Core Viewpoint - Spire Global Inc. is a small firm with a market capitalization of $273 million, recently gaining attention due to new government contracts and a growing backlog, despite facing challenges in achieving positive operating cash flow and shaky revenue forecasts [1][2]. Group 1: Positive Developments - Spire sold its maritime division for over $233 million, which helped reduce debt and strengthen its balance sheet for future growth [2][3]. - The company secured an eight-figure, five-year deal with an unnamed commercial firm in space services, indicating its ability to attract repeat customers and generate recurring revenue [4]. - Spire launched 27 new satellites in the first half of 2025, which is expected to enhance revenue performance, aiming for up to $95 million in sales [5]. - As of mid-year, Spire had over $117 million in cash and equivalent reserves, providing crucial time and flexibility for business development and strategic investments [6]. Group 2: Challenges and Concerns - Spire's preliminary financial report indicated a reduction in revenue guidance by half a million dollars, with expected quarterly revenue now between $18 million and $19 million, complicating growth prospects [7][8]. - The company received a non-compliance notice from the NYSE due to delays in reporting second-quarter results, contributing to a nearly 11% drop in shares over the past month and a year-to-date decline of over 39% [9]. - High fixed costs associated with maintaining its satellite constellation pose significant financial challenges, which need to be addressed for broader investor appeal [10].

Core Insights - Spire Inc. (SR) is enhancing its operations through significant investments, which are aimed at meeting the rising demand from an expanding consumer base. The company's technological advancements are improving operational efficiency, reducing costs, and enhancing service quality [1] Investment Plans - Spire plans to invest $875 million in fiscal 2025, an increase from the previous guidance of $840 million. This capital plan focuses on reliability, new service connections, and the completion of advanced meter installations in Spire Missouri. Over the next decade, Spire projects a total of $7.4 billion in capital investments, expecting to support a long-term rate base growth of 7-8% [2][8] Technological Advancements - The company is advancing the deployment of ultrasonic meters across its utilities to enhance customer experience. In fiscal 2024, Spire installed over 350,000 advanced meters, bringing the total number of customers benefiting from this technology to 850,000 [3] Expansion Strategy - Spire is expanding its customer base through acquisitions, which allows for an extended geographic reach and improved infrastructure. In July 2025, Spire signed an agreement to acquire Piedmont Natural Gas's Tennessee local distribution business for $2.48 billion, adding nearly 3,800 miles of distribution and transmission pipelines and expanding into the Nashville metro area, one of the fastest-growing regions in the U.S. [4][8] Stock Performance - Over the past year, Spire's shares have increased by 17.6%, outperforming the industry average rise of 9.2% [7]

Group 1 - Spire Global operates its own satellite constellations and utilizes a subscription-based model for its services [1] - The company has a focus on the intelligence space, indicating a niche market within the broader technology sector [1] Group 2 - The article reflects on the author's extensive experience in the technology, media, and telecommunications (TMT) sectors, emphasizing the importance of momentum in investment strategies [1]

Financial Data and Key Metrics Changes - The company reported adjusted earnings of $1.01 per share, a significant increase from a loss of $0.14 per share a year ago, reflecting growth across all business segments [7][8] - Adjusted earnings for the third quarter totaled $4.1 million, an increase of over $8 million compared to the previous year [18] Business Line Data and Key Metrics Changes - The Gas Utilities segment had an adjusted loss of $10 million in the third quarter, which was $1 million better than the prior year, driven by higher contribution margin at Spire Missouri [18] - Earnings in the Gas Marketing segment increased by over $4 million, indicating strong performance [19] - The Midstream segment saw strong earnings growth due to additional capacity and asset optimization at Spire Storage, despite higher operating costs [19] Market Data and Key Metrics Changes - Year-to-date capital expenditures totaled $700 million, with a nearly 20% increase in utility CapEx year-over-year, focusing on upgrading distribution infrastructure [20] - The capital investment target for fiscal 2025 has increased to $875 million, reflecting a $10 million increase in Midstream and a $25 million increase in Spire Missouri [21] Company Strategy and Development Direction - The company is committed to a long-term EPS growth target of 5% to 7%, supported by a ten-year $7.4 billion capital investment plan [11][22] - The recent acquisition of the Piedmont Natural Gas business in Tennessee is seen as a strategic move to enhance scale and diversify the regulated utility portfolio [12][13] - The company aims to maintain a strong balance sheet while supporting long-term adjusted EPS growth and dividend growth [14][27] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving financial and operational goals, emphasizing the importance of delivering safe and reliable natural gas service [26][28] - The company is focused on achieving constructive regulatory outcomes and strengthening recovery mechanisms to support continued investment [27] Other Important Information - A unanimous stipulation and agreement has been filed for an annual revenue increase of $210 million in Missouri, pending approval [10][15] - The company anticipates adjusted earnings at the Utility segment to be significantly higher in 2026 due to new rates and improved regulatory frameworks [24] Q&A Session Summary Question: Is the FFO to debt target of 15% to 16% still applicable? - Management confirmed that these targets remain relevant, although achieving them may be slower during the acquisition transition [34] Question: How much of the midstream results is attributable to storage expansion? - Approximately 90% of the increase in midstream results year-over-year is attributed to storage [39] Question: Will the strong marketing results continue into Q4? - Management indicated that Q4 is typically quieter, but they feel confident about the operations and targets for the marketing business [41] Question: Does the long-term 5% to 7% growth rate include impacts from the Missouri rate case? - The growth rate is primarily based on capital deployment, with potential catch-up from previous recovery delays in Missouri [57] Question: How does the company plan to manage O&M expenses going forward? - The target is to keep O&M expenses at or below the rate of inflation, with current year-to-date O&M running less than 1% higher than the prior year [61]

Financial Data and Key Metrics Changes - The company reported adjusted earnings of $0.01 per share, a significant improvement from a loss of $0.14 per share a year ago, reflecting growth across all business segments [7][18] - Year-to-date capital expenditures totaled $700 million, with a nearly 20% increase in utility CapEx year over year [20] Business Line Data and Key Metrics Changes - The Gas Utilities segment had an adjusted loss of $10 million, which was $1 million better than the prior year, driven by higher contribution margin at Spire Missouri [18] - Earnings in the Gas Marketing segment increased by over $4 million, indicating strong performance [18] - The midstream segment saw strong earnings growth, attributed to additional capacity and asset optimization at Spire Storage [18] Market Data and Key Metrics Changes - The company is focused on a long-term EPS growth target of 5% to 7%, supported by a ten-year $7.4 billion capital investment plan [11][22] - The company expects to deliver within its fiscal 2025 earnings guidance of $4.4 to $4.6 per share [11][22] Company Strategy and Development Direction - The company announced the acquisition of the Piedmont Natural Gas Tennessee business, which is expected to enhance its scale and expand its regulated utility footprint [12][13] - The acquisition is projected to add $900 million to the five-year capital plan, focusing on system modernization and infrastructure resilience [13] - The company aims to maintain a strong balance sheet while supporting long-term adjusted EPS growth and dividend growth [13][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong operational performance and financial discipline, emphasizing the importance of regulatory transparency and customer affordability [25][28] - The company is actively pursuing regulatory approvals for the acquisition and advancing integration planning [28] Other Important Information - A unanimous stipulation and agreement has been filed for an annual revenue increase of $210 million, pending approval by the Missouri Public Service Commission [9][15] - The company is committed to maintaining a strong focus on customer affordability through disciplined cost management [25] Q&A Session Summary Question: Is the FFO to debt target of 15% to 16% still applicable? - Management confirmed that these targets remain the right framework, although progress may be slower during the acquisition transition [31][32] Question: How much of the midstream results is attributable to storage expansion? - Management indicated that about 90% of the increase in midstream results was due to storage, with a 75% to 25% split on net income basis [35][36] Question: Does the long-term 5% to 7% growth rate include impacts from the Missouri rate case settlement? - Management clarified that the growth rate is based on capital deployment and does not directly include the impacts of the rate case [51][52] Question: How does the company see O&M expenses evolving? - Management stated the target is to keep O&M expenses at or below the rate of inflation, with current year-to-date O&M run rate being less than 1% higher than the prior year [55]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section provides the unaudited condensed consolidated financial statements and management's discussion and analysis for Spire Inc. and its subsidiaries [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Spire Inc. and its subsidiaries for the three and nine months ended June 30, 2025, including detailed notes [Spire Inc. Financial Statements](index=5&type=section&id=Spire%20Inc.%20Financial%20Statements) Spire Inc. reported a net income of $20.9 million for Q3 FY2025 and $311.5 million for the nine months, with total assets reaching $11.4 billion Spire Inc. Condensed Consolidated Statements of Income (Unaudited) | (In millions, except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Operating Revenues** | $421.9 | $414.1 | $2,142.3 | $2,299.2 | | **Operating Income** | $69.2 | $30.7 | $524.4 | $468.5 | | **Net Income (Loss)** | $20.9 | $(12.6) | $311.5 | $276.8 | | **Diluted EPS** | $0.29 | $(0.28) | $5.13 | $4.76 | Spire Inc. Condensed Consolidated Balance Sheet Highlights (Unaudited) | (In millions) | June 30, 2025 | September 30, 2024 | | :--- | :--- | :--- | | **Total Assets** | $11,396.3 | $10,860.7 | | **Total Liabilities** | $7,910.9 | $7,540.8 | | **Total Shareholders' Equity** | $3,480.2 | $3,232.7 | Spire Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) | (In millions) | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $582.9 | $829.5 | | **Net cash used in investing activities** | $(696.7) | $(802.0) | | **Net cash provided by (used in) financing activities** | $127.0 | $(19.6) | [Spire Missouri Inc. Financial Statements](index=12&type=section&id=Spire%20Missouri%20Inc.%20Financial%20Statements) Spire Missouri Inc. reported a net loss of $13.0 million for Q3 FY2025 and net income of $153.3 million for the nine months, with total assets at $6.16 billion Spire Missouri Inc. Condensed Statements of Comprehensive Income (Unaudited) | (In millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Operating Revenues** | $230.1 | $248.8 | $1,359.2 | $1,550.7 | | **Operating Income** | $4.7 | $4.8 | $244.1 | $233.4 | | **Net (Loss) Income** | $(13.0) | $(16.8) | $153.3 | $145.4 | [Spire Alabama Inc. Financial Statements](index=17&type=section&id=Spire%20Alabama%20Inc.%20Financial%20Statements) Spire Alabama Inc. reported net income of $4.5 million for Q3 FY2025 and $90.2 million for the nine months, with total assets at $2.56 billion Spire Alabama Inc. Condensed Statements of Income (Unaudited) | (In millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Operating Revenues** | $98.8 | $103.5 | $471.6 | $505.1 | | **Operating Income** | $12.7 | $11.3 | $142.7 | $137.7 | | **Net Income** | $4.5 | $2.9 | $90.2 | $84.7 | [Notes to Financial Statements](index=22&type=section&id=Notes%20to%20Financial%20Statements) Notes detail accounting policies, revenue disaggregation, regulatory updates, financing activities, and the pending acquisition of Piedmont Natural Gas's Tennessee business - Spire's business is composed of **three reportable segments**: Gas Utility (core business), Gas Marketing, and Midstream, with earnings typically concentrated in the **November-April heating season**[55](index=55&type=chunk)[56](index=56&type=chunk) - Spire Missouri filed a general rate case and reached a settlement agreement in principle for a base rate increase of **$210.0 million**, which, if approved, will support recovery of system investments[78](index=78&type=chunk) - Spire Alabama operates under a **Rate Stabilization and Equalization (RSE) mechanism**, allowing for annual rate reviews, and for fiscal 2025, **no adjustment was required** to base rates effective December 1, 2024[81](index=81&type=chunk)[82](index=82&type=chunk) - On July 29, 2025, Spire announced an agreement to acquire Piedmont Natural Gas Company's Tennessee business for **$2.48 billion in cash**, with the transaction expected to close in the **first quarter of calendar 2026**[140](index=140&type=chunk) - On May 1, 2025, Spire Missouri issued **$150.0 million** of First Mortgage Bonds in two tranches for general corporate purposes[94](index=94&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=44&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial results for the three and nine months ended June 30, 2025, covering segment performance, the pending acquisition, liquidity, and capital resources [Overview and Pending Acquisition](index=45&type=section&id=Overview%20and%20Pending%20Acquisition) Spire's earnings are driven by its Gas Utility, Gas Marketing, and Midstream segments, with a key strategic focus on the pending $2.48 billion acquisition of Piedmont Natural Gas's Tennessee business - Spire entered into an agreement to acquire Piedmont Natural Gas's Tennessee business, serving over 200,000 customers in the Nashville area, for **$2.48 billion**[153](index=153&type=chunk) - The acquisition is expected to be funded through a mix of **debt, equity, and hybrid securities**, with **potential sales of non-utility assets** like gas storage facilities to support financing[154](index=154&type=chunk) [Results of Operations - Three Months Ended June 30, 2025](index=50&type=section&id=Results%20of%20Operations%20-%20Three%20Months%20Ended%20June%2030%2C%202025) Spire Inc. reported adjusted earnings of $4.1 million for Q3 FY2025, driven by stronger performance in Gas Marketing and Midstream segments Adjusted Earnings (Loss) [Non-GAAP] - Q3 FY2025 vs Q3 FY2024 | (In millions) | Q3 2025 | Q3 2024 | | :--- | :--- | :--- | | **Gas Utility** | $(10.0) | $(11.0) | | **Gas Marketing** | $5.3 | $1.0 | | **Midstream** | $16.2 | $13.9 | | **Other** | $(7.4) | $(8.2) | | **Total** | $4.1 | $(4.3) | - Midstream segment earnings increased by **$2.3 million**, driven by higher Spire Storage earnings from increased asset optimization and additional capacity[178](index=178&type=chunk) - Gas Marketing adjusted income increased by **$4.3 million** as its business portfolio was well-positioned to create value[176](index=176&type=chunk) [Results of Operations - Nine Months Ended June 30, 2025](index=55&type=section&id=Results%20of%20Operations%20-%20Nine%20Months%20Ended%20June%2030%2C%202025) Spire Inc.'s adjusted earnings for the nine months ended June 30, 2025, were $299.6 million, primarily driven by growth in the Midstream and Gas Utility segments Adjusted Earnings (Loss) [Non-GAAP] - YTD FY2025 vs YTD FY2024 | (In millions) | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | | **Gas Utility** | $263.0 | $252.8 | | **Gas Marketing** | $22.3 | $23.7 | | **Midstream** | $44.0 | $20.1 | | **Other** | $(29.7) | $(21.6) | | **Total** | $299.6 | $275.0 | - Midstream segment earnings grew significantly, with a **$23.9 million** increase driven by storage asset optimization, new capacity, higher contract rates, and the MoGas acquisition[212](index=212&type=chunk) - Gas Utility contribution margin increased by **$27.3 million**, mainly due to a **$24.5 million** increase from Spire Missouri's ISRS mechanism[206](index=206&type=chunk) [Liquidity and Capital Resources](index=60&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $582.9 million in operating cash flow, plans $875 million in capital expenditures, and holds investment-grade debt ratings - Net cash from operating activities decreased to **$582.9 million** for the first nine months of fiscal 2025 from **$829.5 million** in the prior year, driven by regulatory timing and working capital fluctuations[228](index=228&type=chunk) - Total capital expenditures for fiscal 2025 are planned to be approximately **$875 million**[232](index=232&type=chunk) Debt Ratings | Entity | S&P | Moody's | | :--- | :--- | :--- | | **Spire Inc. senior unsecured** | BBB | Baa2 | | **Spire Missouri senior secured** | A | A1 | | **Spire Alabama senior unsecured** | BBB+ | A2 | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=62&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk were reported, with the company utilizing $725.0 million in interest rate swaps to hedge against interest rate volatility - As of June 30, 2025, Spire had outstanding interest rate swaps with a total notional amount of **$725.0 million** to hedge against interest rate volatility[246](index=246&type=chunk) [Item 4. Controls and Procedures](index=63&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures are effective, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that disclosure controls and procedures for Spire Inc., Spire Missouri, and Spire Alabama are **effective** as of the end of the reporting period[248](index=248&type=chunk)[250](index=250&type=chunk)[252](index=252&type=chunk) - **No material changes** to internal control over financial reporting occurred during the quarter ended June 30, 2025[249](index=249&type=chunk)[251](index=251&type=chunk)[253](index=253&type=chunk) [PART II. OTHER INFORMATION](index=64&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity security sales, other information, and a list of exhibits [Item 1. Legal Proceedings](index=64&type=section&id=Item%201.%20Legal%20Proceedings) Details on legal, environmental, and regulatory proceedings are referenced in Notes 5 and 11, with no material effects expected - For details on legal proceedings, the report refers to **Note 5** and **Note 11** of the financial statements[254](index=254&type=chunk) [Item 1A. Risk Factors](index=64&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors were reported compared to the prior fiscal year-end - **No material changes** in risk factors were reported for the period[255](index=255&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=64&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Minor repurchases of 54 common shares occurred to cover employee tax withholding obligations related to restricted stock vesting - During the quarter, **54 shares** of common stock were repurchased at an average price of **$76.54 per share** to cover employee tax withholding obligations[257](index=257&type=chunk) [Item 5. Other Information](index=64&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated any Rule 10b5-1 trading plans during the quarter - **No directors or officers adopted or terminated any Rule 10b5-1 trading plans** during the quarter[260](index=260&type=chunk) [Item 6. Exhibits](index=65&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including agreements, indentures, plans, and certifications

Key Takeaways Spire Inc. (SR) reported third-quarter fiscal 2025 earnings of a cent per share, which beat the Zacks Consensus Estimate of a loss of 9 cents by 111.1%. In the year-ago quarter, the company reported a loss of 14 cents per share. SR's Revenues Total revenues for the reported quarter were $421.9 million, which surpassed the Zacks Consensus Estimate of $413 million by 2.16%. The top line also increased 1.9% from $414.1 million in the year-ago quarter. Highlights of SR's Earnings Release Operating ...

Financial Performance - Q3 FY25 adjusted earnings were $001 per share, compared to $(014) in Q3 FY24[8] - The company affirms FY25 adjusted EPS guidance range of $440 to $460[8] - Q3 YTD FY25 capex reached $700 million, driven by Gas Utility investment[26] - The company raised FY25 capex target to $875 million from $840 million[26] Strategic Initiatives - The company entered into an agreement to acquire the Piedmont Natural Gas Tennessee business from Duke Energy for $248 billion[8] - Combined investment opportunities related to the Piedmont Natural Gas Tennessee acquisition are estimated at $44 billion over five years (2025-2029)[10] - The company's 10-year capex plan remains at $74 billion (FY25-FY34)[8, 30] Regulatory Updates - A unanimous settlement agreement was filed on August 4, 2025, in the Missouri rate case, projecting a $210 million annual revenue increase[8, 15] - The Missouri Public Service Commission (MoPSC) approved $190 million in Infrastructure System Replacement Surcharge (ISRS) revenues, effective May 2025[8] - The new rates in Missouri are expected to be effective October 24, 2025, leading to an average residential customer bill increase of approximately 11%, or around $9 per month[15] Growth Outlook - The company maintains a long-term adjusted EPS growth target of 5-7%, using the original FY24 guidance midpoint of $435 as a base[8, 9]

View all Key Company Metrics for Spire here>>> Shares of Spire have returned +2.6% over the past month versus the Zacks S&P 500 composite's +1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Operating Revenues- Gas Utility: $347.5 million versus $356.49 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -6.8% change. Operating Revenues- Gas Marketing: $43.1 milli ...

Spire (SR) came out with quarterly earnings of $0.01 per share, beating the Zacks Consensus Estimate of a loss of $0.09 per share. This compares to a loss of $0.14 per share a year ago. These figures are adjusted for non- recurring items. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Spire shares have added about 11.9% since the beginning of the year versus ...