UGI Q3 Earnings Beat Estimates, Revenues Miss on LPG Weakness

Total Revenues of UGI

Revenues of $1.33 billion missed the Zacks Consensus Estimate of $1.55 billion by 14.02%. The top line also decreased 4.5% from the year-ago quarter’s $1.39 billion. Lower propane volumes pressured results, with retail gallons sold falling 10% at both AmeriGas Propane and UGI International.

Highlights of UGI’s Q3 Release

UGI’s loss before interest expense and income tax (EBIT) for the third quarter of fiscal 2026 was $52 million, down 59% from $127 million in the prior year.

The company’s interest expenses were $109 million, up 7.9% from $101 million in the year-ago quarter.

On July 31, 2026, Administrative Law Judges recommended approval of a $65 million two-phase Pennsylvania gas rate settlement, with $40 million effective in October 2026 and $25 million in October 2027, pending PUC approval.

UGI’s Segment Results Show Mixed Performance

AmeriGas Propane revenues declined 14% year over year to $372 million, while its EBIT loss widened 89% to $53 million. Retail gallons sold fell 10% to 124 million, reflecting unusually warm April weather and continued customer attrition. 

UGI International revenues remained essentially flat at $436 million compared with $437 million a year ago, while EBIT declined 5% to $41 million. Retail LPG volumes declined 10% to 125 million gallons, largely due to the divestitures of businesses in Italy, Austria and Eastern Europe.

Midstream & Marketing revenues declined 10% year over year to $249 million, while EBIT increased 11% to $30 million from $27 million despite a higher cost base.

UGI Utilities revenues increased 5% year over year to $302 million, while EBIT increased 33% to $40 million. Core market throughput remained flat at 12 billion cubic feet, while total throughput declined 11% to 73 billion cubic feet.

UGI’s Liquidity and Leverage Position

The company ended June with $1.9 billion of available liquidity, including $500 million in cash and cash equivalents. 

UGI completed debt transactions expected to reduce annualized borrowing costs by approximately $30 million. Corporate leverage was 3.8 times, while AmeriGas's leverage stood at 4.3 times.

UGI's FY26 Guidance

UGI reaffirmed its fiscal 2026 adjusted EPS guidance of $2.75-$2.90. The Zacks Consensus Estimate for earnings is pegged at $2.87, which is above the midpoint of the company’s guided range.

UGI’s Zacks Rank

UGI currently has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Utilities Releases

Algonquin Power & Utilities Corp. AQN is scheduled to report second-quarter results on Aug. 7. The Zacks Consensus Estimate for second-quarter EPS is pinned at 5 cents, which implies a year-over-year increase of 25%.

The Zacks Consensus Estimate for second-quarter sales is pegged at $552.5 million, which suggests year-over-year growth of 4.68%.

PPL Corporation PPL is scheduled to report second-quarter results on Aug. 7. The Zacks Consensus Estimate for earnings is pegged at 35 cents per share, which implies year-over-year growth of 9.38%.

The Zacks Consensus Estimate for second-quarter sales is pinned at $2.18 billion, which suggests year-over-year growth of 7.50%.

Vistra VST is scheduled to report second-quarter 2026 results on Aug. 7. The Zacks Consensus Estimate for earnings is pegged at $1.54 per share, which implies year-over-year growth of 52.48%.

The Zacks Consensus Estimate for second-quarter sales is pinned at $6.29 billion, which suggests year-over-year growth of 48.07%.

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This article originally published on Zacks Investment Research (zacks.com).

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