Spire's Q1 Earnings Higher Than Estimates, Revenues Rise Y/Y

Core Insights - Spire Inc. reported first-quarter fiscal 2026 adjusted earnings of $1.77 per share, exceeding the Zacks Consensus Estimate of $1.62 by 9.3% and reflecting a 32.1% increase from $1.34 in the same quarter last year [1][8] Revenue Performance - Total revenues for the quarter reached $762.2 million, surpassing the Zacks Consensus Estimate of $712 million by 7.1% and showing a 13.9% increase from $669.1 million in the prior-year quarter [2][8] Earnings Highlights - Operating expenses were $588.7 million, up 13.1% from $520.3 million in the previous year [3] - Operating income was reported at $173.5 million, compared to $148.8 million in the prior-year quarter [3] - Net interest expenses rose 25.8% year over year to $60.4 million [3] Segment Performance - Gas Utility segment reported adjusted earnings of $103.9 million, a 33.7% increase from the prior-year quarter, driven by stronger results in Spire Missouri and Spire Alabama [4][8] - Gas Marketing segment saw adjusted earnings of $4.5 million, a significant growth of 104.5% year over year due to better portfolio optimization [4] - Midstream segment adjusted earnings totaled $12.7 million, up 5.8% from the previous year, attributed to higher Spire Storage revenues [5] - Other segment reported an adjusted loss of $12.7 million, compared to a loss of $10.9 million in the prior-year quarter [5] Financial Position - Cash and cash equivalents as of December 31, 2025, were $4.1 million, down from $5.7 million as of September 30, 2025 [6] - Long-term debt as of December 31, 2025, totaled $4.45 billion, an increase from $3.37 billion as of September 30, 2025 [6][8] - Net cash from operating activities for the first three months of fiscal 2026 was $81 million, slightly down from $81.1 million in the same period last year [6] Guidance - Spire expects fiscal 2026 adjusted earnings to be in the range of $5.25-$5.45 per share, with the Zacks Consensus Estimate at $5.30 [9] - For fiscal 2027, adjusted earnings are expected to be in the range of $5.65-$5.85 per share, with the Zacks Consensus Estimate at $5.71 [9] - The company plans a 10-year capital investment of $11.2 billion through fiscal 2035, aiming for long-term adjusted earnings per share growth of 5-7% [10]