UGI Corporation reported third-quarter reportable segment earnings before interest and taxes of $58 million, down from $72 million in the prior-year period. The decline was primarily driven by warmer weather conditions and reduced retail propane volumes at AmeriGas. Year-to-date reportable segment EBIT increased modestly to $1.187 billion, up $3 million compared to the prior-year period. The company maintained its fiscal 2026 adjusted diluted earnings per share guidance range of $2.75 to $2.90.
Year-to-date adjusted diluted earnings per share reached $3.17, compared with $3.55 in the prior-year period. Chief Financial Officer Sean O’Brien attributed the decline largely to the absence of investment tax credits recognized in the prior year and higher interest expenses. Weather created an approximately $0.05 per-share headwind compared with the prior year and a $0.11 headwind relative to normal weather patterns.
The Utilities segment posted a $10 million year-over-year increase in third-quarter EBIT, supported by higher gas base rates that took effect in October 2025. The company directed approximately 76% of capital expenditures toward natural gas businesses and added more than 8,500 new heating customers across regulated utility territories. Administrative law judges recommended approval of UGI Utilities’ joint settlement petition for its gas rate case, which would provide approximately $65 million in two-step rate increases scheduled for October 2026 and October 2027.
AmeriGas experienced a $25 million year-over-year decline in third-quarter EBIT as retail propane gallons fell 10%. Excluding divestitures and adjusting for weather impacts, retail gallons declined 6% in the quarter. Despite operational challenges, AmeriGas demonstrated significant improvements in safety and customer service metrics compared to fiscal 2024, including a 50% decrease in lost-time injuries and a 63% increase in average Net Promoter Score. The company reduced net debt by approximately $270 million and lowered leverage to 4.3 times, described as the lowest level in 10 years. Management projects more than $100 million in free cash flow for fiscal 2026 and anticipates meaningful cash distributions to the parent company in fiscal 2027.
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