SR — Spire Inc.

Summary of Spire Inc. Q1 2026 Earnings Call

1. Key Financial Results and Metrics

• Adjusted Earnings: $108 million or $1.77 per share, up from $81 million or $1.34 per share year-over-year.
• Gas Utilities Segment: Earnings increased by over 33% to $104 million, driven by new rates in Missouri and higher margins in Alabama.
• Gas Marketing: Earnings rose to $4.5 million, up $2.3 million due to improved portfolio optimization.
• Midstream Segment: Earnings increased to $12.7 million, supported by additional capacity at Spire Storage.
• Corporate Costs: Adjusted loss of $12.7 million, reflecting higher corporate costs and interest expenses.

2. Strategic Updates and Business Highlights

• The company successfully managed operations during winter storm Fern, which resulted in record natural gas demand.
• New rates in Missouri and updates to rates in Alabama and Gulf are expected to support ongoing system investments.
• Spire is on track to close the acquisition of Piedmont, Tennessee, in Q1 2026, enhancing its regulated growth profile.
• A ten-year capital plan of $11.2 billion is focused on utility investments, with $230 million spent in Q1 2026 primarily on system upgrades and modernization.

3. Forward Guidance and Outlook

• 2026 Adjusted EPS Guidance: Reaffirmed at $5.25 to $5.45 per share.
• 2027 Adjusted EPS Guidance: Reaffirmed at $5.65 to $5.85 per share.
• Long-term adjusted EPS growth target remains at 5% to 7%.
• Expected capital expenditures for 2026 are projected between $800 million and $900 million.

4. Bad News, Challenges, or Points of Concern

• The evaluation process for potential sale of natural gas storage assets has taken longer than anticipated, although interest remains strong.
• Higher operating and maintenance costs, along with increased depreciation and interest expenses, are impacting margins.
• There is a need to manage the integration of the Tennessee acquisition and ensure a seamless transition for customers and employees.

5. Notable Q&A Insights

• Market Volatility: The marketing segment performed well during January's gas market volatility, with effective hedging strategies protecting customers.
• Storage Asset Sales: Strong interest in storage assets was noted, with an announcement expected later this quarter.
• Economic Development: Opportunities for large loads and generation facilities are being explored, but no specific announcements were made.
• Integration Timeline: Post-acquisition integration of Tennessee will involve significant operational work, with a focus on shared services and customer continuity.
• Missouri Rate Case: Anticipated filing for the next rate case in October-November 2026, following the previous case's timeline.

Overall, Spire Inc. demonstrated strong financial performance in Q1 2026, with strategic initiatives aimed at growth and infrastructure investment, while also navigating challenges related to asset sales and cost management.