Spire(US:SR)2026-02-03 16:36Financial Performance - Operating revenues for the three months ended December 31, 2025, increased to $762.2 million, up from $669.1 million in the same period of 2024, representing a growth of 13.3%[9] - Net income for the same period rose to $95.0 million, compared to $81.3 million in 2024, reflecting an increase of 16.5%[11] - Basic earnings per common share increased to $1.55 for the three months ended December 31, 2025, compared to $1.34 in 2024, marking a growth of 15.7%[9] - The company reported a comprehensive income of $77.2 million for the three months ended December 31, 2025, compared to $53.5 million in 2024, indicating a significant increase of 44.4%[25] - Adjusted earnings for the three months ended December 31, 2025, were $108.4 million, compared to $81.1 million for the same period in 2024, reflecting a year-over-year increase of 33.7%[124] - The company reported a net income of $103.9 million for the three months ended December 31, 2025, compared to $77.8 million for the same period in 2024, representing a year-over-year increase of 33.8%[176] Assets and Liabilities - Total assets as of December 31, 2025, reached $11,881.9 million, an increase from $11,275.8 million as of December 31, 2024, indicating a growth of 5.4%[16] - Long-term debt (less current portion) increased to $4,449.4 million as of December 31, 2025, compared to $3,697.7 million in the previous year, reflecting a rise of 20.3%[16] - Total shareholders' equity as of December 31, 2025, was $3,432.7 million, up from $3,308.9 million in 2024, representing an increase of 3.8%[16] - Total assets for Spire Missouri Inc. rose to $6,550.8 million as of December 31, 2025, up from $6,349.8 million as of September 30, 2025[30] - Total regulatory assets as of December 31, 2025, amounted to $1,394.8 million, slightly down from $1,401.8 million as of September 30, 2025[70] - Total liabilities for gas utility contracts were $35.3 million, with $19.9 million related to natural gas commodity contracts[102] Cash Flow and Investments - Cash and cash equivalents decreased to $4.1 million as of December 31, 2025, down from $11.5 million in the previous year, a decline of 64.3%[14] - 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[22] - The net cash used in investing activities was $201.3 million for the three months ended December 31, 2025, compared to $260.1 million in 2024, indicating a reduction in investment outflows[22] - The company reported a net decrease in cash and cash equivalents of $1.9 million for the three months ended December 31, 2025[48] Capital Expenditures - Capital expenditures for the three months ended December 31, 2025, were $202.8 million, a decrease from $260.6 million in the same period of 2024[22] - Capital expenditures for Spire Alabama increased to $41.3 million in Q4 2025 from $34.5 million in Q4 2024, showing an increase of about 19.6%[118] - Capital expenditures for Spire Missouri were $148.0 million in Q4 2025, down from $178.3 million in Q4 2024, indicating a decrease of about 16.9%[116] Debt and Financing - The company has a commercial paper program allowing for short-term borrowings up to $1,500.0 million, with $224.1 million utilized to support lending to the Utilities as of December 31, 2025[82][83] - The weighted average interest rate for borrowings outstanding as of December 31, 2025, was 3.9% across Spire, Spire Missouri, and Spire Alabama[84] - Spire issued $900.0 million of junior subordinated notes on November 24, 2025, with interest rates of 6.250% and 6.450% for Series A and Series B, respectively[87][88] - The company has committed to a total of $1,738.5 million in minimum payments under contracts for the storage, transportation, and supply of natural gas, expiring through calendar 2039[125] Regulatory and Rate Changes - Spire Missouri filed a PGA adjustment increase effective November 26, 2025, reflecting changes in natural gas commodity prices[73] - The company received approval for a base rate increase of $210.0, effective October 24, 2025, resulting in a net base rate increase of $137.4 after accounting for the $72.6 already collected through the Infrastructure System Replacement Surcharge (ISRS)[74] - Spire Alabama's annual Rate Stabilization and Equalization (RSE) filing resulted in an annual revenue increase of $12.9 million, effective December 1, 2025[77] Acquisitions and Strategic Initiatives - Spire entered into an agreement to acquire Piedmont Natural Gas's Tennessee business for $2.48 billion in cash, subject to customary adjustments[146] - The acquisition is expected to significantly increase Spire's scale in a fast-growing region, expand regulatory diversity, and support dividend growth[150] - Spire has a committed senior unsecured bridge facility of up to $725.0 million to fund the acquisition, which includes a $125.0 million bridge term loan and a $600.0 million delayed draw term loan[147] Segment Performance - Revenue from the Gas Utility segment increased to $693.3 million in 2025, compared to $613.5 million in 2024, reflecting a growth of 13.0%[62] - Gas Utility net income for the quarter ended December 31, 2025, increased by $26.1 million compared to the prior year, driven by improved performance from Spire Missouri and Spire Alabama[184] - Operating revenues for Gas Utility rose to $79.8 million, primarily due to the $46.4 million impact from the Missouri rate case implementation and an $11.0 million increase in volumetric usage in Spire Alabama[185] Miscellaneous - The company is involved in ongoing environmental remediation activities, with costs incurred to date not being material, but future costs could be significant depending on various factors[130] - The company recorded unrealized gains or losses from mutual funds and bonds in the income statement, impacting overall financial performance[101] - The company is actively pursuing new strategies for market expansion and product development in the gas utility sector[104]