#United States #St. Louis #Fiscal Year 2025 #Spire Inc. #Gas Utility

Spire Inc. Reports FY25 First Quarter Financial Results

Spire Inc. (NYSE: SR) has disclosed its financial performance for the first quarter of fiscal 2025, which concluded on December 31, 2024. Despite a slight decline in net income compared to the previous year, the company showcases resilience in various segments of its operations.

Key Financial Highlights

• - Net Income: The company reported a net income of $81.3 million, translating to $1.34 per diluted share, a decrease from $85.1 million or $1.52 per share a year prior.
• - Adjusted Earnings: Adjusted earnings for this quarter stood at $81.1 million or $1.34 per share, down from $82.7 million in the same quarter of the previous year.
• - Earnings Guidance: Spire has reaffirmed its adjusted earnings guidance for fiscal 2025, maintaining the range of $4.40 to $4.60 per share.

The financial picture reveals that Gas Utility earnings have climbed, primarily due to better performance from Spire Alabama and Spire Gulf, although this was slightly countered by lower earnings from Spire Missouri. Revenue streams benefited from newly established rates and infrastructure rider revenues. However, usage in Missouri decreased somewhat as weather-related factors impacted consumption.

Performance by Segment

• - Gas Utility Sector: This sector achieved adjusted earnings of $77.8 million, compared to $75.8 million last year. The rise is attributed to increased earnings in Spire Alabama and Spire Gulf, contributed mainly by higher rates and improved infrastructure revenue, despite the drop in usage in Missouri.
• - Gas Marketing: Earnings from gas marketing dropped significantly, with just $2.2 million reported for this quarter, down from $7.2 million previously. This dip followed reduced market volatility and increased costs in transportation and storage.
• - Midstream Activities: The midstream segment reported an impressive surge in earnings to $12.0 million, up from $2.4 million the year prior, stemming from greater capacity and contract renewals at higher rates, bolstered further by the recent acquisition of MoGas.
• - Other Activities: Conversely, the company's other operations struggled, reflecting an adjusted loss of $10.9 million against a loss of $2.7 million a year earlier. This decline was largely impacted by varying costs and changes in interest expense.

Looking Forward

Spire's leadership appears optimistic about the future. CEO Scott Doyle emphasized that the first quarter results not only reflect the company's strategic execution but also illustrate its commitment to safety and operational efficacy. The firm is keen to continue driving growth, underpinned by substantial infrastructure investments projected over the coming years.

• - Long-Term Strategy: The firm’s ten-year capital investment target stands at $7.4 billion through fiscal 2034, aimed at upgrading infrastructure and expanding its services in the Gas Utility sector.
• - Expected Growth: Spire anticipates long-term adjusted earnings per share growth between 5% to 7%, driven by an average rate base growth of 7% to 8% at Spire Missouri alongside 6% growth at Spire Alabama and Spire Gulf.

Conference Call Details

On the same day, Spire will conduct a conference call and webcast to delve deeper into its FY25 first-quarter results. Interested parties can access the broadcast through their investor relations site. For company stakeholders, this offering represents a vital opportunity to gain insight into the company’s performance and strategic direction.

In conclusion, while the financial results for Q1 FY25 show a slight downturn in certain aspects, Spire Inc. remains well positioned to harness growth through its operational strategies, ensuring a steady and reliable energy supply for its customers across its service areas.