Spire Inc. Q1 FY2026 earnings call

• Recognized employee hard work during winter storm Fern and highlighted natural gas's reliability and affordability during the storm.
• Announced adjusted earnings of $1.77 per share, up from $1.34 per share year-over-year, driven by solid execution in gas utility business with new rates, and contributions from marketing and midstream segments.
• Emphasized cost management and customer affordability as central to strategy, pursuing efficiencies while investing in system improvements and safety.
• On regulatory front, new Missouri rates effective in October, filed $30.3 million revenue increase request in November (rates expected effective no later than May), and updated rates in Spire Alabama and Spire Gulf in December.
• Reaffirmed 2026 adjusted EPS guidance of $5.25 to $5.45 per share, 2027 adjusted EPS guidance of $5.65 to $5.85 per share, and long-term 5% to 7% adjusted EPS growth target; ten-year capital plan at $11.2 billion with majority for utility investments.
• On track to close Piedmont, Tennessee acquisition in calendar quarter one 2026, with Hart-Scott-Rodino review complete and Tennessee Public Utility Commission approval pending; financing plan includes balanced mix of debt, equity, and hybrid securities; merger of STL and Mogas pipelines completed on January 1, 2026.
• Invested $230 million in capital expenditures in the quarter, with majority for gas utility operations; 2026 CapEx expected to be $800 million to $900 million.

For the first quarter, Spire Inc. reported adjusted earnings of $108 million or $1.77 per share. Breaking down by business segment: Gas Utilities earned $104 million, up over 33% ($26 million) from the prior year, driven by new rates in Missouri and higher margin under the RSE in Alabama but partially offset by lower Raleigh metric margin and higher O&M, depreciation, and interest expense. Gas marketing earned $4.5 million, an increase of $2.3 million due to increased portfolio optimization opportunities. Midstream delivered earnings of $12.7 million, up almost $1 million from last year, driven by additional capacity at Spire Storage but partially offset by higher depreciation and interest expense. Other corporate costs were an adjusted loss of $12.7 million, approximately $2 million higher than the prior year, reflecting higher corporate costs and slightly higher interest expense.

• Reaffirmed 2026 adjusted EPS guidance of $5.25 to $5.45 per share and 2027 adjusted EPS guidance of $5.65 to $5.85 per share.
• Long-term adjusted EPS growth target remains 5% to 7%.
• 2026 CapEx expected to be $800 million to $900 million.
• Adjusted earnings range for corporate and other updated to negative $40 million to negative $46 million, lowering the midpoint by $9 million to reflect interest expense related to redeeming preferred stock; fiscal 2026 preferred dividends impacting EPS expected to be lower by $9 million.
• Merger of STL and Mogas pipelines completed on January 1, 2026, operating as Spire Mogas pipeline.

• Evaluation of potential sale of natural gas storage assets is ongoing with timeline extended beyond initial expectation, reflecting focus on achieving right value for assets; no specific backup plans mentioned beyond current process but focus on simplifying portfolio and providing update later this quarter ahead of acquisition close.

Q: Gabe Moreen asked about gas market volatility in January and how marketing was positioned and utilities' hedging strategy.

A: Scott Edward Doyle said the market performed well, all systems met customer obligations, and utilities' purchasing strategies (AMA for Missouri and Alabama) performed as expected, protecting customers.

Q: David Arcaro asked about storage asset sales process, interest, timing, and backup plans.

A: Scott Edward Doyle said evaluation process took longer than initial anticipation, focus on getting right value, had good interest in assets; Adam W. Woodard said expect announcement later this quarter prior to Tennessee close, with bridge loan available if needed.

Q: Bhak asked about timing for equity issuance related to Tennessee acquisition.

A: Adam W. Woodard said in November raised $900 million of JSN market, followed by $825 million for Spire Tennessee, with about $750 million to raise or recycle, indicating equity market involvement sometime after next call in May or June.

Q: Paul Fremont asked about storage transaction and financing compared to guidance.

A: Adam W. Woodard said contemplating redemption of preferred in guidance, acquisition financing relatively close to expectations.

Q: Bill Apicelli asked about Missouri rate case timeline.

A: Scott Edward Doyle said anticipate filing rate case in October/November timeframe of current year, following prior case pattern, with work already underway in dialogue with commission staff.