Core Insights - Spire Inc. reported a fourth-quarter fiscal 2025 loss of 47 cents per share, which was wider than the Zacks Consensus Estimate of a loss of 46 cents, and compared to a loss of 54 cents in the same quarter last year [1] - The company achieved fiscal 2025 adjusted earnings of $4.44 per share, reflecting a year-over-year increase of 7.5% from $4.13 in fiscal 2024 [1] Revenue Performance - Total revenues for the reported quarter were $334.1 million, exceeding the Zacks Consensus Estimate of $308 million by 8.5%, and rose 13.7% from $293.8 million in the year-ago quarter [2] - For fiscal 2025, total revenues amounted to $2.48 billion, down 4.5% from $2.59 billion in fiscal 2024 [2] Expense and Operating Performance - Operating expenses totaled $334.6 million, an increase of 22.1% from $274 million in the prior-year period [3] - The operating loss was $0.5 million, contrasting with an operating income of $19.8 million in the prior-year quarter [3] - Net interest expenses rose 18.8% year over year to $58.8 million [3] Segment Performance - Gas Utility segment reported an adjusted earnings loss of $31.6 million, an improvement from a loss of $32 million in the year-ago period, attributed to higher Spire Missouri ISRS revenues [4] - Gas Marketing segment's adjusted earnings were $3.6 million, recovering from a loss of $0.3 million in the year-ago quarter due to better positioning to create value [4] - Midstream segment's adjusted earnings totaled $12.3 million, down 8.2% from the previous year due to lower pipeline earnings and increased operation and maintenance expenses [5] - Other segment reported an adjusted loss of $8.4 million, slightly improved from a loss of $8.7 million in the prior-year quarter [5] Financial Highlights - Cash and cash equivalents as of September 30, 2025, were $5.7 million, up from $4.5 million as of September 30, 2024 [6] - Long-term debt (less current portion) as of September 30, 2025, totaled $3.37 billion, down from $3.70 billion as of September 30, 2024 [6] - Net cash provided by operating activities in fiscal 2025 was $578 million, compared to $912.4 million in the year-ago period [6] Guidance and Future Outlook - Spire expects fiscal 2026 adjusted earnings to be in the range of $5.25-$5.45 per share, above the Zacks Consensus Estimate of $5.09 [8] - For fiscal 2027, adjusted earnings are expected to be in the range of $5.65-$5.85 per share [8] - The company raised its 10-year capital investment plan to $11.2 billion through fiscal 2035, aiming for long-term adjusted earnings per share growth of 5-7% [8] Zacks Rank - Spire currently holds a Zacks Rank 2 (Buy) [9]

Financial Data and Key Metrics Changes - The company reported third quarter ongoing earnings of $1.12 per share, achieving over 80% of the midpoint of the 2025 earnings guidance [14] - The 2025 ongoing earnings guidance range has been narrowed to $3.17-$3.23 per share, trending towards the upper half of this range [16] - The 2026 earnings guidance is projected at $3.36-$3.46 per share, representing a 6.6% increase over the 2025 midpoint [8][16] - The annual common stock dividend target for 2026 is set at $2.14 per share, a 5.4% increase from the 2025 target of $2.03 per share [8][16] Business Line Data and Key Metrics Changes - The company completed construction of energy storage projects totaling 175 megawatts and advanced gas path projects to enhance efficiency [7] - The contracted demand from four data centers totals 3 gigawatts, leading to a projected 50% peak demand growth by 2030 [9] - The capital expenditure plan has been increased by 17% to $13.4 billion, with a projected compound annual growth rate of 12% from 2025 to 2029 [8][17] Market Data and Key Metrics Changes - The company is focusing on plug-and-ready sites to minimize transmission investments and accelerate customer service [6] - The Iowa retail construct stabilizes electric-based rates for customers through the end of the decade, benefiting existing customers [10] - The company has received regulatory support for its plans, including approvals for rate reviews and investments in renewable energy projects [11][22] Company Strategy and Development Direction - The company aims to unlock the potential of customers and communities by focusing on near-term growth opportunities and maintaining affordability [10][25] - The strategy includes proactive community engagement and investments in renewable energy and energy storage to meet growing customer demand [12][18] - The company is committed to maintaining competitive rates for both new and existing customers through economic development success and cost controls [12] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a compound annual growth rate of 12% in rate base and construction work in progress, reinforcing long-term growth objectives [18] - The company is optimistic about future growth opportunities, particularly in data centers, and is focused on minimizing regulatory lag [56][58] - Management highlighted the importance of timing in load growth and the potential for earnings to exceed current guidance based on new contracts [29][39] Other Important Information - The company has successfully refinanced $300 million of debt and issued $725 million in junior subordinated notes to support its financing plans [18][20] - The company plans to finance capital expenditures through a combination of cash from operations and new debt, hybrid, and common equity issuances [19][20] - Future regulatory filings are expected to enhance reliability and diversify energy resources to meet growing customer needs [24] Q&A Session Summary Question: Can you provide color on the ramp in demand and its impact on earnings trajectory? - Management indicated that the 7-8% growth is conservative and that timing is crucial for realizing load growth [29] Question: What are the assumptions regarding earned returns in Iowa? - Management confirmed that Iowa's new regulatory construct provides certainty for earning authorized returns, with potential upside for exceeding those returns [32] Question: Can you elaborate on the 2-4 gigawatts of additional load negotiations? - Management stated that these negotiations involve both expansions of existing facilities and new customers, with updates expected in the next 12 months [36][66] Question: What is the expected FFO to debt ratio by the end of 2025? - Management aims for a cushion of 50-100 basis points in the FFO to debt metrics to support growth [41] Question: How will the timing of rate cases affect future growth rates? - Management noted that Wisconsin's forward-looking test years minimize regulatory lag, while Iowa's structure allows for annual earnings growth [56][58]

Financial Data and Key Metrics Changes - Core earnings per share for Q3 2025 are $0.50, and $1.14 for the first nine months of 2025, with full-year guidance narrowed to a range of $1.49 to $1.51, reflecting a 10% increase over 2024 [4][14] - The company introduced 2026 EPS guidance of $1.62 to $1.66, indicating a 9% increase from the 2025 midpoint [4] Business Line Data and Key Metrics Changes - The company reported a 35% reduction in CPUC-reportable ignitions year-to-date compared to 2024, achieving zero structures destroyed due to CPUC-reportable fires in high fire-risk areas for three consecutive years [7][8] - PG&E has constructed and energized 1,000 miles of power lines underground in high fire-risk areas, with a 25% lower cost than previous efforts [8][41] Market Data and Key Metrics Changes - The data center pipeline remains robust at over 9.5 gigawatts, with modest net attrition in applications but growth in projects at the final engineering stage [11][12] - The company anticipates that every gigawatt brought online could reduce electric bills by 1% to 2% [13] Company Strategy and Development Direction - PG&E's five-year capital plan through 2030 totals $73 billion, supporting average annual rate base growth of 9% and EPS growth of at least 9% [4][15] - The company is focused on waste elimination and cost reduction, targeting a 2% O&M cost reduction goal [10][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing legislative process regarding wildfire risk mitigation and the potential for constructive legislation [5][22] - The company is committed to maintaining investment-grade ratings and has received an upgrade from Fitch, indicating positive momentum in credit ratings [21][62] Other Important Information - The company is prioritizing safety and resilience through various initiatives, including advanced sensor capabilities and vegetation management around transmission structures [9][10] - PG&E's financing plan does not require new equity through 2030, which is crucial given current market conditions [16][17] Q&A Session Summary Question: Updates on SB 254 process - Management provided timeline details for stakeholder abstracts and final recommendations, indicating key dates for the process [26] Question: Cost of capital case status - Management confirmed that a proposed order is expected in November 2025, with confidence in their case [27] Question: Policy reform recommendations and legislative buy-in - Management highlighted significant improvements from phase one of SB 254 and expressed optimism about the governor's commitment to phase two [36][38] Question: Undergrounding decision timeline - Management confirmed that final recommendations on the 10-year undergrounding procedure are on the agenda for an upcoming commission meeting [39] Question: Data center pipeline reduction - Management noted that the most important numbers are those closer to construction, with expectations for significant online capacity by 2030 [51] Question: Credit agency conversations - Management shared ongoing discussions with Moody's and S&P, emphasizing the importance of progress on phase two for potential upgrades [62] Question: O&M cost reduction targets - Management expressed confidence in meeting the 2% reduction target for the year, with no current plans to raise that target [64] Question: Comfort with 2026 EPS guidance - Management reassured that they plan conservatively and are prepared for various scenarios [72] Question: Energy storage project as a blueprint - Management indicated excitement about the CRC energy storage microgrid project and plans for similar installations in other communities [74] Question: Dividend payout ratio beyond 2028 - Management confirmed plans to maintain a 20% payout ratio through 2030 [80]

Financial Data and Key Metrics Changes - The company reported diluted earnings per share (EPS) of $0.45 on a GAAP basis and non-GAAP EPS of $0.50 for Q3 2025, representing a 60% increase compared to the same period last year [3][9][16] - The full year 2025 non-GAAP EPS guidance is reiterated at a range of $1.75 to $1.77, indicating a 9% growth over 2024 results of $1.62 per share [10][26] Business Line Data and Key Metrics Changes - Throughput in the Houston Electric business increased by 9% year-to-date, with industrial customer class throughput up over 17% quarter-over-quarter and over 11% year-to-date [8][9] - The company filed for interim capital recovery trackers at Houston Electric, with a $15 million annual revenue requirement increase approved and a $55 million increase pending approval [19] Market Data and Key Metrics Changes - The Greater Houston area is experiencing significant growth, with peak load demand forecasted to increase by 10 gigawatts by 2031, representing nearly a 50% increase over the next six years [6][7] - The company anticipates electric load demand on its system to double to approximately 42 gigawatts by the middle of the next decade [7] Company Strategy and Development Direction - The company introduced a ten-year financial plan with a capital investment plan of at least $65 billion, focusing on economic development, operational efficiency, and value for investors [5][6] - The recent sale of the Ohio Gas LDC is expected to generate approximately $2.6 billion in gross proceeds, allowing for capital redeployment into higher growth jurisdictions [11][12][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving non-GAAP EPS at the mid to high end of the 7% to 9% annual growth guidance from 2026 through 2028, and 7% to 9% annually through 2035 [8][11][26] - The company highlighted the strong demand from diverse sectors in the Greater Houston area, including energy refining and data centers, contributing to robust sales growth [40][41] Other Important Information - The company expects to close the Ohio Gas LDC transaction in 2026, which will enhance balance sheet capacity and provide flexibility for future capital investments [12][22] - The company is focused on maintaining a strong balance sheet, with a trailing twelve-month adjusted funds from operations (FFO) to debt ratio of 14% [24][25] Q&A Session Summary Question: Balance sheet capacity from the Ohio transaction - Management indicated that the transaction would improve FFO to debt metrics and allow for less reliance on equity financing, potentially reducing the equity assumption from 47% to lower levels [33][35] Question: Local feedback on the Ohio deal - Management reported positive reception and support from local leadership regarding the transaction [37] Question: Sales growth in Texas - Management attributed strong sales growth to diverse drivers, including data center activity and increased exports at the Port of Houston [40][41] Question: Data center activity in Indiana - Management expressed optimism about data center opportunities in Indiana, highlighting excess capacity and proactive steps to manage rate increases [44][46] Question: Asset sale and earnings impact - Management confirmed that the Ohio sale would be beneficial for financing and earnings, with plans to redeploy proceeds into Texas projects [52][53] Question: Seller's note and capital plan - Management described the seller's note as a straightforward instrument that supports the capital allocation plan and provides clarity for future earnings [55] Question: AMI rollout timeline - Management indicated that the next generation of AMI investments would begin with a pilot in 2026, with broader deployment expected in 2027 [62][64] Question: Mobile generation opportunities - Management noted strong market conditions for medium-sized units and plans to remarket larger units in 2027, which could provide cash flow benefits [67][68] Question: Contribution from recent legislation - Management confirmed that the benefits of recent legislation are incorporated into the capital investment plan, with potential for further enhancements [70]

Financial Data and Key Metrics Changes - For Q4 2024, consolidated revenue increased by 2% year-over-year, while consolidated adjusted EBITDAre grew by 1% and AFFO increased by 4% [17][18] - Full-year consolidated revenue growth was 8%, adjusted EBITDAre growth was 10%, and AFFO growth was 12% [14][15] Business Line Data and Key Metrics Changes - Same-store hospitality business generated approximately $496 million in revenue for Q4, marking the second-best quarter ever [21] - ADR increased by approximately 2% year-over-year to a record $260, with strong growth in both group and leisure rates [22] - The entertainment segment reported record revenue of $98 million for Q4, a 12% increase year-over-year, with adjusted EBITDAre increasing by approximately 6% [30] Market Data and Key Metrics Changes - Leisure room nights at Gaylord Texan decreased by 19% and at Gaylord Opryland by 6% during the last two weeks of December, which is a critical period accounting for nearly 40% of leisure room nights [19][20] - The JW Hill Country saw RevPAR and total RevPAR growth of 14% and 27% respectively, driven by successful live programming [24] Company Strategy and Development Direction - The company is committed to long-term positioning of hotel assets to capture premium group customer base, with a focus on driving mid-teens unlevered returns on incremental growth investments [8][9] - Significant investments are being made in Gaylord Opryland and Gaylord Rockies to attract high-rated corporate group business and enhance food and beverage capacity [9][10] - The company is optimistic about the future, projecting adjusted EBITDAre in the range of $900 million to $1 billion by 2027 [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that Q4 results were below expectations due to factors affecting the same-store hospitality portfolio in late December, but expressed optimism about bookings production and long-term strategy [6][14] - The company anticipates a stable macro environment for 2025, with expected RevPAR growth of 2.25% to 4.75% and adjusted EBITDAre of $675 to $715 million [35][36] Other Important Information - The company ended the year with $478 million in unrestricted cash and a total available liquidity of approximately $1.2 billion [42] - A first-quarter dividend of $1.15 is declared, payable on April 15, 2025 [44] Q&A Session Summary Question: Can you talk about the renovations planned beyond the current one and the timing? - Management indicated that work at Gaylord Opryland is ongoing, with completion expected in June 2025, and renovations at Gaylord Texan starting in Q2 2025 [49][51] Question: How much did labor and wage costs increase in 2024 and what is expected for 2025? - Wages increased by about 3.3% in 2024, with a similar increase expected for 2025 [65][68] Question: What is the mix of bookings and how does it impact out-of-room spending? - The company is seeing a higher mix of corporate bookings, which typically have higher out-of-room spending compared to association business [72][75] Question: What is the outlook for Gaylord National in 2025? - Management expressed confidence in forward bookings for Gaylord National, while also noting minimal reliance on the local DC market [111][112] Question: Are there any additional investment plans in the entertainment segment? - The company is excited about its investment in Southern Entertainment and is exploring various opportunities in the entertainment sector [142][143]