Spire Inc. — Fiscal 2026 Third Quarter Earnings Summary

Financial Performance

• Reported a net loss from continuing operations of $42.6 million ($0.72 per diluted share) for the quarter ended June 30, 2026, compared to a net loss of $13.3 million ($0.29 per share) in the prior year.
• Reported an adjusted loss from continuing operations of $15.7 million ($0.26 per share), compared to a loss of $13.3 million ($0.29 per share) in the prior year.
• For the nine months ended June 30, 2026, reported net income from continuing operations of $262.8 million ($4.21 per share) compared to $248.1 million ($4.05 per share) in the prior year.
• Nine-month adjusted earnings from continuing operations were $301.8 million ($5.01 per share), up from $248.1 million ($4.05 per share) in the prior year.
• Operating revenues for the quarter were $420.2 million, up from $352.5 million in the prior year; year-to-date revenues were $2,138.9 million, up from $1,946.9 million.
• Gas Utility segment reported an adjusted loss of $3.2 million for the quarter, improving from a loss of $10.0 million in the prior year; year-to-date adjusted earnings were $335.5 million, up from $263.0 million.
• Other activities reported an adjusted loss of $12.5 million for the quarter, widening from a loss of $3.3 million in the prior year; year-to-date adjusted loss was $33.7 million, compared to $14.9 million.
• Earnings from discontinued operations were $253.8 million for the quarter, including an after-tax gain on sale of $254.6 million; year-to-date discontinued earnings were $325.6 million.
• Net cash provided by operating activities for the nine months was $613.6 million, compared to $582.9 million in the prior year.
• Net cash used in investing activities was $2,268.9 million for the nine months, driven by $2,500.8 million in business acquisitions and $608.4 million in capital expenditures.
• Net cash provided by financing activities was $1,673.1 million for the nine months, including $2,488.1 million in long-term debt issuance and $819.9 million in proceeds from the sale of discontinued operations.
• Total assets were $14,091.4 million as of June 30, 2026, compared to $11,575.3 million as of September 30, 2025.
• Long-term debt (less current portion) was $5,758.0 million as of June 30, 2026, compared to $3,369.4 million as of September 30, 2025.
• Preferred stock was redeemed, reducing preferred stock from $242.0 million to $0.

Guidance and Future Outlook

• Reaffirmed fiscal 2026 adjusted earnings guidance from continuing operations of $3.90–$4.10 per share.
• Reaffirmed fiscal 2027 adjusted earnings guidance range of $5.40–$5.60 per share, reflecting a full year of earnings contributions from Spire Tennessee.
• Reaffirmed a long-term adjusted earnings growth target of 5-7%.
• Maintains a 10-year $11.2 billion capital investment target through fiscal 2035.
• Expected total capital expenditures for continuing operations in fiscal 2026 is $797 million.

Business Segments and Product Lines

• Completed divestitures of Spire Marketing and Spire Storage businesses, which are now classified as discontinued operations.
• Gas Utility segment performance was driven by new Spire Missouri rates effective October 2025, higher Spire Missouri Infrastructure System Replacement Surcharge (ISRS) revenues, and Spire Alabama rates under the Rate Stabilization and Equalization (RSE) mechanism effective December 2025.
• Spire Alabama usage was higher year-over-year, net of weather mitigation.
• Spire Missouri usage was lower year-over-year, net of weather mitigation.
• Favorable Cost Control Mechanism (CCM) performance contributed to earnings in Spire Alabama.
• Favorable off-system sales benefited earnings at both Spire Missouri and Spire Alabama.
• Operation and maintenance expense increased $3.8 million in the quarter, driven by higher non-payroll expenses, partially offset by reduced employee-related costs.
• Depreciation expense increased $11.8 million year-over-year due to capital investment and updated depreciation schedules under Spire Missouri's new rates.
• Taxes other than income taxes increased $4.0 million, reflecting revised property tax amortization in new Spire Missouri rates.
• Interest expense increased $2.4 million due to higher long-term debt balances, partially offset by lower rates.

Market and Competitive Landscape

• Spire serves approximately 2 million homes and businesses through gas utilities in Alabama, Mississippi, Missouri, and Tennessee.
• The company is transforming into a simpler, fully regulated business following portfolio optimization.

Risks and Challenges

• Risks include weather conditions, catastrophic events, economic factors, and the competitive environment.
• Regulatory and legislative policy actions, including the satisfaction of conditions and timing of announced dispositions (Spire Marketing, Spire Storage, Spire Mississippi) and the acquisition of Piedmont Natural Gas Tennessee, pose risks.
• Transaction costs, potential disruption from completed and announced transactions, and the ability to retain key personnel are identified risks.

Management Commentary and Tone

• Scott Doyle, President and CEO, stated that results demonstrate the benefits of a focused utility strategy and progress in transforming Spire into a simpler, fully regulated business.
• Management indicated that portfolio optimization is largely complete and the company is well-positioned to execute on strategic priorities.
• The tone emphasized confidence in the ability to safely deliver reliable service, invest in infrastructure, and create sustainable long-term value for shareholders.

Other Key Points

• Spire redeemed its 5.9% Series A Preferred Stock, incurring $8.0 million in redemption costs during the nine-month period.
• Acquisition activities, including transaction, transition, and financing costs for the Piedmont Tennessee Transaction, totaled $36.0 million pre-tax in the quarter and $74.8 million pre-tax year-to-date.
• Impairment charges were $1.5 million in the quarter and $5.4 million year-to-date.
• Dividends declared per common share were $0.825 for the quarter and $2.475 year-to-date.
• The conference call and webcast were held on August 5, 2026, at 8 a.m. CT.