Summary of Spire's Q4 2025 Earnings Call

1Key Financial Results and Metrics

Adjusted EPS: $4.44, a 7.5% increase from $4.13 in fiscal 2024.

Total Earnings: $275.5 million for fiscal 2025, compared to $247.4 million in the previous year.

Fourth Quarter Performance: Adjusted loss of $24 million or $0.47 per share, attributed to seasonality and higher utility O&M expenses.

Capital Investments: $922 million in fiscal 2025, with 90% allocated to utilities.

Dividend Increase: 5.1% increase approved, raising the annualized rate to $3.30 per share.

2Strategic Updates and Business Highlights

Acquisition: Pending acquisition of Piedmont Natural Gas Tennessee from Duke is on track to close in 2026; Hart-Scott-Rodino review completed and awaiting Tennessee Public Utility Commission approval.

Regulatory Developments: Positive settlement in Missouri rate case effective October; ongoing rate stabilization process in Alabama.

Leadership Changes: Appointment of Steve Greenlee as Executive Vice President and COO, enhancing operational leadership.

Infrastructure Focus: Commitment to safety and reliability with 70% of capital investments aimed at upgrading distribution infrastructure.

3Forward Guidance and Outlook

Fiscal 2026 Adjusted EPS Guidance: Expected range of $5.25 to $5.45, excluding the Piedmont acquisition but including a full year of earnings from gas storage facilities.

Fiscal 2027 Guidance: Projected adjusted EPS of $5.65 to $5.85, incorporating a full year of earnings from Piedmont and excluding earnings from Spire Storage due to expected asset sale.

Long-term Growth Target: Adjusted EPS growth of 5% to 7%, supported by rate base growth in Missouri (7%) and Tennessee (7.5%).

4Bad News, Challenges, or Points of Concern

Fourth Quarter Loss: The adjusted loss in Q4 indicates potential operational challenges, particularly with O&M expenses exceeding expectations.

Higher O&M Expenses: Increased operating and maintenance costs are a concern, although targeted to grow below inflation.

Regulatory Risks: Future test year rate adjustments in Missouri could lead to uncertainties in earnings if not managed effectively.

Integration Risks: The integration of Piedmont and the management of O&M costs during this transition could pose challenges.

5Notable Q&A Insights

Return on Equity (ROE): Management expects improvements in earned ROEs, particularly in Missouri, as they approach allowed returns.

Financing Strategy: Minimal common equity issuance anticipated; focus on a balanced mix of debt and equity financing.

O&M Cost Management: Commitment to keeping O&M expenses below inflation, leveraging best practices from both Spire and Piedmont.

Storage Asset Sale: Strong interest in the potential sale of gas storage assets, with an announcement expected by year-end.

Dividend Payout Ratios: Expected to grow in line with earnings growth, targeting a payout ratio of 55% to 65%. Overall, Spire demonstrated solid financial performance in fiscal 2025 with strategic initiatives aimed at long-term growth, despite facing challenges related to operational costs and regulatory changes.