Spire Inc. Q2 FY2026 earnings call

Scott Doyle mentioned the company has been in a transformative period, having completed the acquisition of Piedmont Tennessee, sold non-core assets like Spire Marketing and Spire Storage in Mississippi, and focusing on regulated gas utility businesses. Key 2026 business priorities include maintaining operational excellence, achieving constructive regulatory outcomes, delivering adjusted earnings within guidance range, and executing strategic transactions and integration such as integrating Spire Tennessee.

Gas utility earnings totaled $235 million in the second quarter, an increase of over 20% or $40 million compared to the prior year, driven by new rates in Missouri and Alabama and recovery of earnings on approximately $1 billion of incremental rate base. Marketing and storage are classified as discontinued operations. Other activities reported an adjusted loss of $11 million, approximately $5 million higher than the prior year, reflecting higher corporate costs and higher interest expense.

Fiscal 2026 adjusted EPS guidance range from continuing operations is $3.90 to $4.10 per share. Reaffirmed 2027 adjusted EPS guidance range of $5.40 to $5.60 per share. Full-year 2026 capital expenditures expected to be $797 million across utilities, supporting rate-based growth in Missouri and Tennessee.

Weather-driven usage impacts in Missouri where customer usage was materially below historical patterns and below assumptions in weather normalization mechanisms. Regulatory uncertainties in terms of achieving constructive outcomes and handling rate case filings. Higher interest expense due to higher long-term debt balances.

Q: About weather normalization mechanism in Missouri and dividend trajectory; A: Scott responded that an accounting authority order was filed with a hearing scheduled for September 9th and Adam mentioned payout ratio in the typical 55% to 65% area with dividend growing along with earnings.

Q: About sale of Mississippi subsidiary and AAO filing timeline; A: Explained that the Mississippi business is subscale with 18,000 customers and Delta was a natural owner, and the timeline for AAO decision depends on the order wording and timing