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UGI (UGI) Up 10.3% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for UGI (UGI - Free Report) . Shares have added about 10.3% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is UGI due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for UGI Corporation before we dive into how investors and analysts have reacted as of late.
UGI Q3 Earnings Beat Estimates, Revenues Miss on LPG Weakness
UGI Corporation reported a third-quarter fiscal 2026 adjusted loss of 20 cents per share, which was 42.86% narrower than the Zacks Consensus Estimate of a loss of 35 cents. However, the adjusted loss widened from the year-ago loss of 1 cent per share.
GAAP loss per share in the fiscal third quarter was 62 cents compared with a loss of 76 cents in the year-ago quarter.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -220% due to these changes.
VGM Scores
Currently, UGI has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. However, the stock was allocated a score of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise UGI has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
View the Zacks #1 Rank List
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UGI (UGI) Up 10.3% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for UGI (UGI - Free Report) . Shares have added about 10.3% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is UGI due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for UGI Corporation before we dive into how investors and analysts have reacted as of late.
UGI Q3 Earnings Beat Estimates, Revenues Miss on LPG Weakness
UGI Corporation reported a third-quarter fiscal 2026 adjusted loss of 20 cents per share, which was 42.86% narrower than the Zacks Consensus Estimate of a loss of 35 cents. However, the adjusted loss widened from the year-ago loss of 1 cent per share.
GAAP loss per share in the fiscal third quarter was 62 cents compared with a loss of 76 cents in the year-ago quarter.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -220% due to these changes.
VGM Scores
Currently, UGI has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. However, the stock was allocated a score of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise UGI has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.