UGI Corporation (NYSE: UGI) reported fiscal third-quarter 2026 revenue of $1.331 billion, down about 4.5% from $1.394 billion a year earlier, while its GAAP diluted loss narrowed to $0.62 per share from $0.76. Net loss improved to $133 million from $163 million, but adjusted diluted loss widened to $0.20 from $0.01 as reportable-segment EBIT declined and AmeriGas weakened.
Core Financial Results
Lower revenue at AmeriGas Propane and Midstream & Marketing outweighed growth at Utilities, while UGI International revenue was nearly unchanged. Although the consolidated GAAP loss narrowed, the adjusted loss increased because the current quarter included substantially smaller non-GAAP adjustments than the prior-year period.
The following figures are for the three months ended June 30 and are in U.S. dollars, except per-share data.
| Metric | Fiscal Q3 2026 | Fiscal Q3 2025 | Year-over-year change |
|---|---|---|---|
| Revenue | $1.331 billion | $1.394 billion | About -4.5% |
| Reportable-segment EBIT | $58 million | $72 million | About -19% |
| Total EBIT | $(52) million | $(127) million | Loss narrowed by $75 million |
| Net loss attributable to UGI | $(133) million | $(163) million | Loss narrowed by $30 million |
| GAAP diluted EPS | $(0.62) | $(0.76) | Loss narrowed by $0.14 |
| Adjusted net loss | $(43) million | $(3) million | Loss widened by $40 million |
| Adjusted diluted EPS | $(0.20) | $(0.01) | Loss widened by $0.19 |
Business and Segment Performance
Utilities and Midstream & Marketing increased EBIT, but their combined improvement was more than offset by weaker results at AmeriGas and UGI International. AmeriGas was the largest drag, with lower retail gallons reducing both revenue and total margin while operating and administrative expenses remained unchanged.
Segment figures below are in U.S. dollars for fiscal Q3 2026, with prior-year comparisons shown in parentheses.
| Segment | Revenue | Total margin | EBIT | Main year-over-year driver |
|---|---|---|---|---|
| Utilities | $302 million ($287 million) | $181 million ($168 million) | $40 million ($30 million) | Higher Pennsylvania gas base rates |
| Midstream & Marketing | $249 million ($278 million) | $90 million ($77 million) | $30 million ($27 million) | Capacity-margin timing and recovery of higher pipeline costs |
| UGI International | $436 million ($437 million) | $186 million ($192 million) | $41 million ($43 million) | LPG divestitures reduced volumes and margin |
| AmeriGas Propane | $372 million ($434 million) | $201 million ($227 million) | (53)million((28) million) | Lower retail gallons and fee income |
Utilities’ total margin increased 8%, while operating and administrative expenses were unchanged at $96 million. Its EBIT rose 33% despite an additional $3 million of depreciation associated with continued distribution-system investment.
Midstream & Marketing’s total margin increased 17%, but operating and administrative expenses rose 25% to $40 million, primarily because of plants placed in service last year. Consequently, EBIT increased by a more moderate 11%.
UGI International’s retail LPG volume fell 10% to 125 million gallons, mainly because of divestitures in Italy, Austria, and Eastern Europe. Higher unit margins and approximately $5 million of favorable currency translation effects were insufficient to offset the divestiture impact.
AmeriGas retail volume declined 10% to 124 million gallons. UGI attributed the decline primarily to April temperatures that were 16% warmer than a year earlier and continuing customer attrition. Excluding the Hawaii divestiture and adjusting for weather, volume fell 6% for the quarter and 2% for the first nine months of fiscal 2026.
Profitability and Financing
Total interest expense increased to $109 million from $101 million. Higher interest costs at Utilities and Midstream & Marketing contributed to the increase, adding pressure while reportable-segment EBIT was lower.
UGI also completed debt transactions at UGI International, AmeriGas, and UGI Energy Services that extended maturities and are expected to reduce borrowing costs by approximately $30 million on an annualized basis. The disclosed savings are prospective and should not be treated as a full-quarter benefit in the reported results.
Smaller Adjustments Narrowed the GAAP Loss Even as Adjusted Earnings Weakened
The direction of GAAP and adjusted earnings diverged this quarter. UGI’s GAAP net loss narrowed by $30 million, but its adjusted net loss widened by $40 million.
Total after-tax adjustments were $90 million in fiscal Q3 2026, compared with $160 million a year earlier. The prior-year reconciliation included a $53 million adjustment for losses on business disposals, versus $5 million this quarter. Adjustments related to commodity derivatives were $76 million this quarter and $81 million a year earlier, while foreign-currency derivative adjustments moved from positive $18 million to negative $6 million.
The operating data also show this distinction. Reportable-segment EBIT declined by $14 million, principally because AmeriGas’ EBIT loss widened by $25 million. At the consolidated level, however, Corporate & Other improved to a $110 million EBIT loss from a $199 million loss, helping total GAAP EBIT improve despite weaker segment results.
Fiscal 2026 Guidance
UGI reaffirmed its previously revised fiscal 2026 adjusted diluted EPS range. The company did not provide a GAAP reconciliation because it cannot predict potentially material mark-to-market effects from commodity and foreign-currency derivatives.
| Metric | Latest guidance | Previous guidance | Change |
|---|---|---|---|
| Fiscal 2026 adjusted diluted EPS | $2.75-$2.90 | $2.75-$2.90 revised range | Reaffirmed |
Management Commentary and Regulatory Update
Management said natural gas demand across UGI’s regions is benefiting from economic development and additional load from data centers and power generation. It also said the AmeriGas transformation is producing better volume-retention trends and improvements in safety, net promoter score, zero fills, and out-of-gas incidents, although the quarter’s reported volume and EBIT figures remained lower year over year.
At the Pennsylvania Gas Utility, administrative law judges recommended approval of a settlement without modifications. Subject to final Pennsylvania Public Utility Commission approval, the settlement would allow a two-stage distribution rate increase totaling $65 million: $40 million in October 2026 and $25 million in October 2027. A final decision is expected no later than October 2026.
Recent Insider Transactions
The supplied insider data show 43,860 shares purchased through three transactions and 38,200 shares sold through two transactions during the latest six-month period. Net purchases were 5,660 shares, equal to 2.40% of the reported 237,980 total insider shares held; these figures do not by themselves indicate insiders’ views about UGI’s outlook.
The latest transaction records with a disclosed type and value are shown below. Stock awards reported at zero value represent grants rather than open-market purchases.
| Date | Insider | Role | Transaction | Reported value |
|---|---|---|---|---|
| June 18, 2026 | Kathleen Shea-Ballay | General Counsel | Conversion or exercise | $623,856 |
| June 18, 2026 | Kathleen Shea-Ballay | General Counsel | Sale | $852,494 |
| February 11, 2026 | Jean Felix Tematio | Officer | Conversion or exercise | $315,864 |
| February 11, 2026 | Jean Felix Tematio | Officer | Sale | $488,848 |
| January 30, 2026 | Mario Longhi | Director | Stock award | $0 |
| January 30, 2026 | Kelly A. Romano | Director | Stock award | $0 |
| January 30, 2026 | Tina Veronica Faraca | Director | Stock award | $0 |
| January 30, 2026 | Santiago Seage | Director | Stock award | $0 |
| January 30, 2026 | David Bingenheimer | Director | Stock award | $0 |
An April 10, 2026 entry for CFO Sean P. O’Brien was excluded because the supplied data did not identify a transaction type or value.
Risks Investors Should Monitor
- AmeriGas customer attrition: Retail gallons fell 10%, and weather-adjusted volume excluding the Hawaii divestiture declined 6%. Continued attrition would pressure revenue, total margin, and EBIT.
- Weather sensitivity: Warmer conditions affected AmeriGas, Midstream & Marketing, and UGI International. Heating demand remains an important source of quarterly variability.
- Divestiture effects: Disposals reduced UGI International’s retail volume and offset benefits from higher unit margins and favorable currency translation.
- Regulatory approval: The proposed $65 million Pennsylvania distribution rate increase remains subject to final commission approval.
- Interest expense: Quarterly interest expense rose by $8 million while reportable-segment EBIT declined, increasing the burden on pretax profitability.
Summary
UGI’s fiscal Q3 2026 GAAP loss narrowed, but adjusted earnings and reportable-segment EBIT weakened. Utilities and Midstream & Marketing produced higher EBIT, while AmeriGas’ falling volume, customer attrition, and lower fee income were the main operating pressures. The next points to monitor are AmeriGas’ winter-season execution, realization of anticipated borrowing-cost savings, and final approval of the Pennsylvania gas rate settlement.
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