Analyst Call to Review Fiscal 2026 First Quarter Financial Results February 4, 2026 9:00 a.m. Eastern Fiscal Q1 2026 Review As of February 3, 2026 Page 2 Q1 Fiscal 2026 Financial Performance Fiscal 2026 Highlights • Financial Performance • Executed Our Regulatory Strategy • Strong Balance Sheet Consolidated Financial Highlights | | | | Three Months Ended December 31 | | | --- | --- | --- | --- | --- | | Segment Net Income ($millions, except EPS) | | | | | | | 2025 | | | 2024 | | Distribution | $ | 269 | $ | ...

Core Insights - Atmos Energy reported revenue of $1.34 billion for the quarter ended December 2025, marking a 14.2% increase year-over-year, but fell short of the Zacks Consensus Estimate of $1.44 billion by -6.45% [1] - The company's EPS for the quarter was $2.44, an increase from $2.23 in the same quarter last year, exceeding the consensus EPS estimate of $2.41 by +1.46% [1] Revenue Performance - Pipeline and Storage segment generated operating revenues of $286.63 million, surpassing the average estimate of $283.06 million by analysts, reflecting a year-over-year increase of +12.2% [4] - Distribution segment reported operating revenues of $1.26 billion, exceeding the average estimate of $1.17 billion, with a year-over-year growth of +13.5% [4] Operating Income - Operating income for the Pipeline and Storage segment was $165.5 million, slightly below the average estimate of $167.62 million from analysts [4] - Operating income for the Distribution segment was $349.2 million, which also fell short of the average estimate of $354.4 million [4] Stock Performance - Atmos Energy's shares have returned -0.2% over the past month, in contrast to the Zacks S&P 500 composite's +1.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Viewpoint - Atmos Energy (ATO) reported quarterly earnings of $2.44 per share, exceeding the Zacks Consensus Estimate of $2.41 per share, and showing an increase from $2.23 per share a year ago, representing an earnings surprise of +1.46% [1][2] Financial Performance - The company posted revenues of $1.34 billion for the quarter ended December 2025, which was 6.45% below the Zacks Consensus Estimate, compared to $1.18 billion in revenues from the same quarter last year [2] - Over the last four quarters, Atmos has surpassed consensus EPS estimates three times but has only topped consensus revenue estimates once [2] Stock Performance - Atmos shares have decreased by approximately 0.7% since the beginning of the year, while the S&P 500 has gained 1.9% [3] - The current Zacks Rank for Atmos is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $3.28, with expected revenues of $2.22 billion, and for the current fiscal year, the estimate is $8.08 on revenues of $5.61 billion [7] - The trend of estimate revisions for Atmos was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Utility - Gas Distribution industry, to which Atmos belongs, is currently ranked in the bottom 30% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Another company in the same industry, Sempra (SRE), is expected to report quarterly earnings of $1.13 per share, reflecting a year-over-year decline of -24.7% [9]

Core Insights - Atmos Energy reported a 14.5% increase in first-quarter profit, driven by strong demand for its gas distribution and pipeline facilities [1] Company Performance - The profit rise indicates robust operational performance within the natural gas utility sector, highlighting the effectiveness of Atmos Energy's distribution and pipeline services [1]

Financial Performance - For the three months ended December 31, 2025, the company recorded net income of $403.0 million, or $2.44 per diluted share, representing a 15% year-over-year increase from $351.9 million, or $2.23 per diluted share in the same period of 2024 [109][110]. - The increase in net income was primarily driven by positive rate outcomes from safety and reliability spending, along with a $35.2 million impact from Texas legislation related to infrastructure spending [110]. - Operating revenues for the three months ended December 31, 2025, increased to $1,258,826,000 from $1,109,335,000 in 2024, representing a change of $149,491,000 or 13.5% [121]. - Operating income for the distribution segment increased by 10.5%, with total operating income reaching $349,238,000 compared to $316,048,000 in the previous year, an increase of $33,190,000 [122]. - Net income for the three months ended December 31, 2025, was $133.7 million, reflecting a 19.8% increase from $111.6 million in the prior year [141]. Capital Expenditures and Financing - Capital expenditures for the three months ended December 31, 2025, totaled $1,033.3 million, with over 85% allocated to improving safety and reliability of distribution and transportation systems [112]. - The company anticipates spending approximately $26 billion on capital expenditures between fiscal years 2026 and 2030, with over 80% dedicated to safety and reliability [106]. - The company completed approximately $1.1 billion of long-term debt and equity financing during the same period, with an equity capitalization of 59.9% as of December 31, 2025 [113]. - The company has a shelf registration statement allowing for the issuance of up to $8.0 billion in common stock and/or debt securities, with $5.2 billion available as of December 31, 2025 [143]. - The company issued approximately $1.1 billion in net proceeds from long-term debt and equity during the three months ended December 31, 2025 [154]. Regulatory and Rate Adjustments - Ratemaking regulatory actions implemented or approved during the three months resulted in an increase in annual operating income of $122.5 million, with additional efforts in progress seeking a total increase of $34.0 million [111]. - A $122.5 million increase in annual operating income was achieved through regulatory proceedings, including a $145,676,000 increase from annual formula rate mechanisms [125]. - Rate adjustments contributed an increase of $47.7 million, primarily in the Mid-Tex Division, and residential customer growth added $5.8 million [127]. - The company is pursuing $34.0 million in increased annual operating income through ongoing rate actions in the Colorado-Kansas division [128]. - The company implemented regulatory mechanisms to reduce lag, allowing for annual rate adjustments without formal rate cases in several states [130]. Liquidity and Financial Position - As of December 31, 2025, the company had approximately $4.6 billion in total liquidity, including $367.0 million in cash and cash equivalents [113]. - The carrying amount of the company's long-term debt as of December 31, 2025, was $9,525.0 million, with a fair value of $8,772.2 million [94]. - As of December 31, 2025, total long-term debt was $9.6 billion, representing 40.1% of total capitalization, while shareholders' equity was $14.3 billion, or 59.9% [146]. - The company maintains a $1.5 billion commercial paper program and $3.1 billion in committed revolving credit facilities to support liquidity needs [142]. - Credit ratings from S&P and Moody's remain investment grade, with senior unsecured long-term debt rated A- and A2, respectively [158]. Market and Sales Performance - Consolidated distribution sales volumes rose to 75,133 MMcf, up from 71,924 MMcf, reflecting an increase of 3,209 MMcf or 4.5% [121]. - The average cost of gas per Mcf sold increased to $6.62 from $5.88, a rise of $0.74 or 12.6% [121]. - Total operating revenues for the three months ended December 31, 2025, increased to $286.6 million, up 12.2% from $255.4 million in the same period of 2024 [141]. - Operating income rose by 15.4% to $165.5 million, driven by a $20.2 million increase from rate adjustments and a $3.8 million increase due to higher capacity contracted by tariff-based customers [141][144]. - Cash flow from operating activities increased to $308.1 million, up from $282.0 million, primarily due to successful rate case outcomes [149]. Risk Management - The effective tax rates for the three months ended December 31, 2025, and 2024 were 20.0% and 18.4%, respectively, differing from the federal statutory tax rate of 21% due to various adjustments [71]. - The company manages interest rate risk by entering into financial instruments to fix the Treasury yield component of anticipated financings [77]. - The company utilizes a combination of physical storage, fixed-price forward contracts, and financial instruments to manage exposure to volatile natural gas prices [75]. - There were no material changes in the company's concentration of credit risk during the three months ended December 31, 2025 [95]. - The company reported no material changes in quantitative and qualitative disclosures about market risk during the three months ended December 31, 2025 [166].

February 3, 2026 Date of Report (Date of earliest event reported) ATMOS ENERGY CORPORATION (Exact Name of Registrant as Specified in its Charter) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 8-K Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Texas and Virginia 1-10042 75-1743247 --------------------------------- ------------------------ ---------------------- (State or Other Jurisdiction (Commission File (I.R.S. Employer of Incorporation ...

Core Viewpoint - Atmos Energy Corporation declared a quarterly dividend of $1.00 per share, indicating an annual dividend of $4.00, marking its 169th consecutive quarterly dividend [1] Company Overview - Atmos Energy Corporation is a natural gas-only distributor and is part of the S&P 500, headquartered in Dallas [1] Dividend Details - The dividend will be paid on March 9, 2026, to shareholders of record on February 23, 2026 [1]

Fiscal Year Highlights The matters discussed in this news release may contain "forward-looking statements†within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact included in this news release are forward-looking statements made in good faith by the company and are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Whe ...

Group 1 - Atmos Energy Corporation (NYSE:ATO) is recognized as one of the Dividend Growth Stocks: 25 Aristocrats [1] - BofA has lowered its price recommendation for Atmos Energy to $177 from $185, maintaining a Neutral rating, while Barclays has increased its price target to $167 from $165, keeping an Equal Weight rating [2] - The utility business model of Atmos Energy provides a high level of visibility and consistency in annual earnings due to regulatory barriers that limit new competition [3] Group 2 - Atmos Energy benefits from a steady operating model and a strong balance sheet, which supports a lower cost of capital for funding growth investments and selective acquisitions [4] - The company has demonstrated resilience during economic downturns, continuing to grow its earnings per share during the 2008 and 2009 financial crisis [4] - Atmos Energy operates as a natural gas-only distributor, serving over 3.3 million customers across more than 1,400 communities in eight states, primarily in the southern US [5]

Core Insights - Atos has been recognized as a Leader in Digital Sustainability IT Solutions and Services in Europe by ISG, highlighting its strong position in the market for sustainable digital transformation [1][2]. Group 1: Market Evaluation - ISG evaluated over 35 providers to establish a benchmark for digital sustainability, with Atos achieving a top-tier leadership position [2]. - The evaluation focuses on sustainability solutions across core IT foundations, including consulting, engineering, IT, and managed services aimed at enhancing environmental and social sustainability [3]. Group 2: Sustainable IT Solutions - Atos offers a comprehensive sustainable IT portfolio, including the Sustainable Digital Workplace, and has formed strategic partnerships with SAP, Microsoft, and Greenspector to assist enterprises in measuring, optimizing, and decarbonizing their technology [5]. - The company is noted for its innovative decarbonization-level agreements in IT outsourcing, committing to measurable emissions reductions over time [5]. Group 3: Social Impact and Accessibility - The evaluation also acknowledges Atos' efforts to address the social impact of IT, including solutions that improve accessibility for employees with disabilities and neurodiversity [4]. - Atos' partnership with the UK Department for Environment, Food and Rural Affairs (DEFRA) exemplifies its commitment to creating environmentally sustainable digital workplaces, utilizing circular economy principles [6]. Group 4: Leadership Statements - Atos expresses pride in the recognition from ISG, emphasizing its commitment to digital decarbonization and the responsible use of technologies [7]. - The partnership with DEFRA is highlighted as a successful example of how Atos supports customers in their digital transformation towards sustainability [8]. Group 5: Unique Offerings - Atos differentiates itself through its delivery of IT solutions designed for sustainability, including circular workplace services, high-performance computing, green software engineering, and responsible AI capabilities [9]. - The company operates globally with approximately 63,000 employees and annual revenue of around €8 billion, focusing on cybersecurity, cloud, and high-performance computing [10].