Core Insights - The company is facing challenges in its delivery network and execution during peak demand periods, which have been exacerbated by localized demand and difficult road conditions [1][2] - Management has acknowledged that early delivery tools did not perform as intended, but improvements have been made with updated tools and methodologies [1] - The 2025-2026 winter period is viewed as a stress test for the company, revealing execution challenges while transitioning to a leaner operating model [2] Financial Performance - Full-year adjusted EBITDA reached $463.5 million, a 2% increase year-over-year, driven by modest growth in U.S. and Canadian propane [4] - Adjusted EBITDA per share for the full year was $1.46, up 15%, while adjusted net earnings per share rose 94% to $0.31 [3] - In the fourth quarter, adjusted EBITDA was $161.9 million, also up 2% compared to the prior year [4] Strategic Initiatives - The "Superior Delivers" program aims to create a lower-cost, more resilient propane platform, with a target of $75 million in benefits, although the timeline for achieving these benefits has been extended [5][6] - The contribution from Superior Delivers was quantified at $16.2 million for the full year and $11.2 million in the fourth quarter [6] Challenges in CNG Business - The Certarus compressed natural gas (CNG) business is experiencing significant pricing pressure, leading to a $40 million gross margin headwind [9] - Certarus adjusted EBITDA for the full year was $142.5 million, down 4% from 2024, primarily due to lower realized wellsite prices [10] Future Outlook - The company expects approximately 2% adjusted EBITDA growth in 2026, with propane growth offset by lower earnings at Certarus [14] - Capital spending is projected to rise to approximately $160 million in 2026, aimed at updating the U.S. propane delivery fleet [16] - The multi-year EBITDA growth outlook has been revised down to about 2% from 8%, reflecting lower Certarus pricing and a slower progression of the Superior Delivers initiative [18]

Core Insights - UGI Corporation's Vice President, Jean Felix Tematio, sold 12,840 shares of UGI Common Stock for approximately $489,000 on February 11, 2026, indicating a significant transaction by a key executive [1][2]. Company Overview - UGI Corporation reported a total revenue of $7.34 billion and a net income of $600 million for the trailing twelve months (TTM) [4]. - The company has a dividend yield of 3.92% and a 1-year price change of 17.09% as of February 21, 2026 [4]. - UGI operates as a diversified energy distributor, providing propane, liquefied petroleum gas (LPG), natural gas, and electricity, serving approximately 1.4 million propane customers, 672,000 natural gas customers, and 62,500 electricity customers [5]. Recent Financial Performance - In Q1 FY 2026, UGI reported a net income of $297 million, which is a significant improvement compared to the previous two quarters that experienced net losses, although it is approximately 20% lower than the same quarter last year [6]. Corporate Developments - The company is undergoing restructuring after liquidating its petroleum gas distribution business in multiple European countries in January 2026 and appointed a new Chief Strategy Officer in February [7]. - UGI is expanding its operations into multiple states, including Pennsylvania and Hawai'i [7]. Stock Performance - UGI's stock has seen an increase over the past two years but is currently down about 5% in 2026 as of February 21 [8]. - Despite fluctuations in financial performance, the company’s petroleum gas distribution remains strong, suggesting potential for consistent revenue [9].

CFO Mark Johnson said fourth-quarter 2025 revenue was $959 million , up 51% sequentially, driven by $388 million of MRC Global revenue contribution from the close date through year-end (the “stub period”). For the full year, DNOW reported $2.8 billion in revenue, up 19% from 2024.Cherechinsky singled out the “heritage DNOW” business for delivering what he called its best four-year stretch ever (2022–2025). He said legacy DNOW generated a record full-year EBITDA of $199 million in 2025, despite a contracting ...

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $959 million, up 51% or $325 million from Q3 2025, driven by MRC Global's contribution of $388 million during the stub period [28] - Full year 2025 revenue was $2.8 billion, an increase of $447 million or 19% from 2024, marking DNOW's fifth consecutive year of growth [28] - Adjusted EBITDA for Q4 was $61 million or 6.4% of revenue, while full year EBITDA was $209 million or 7.4% of revenue [28][29] - Legacy DNOW achieved a record full-year EBITDA of $199 million in 2025, with EBITDA as a percentage of revenue reaching 8.2% [10][11] Business Line Data and Key Metrics Changes - U.S. revenue for Q4 2025 totaled $765 million, with legacy DNOW's revenue at $467 million, down approximately 10% sequentially [29] - Canadian revenue for Q4 was $51 million, down 4% sequentially, while full year Canadian revenue was $214 million [29] - International revenue for Q4 was $143 million, with legacy DNOW International revenue at $53 million, down 7.5% year-over-year [30][31] Market Data and Key Metrics Changes - Upstream market activity is expected to remain flat to down, focusing on maintenance and efficiency rather than growth [19] - Midstream sector is benefiting from structural growth drivers, including natural gas infrastructure expansion and LNG development [19] - Gas utility market is expected to grow in 2026, with initiatives like the M-Tech gas meter solution aimed at increasing customer wallet share [20] Company Strategy and Development Direction - The merger with MRC Global is expected to significantly increase scale, diversify sector reach, and enhance competitive positioning across various markets [12] - The company aims to achieve $70 million in cost synergies within three years of the merger, with $23 million expected by the end of the first year [13] - Focus on operational improvements, including branch footprint optimization and investments in inventory systems, to enhance service levels [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ERP challenges impacting U.S. MRC Global operations but is optimistic about resolving these issues [16][19] - The company plans to delay guidance until operational stability is achieved, emphasizing the importance of integration and customer service [49] - Long-term growth is anticipated through improved competitiveness, better supplier relationships, and leveraging combined inventories [80] Other Important Information - The company changed its inventory valuation method to LIFO, which is expected to better reflect current costs [32] - Adjusted net income for Q4 was $23 million or $0.15 per share, down from $28 million or $0.26 per share in Q3 [39] - The balance sheet remains healthy with liquidity of $588 million and a leverage ratio of 1.2x [40] Q&A Session Summary Question: Impact of MRC's ERP transition on Q4 and resolution timeline - ERP issues are limited to U.S. MRC only, with notable revenue loss attributed to the implementation in Q3 and Q4 [55][56] - Management is focused on resolving core infrastructure issues and has mobilized resources to mitigate customer service impacts [58][59] Question: Growth expectations for 2026 - Upstream is expected to be flat to down, while midstream and gas utilities are anticipated to grow [61][63] - Management is confident in recovering lost revenue momentum as ERP issues are resolved [64] Question: Cost synergy targets and drivers - Improved cost synergy targets are driven by urgency to resolve ERP issues and fast-tracking migration to SAP [66] - Long-term opportunities for cost savings may exceed initial projections, but management is cautious about making definitive statements [68] Question: Long-term vision for revenue growth and profit margins - Overall business is expected to have flattish revenue, with opportunities for growth through synergies and acquisitions [77] - Long-term benefits from the merger include better competitiveness and improved margins in the 8% EBITDA range [80]

Company Overview - UGI Corporation is a diversified energy distributor with a portfolio that includes propane, natural gas, and electricity, leveraging an integrated infrastructure network to deliver energy products and services across multiple markets [6][9] - The company reported a total revenue of $7.34 billion and a net income of $600 million for the trailing twelve months (TTM) [4] Recent Transactions - Bragg Financial Advisors increased its stake in UGI by 207,861 shares, valued at approximately $7.36 million, as disclosed in a SEC filing dated February 13, 2026 [2] - Following this transaction, Bragg Financial Advisors' total exposure to UGI rose to 1,316,362 shares, with the position's value increasing by $12.40 million from the previous filing [2] Financial Performance - UGI opened fiscal 2026 with quarterly revenue of $2.08 billion, reflecting a 5% growth in total reportable segment EBIT to $441 million [7] - The adjusted diluted EPS for the quarter was reported at $1.26, with the Utilities segment achieving a 12% growth in operating income, supported by base rate increases in Pennsylvania and a 16% growth in core market volumes during colder weather [7] Market Position - As of February 12, 2026, UGI shares were priced at $38.26, representing a 23% increase over the past year, outperforming the S&P 500 by 10.64 percentage points [8] - The company is also focusing on regulated earnings growth, with rate case filings requesting $99 million and $27 million in distribution increases [10] Strategic Moves - UGI is reshaping its portfolio by divesting LPG businesses in several European countries, which is expected to generate approximately $215 million in cash [10] - Moody's has upgraded AmeriGas' outlook to positive, indicating a favorable view of the company's future performance [10]

Core Insights - Rexel reported FY 2025 sales of €19,414.6 million, reflecting a year-on-year increase of 0.7%, driven by organic growth and acquisitions [1][10] - The current adjusted EBITA margin improved to 6.0%, up 10 basis points from 5.9% in FY 2024, indicating resilience in profitability despite challenging market conditions [1][20] - Net income surged by 73% to €591.4 million, while recurring net income rose by 2.4% to €678.5 million [1][26] Financial Performance - FY 2025 operating income reached €1,061.6 million, a 25.5% increase from €845.9 million in FY 2024, including exceptional items [1][26] - Free cash flow conversion was reported at 66.3%, or 76.4% excluding the impact of a €124 million fine, surpassing guidance for the third consecutive year [1][28] - The company maintained a robust balance sheet with an indebtedness ratio of 2.0x as of December 31, 2025 [1] Sales Growth - Same-day sales increased by 2.5% in FY 2025, with Q4 sales of €4,881.1 million reflecting a 3.8% increase on a same-day basis [3][7] - North America saw strong sales growth of 7.0% for FY 2025, with Q4 growth at 7.9%, driven by high-growth verticals such as datacenters and broadband infrastructure [15][16] - In Europe, sales were stable, with a slight decline of 1.1% for FY 2025 on a constant and same-day basis, while France reported a 1.5% increase [11][17] Strategic Initiatives - The company executed nearly €200 million in value-creating acquisitions and divested operations in Finland and New Zealand [4] - A proposed dividend of €1.20 per share represents a 52% payout ratio, maintaining a strong track record of returning value to shareholders [4][32] - Rexel's Axelerate 2028 strategic plan aims to enhance market outperformance and drive transformation initiatives across AI and digital platforms [2][5] Outlook - For FY 2026, Rexel anticipates same-day sales growth between 3% and 5%, with a current adjusted EBITA margin projected at approximately 6.2% [2][33] - The company expects to continue benefiting from structural electrification and AI-driven opportunities, supporting its medium-term ambitions [5][34]

Core Viewpoint - Tejara Capital Ltd has established a new position in DNOW, acquiring 685,617 shares valued at approximately $9.08 million, indicating confidence in the company's growth potential and market position [2][3]. Company Overview - DNOW Inc. is a leading distributor of energy and industrial products, focusing on comprehensive supply chain solutions and value-added services for critical infrastructure sectors [5]. - The company operates a distribution-based business model, generating revenue through the sale of consumable products and equipment, complemented by supply chain and materials management solutions [8]. Financial Performance - As of February 4, DNOW shares were priced at $16.05, with a market capitalization of $3 billion and a revenue of $2.43 billion over the trailing twelve months (TTM) [4]. - The company reported a net income of $95 million TTM and generated $634 million in revenue in the third quarter, with an EBITDA of $51 million, representing 8% of sales [10]. - DNOW has zero long-term debt and a liquidity position of approximately $629 million, providing financial flexibility [10]. Strategic Positioning - The new stake by Tejara Capital adds a steady, cash-generative industrial layer to its portfolio, benefiting from energy activity without direct commodity risk [9]. - DNOW serves various sectors, including upstream, midstream, and downstream energy companies, positioning itself as a key partner for operations seeking efficiency and reliability [8]. Future Outlook - The company is working towards closing an all-stock acquisition of MRC Global, a deal valued at around $1.5 billion, which is expected to enhance its scale and product reach [10]. - The essential components sold by DNOW are critical for maintaining energy and industrial systems, suggesting that the business will benefit from rising activity levels while its cash position offers downside protection during market downturns [11].

Core Thesis - World Kinect Corporation (WKC) presents a bullish investment opportunity due to its significant revenue generation, ongoing turnaround strategy, and potential for substantial value appreciation in the energy sector [1][5]. Financial Performance - WKC generated over $37 billion in trailing twelve-month revenue while trading at a market capitalization of $1.47 billion, resulting in a price-to-sales ratio of 0.04x compared to the sub-industry average of 0.55x [2]. - The company has reported net income positivity over the last three quarters and generates approximately $250 million in annual operating cash flow, despite $470 million in non-cash goodwill and asset impairments [3]. - After accounting for $110 million in annual interest expense, WKC maintains a comfortable coverage ratio with manageable debt maturities extending to 2028 and 2030 [3]. Strategic Initiatives - WKC has made progress in its turnaround strategy by divesting non-profitable land divisions in the UK and Brazil, and has aggressively repurchased shares, reducing the float by roughly 15% over the past few years [4]. - The recent CEO succession to Ira Birns has been smooth, mitigating operational disruption risk [4]. Market Position and Outlook - WKC's profitability is sensitive to energy price volatility, with expectations of improvement as global energy markets face heightened cyclical demand and geopolitical uncertainty [4]. - The company is positioned to benefit from broader energy sector reratings and potential AI-driven efficiencies, which could significantly enhance net margins [5]. - With ongoing turnaround efforts, aggressive buybacks, and cyclical recovery, WKC could realistically double in value over the next few years and potentially multiply up to tenfold, presenting a high-conviction opportunity in the energy space [5].

VALLEY FORGE, Pa.--(BUSINESS WIRE)--UGI Corporation (NYSE: UGI) today reported financial results for the fiscal quarter ended December 31, 2025. HIGHLIGHTS Bob Flexon, President and Chief Executive Officer, said, "UGI had a solid start to fiscal 2026, delivering 5% growth in total reportable segment EBIT in line with our expectation. Our natural gas businesses produced strong results, driven by strong gas demand and the impact of the gas base rate case at our Pennsylvania utility. Across our Global LPG busi ...

UGI Corporation (NYSE:UGI) is included among the 10 High Yield Utility Stocks to Buy in 2026. UGI Divests LPG Distribution Business in Europe   UGI Corporation (NYSE:UGI) is an international distributor and marketer of energy products and services, including natural gas, LPG, electricity, and renewable solutions, with well-developed infrastructure in key markets. UGI Corporation (NYSE:UGI) announced on January 15 that it has reached a definitive agreement to sell its LPG distribution business in the Cz ...