SR-PA · Spire Inc.

Period Performance

Period Performance

For the three months ended December 31, 2025, Spire reported consolidated operating revenues of $762.2M, up 13.9% from $669.1M in the prior year. Net income rose 16.8% to $95.0M ($1.54 per diluted share) from $81.3M ($1.34). Adjusted earnings (non-GAAP) increased 33.6% to $108.4M ($1.77 per share), driven primarily by the Gas Utility segment. The improvement in net income was attributable to a $48.0M increase in Gas Utility contribution margin, partially offset by higher interest expense ($12.4M), increased O&M expenses ($10.6M), and a $4.8M decline in Gas Marketing net income due to unfavorable mark-to-market. Operating income rose 16.6% to $173.5M.

Segment Dynamics

Gas Utility revenue increased $79.8M, led by the Missouri rate case implementation ($46.4M), higher Alabama volumetric usage ($11.0M), and increased off-system sales ($8.4M). Contribution margin grew $48.0M as rate benefits outweighed a $4.8M negative volumetric impact net of weather mitigation. Operating income rose 26.4% to $161.6M.

Gas Marketing revenue increased $8.1M but operating income swung to a loss of $3.9M from a $2.7M profit, reflecting $9.5M of unfavorable fair value and timing adjustments. Excluding those, adjusted earnings improved $2.3M on realized optimization gains.

Midstream revenue increased $5.5M and operating income rose 23.7% to $21.4M, driven by expanded storage capacity and lower O&M expenses (down $1.2M).

Other posted a $19.2M net loss, $8.3M higher than the prior year, largely due to $8.5M of acquisition-related costs for the pending Piedmont Tennessee Transaction.

Forward View

Management anticipates closing the Piedmont Tennessee acquisition in the first quarter of calendar 2026, funded by $900M junior subordinated notes, $825M senior unsecured notes, and a $725M bridge facility. Total capital expenditures for fiscal 2026 are planned at $809M. The Company maintains investment-grade credit ratings with stable/negative outlooks. No explicit earnings guidance was provided.

Notes & Operating Detail

Balance Sheet & Liquidity

As of December 31, 2025, Spire reported cash and equivalents of $4.1M (Note 7). Total debt (long-term plus current portion) stood at $4,937.5M, with a fair value of $4,822.3M. The company's short-term notes payable were $412.0M (down from $1,317.0M at September 30, 2025), reflecting a $905.0M repayment. Shareholders' equity was $3,432.7M, including $242.0M preferred stock. Inventory totaled $259.5M (natural gas $203.4M, propane $8.6M, materials $47.5M).

Commitments & Contractual Obligations

Spire's total purchase commitments amounted to $1,753.7M as of December 31, 2025, comprising $1,738.5M in minimum payments under natural gas storage, transportation, and supply contracts (Note 11) and $15.2M in unfunded limited partnership commitments. These obligations extend through calendar 2039. The Utilities recover gas costs through PGA and GSA riders, mitigating earnings risk.

Capital Allocation (buybacks, dividends, debt, capex)

• Dividends: Spire declared common dividends of $48.7M ($0.825 per share) and preferred dividends of $3.7M during Q1 2026. The common dividend per share increased 5.1% YoY.
• Debt: The company issued $900M of junior subordinated notes (6.250% Series A and 6.450% Series B due 2056) and Spire Missouri issued $200M First Mortgage Bonds (4.60%-4.65%). Long-term debt repayments were $7.5M. A bridge facility of $725M remains undrawn, intended to fund the Piedmont Tennessee acquisition.
• Capex: Consolidated capital expenditures were $202.8M, with Gas Utility segment investing $197.1M. Spire Missouri and Spire Alabama separately reported capex of $148.0M and $41.3M, respectively.
• ATM Program: As of December 31, 2025, Spire had $123.6M remaining under its ATM equity distribution program (authorized through January 2027). No forward sales were outstanding.

Segment / Geographic Mix (if disclosed at note level)

Spire operates three reportable segments: Gas Utility, Gas Marketing, and Midstream. The Gas Utility segment generated $693.3M in external revenue (up 13.0% YoY) and recorded adjusted earnings of $103.9M. Gas Marketing ($41.1M revenue, $4.5M adjusted earnings) and Midstream ($26.8M revenue, $12.7M adjusted earnings) contributed to consolidated adjusted earnings of $108.4M. Segment capex was heavily weighted toward Gas Utility ($197.1M). The company also disclosed separate financials for Spire Missouri (revenue $516.4M, capex $148.0M) and Spire Alabama (revenue $141.7M, capex $41.3M).