Aug 6, 2026 earnings call — AmeriGas turnaround and guidance reaffirmed
Total reportable segment EBIT was $58 million; company reaffirmed adjusted diluted EPS guidance of $2.75 to $2.90.
Revenue $1.3B (est $1.5B) · EPS $-0.20 (est $-0.08)
Key quotes
"Pending approval by the Pennsylvania Public Utility Commission, the settlement would permit a 2-step rate increase of $65 million with approximately $40 million effective in October 2026 and approximately $25 million in October 2027 with a stay-out provision through January 2029."
"With a leading market position across our remaining geographies, over 90% tank ownership and a strong track record of operational excellence, the business continues to experience long-standing customer relationships, strong customer retention rates, top-tier return on capital employed and attractive free cash flow conversion rates."
Analyst Q&A 3
Gas production delays and EPS growth
Q (Whitney Mutalemwa · Wells Fargo): They asked if the midstream delays are resolved or will push into fiscal '27, and whether that changes confidence in the 5% to 7% consolidated EPS CAGR through '29.
A: Management said production is returning to the Appalachia basin with well pad expansions starting early and later in fiscal '27 and the Auburn Pipeline expected toward the end of '27. They said midstream growth prospects look good, and the company still views the 5% to 7% EPS CAGR as intact, though midstream growth may be more mid- to back-end loaded and other divisions could make up the interim.
"I would say midstream in the long run, the outlook still remains very strong based on the comments Bob made." — Sean O’Brien
International sales and DSIC timing
Q (Luke Fenker · Jefferies): He asked whether recent take-private activity changes thinking about selling parts of the international business, and how important the DSIC is as a bridge recovery during the stay-out through January '29 and whether CapEx might change.
A: Management said the international business is valuable and well run in France and that they continually evaluate the portfolio but did not commit to a sale now. On utilities, they said the DSIC is important late in the timeline, it was structured as a two-stage increase, and after the second tranche they will rely on the DSIC in the third year.
"It is important in the latter part of the years for the DSIC to kick in." — Robert Flexon
AmeriGas cash flows and CapEx needs
Q (Gabriel Moreen · Mizuho): He asked how AmeriGas might distribute cash to the parent in 2027 (for example tied to leverage around 4x) and whether AmeriGas will need growth capital as results improve.
A: Management said they plan meaningful cash distributions to the parent in 2027 and that AmeriGas is generating meaningful cash this year but is using it to delever this year; they expect leverage to move below 4 and then into the mid- to low-3s. On CapEx, they said they will continue modest, steady investment to renew the delivery fleet and improve facilities, with no large spikes expected.
"We plan on having meaningful cash distributions to the parent in 2027, which is something that hasn't been done for some time." — Robert Flexon