Core Viewpoint - There is a noticeable shift in sentiment among analysts and retail investors regarding the market, with an increasing belief that the AI rally has evolved into a bubble [1] Group 1 - Analysts are expressing concerns about the sustainability of the AI rally, indicating a potential shift in market dynamics [1] - Retail investors are also beginning to align with this cautious perspective, suggesting a broader market sentiment change [1]

Market Overview - Wall Street's major indexes have reached multiple all-time closing highs recently, but the market has experienced volatility due to economic uncertainties [1][5] - The tech sector, particularly driven by AI optimism, has seen fluctuations, with significant pullbacks in stock prices due to concerns over high valuations [2][6] Economic Concerns - Investors are worried about the health of the economy, particularly with a shrinking labor market and fewer jobs being added [7] - Layoffs surged in October, totaling 153,074, which is a 183% increase sequentially and a 175% increase year-over-year [8] - The ongoing government shutdown has limited access to fresh economic data, contributing to investor uncertainty [9] Defensive Investment Recommendations - In light of market volatility, it is advisable to consider defensive stocks, particularly from the utilities sector, which are characterized by low beta values and high dividend yields [3][4][12] - Five recommended low-beta utility stocks include: - **Atmos Energy Corporation (ATO)**: Expected earnings growth of 6%, beta of 0.73, and a dividend yield of 2.02% [10][11] - **American States Water Company (AWR)**: Expected earnings growth of 4.1%, beta of 0.64, and a dividend yield of 2.72% [13][14] - **Consolidated Water Co. Ltd. (CWCO)**: Expected earnings growth of 0.9%, beta of 0.51, and a dividend yield of 1.61% [15][16] - **Entergy Corporation (ETR)**: Expected earnings growth of 6.9%, beta of 0.63, and a dividend yield of 2.49% [17][18] - **Duke Energy Corporation (DUK)**: Expected earnings growth of 7.3%, beta of 0.45, and a dividend yield of 3.44% [18][19]

Core Insights - Atmos Energy (ATO) reported fourth-quarter fiscal 2025 earnings of $1.07 per share, exceeding the Zacks Consensus Estimate of $1.01 by 5.9% and showing a 24.4% increase from the previous year's 86 cents [1][8] - For fiscal 2025, ATO's earnings per share were $7.46, with a net income of $1.2 billion [1] Financial Performance - Operating income for the fourth quarter was $219.5 million, up from $185 million in the same quarter last year [2] - Net income for the fourth quarter reached $175 million, compared to $134 million in the prior year [2] - Distribution segment net income was $55 million, a 34.1% increase from $41 million year-over-year [3] - Pipeline and Storage segment income was $120 million, reflecting a 29% increase from $93 million in the previous year [3] Rate Adjustments and Investments - New rates implemented in fiscal 2025 amounted to $333.6 million, with an additional $146.3 million in year-to-date fiscal 2026 [2][8] - ATO invested nearly $3.56 billion in fiscal 2025, with 87% allocated to enhancing the safety and reliability of its distribution and transportation systems [4] Future Guidance - ATO has provided fiscal 2026 earnings guidance in the range of $8.15-$8.45 per share, higher than the Zacks Consensus Estimate of $7.91 [5][8] - The company anticipates capital expenditures of $4.2 billion for fiscal 2026 [5] - A quarterly dividend of $1.00 per common share has been declared, indicating an annual dividend of $4.00, a 14.9% increase over fiscal 2025 [5] Long-term Strategy - ATO plans to invest $26 billion from fiscal 2026 to 2030 to further strengthen its existing operations [6]

Financial Data and Key Metrics Changes - The company reported diluted earnings per share of $7.46, marking the 23rd consecutive year of earnings per share growth and the 41st consecutive year of dividend growth [3][10] - Consolidated capital spending increased to $3.6 billion, with 87% dedicated to improving safety and reliability [10] - Rate base increased by 14% to an estimated $21 billion as of September 30 [10] Business Line Data and Key Metrics Changes - Approximately 57,000 residential customers were added during Fiscal 2025, with over 44,000 located in Texas [4] - Nearly 3,200 commercial customers and 29 industrial customers were added, with anticipated annual gas consumption of approximately 4 BCF from industrial customers [4] - Over the last five years, the company has added nearly 300,000 residential and commercial customers and 225 industrial customers, with an estimated annual load of 63 BCF when fully operational [4] Market Data and Key Metrics Changes - Texas added jobs at a faster rate than the nation, growing at a rate of 1.14% [5] - The current population estimate for the Texas metroplex is approximately 8.6 million, projected to be the third largest metropolitan area in the U.S. by 2030 [5] Company Strategy and Development Direction - The company plans to invest $26 billion over the next five years, with approximately 85% allocated to safety and reliability [7][14] - The five-year plan reflects the impact of Texas House Bill 4384, allowing for quicker capital recovery [8][15] - The company anticipates earnings per share growth of 6-8% from the midpoint of its rebased Fiscal 2026 guidance [8][13] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of safety, reliability, and modernization of natural gas systems to meet customer and community expectations [18][19] - The company maintains a strong balance sheet with a weighted average cost of debt of 4.2% and approximately $4.9 billion in liquidity [20] Other Important Information - The board of directors approved a 15% increase in the annual dividend to $4.00, reflecting the rebasing of the dividend to align with earnings per share growth [13][52] - The company expects to recover over 95% of its capital spending within six months due to the new legislation [8][15] Q&A Session Summary Question: Can you talk about the larger load customers and the Refresh Capital plan? - Management indicated that 85% of spending is dedicated to safety and reliability, with modest growth included in the plan [24] Question: Can you elaborate on capital recovery and its impact on growth? - Management stated that the capital recovery process has been part of their planning since 2011, focusing on safety, reliability, and growth needs [26] Question: How does the Texas House Bill 4384 impact your guidance? - The annual impact from the legislation was clarified, with a full-year impact expected to be reflected in the rebased guidance [46] Question: What is the expected split between debt and equity in the five-year plan? - Management indicated a balanced approach with roughly 50% of funding coming from equity and 50% from debt [47] Question: Will the 60/40 split of HB 4384 benefits change year over year? - Management confirmed that they do not expect significant changes to the split due to their consistent five-year planning process [50]

Financial Data and Key Metrics Changes - The company reported diluted earnings per share of $7.46, marking the 23rd consecutive year of earnings per share growth and the 41st consecutive year of dividend growth [3][10] - Consolidated capital spending increased to $3.6 billion, with 87% dedicated to improving safety and reliability [10] - Rate base increased by 14% to an estimated $21 billion as of September 30 [10] Business Line Data and Key Metrics Changes - Approximately 57,000 residential customers were added during fiscal 2025, with over 44,000 of those in Texas [4] - Nearly 3,200 commercial customers and 29 industrial customers were added, with anticipated annual consumption of approximately 4 BCF of gas from industrial customers [4] - Over the last five years, the company has added nearly 300,000 residential and commercial customers and 225 industrial customers, equivalent to nearly 1.2 million residential customers on a volumetric basis [4] Market Data and Key Metrics Changes - Texas added jobs at a faster rate than the nation, growing at a rate of 1.14% [5] - The current population estimate for the Dallas-Fort Worth metroplex is approximately 8.6 million, projected to be the third largest metropolitan area in the U.S. by 2030 [5] Company Strategy and Development Direction - The company plans to invest $26 billion over the next five years, with approximately 85% allocated to safety and reliability [7][14] - The five-year plan reflects the impact of Texas House Bill 4384, allowing for quicker recovery of capital spending [8][15] - The company anticipates earnings per share growth of 6%-8% from the midpoint of its rebased fiscal 2026 guidance [8][13] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of safety, reliability, and modernization of natural gas systems to meet customer and community expectations [18][20] - The company remains focused on maintaining a strong balance sheet and available liquidity, with $4.9 billion in liquidity [20] Other Important Information - The company completed integrity inspections for its Bethel Salt Dome Caverns and is working on further inspections [7] - The average monthly natural gas bill for residential customers is expected to remain the lowest utility bill in the home [20] Q&A Session Summary Question: Discussion on larger load customers and Refresh Capital plan - Management indicated that 85% of spending is dedicated to safety and reliability, with modest growth included in the plan [24] Question: Capital recovery and its impact on growth - Management stated that the capital recovery process has been consistent and is part of their long-term planning since 2011 [26] Question: EPS rebase and impact of Texas legislation - Management confirmed that the impact of House Bill 4384 is included in the rebased earnings per share guidance [46] Question: O&M budgeting for 2026 - Management explained that the O&M budget is consistent with previous years, with adjustments based on compliance and system monitoring needs [34] Question: Long-term gas price assumptions - Management noted that the long-term gas price assumptions are based on the forward curve and that residential gas bills are expected to remain competitive [41][42] Question: Dividend guidance and its sustainability - Management indicated that the dividend has been increased by 15% to align with rebased earnings per share guidance, with intentions to grow the dividend in line with earnings growth [52]

Financial Data and Key Metrics Changes - The company reported diluted earnings per share of $7.46, marking the 23rd consecutive year of earnings per share growth [3] - Fiscal 2025 also represents the 41st consecutive year of dividend growth [3] - Consolidated capital spending increased to $3.6 billion, with 87% dedicated to improving safety and reliability [11] - Rate base increased by 14% to an estimated $21 billion as of September 30 [11] Business Line Data and Key Metrics Changes - Approximately 57,000 residential customers were added during Fiscal 2025, with over 44,000 located in Texas [4] - Nearly 3,200 commercial customers and 29 industrial customers were added, with anticipated annual consumption of approximately 4 BCF of gas from industrial customers [4] - Over the last five years, nearly 300,000 residential and commercial customers were added, along with 225 industrial customers with an estimated annual load of 63 BCF when fully operational [4] Market Data and Key Metrics Changes - Texas added jobs at a faster rate than the nation, growing at a rate of 1.14% [5] - The current population estimate for the Dallas-Fort Worth metroplex is approximately 8.6 million, projected to be the third largest metropolitan area in the U.S. by 2030 [5] Company Strategy and Development Direction - The company plans to invest $26 billion over the next five years, with approximately 85% allocated to safety and reliability [8][14] - The five-year plan reflects the impact of Texas House Bill 4384, allowing for quicker recovery of capital spending [9][16] - The company anticipates earnings per share growth of 6-8% from the midpoint of its rebased Fiscal 2026 guidance [9][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to meet safety, reliability, and economic development expectations [19] - The company highlighted the importance of natural gas in economic development across its service territory [4][19] - Management noted that the average monthly natural gas bill for residential customers is expected to remain the lowest utility bill in the home [20] Other Important Information - The company completed integrity inspections and verification work on its storage facilities, with ongoing work expected to continue into late calendar year 2026 [8] - The company has a weighted average cost of debt of 4.2% with an average maturity of 17.5 years and approximately $4.9 billion in liquidity [20] Q&A Session Summary Question: Can you talk about the larger load customers and the Refresh Capital plan? - Management indicated that 85% of spending is dedicated to safety and reliability, with modest growth included in the plan [25] Question: Can you discuss capital recovery and its impact on growth? - Management stated that the planning process has been consistent since 2011, focusing on safety, reliability, and growth needs [27] Question: What is the annual impact of Texas HB 4384? - Management confirmed that the impact of House Bill 4384 is factored into the rebased earnings per share guidance [43] Question: How is the equity and debt funding structured for the five-year plan? - Management indicated a balanced approach with roughly 50% of annual cash needs coming from equity and 50% from debt [44][45] Question: Will the 60/40 split of HB 4384 benefits change year over year? - Management does not expect the split to change, as the five-year planning process is consistent [47]

Analyst Call to Review Fiscal 2025 Financial Results & Fiscal 2026 – 2030 Outlook November 6, 2025 10:00 a.m. Eastern Fiscal 2025 Review As of November 5, 2025 Page 2 Fiscal 2025 Financial Performance Fiscal 2025 Highlights • Executing Our Regulatory Strategy • Maintaining a Strong Financial Profile As of November 5, 2025 Page 3 • Consistent Track Record of Financial Performance • YTD Diluted EPS of $7.46; 23rd consecutive year of EPS growth • $3.6 billion in capital spending; 87% allocated to safety and re ...

Core Insights - Atos has been awarded a contract by the Madrid City Council for the evolution and maintenance of its Artificial Intelligence platform, aimed at enhancing municipal processes and services [1][2][9] Group 1: Project Goals and Implementation - The project aims to optimize administrative processes, improve municipal services, and provide citizens with more efficient and personalized services through generative AI [2] - The contract spans three years with an option for a one-year extension, covering corrective, adaptive, and evolutionary maintenance of the AI platform [3] - Atos will collaborate closely with the Madrid City Council to promote excellence in AI usage through various initiatives, including technological surveillance and specialized training [4] Group 2: New Use Cases and Applications - Atos is developing new use cases such as Clear Communication, which focuses on improving the clarity and accessibility of administrative texts for citizens [6][7] - Another application, Pipeline of Documentary Objects, automates the processing of audio, video, and text files, transforming them into structured information for easier access and contextual queries [8] Group 3: Company Overview - Atos Group is a global leader in digital transformation with approximately 67,000 employees and annual revenue of around €10 billion, operating in 61 countries [10] - The company is recognized as the European leader in cybersecurity, cloud, and high-performance computing, committed to providing AI-powered solutions across various industries [10][11]

Financial Results - Atmos Energy Corporation reported its financial results for the fourth quarter and full fiscal year 2025, ending September 30, 2025[5] - The financial results announcement was made via a news release on November 5, 2025[5] Conference Call - The conference call to discuss these results is scheduled for November 6, 2025, at 10 a.m. Eastern Time[5]

Core Viewpoint - Atmos Energy Corporation reported strong financial results for fiscal year 2025, with a focus on safety and reliability in its operations, and has raised its dividend for fiscal 2026 [2][5][11] Fiscal Year Highlights - Fiscal 2025 marked the 14th year of executing a strategy focused on safe and reliable operations while modernizing natural gas distribution, transmission, and storage systems [2] - Earnings per diluted share for fiscal 2025 were $7.46, with a net income of $1.2 billion [5] - Capital expenditures for the year totaled $3.6 billion, with approximately 87% dedicated to safety and reliability [5] - The company has a strong financial profile, with 60.3% equity capitalization and $4.9 billion in available liquidity [5] Dividend Information - The Board of Directors declared a quarterly dividend of $1.00 per common share, representing a 14.9% increase from the fiscal 2025 annual dividend of $3.48 [5][11] - The indicated annual dividend for fiscal 2026 is projected to be $4.00 [5][11] Fiscal 2026 Guidance - Earnings per diluted share guidance for fiscal 2026 is expected to be in the range of $8.15 to $8.35 [5] - Capital expenditure guidance for fiscal 2026 is approximately $4.2 billion [5] Upcoming Events - Atmos Energy will host a conference call on November 6, 2025, to discuss fiscal 2025 financial results and establish guidance for fiscal 2026 [3][12]