Spire(US:SR)2026-02-03 12:04Financial Performance - For the first quarter of fiscal 2026, Spire reported net income of $95.0 million, or $1.54 per diluted share, compared to $81.3 million, or $1.34 per share, in the prior year, representing a year-over-year increase of 16.5% in net income [3]. - Adjusted earnings for the first quarter were $108.4 million, or $1.77 per share, an increase of $0.43 compared to $81.1 million, or $1.34 per share, in the previous year [3]. - Total operating revenues for the first quarter were $762.2 million, up from $669.1 million in the prior year, reflecting a 13.9% increase [21]. - Operating income increased to $173.5 million from $148.8 million, marking a 16.6% rise year-over-year [21]. - Net income for the three months ended December 31, 2025, was $95.0 million, compared to $81.3 million for the same period in 2024, reflecting a year-over-year increase of 16.5% [23]. - Adjusted earnings for the three months ended December 31, 2025, were $108.4 million, up from $81.1 million in 2024, marking a significant increase of 33.6% [24]. - Operating Revenues for the three months ended December 31, 2025, were $762.2 million, an increase from $669.1 million in the same period of 2024, representing a year-over-year growth of approximately 13.9% [26]. - Contribution Margin (Non-GAAP) for Q4 2025 was $419.6 million, up from $372.3 million in Q4 2024, indicating a growth of about 12.7% [26]. - Operating Income (GAAP) for Q4 2025 was $173.5 million, compared to $148.8 million in Q4 2024, reflecting an increase of approximately 16.6% [26]. Segment Performance - The Gas Utility segment's adjusted earnings increased to $103.9 million from $77.8 million, driven by higher earnings at Spire Missouri and Spire Alabama [5]. - Contribution margin rose by $48.0 million, primarily due to new rates in Spire Missouri and increased revenues from the Infrastructure System Replacement Surcharge (ISRS) [6]. - The company reported a contribution margin of $380.2 million from utility operations in Q4 2025, compared to $332.2 million in Q4 2024, indicating a growth of approximately 14.5% [26]. Guidance and Future Plans - The company affirmed its fiscal 2026 adjusted earnings guidance range of $5.25–$5.45 per share and fiscal 2027 guidance of $5.65–$5.85 per share [3]. - The company plans a 10-year capital investment target of $11.2 billion through fiscal 2035, focusing on infrastructure and new business in the Gas Utility segment [15]. Debt and Assets - Long-term debt (less current portion) rose to $4,449.4 million in September 2025, compared to $3,369.4 million in December 2024, indicating an increase of 32.0% [22]. - Total assets increased to $11,881.9 million in September 2025, up from $11,575.3 million in December 2024, representing a growth of 2.6% [22]. - The company issued $1,100.0 million in long-term debt during the financing activities for the three months ended December 31, 2025 [23]. Cash Flow and Expenses - Cash provided by operating activities was $81.0 million for the three months ended December 31, 2025, slightly down from $81.1 million in 2024 [23]. - Capital expenditures for the three months ended December 31, 2025, were $202.8 million, down from $260.6 million in 2024, a decrease of 22.1% [23]. - Total current liabilities decreased to $1,713.3 million in September 2025 from $2,548.6 million in December 2024, a reduction of 32.7% [22]. - Retained earnings increased to $1,127.7 million in September 2025, compared to $1,087.6 million in December 2024, reflecting a growth of 3.7% [22]. - The cash balance at the end of the period was $39.9 million, down from $41.9 million at the end of December 2024, a decrease of 4.8% [23]. Operating Expenses - Natural gas costs for Q4 2025 totaled $312.7 million, which is higher than $270.0 million in Q4 2024, marking an increase of about 15.9% [26]. - Operation and maintenance expenses for Q4 2025 were $139.9 million, slightly up from $129.3 million in Q4 2024, showing an increase of approximately 8.1% [26]. - Depreciation and amortization expenses rose to $81.4 million in Q4 2025 from $72.3 million in Q4 2024, representing an increase of about 12.6% [26]. - Taxes, other than income taxes, were $54.7 million in Q4 2025, compared to $48.7 million in Q4 2024, indicating a year-over-year increase of approximately 18.9% [26]. - Gross receipts tax expense for Q4 2025 was $29.9 million, up from $26.8 million in Q4 2024, reflecting an increase of about 11.6% [26]. Other Activities - Adjusted loss from other activities was $12.7 million, compared to a loss of $10.9 million in the prior year, primarily due to higher corporate costs and interest expense [11]. - The operating income from marketing operations in Q4 2025 was a loss of $3.9 million, an improvement from a loss of $2.7 million in Q4 2024, showing a reduction in losses [26].