#United States #St. Louis #fiscal results #Net Income #Spire Inc.

Spire Inc. Announces Strong Third Quarter Results for FY25

Spire Inc., a notable player in the natural gas sector, has recently shared its financial performance for the third quarter of the fiscal year ending June 30, 2025. The announcement, made on August 5, showcases a significant turnaround compared to last year, as the company reported a net income of $20.9 million or $0.29 per diluted share. This is a stark contrast to a loss of $12.6 million or $(0.28) per share in the same quarter last year.

Financial Highlights

The highlights of this quarter include:

• - Adjusted earnings of $4.1 million (or $0.01 per share) compared to a loss of $4.3 million (or $(0.14) per share) from the previous year.
• - A reaffirmation of the fiscal 2025 adjusted earnings guidance, forecasting a range of $4.40–$4.60.
• - An announcement regarding the acquisition agreement for Piedmont Natural Gas Tennessee from Duke Energy for $2.48 billion, expected to finalize in the first quarter of calendar year 2026.

CEO Scott Doyle remarked, “We delivered strong third quarter earnings, reflecting the consistent execution of our long-term strategy centered on investment in infrastructure and operational excellence.” This reflects Spire's continuous commitment to generating sustainable growth and creating value for its stakeholders.

Business Segment Performance

Gas Utility

Spire's Gas Utility sector reported an adjusted earnings loss of $10.0 million, an improvement from $11.0 million loss last year. Key factors included:

• - Higher revenues from the Infrastructure System Replacement Surcharge (ISRS) partially offset by increased operational costs.
• - Growth at Spire Missouri and Alabama, benefiting from new rates despite challenges in usage rates and weather impacts.

Gas Marketing

The Gas Marketing division showed positive performance, recording adjusted earnings of $5.3 million, a significant rise from $1.0 million a year earlier. The sector's ability to leverage market conditions played a decisive role in this growth.

Midstream

A surge in Midstream earnings was noted, reaching $16.2 million, an increase from $13.9 million year-on-year. This was driven by enhanced storage capacities and optimized asset management.

Strategic Acquisition and Future Outlook

The landmark acquisition of Piedmont Natural Gas is viewed as a strategic move to enhance Spire’s regulated utility operational footprint in quality jurisdictions, promising to support long-term earnings growth of 5–7% annually. This transaction is expected to bolster operations while reinforcing Spire's dedication to delivering value to its customers and shareholders.

In addition, Spire filed a unanimous stipulation and agreement in its Missouri rate case that remains pending approval from the Missouri Public Service Commission. Doyle emphasized this step as foundational for delivering reliable and affordable energy while demonstrating collaborative engagement with all parties involved.

The company's proactive stance has led it to establish a 10-year capital investment target of $7.4 billion, focusing on upgrading infrastructure and enhancing service delivery across its gas utility sectors. The anticipated total capital expenditures for fiscal year 2025 have been adjusted upwards to $875 million, reflecting ongoing commitments to growth and operational excellence.

Conclusion

As Spire Inc. continues its trajectory marked by strategic investments and operational initiatives, stakeholders can expect a thoughtful focus on long-term value creation. With a positive financial outlook and a commitment to enhancing customer satisfaction, the company aims to solidify its place in the competitive natural gas landscape, capitalizing on new opportunities while effectively managing challenges ahead.