Atmos Energy (US:ATO) ZACKS·2025-12-01 15:16Core Insights - Atmos Energy Corporation (ATO) is positioned for sustained growth driven by increasing natural gas demand and an expanding customer base [1] - The company is focused on long-term investments to enhance the reliability of its natural gas pipelines while benefiting from industrial customer additions and favorable rate outcomes [1] Growth Outlook - The Zacks Consensus Estimate for fiscal 2026 earnings per share (EPS) is projected to increase by 1.8% to $8.02 [2] - Fiscal 2026 revenue is estimated at $5.81 billion, indicating a year-over-year growth of 23.5% [2] - ATO's long-term earnings growth rate is forecasted at 7.98%, with an average earnings surprise of 2.6% over the last four quarters [2] Dividend History - Atmos Energy has consistently increased shareholder value through dividends, currently paying a quarterly dividend of $1.00 per share, equating to an annualized dividend of $4.00 [3] - The current dividend yield stands at 2.27%, outperforming the Zacks S&P 500 composite average of 1.07% [3] Investment Focus - ATO has a five-year capital expenditure plan totaling $26 billion for fiscal 2026-2030, with $20 billion earmarked for upgrading the distribution system and $6 billion for modernizing the transmission system [4] - This investment strategy is expected to yield annual earnings growth of 6-8% during the investment period [4] Debt Position - ATO's total debt to capital ratio is 39.89%, which is more favorable than the industry average of 47.36% [5] - The times interest earned (TIE) ratio at the end of Q4 2025 was 9.6, indicating a strong ability to meet future interest obligations [5] Stock Price Performance - Over the past year, ATO's shares have appreciated by 18.7%, surpassing the industry's growth of 9.8% [6] Additional Context - ATO's fiscal 2026 revenue estimate of $5.81 billion reflects a 23.5% year-over-year growth, with a planned $26 billion in capital spending from 2026 to 2030 for system upgrades and modernization [7]