UGI CORP /PA/ has recently released its 10-K report, revealing a comprehensive overview of its operations and financial performance. The company, founded in 1882 and headquartered in King of Prussia, Pennsylvania, operates through four segments: Utilities, Midstream & Marketing, UGI International, and AmeriGas Propane. UGI Corporation is involved in the distribution, storage, transportation, and marketing of energy products and related services, including propane, liquefied petroleum gases (LPG), natural gas, and electricity to a wide range of customers.
The "Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Fiscal 2024 Annual Report on Form 10-K, filed with the SEC on November 26, 2024, highlighted the significant influence of temperatures in UGI's service territories on its results. The company's operations are notably impacted by temperatures, particularly during the heating-season months of October through March, which significantly influence its results of operations.
In terms of recent developments, UGI Corporation has strategically divested operations in non-core markets to focus resources where it can achieve superior operational results and deliver enhanced customer value. This includes divesting its LPG distribution business located in Austria, completing the sale of UniverGas, its LPG distribution business in Italy, and entering into a definitive agreement to divest its cylinder business in the United Kingdom. Additionally, AmeriGas OLP completed the sale of its propane business located in Hawaii.
UGI management uses non-GAAP financial measures, including "adjusted net income attributable to UGI Corporation" and "adjusted diluted earnings per share," to evaluate the company's overall performance. These non-GAAP measures provide meaningful information to investors about UGI’s performance by eliminating gains and losses on commodity and certain foreign currency derivative instruments not associated with current-period transactions and other significant discrete items that can affect the comparison of period-over-period results.
The 10-K report also provides a detailed analysis of segment results, comparing the performance of Utilities and Midstream & Marketing segments for Fiscal 2025 and Fiscal 2024. For example, in Fiscal 2025, UGI International’s adjusted net income decreased $20 million compared to the prior year, primarily due to higher income tax expenses and lower margin contributions from the LPG business. AmeriGas Propane’s adjusted net income, on the other hand, increased by $59 million in Fiscal 2025 compared to the prior year, reflecting lower income tax expenses and higher total margin.
The report also includes a comprehensive breakdown of financial figures, highlighting the increase in adjusted net income attributable to UGI Corporation from $658 million in Fiscal 2024 to $728 million in Fiscal 2025, and the increase in adjusted diluted earnings per share from $3.06 in Fiscal 2024 to $3.32 in Fiscal 2025.
The market has reacted to these announcements by moving the company's shares 7.06% to a price of $37.61. Check out the company's full 10-K submission here.
