Spire : 2nd Quarter Fiscal 2026 Earnings Presentation

Published: 2026-05-06 07:32:26 ET SR

Published on 05/06/2026 at 07:32 am EDT

Second quarter fiscal 2026 update

May 6, 2026

Scott Doyle

President and

Chief Executive Officer

Strategy and business review

Adam Woodard

Executive Vice President and Chief Financial Officer

Financial update

Financial and operational performance

Q2 FY26 adjusted EPS from continuing operations of $3.76 vs. $3.17 in Q2 FY251

Safely and reliably delivered natural gas

Continued focus on cost management and customer affordability

Regulatory

Outlook

Strategic transactions

Focused on our strategy to grow organically, invest in infrastructure and drive continuous improvement.

Missouri PSC approved $16.5M in ISRS revenues effective Mar. 2026

Filed Accounting Authority Order (AAO) with Missouri PSC to recover lost margin resulting from lower weather-related usage

FY26 adjusted EPS from continuing operations guidance range of $3.90 to $4.101

Reaffirm FY27 adjusted EPS guidance range of $5.40 to $5.602

Reaffirm adjusted EPS long-term growth target of 5-7%3

Reaffirm 10-year capex plan of $11.2B

Completed acquisition of the Piedmont Natural Gas Tennessee business

Announced sales of Spire Marketing, Spire Storage and Spire Mississippi

1Spire Marketing and Spire Storage are classified as discontinued operations. 2Reflects a full year of results from Spire Tennessee. Excludes results from Spire Storage and Spire Mississippi due to the expected sales of the assets, subject to regulatory approvals, as well as Spire Marketing, which sold on April 30, 2026. 3Uses original FY27 guidance midpoint of $5.75 as a base.

Simplified business mix and regulated utility focus enhances visibility and stability.

Regulated foundation Visibility and stability Reduced volatility

Business profile now includes regulated gas utilities and FERC-regulated pipeline

Long-term earnings outlook supported by rate-base growth and constructive regulatory mechanisms

Exit of storage and marketing businesses lowers earnings variability

Delivering more consistent earnings growth through a lower-risk regulated business mix.

Fiscal 2026 business priorities

Operational excellence

Safely and reliably deliver natural gas

Deploy and recover capital efficiently

Focus on customer affordability, including cost management

Regulatory

Achieve constructive regulatory outcomes

Prepare to file future test year rate case in Missouri

Financial

Deliver adjusted EPS of $3.90 to $4.10 from continuing operations

Maintain balance sheet strength

Strategic transactions and integration

Successfully integrate Spire Tennessee

Execute on divestitures

Maintain focus on regulated utility growth and

long-term shareholder value

6 S p i r e | S e c o n d q u a r t e r f i s c a l 2 0 2 6 u p d a t e

Strategic expansion

Spire Tennessee is a leading natural gas utility in a fast-growing

market

Adds more than 200,000 customers and $1.6B rate base in a constructive regulatory jurisdiction

Enhances scale, diversification and long-term strategic positioning

Financing completed; total purchase price $2.48B

$900M Spire Inc. Junior Subordinated Notes issued Nov. 2025

$825M Spire Tennessee Senior Notes issued March 2026

Proceeds from asset sales provide remaining funding needs

No common equity issued

Kansas City

St. Louis

Nashville

Birmingham

Integration underway

Focused on seamless transition for employees and customers

Hattiesburg

Mobile

18-month Transition Service Agreement (TSA)

Financial Outlook

Supports long-term adjusted EPS growth target of 5-7%

Spire gas utility territories

Spire MoGas Pipeline

Spire Marketing Spire Storage Spire Mississippi

Buyer

Boardwalk Pipelines I Squared Capital Delta Utilities

Announcement date

Mar. 30, 2026 Apr. 15, 2026 Apr. 22, 2026

Proceeds

$212M cash at closing $600M cash at closing; $75M cash at closing

$50M deferred payment in FY27

Expected close

Closed Apr. 30, 2026 Second half FY26 Q1 FY27

Use of proceeds

Partially fund the acquisition of the Piedmont Natural Gas Tennessee business

General corporate purposes, including supporting planned infrastructure investments across remaining gas utilities

Strategic impact

Meaningfully simplifies the business and strengthens focus on regulated gas utilities

Improves business risk profile and earnings visibility

Following these transactions, Spire's business mix will be fully regulated.

Adjusted earnings -

continuing operations1

(Millions)

Key Q2 FY26 drivers vs. prior year:

Gas Utility earnings (pre-tax)

New MO rates effective Oct. 2025: +$78.4M

$39.6 $(5.2)

AL rates under the RSE: +$7.1M

AL RSE customer refund provision: $(6.9)M2

Usage net of weather mitigation: $(12.3)M

- MO: $(12.6)M; AL: +$0.3M

Off-systems sales3: +$4.0M

- MO: +$3.0M; AL: +$1.0M

Lower run-rate O&M expenses4: +$1.9M

- MO: $(1.9)M; AL: +$3.9M

Higher depreciation expense: $(12.1)M

Partially offset through new rates

Higher taxes other than income taxes: $(6.0)M

A portion recovered in new rates

Higher interest expense: $(1.5)M

Q2 FY25 Gas Utility Other & Elims Q2 FY26

Other & Eliminations

Higher corporate costs and interest expense

1See adjusted earnings reconciliation to GAAP in the Appendix. 2Includes a customer refund provision of $2.8M in Q2 FY26 and the reversal of a $4.1M customer refund provision in Q2 FY25 under the RSE framework. 3Off-system sales revenue is shared under regulatory mechanisms, with ~75% returned to customers and ~25% retained by Spire. 4Key Q2 FY26 variances in appendix for run-rate O&M reconciliation.

What happened

Customer usage was significantly below historical usage and test year patterns

Missouri heating degree days (HDD) were 11.5% below normal for 1H FY26

Residential usage per HDD in the winter heating season was materially lower than FY24, which is the historical

test year used in new billing determinants

Why it mattered

Lower usage resulted in reduced margin of $28M (pre-tax) versus YTD expectations

The usage-based margin shortfall resulting from mild and uneven winter weather was not mitigated by the weather normalization mechanism

Recent Missouri rate design shifted a greater portion of revenues into the winter heating season,

increasing earnings sensitivity to weather and usage

Regulatory response

Filed an AAO1 in Mar. 2026 with the Missouri PSC to recover the volumetric margin shortfall caused by extraordinary weather patterns in December thru February

Implications

Primary driver of reduced full-year Gas Utility guidance

Impact is mechanical and usage-driven, not reflective of changes to strategy or regulatory framework

1Docket No. GU-2026-0225

Year

Adjusted EPS guidance

- continuing operations

Change vs. Prior

M&A treatment in Guidance

FY26

$3.90 − $4.10

Updated

Excludes full year of Storage, Marketing and Tennessee; includes Mississippi

FY27

$5.40 − $5.60

Reaffirmed

Excludes full year of Storage, Marketing and Mississippi; includes Tennessee

FY26 guidance updates

Marketing and Storage now discontinued operations

Lower MO margin driven by lower weather-related usage

Higher Corporate interest expense and

allocated costs

Corporate & other includes MoGas Pipeline

Reaffirm 5-7% adjusted EPS growth target1

Supported by rate base growth and $11.2B ten-year capital plan

FY26 adjusted earnings -

continuing operations

(Millions)

Q2 updated Gas Utility $275 - $295

Corporate & other2 (46) - (40)

Discontinued operations (not included): Marketing and Storage

~+38%

~+94%

~(5)-(10)%

~(22)-(27)%

Expected percentage of FY26 adjusted EPS earned by quarter - continuing operations

1Uses original FY27 guidance midpoint of $5.75 as a base. 2Includes MoGas Pipeline previously included in Midstream segment.

Q2 YTD FY26 capex of $386M

Driven by Gas Utility investment including

$209M of infrastructure upgrades

$62M of new business

MO capex lower vs. FY25 due to completion of advanced meter rollout in MO East

FY26 capex target remains $797M

10-year capex target of ~$11.2B

Capital plan supports adjusted EPS longterm growth target of 5-7%1

Rate base growth: ~7% in Missouri and

~7.5% in Tennessee

Regulated equity growth: ~6% in Alabama

and Gulf

1Using original FY27 guidance midpoint of $5.75 as a base.

Q2 YTD capex

(Millions)

FY26 capex

(Millions)

$797

$401

$386

Q2 YTD FY25

Q2 YTD FY26

FY26E

Missouri

Alabama, Gulf & MS

Pipeline

Tennessee

10-year capex breakdown (FY26-FY35E)

Other

11%

Customer 19%

expansion

$11.2B

Safety and

reliability

70%

283

322

102

535

170

Excludes Tennessee acquisition funding

Equity

FY26E to FY28E: $0-$50M per year

Debt

Refinancing of maturities and funding

of capital plan

$200M Spire Missouri First Mortgage Bonds issued Oct. 23, 20251

$200M 6.375% Junior Subordinated Notes issued Jan. 12, 20262

Proceeds used to redeem all shares of Spire

Inc.'s preferred stock on Feb. 13, 2026

$400M 4.6% Spire Inc. Senior Notes issued Feb. 9, 20263

FFO/Debt target lowered to 14-15%

1Includes $150M 4.60% FMB due Sept. 15, 2030, and $50M 4.65% FMB due Jan. 15, 2031.

2Notes due 2086.

3Notes due 2031.

Debt maturities and expected issuances

(Millions)

$100

$45

FY26E

FY27E

FY28E

Maturities

Expected issuances

$480

$700

$800

Appendix

Millions

Per diluted common share

Three months ended March 31,

2026

2025

Net Income [GAAP]

$ 217.6

$ 189.3

Acquisition activities, pre-tax

30.8

Gain on sale of subsidiary

(28.9)

Goodwill impairment

3.9

Income tax adjustments

0.3

Preferred redemption costs

Adjusted Earnings1

$ 223.7

$ 189.3

2026

2025

$ 3.51

$ 3.17

0.52

(0.49)

0.07

0.01

0.14

$ 3.76

$ 3.17

By segment Variance

Gas Utility

$ 195.2

$ 39.6

Other (11.1) (5.9) (5.2)

Average diluted shares outstanding 59.2 58.5

Millions

Per diluted common share

Six months ended March 31,

2026

2025

Net Income [GAAP]

$ 305.4

$ 261.4

Acquisition activities, pre-tax

38.8

Gain on sale of subsidiary

(28.9)

Goodwill impairment

3.9

Income tax adjustments

(1.7)

Preferred redemption costs

Adjusted Earnings1

$ 317.5

$ 261.4

2026

2025

$ 4.93

$ 4.36

0.66

(0.49)

0.07

(0.03)

0.14

$ 5.28

$ 4.36

By segment Variance

Gas Utility

$ 273.0

$ 65.7

Other (21.2) (11.6) (9.6)

Average diluted shares outstanding 59.2 58.2

Adjusted earnings -

continuing operations1

Key 1H FY26 drivers vs. prior year:

Gas Utility earnings (pre-tax)

New MO rates effective Oct. 2025: +$132.6M

(Millions)

$65.7

$(9.6)

MO ISRS: +$2.3M

AL rates under the RSE: +$7.9M

AL RSE customer refund provision: $(2.8)M

Usage net of weather mitigation: $(24.9)M

- MO: $(23.5)M; AL: $(1.4)M

Off-systems sales2: +$5.4M

- MO: +$3.8M; AL: +$1.6M

Lower run-rate O&M expenses: +$0.5M

- MO: $(4.4)M; AL: +$5.3M

Higher depreciation expense: $(18.8)M

Partially offset through new rates

Higher taxes other than income taxes: $(8.8)M

A portion recovered in new rates

Higher interest expense due to higher balances, partially

1H FY25 Gas Utility Other & Elims 1H FY26

offset by lower rates: $(3.1)M

Other & Eliminations

Higher corporate costs and interest expense

1See adjusted earnings reconciliation to GAAP in the Appendix. 2Off-system sales revenue is shared under regulatory mechanisms, with ~75% returned to customers and ~25% retained by Spire. 3See Key 1H FY26 variances in appendix for run-rate O&M reconciliation.

Annualized dividend per share

$3.301

$3.14

$3.02

$2.88

$2.74

$2.49

$2.60

$2.25

$2.37

$2.10

$1.96

$1.84

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

2026 annualized dividend increased 5.1% to $3.30 per share

Supported by long-term 5-7% adjusted earnings per share growth

2026 marks 23 consecutive years of increases; 81 years of continuous payment

Part of the S&P's Dividend Aristocrats Index

Targeted dividend payout ratio 55-65%

1Quarterly dividend of $0.825 per share paid January 5, 2026, and April 2, 2026, annualized.

Electricity is 2× to 3× more expensive than natural gas in Spire's states

kWh equivalent

16.18¢

14.72¢

12.17¢

6.09¢

5.44¢

4.94¢

Missouri Alabama Mississippi

1US Energy Information Agency residential customer electric rates for the twelve-month average ending February 2026.

2Represents Spire's kWh equivalent current average residential customer rate.

1.49%

1.73%

1.39%

1.44%

1.15%

1.87%

Missouri

Alabama

Mississippi

1Reflects Spire's average residential usage and current rates.

2Low income is considered at or below 80% of the area median income, as determined by the U.S. Department of Housing and Urban Development.

3Real median household income as determined by Federal Reserve Bank of St. Louis.

Disclaimer

Spire Inc. published this content on May 06, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 06, 2026 at 11:29 UTC.