Spire Q3 Earnings Call Highlights

Spire is now fully regulated after completing the divestitures of Spire Marketing and Spire Storage, reducing earnings volatility; the Spire Mississippi sale remains expected in fiscal Q1 2027.

Fiscal Q3 adjusted loss improved to $0.26 per share from $0.29 a year earlier, helped by stronger utility results and the absence of preferred-dividend expense.

Spire reaffirmed fiscal 2026 EPS guidance of $3.90–$4.10 and fiscal 2027 guidance of $5.40–$5.60.

Spire continues to pursue substantial investment and regulatory growth, including an $11.2 billion 10-year capital plan, Alabama rate-mechanism renewals, Missouri infrastructure cost recovery and a Tennessee revenue-increase request.

Spire NYSE: SR reported a fiscal third-quarter adjusted loss from continuing operations of $15 million, or $0.26 per share, compared with an adjusted loss of $13 million, or $0.29 per share, a year earlier, as the utility completed divestitures that shifted its business profile to fully regulated operations.

President and Chief Executive Officer Scott Doyle said the company has completed the sale of its Spire Marketing and Spire Storage businesses, while continuing to integrate Spire Tennessee following its acquisition.

The company still expects to complete the sale of Spire Mississippi in the first quarter of fiscal 2027.

“With the completion of the marketing and storage divestitures, we're now operating as a fully regulated company,” Doyle said.

He said the portfolio changes reduce earnings volatility and improve the predictability of the company’s results, which are now supported by rate-base growth, regulatory mechanisms and its regulated utility and pipeline operations.

The adjusted per-share loss improved year over year in part because fiscal 2025 results included $0.06 per share of preferred dividend expense.

That expense did not recur after the company redeemed its preferred shares.

Spire’s Gas Utility segment posted an adjusted loss of $3 million, improving from a $10 million loss in the prior-year quarter.

Chief Financial Officer Adam Woodard said new rates in Missouri and Alabama contributed to the improvement, including Missouri ISRS rates implemented during the spring and Alabama’s CCM mechanism.

Higher customer usage, net of weather mitigation, in Alabama was partly offset by lower usage, net of weather mitigation, in Missouri.

Operations and maintenance expense increased about $4 million, primarily due to higher bad-debt expense, although Woodard said utility run-rate O&M remains below inflation.

The company’s other activities recorded an adjusted loss of $12 million, compared with a $3 million loss in the prior-year period, reflecting higher corporate costs and interest expense.

Spire also reported $253.8 million in earnings from discontinued operations, including a $254.6 million after-tax gain on the sales of businesses.

Spire reaffirmed its fiscal 2026 adjusted EPS guidance from continuing operations of $3.90 to $4.10.

The guidance excludes a full year of Spire Storage, Spire Marketing and Spire Tennessee, but includes Spire Mississippi.

The company also reaffirmed fiscal 2027 adjusted EPS guidance of $5.40 to $5.60 and its long-term adjusted EPS growth target of 5% to 7%.

Woodard said the long-term growth target uses the original fiscal 2027 guidance midpoint of $5.75 as its base.

During the question-and-answer session, Doyle said fiscal 2028 is expected to be a “step-up year,” driven by recovery of regulatory lag in Missouri and the use of a future t...