temperatures in the western U.S. and continuing customer attrition; weather-adjusted retail gallons, excluding divested operations, were comparable • Total margin increased as the impact of higher average LPG unit margins and increased fee income that were largely offset by lower retail gallons • OPEX increased largely due to continued investment in customer-facing initiatives resulting in higher compensation and advertising expenses 6.0% 4.7% Vs. Normal Vs. PY 2.4% 4.8% Vs. Normal Vs. PY Q2 FY25 EBIT Q2 FY26 EBIT Total Margin OPEX D&A Other Q2 FY25 EBIT Q2 FY26 EBIT Total Margin OPEX D&A Other Total margin represents total revenue less total cost of sales. OPEX stands for Operating & Administrative Expenses, and D&A stands for Depreciation and Amortization. 11 $143 ($4) $1 $3 ($11) $132 $154 $2 ($2) $4 ($2) $156
YTD FY261 Financial Results and Full Year Outlook 1. YTD signifies the 6-month period ended March 31. 2. Because we are unable to predict certain potentially material items affecting diluted EPS on a GAAP basis, principally mark-to-market gains and losses on commodity and certain foreign currency derivative instruments, we cannot reconcile FY26 adjusted diluted EPS, a non-GAAP measure, to diluted EPS, the most directly comparable GAAP measure, in reliance on the “unreasonable efforts” exception set forth in SEC rules. 3. Adjusted Diluted EPS is a non-GAAP measure. See Appendix for reconciliation. YTD FY26 Adjusted Diluted EPS3 vs YTD FY25 12 • YTD FY26 GAAP diluted EPS of $3.68 vs. $3.93 in YTD FY25 • Updating FY26 adjusted diluted EPS guidance to a range of $2.75 - $2.902 per share $0.04 ($0.33) $0.04 $0.59 ($0.57) $3.58 $3.35 YTD FY25 Adjusted Diluted EPS Utilities Midstream & Marketing UGI International AmeriGas Propane Corporate & Other YTD FY26 Adjusted Diluted EPS $0.49 $0.93 $0.77 $1.21 ($0.10) $0.88 $1.10 $1.17
UGI Corporation Leverage1 As of March 31, 2026 (lowest in last 5 years) Liquidity and Balance Sheet Update 1. Leverage defined as net debt to Adjusted EBITDA. Adjusted EBITDA is a non-GAAP measure. Leverage at UGI Corporation differs from relevant debt agreement due to cash eligibility within net debt and other adjustments. Leverage under the relevant debt agreement is 4.1x. 2. Available liquidity comprised of cash and cash equivalents and available borrowing capacity on revolving credit facilities. 3. As of March 31, 2026. Long-term debts with maturities of less than $10 million in a particular year have not been represented in the chart. Also excludes intercompany loan of $150 million from UGI International to AmeriGas Propane. 4. As of March 31, 2026, the Company's 2028 convertible Senior Notes became eligible for early conversion requests beginning April 1, 2026 through June 30, 2026, subject to certain conditions. As a result, the Company reclassified the convertible Senior Notes to Current maturities of long-term debt as of March 31, 2026. To date, no noteholder has elected to convert their notes. UGI Corporation Long-Term Debt Maturities ($ in Million)3,4Available Liquidity ($ in Billion)2,4 Credit Rating Elevation AmeriGas Propane Leverage1 3.7x 13 $0.4 $0.4 $0.3 $0.3 $0.5 $1.5 $1.5 $1.3 $1.3 $1.6 $1.9 $1.9 $1.6 $1.6 $2.1 Mar-25 Jun-25 Sep-25 Dec-25 Mar-26 Cash and cash equivalents Available borrowing capacity $662 $493 $550 $349 $467 $786 $104 $71 $41 $2,008 $1,100 $324 FY26 FY27 FY28 FY29 FY30-55 AmeriGas Propane UGI International Midstream & Marketing Utilities UGI Corporation Fitch has revised AmeriGas outlook from “Negative” to “Stable” Stable Outlook As of March 31, 2026 (lowest in last 5 years)4.7x
14 Optimizing our Global LPG Capital Structure UGI is executing a one-time strategic rebalancing within its Global LPG platform to optimize cost of capital and further strengthen the balance sheet This rebalancing is expected to enhance UGI’s future consolidated cost of capital and overall credit profile 1. To be funded from available liquidity. However, UGI international may seek to access the capital markets to replenish such liquidity. 2. Leverage defined as net debt to Adjusted EBITDA. Adjusted EBITDA is a non-GAAP measure. Actual net Debt at Q2 FY26 inclusive of $99 million in cash and cash equivalents at AmeriGas and $352 million in cash and cash equivalents at UGI International. 3. The forward-looking information used on this slide is for illustrative purposes only. Actual amounts may differ substantially from the figures presented. Leverage2 Actual Q2 FY26 Pro Forma Q2 FY26 Forecasted Q4 FY263 Outcome AmeriGas Propane 4.7x Significant benefit UGI International 1.2x Modest increase 3.8x 1.5x ~3.9x ~1.7x Built significant excess liquidity while maintaining low leverage through strong execution Demonstrated strong strides to unlock intrinsic value via multifaceted operational improvement One-Time Strategic Rebalancing UGI International provides a $300M distribution1 which we anticipate to fully contribute to AmeriGas Propane on May 8th ② AmeriGas Propane promptly repays its $150M intercompany loan borrowed from UGI International ③ AmeriGas Propane retains remainder to address near-term debt maturities - achieving lowest Net Debt in 10+ years ①
15 Building Momentum: Creating Sustainable Shareholder Value AmeriGas Transformation ✓ Significant improvement in safety metrics ✓ Re-shored the call center while realizing continued improvement in customer service metrics ✓ Operational transformation expected to be substantially completed ahead of the 2027 heating season Natural Gas Leadership ✓ Significant investments in improving pipeline safety and reliability, while focusing on customer affordability ✓ Robust growth opportunities in Midstream highlighted by the recent strategic partnership with Prime Data Centers Financial Strength & Flexibility ✓Meaningful leverage reduction at UGI Corporation and AmeriGas, improving balance sheet health ✓ One-time Global LPG capital rebalancing unlocks value, while demonstrating benefits of flexibility UGI International Excellence ✓ Effective margin management during periods of commodity price volatility ✓ Early wins in heating oil to propane conversions ✓ Sustained strength in free cash flows Core business growth and operational excellence throughout our business enhances pathway to unlock greater intrinsic value
Q & Q A
UGI International Contracts and Margins Historical Unit Margins Demonstrate Margin Stability1 181. Margins pertain to the West unit of the business. Our contract structures and hedging practices provide earnings stability during periods of commodity price volatility Effective Contract Structures Ensuring Margin Stability FY25 55% 30% 15% Formula-Based / Contract Floating Stated Price / Market Fixed Price / Contract Fixed May experience short-term lags in cost recovery Hedged back-to-back Natural hedge with prices directly linked to an index Q1 FY22 Q4 FY22 Q3 FY23 Q2 FY24 Q1 FY25 Q4 FY25 LPG Unit Margins Avg. Platt's Cost Q2 FY26
UGI Corporation Adjusted Diluted Earnings per Share (non-GAAP) (a) 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 CODM in assessing segment. 19 Q2 FY26 Q2 FY25 YTD FY26 YTD FY25 Utilities $0.77 $0.76 $1.21 $1.17 Midstream & Marketing 0.49 0.69 0.77 1.10 UGI International 0.46 0.42 0.93 0.89 AmeriGas Propane 0.38 0.11 0.49 (0.10) Corporate & Other (a) 0.23 0.21 0.28 0.87 Diluted earnings per share 2.33 2.19 3.68 3.93 Net losses (gains) on commodity derivative instruments not associated with current- period transactions (0.49) (0.03) (0.44) (0.32) Unrealized losses (gains) on foreign currency derivative instruments (0.03) 0.05 (0.05) (0.03) Net loss (gain) on disposals of businesses 0.28 — 0.16 — Total adjustments (a) (0.24) 0.02 (0.33) (0.35) Adjusted diluted earnings per share $2.09 $2.21 $3.35 $3.58
UGI Corporation Adjusted Net Income (non-GAAP) (a) Corporate & Other includes certain adjustments made to our reporting segments in arriving at net income attributable to UGI Corporation. These adjustments have been excluded from the segment results to align with the measure used by our Chief Operating Decision Maker in assessing segment performance and allocating resources. (b) Income taxes associated with pre-tax adjustments determined using statutory business unit tax rates. 20 ($ in Million) Q2 FY26 Q2 FY25 YTD FY26 YTD FY25 Utilities $171 $166 $269 $255 Midstream & Marketing 109 150 170 239 UGI International 103 93 206 193 AmeriGas Propane 85 25 109 (21) Corporate & Other (a) 52 45 63 188 Net income attributable to UGI Corporation 520 479 817 854 Net losses (gains) on commodity derivative instruments not associated with current-period transactions (net of tax of $25, $15, $26 and $29, respectively) (109) (5) (97) (69) Unrealized losses (gains) on foreign currency derivative instruments (net of tax of $4, $(3), $5 and $3, respectively) (7) 10 (11) (6) Net loss (gain) on disposals of businesses (net of tax of $0, $0, $1 and $0, respectively) 62 — 36 — Total adjustments (a) (b) (54) 5 (72) (75) Adjusted net income attributable to UGI Corporation $466 $484 $745 $779
($ in Million) Total Utilities Midstream & Marketing UGI International AmeriGas Propane Corp & Other Revenues $2,685 $880 $715 $621 $759 ($290) Cost of sales (1,187) (461) (512) (323) (311) 420 Total margin $1,498 $419 $203 $298 $448 $130 Operating and administrative expenses (559) (122) (36) (141) (259) (1) Depreciation and amortization (138) (48) (22) (26) (41) (1) Gain (loss) on disposals of businesses (62) — — — — (62) Other operating income (expense), net 19 — — 5 8 6 Operating income 758 249 145 136 156 72 Income (loss) from equity investees 5 — 5 — — — Other non-operating income (expense), net 8 1 — (4) — 11 Earnings before income taxes and interest expense 771 250 150 132 156 83 Interest expense (111) (30) (15) (11) (37) (18) Income before income taxes 660 220 135 121 119 65 Income tax benefit (expense) (140) (49) (26) (18) (34) (13) Net income attributable to UGI Corporation $520 $171 $109 $103 $85 $52 UGI Corporation Q2 FY26 Segment Reconciliation (GAAP) 1. For US GAAP purposes, certain revenue-related taxes within our Utilities segment are included in “Operating and administrative expenses” above. Such costs reduce margin for Management’s Results of Operations reported in our periodic filings. 1 1 All non-GAAP adjustments are recorded at Corporate and Other. As a result, GAAP and non-GAAP earnings from each reportable segment – Utilities, Midstream & Marketing, UGI International and AmeriGas Propane – are the same. 21
UGI Corporation Adjusted EBITDA (non-GAAP) 22Note: Adjusted EBITDA is a non-GAAP measure. Year Ended September 30, LTM FY26 LTM FY25 Six Months Ended March 31, ($ in Million) 2025 2024 2023 2026 2025 2024 Net income (loss) including noncontrolling interests $678 $269 ($1,502) $641 $533 $817 $854 $590 Income taxes 18 71 (335) 55 69 194 157 159 Interest expense 411 394 379 429 398 222 204 200 Depreciation and amortization 561 551 532 563 552 278 276 275 EBITDA 1,668 1,285 (926) 1,688 1,552 1,511 1,491 1,224 Net losses (gains) on commodity derivative instruments not associated with current-period transactions 9 (77) 1,644 (16) (141) (123) (98) (34) Unrealized losses (gains) on foreign currency derivative instruments 10 31 38 3 3 (16) (9) 19 Loss on extinguishments of debt 10 9 9 10 9 — — — Business transformation expenses — — 10 — — — — — Impairments of equity method investments and assets — 33 — — 26 — — 7 Restructuring costs — 76 — — 36 — — 40 Loss associated with impairment of AmeriGas Propane goodwill — 195 656 — 195 — — — Costs associated with exit of the UGI International energy marketing business — 84 248 — 4 — — 80 Net loss (gain) on disposals of businesses 36 66 — 71 66 35 — — Net gain on sale of UGI headquarters building — — (14) — — — — — AmeriGas operations enhancement for growth project — 25 24 — 12 — — 13 Adjusted EBITDA $1,733 $1,727 $1,689 $1,756 $1,762 $1,407 $1,384 $1,349
23 UGI International Adjusted EBITDA (non-GAAP) ($ in Million) Year Ended September 30, LTM FY26 LTM FY25 LTM FY24 Six Months Ended March 31, 2025 2024 2023 2026 2025 2024 2023 Net income (loss) attributable to UGI International, LLC $158 $96 ($1,076) $242 $228 $111 $290 $206 $74 ($1,113) Income tax 12 (31) (406) 36 (9) 5 67 43 21 (390) Interest expense 46 44 37 47 43 44 22 21 22 15 Depreciation & Amortization 123 119 116 120 118 119 55 58 59 56 EBITDA 339 228 (1,329) 445 380 279 434 328 176 (1,432) Net (gains) losses on commodity derivative instruments not associated with current-period transactions 47 7 1,399 (82) 13 (15) (134) (5) (11) 1,403 Unrealized losses (gains) on foreign currency derivative instruments 10 31 38 3 3 7 (16) (9) 19 50 Net (gain) loss on disposals of businesses 53 - - 88 - - 35 - - - Impairment of assets - 33 - - 26 7 - - 7 - Restructuring Costs - 57 - - 23 34 - - 34 - Costs associated with exit of UGI International energy marketing business - 84 243 - 4 94 - - 80 229 Intercompany Interest income (12) - - (17) (3) - (8) (3) - - Adjusted EBITDA $437 $440 $351 $437 $446 $406 $311 $311 $305 $250
24 UGI International Free Cash Flow (non-GAAP), EBIT and Capital Employed ($ in Million) Year Ended September 30, LTM FY26 LTM FY25 LTM FY24 Six Months Ended March 31, 2025 2024 2023 2026 2025 2024 2023 Net Cash from Operating Activities $358 $306 $139 $405 $381 $348 $215 $168 $93 ($116) Less: Capital Expenditures 93 87 129 92 87 103 30 31 31 57 UGI International Free Cash Flow $265 $219 $10 $313 $294 $245 $185 $137 $62 ($173) ($ in Million) Year Ended September 30, LTM FY26 LTM FY25 LTM FY24 Six Months Ended March 31, 2025 2024 2023 2026 2025 2024 2023 UGI International EBIT $314 $323 $234 $317 $328 $288 $256 $253 $248 $194 Total Assets $3,134 $2,906 $3,112 $3,192 $3,171 $3,052 $3,192 $3,171 $3,052 $3,499 Less: Current Liabilities 680 604 785 563 782 686 563 782 686 890 Less: Customer tank and cylinder deposits 246 243 249 226 232 248 226 232 248 265 UGI International Capital Employed $2,208 $2,059 $2,078 $2,403 $2,157 $2,118 $2,403 $2,157 $2,118 $2,344
Investor Relations: Tameka Morris morrista@ugicorp.com Arnab Mukherjee mukherjeea@ugicorp.com
FAQ
How did UGI (UGI) perform in its fiscal Q2 2026 earnings?
UGI reported Q2 2026 GAAP diluted EPS of $2.33, up from $2.19 a year earlier. Adjusted diluted EPS was $2.09 versus $2.21, reflecting stable segment operations but lower underlying earnings after removing derivative and other discrete items.
What were UGI (UGI) revenues and segment EBIT for the quarter ended March 31, 2026?
Total revenues for the quarter were $2.685 billion, compared with $2.666 billion in the prior-year period. Reportable segments earnings before interest and taxes reached $688 million in Q2 and $1,129 million year‑to‑date, slightly above $1,112 million a year earlier.
What strategic transactions did UGI (UGI) announce alongside Q2 2026 results?
UGI agreed to sell its electric division for approximately $470 million, subject to working capital adjustment and regulatory approvals. It also formed a strategic partnership with Prime Data Centers to build major natural gas infrastructure in Pennsylvania, with expected demand exceeding 100,000 dekatherms per day within three to five years.
What is UGI’s Fiscal 2026 adjusted EPS guidance after this 8-K filing?
UGI updated its Fiscal 2026 adjusted diluted EPS guidance to a range of $2.75–$2.90 per share. Management cites timing of growth investments in Midstream & Marketing and ongoing AmeriGas transformation as factors behind softer near‑term earnings expectations while maintaining long‑term growth goals.
How strong is UGI’s (UGI) balance sheet and liquidity as of March 31, 2026?
As of March 31, 2026, UGI reported available liquidity of about $2.1 billion, including cash and credit capacity. Net leverage stood at 3.7x, which management highlights as below its targeted range for Fiscal 2026, indicating improved financial flexibility for investments and debt reduction.
How did UGI’s main segments perform in Q2 2026 compared to last year?
In Q2 2026, Utilities EBIT was $250 million versus $241 million; Midstream & Marketing recorded $150 million versus $154 million. UGI International posted $132 million versus $143 million, and AmeriGas Propane delivered $156 million versus $154 million, reflecting mixed but overall stable performance.