UGI CORP /PA/ has recently released its 10-K report, providing a detailed look into the company's financial performance and operations for the fiscal year. UGI Corporation is involved in the distribution, storage, transportation, and marketing of energy products and related services in the United States and internationally. The company operates through four segments: Utilities, Midstream & Marketing, UGI International, and AmeriGas Propane, serving millions of residential, commercial, industrial, and wholesale customers with various energy products such as propane, liquefied petroleum gases (LPG), natural gas, and electricity.
In the "Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” section of the 10-K report, UGI Corporation discusses its fiscal 2024 performance, highlighting the significant influence of temperatures in its service territories, particularly during the heating-season months of October through March. The report also details recent developments, including strategic divestments in non-core markets to focus resources where it can achieve superior operational results and deliver enhanced customer value.
The company's financial measures include "adjusted net income attributable to UGI Corporation" and "adjusted diluted earnings per share," both of which are non-GAAP financial measures used by UGI management to evaluate the company's overall performance. The report provides a detailed reconciliation of these non-GAAP measures with the comparable GAAP measures, emphasizing the impact of gains and losses on derivative instruments not associated with current-period transactions and other significant discrete items.
The 10-K report also includes an executive overview of fiscal 2025 compared with fiscal 2024, with net income attributable to UGI Corporation reaching $678 million in fiscal 2025, compared to $269 million in fiscal 2024. The report highlights the adjustments made to the net income, including gains and losses from changes in unrealized commodity derivative instruments, impairment charges, and other significant discrete items.
Furthermore, the report provides an in-depth analysis of segment results for Utilities and Midstream & Marketing, comparing revenues, total margin, operating income, and earnings before interest expense and income taxes for fiscal 2025 and fiscal 2024. The analysis outlines the factors contributing to the changes in each segment's financial performance, such as core market volumes, temperature deviations, and cost of sales.
The market has reacted to these announcements by moving the company's shares 7.06% to a price of $37.61. For the full picture, make sure to review UGI CORP /PA/'s 10-K report.
