Spire reports FY25 third quarter results

Core Insights - Spire Inc. reported adjusted earnings per share of $0.01 for the third quarter of fiscal 2025, an increase of $0.15 compared to the previous year, driven by improved performance across all segments [1][7] - The company reaffirmed its fiscal 2025 adjusted earnings guidance range of $4.40 to $4.60 per share, indicating confidence in sustainable growth and long-term value creation [2][17] - Spire announced the acquisition of Piedmont Natural Gas Tennessee business for $2.48 billion, expected to close in the first quarter of calendar 2026, which is anticipated to enhance its regulated utility footprint and financial performance [3][7] Financial Performance - For the third quarter ended June 30, 2025, Spire reported a net income of $20.9 million, or $0.29 per diluted share, compared to a loss of $12.6 million, or $(0.28) per share, in the same period last year [7][25] - Adjusted earnings for the third quarter were $4.1 million, or $0.01 per share, compared to a loss of $4.3 million, or $(0.14) per share, in the prior year [7][27] - The Gas Utility segment reported an adjusted loss of $10.0 million, an improvement from a loss of $11.0 million in the previous year, while Gas Marketing and Midstream segments saw adjusted earnings of $5.3 million and $16.2 million, respectively [5][11][12] Segment Analysis - The Gas Utility segment's contribution margin increased by $4.2 million, primarily due to higher Infrastructure System Replacement Surcharge revenues, despite lower usage net of weather mitigation [8][15] - Gas Marketing adjusted earnings increased significantly from $1.0 million to $5.3 million, attributed to the business being well-positioned to create value [11] - Midstream adjusted earnings rose from $13.9 million to $16.2 million, driven by higher storage earnings due to additional capacity and asset optimization [12][16] Strategic Initiatives - The acquisition of Piedmont Natural Gas Tennessee is seen as a strategic fit that supports long-term adjusted earnings per share growth of 5-7% [3][7] - The company filed a unanimous stipulation and agreement in the Spire Missouri rate case, which is pending approval by the Missouri Public Service Commission, reflecting a commitment to reliable and affordable energy [4][7] - Spire's capital investment target is set at $7.4 billion over the next 10 years, focusing on infrastructure upgrades and new business in the Gas Utility segment, with fiscal 2025 capital expenditures increased to $875 million from $840 million [18][17]