Financial Data and Key Metrics Changes - The company reported adjusted earnings of $1.01 per share, a significant increase from a loss of $0.14 per share a year ago, reflecting growth across all business segments [7][8] - Adjusted earnings for the third quarter totaled $4.1 million, an increase of over $8 million compared to the previous year [18] Business Line Data and Key Metrics Changes - The Gas Utilities segment had an adjusted loss of $10 million in the third quarter, which was $1 million better than the prior year, driven by higher contribution margin at Spire Missouri [18] - Earnings in the Gas Marketing segment increased by over $4 million, indicating strong performance [19] - The Midstream segment saw strong earnings growth due to additional capacity and asset optimization at Spire Storage, despite higher operating costs [19] Market Data and Key Metrics Changes - Year-to-date capital expenditures totaled $700 million, with a nearly 20% increase in utility CapEx year-over-year, focusing on upgrading distribution infrastructure [20] - The capital investment target for fiscal 2025 has increased to $875 million, reflecting a $10 million increase in Midstream and a $25 million increase in Spire Missouri [21] Company Strategy and Development Direction - The company is committed to a long-term EPS growth target of 5% to 7%, supported by a ten-year $7.4 billion capital investment plan [11][22] - The recent acquisition of the Piedmont Natural Gas business in Tennessee is seen as a strategic move to enhance scale and diversify the regulated utility portfolio [12][13] - The company aims to maintain a strong balance sheet while supporting long-term adjusted EPS growth and dividend growth [14][27] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving financial and operational goals, emphasizing the importance of delivering safe and reliable natural gas service [26][28] - The company is focused on achieving constructive regulatory outcomes and strengthening recovery mechanisms to support continued investment [27] Other Important Information - A unanimous stipulation and agreement has been filed for an annual revenue increase of $210 million in Missouri, pending approval [10][15] - The company anticipates adjusted earnings at the Utility segment to be significantly higher in 2026 due to new rates and improved regulatory frameworks [24] Q&A Session Summary Question: Is the FFO to debt target of 15% to 16% still applicable? - Management confirmed that these targets remain relevant, although achieving them may be slower during the acquisition transition [34] Question: How much of the midstream results is attributable to storage expansion? - Approximately 90% of the increase in midstream results year-over-year is attributed to storage [39] Question: Will the strong marketing results continue into Q4? - Management indicated that Q4 is typically quieter, but they feel confident about the operations and targets for the marketing business [41] Question: Does the long-term 5% to 7% growth rate include impacts from the Missouri rate case? - The growth rate is primarily based on capital deployment, with potential catch-up from previous recovery delays in Missouri [57] Question: How does the company plan to manage O&M expenses going forward? - The target is to keep O&M expenses at or below the rate of inflation, with current year-to-date O&M running less than 1% higher than the prior year [61]

Financial Data and Key Metrics Changes - The company reported adjusted earnings of $0.01 per share, a significant improvement from a loss of $0.14 per share a year ago, reflecting growth across all business segments [7][18] - Year-to-date capital expenditures totaled $700 million, with a nearly 20% increase in utility CapEx year over year [20] Business Line Data and Key Metrics Changes - The Gas Utilities segment had an adjusted loss of $10 million, which was $1 million better than the prior year, driven by higher contribution margin at Spire Missouri [18] - Earnings in the Gas Marketing segment increased by over $4 million, indicating strong performance [18] - The midstream segment saw strong earnings growth, attributed to additional capacity and asset optimization at Spire Storage [18] Market Data and Key Metrics Changes - The company is focused on a long-term EPS growth target of 5% to 7%, supported by a ten-year $7.4 billion capital investment plan [11][22] - The company expects to deliver within its fiscal 2025 earnings guidance of $4.4 to $4.6 per share [11][22] Company Strategy and Development Direction - The company announced the acquisition of the Piedmont Natural Gas Tennessee business, which is expected to enhance its scale and expand its regulated utility footprint [12][13] - The acquisition is projected to add $900 million to the five-year capital plan, focusing on system modernization and infrastructure resilience [13] - The company aims to maintain a strong balance sheet while supporting long-term adjusted EPS growth and dividend growth [13][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong operational performance and financial discipline, emphasizing the importance of regulatory transparency and customer affordability [25][28] - The company is actively pursuing regulatory approvals for the acquisition and advancing integration planning [28] Other Important Information - A unanimous stipulation and agreement has been filed for an annual revenue increase of $210 million, pending approval by the Missouri Public Service Commission [9][15] - The company is committed to maintaining a strong focus on customer affordability through disciplined cost management [25] Q&A Session Summary Question: Is the FFO to debt target of 15% to 16% still applicable? - Management confirmed that these targets remain the right framework, although progress may be slower during the acquisition transition [31][32] Question: How much of the midstream results is attributable to storage expansion? - Management indicated that about 90% of the increase in midstream results was due to storage, with a 75% to 25% split on net income basis [35][36] Question: Does the long-term 5% to 7% growth rate include impacts from the Missouri rate case settlement? - Management clarified that the growth rate is based on capital deployment and does not directly include the impacts of the rate case [51][52] Question: How does the company see O&M expenses evolving? - Management stated the target is to keep O&M expenses at or below the rate of inflation, with current year-to-date O&M run rate being less than 1% higher than the prior year [55]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section provides the unaudited condensed consolidated financial statements and management's discussion and analysis for Spire Inc. and its subsidiaries [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Spire Inc. and its subsidiaries for the three and nine months ended June 30, 2025, including detailed notes [Spire Inc. Financial Statements](index=5&type=section&id=Spire%20Inc.%20Financial%20Statements) Spire Inc. reported a net income of $20.9 million for Q3 FY2025 and $311.5 million for the nine months, with total assets reaching $11.4 billion Spire Inc. Condensed Consolidated Statements of Income (Unaudited) | (In millions, except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Operating Revenues** | $421.9 | $414.1 | $2,142.3 | $2,299.2 | | **Operating Income** | $69.2 | $30.7 | $524.4 | $468.5 | | **Net Income (Loss)** | $20.9 | $(12.6) | $311.5 | $276.8 | | **Diluted EPS** | $0.29 | $(0.28) | $5.13 | $4.76 | Spire Inc. Condensed Consolidated Balance Sheet Highlights (Unaudited) | (In millions) | June 30, 2025 | September 30, 2024 | | :--- | :--- | :--- | | **Total Assets** | $11,396.3 | $10,860.7 | | **Total Liabilities** | $7,910.9 | $7,540.8 | | **Total Shareholders' Equity** | $3,480.2 | $3,232.7 | Spire Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) | (In millions) | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $582.9 | $829.5 | | **Net cash used in investing activities** | $(696.7) | $(802.0) | | **Net cash provided by (used in) financing activities** | $127.0 | $(19.6) | [Spire Missouri Inc. Financial Statements](index=12&type=section&id=Spire%20Missouri%20Inc.%20Financial%20Statements) Spire Missouri Inc. reported a net loss of $13.0 million for Q3 FY2025 and net income of $153.3 million for the nine months, with total assets at $6.16 billion Spire Missouri Inc. Condensed Statements of Comprehensive Income (Unaudited) | (In millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Operating Revenues** | $230.1 | $248.8 | $1,359.2 | $1,550.7 | | **Operating Income** | $4.7 | $4.8 | $244.1 | $233.4 | | **Net (Loss) Income** | $(13.0) | $(16.8) | $153.3 | $145.4 | [Spire Alabama Inc. Financial Statements](index=17&type=section&id=Spire%20Alabama%20Inc.%20Financial%20Statements) Spire Alabama Inc. reported net income of $4.5 million for Q3 FY2025 and $90.2 million for the nine months, with total assets at $2.56 billion Spire Alabama Inc. Condensed Statements of Income (Unaudited) | (In millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Operating Revenues** | $98.8 | $103.5 | $471.6 | $505.1 | | **Operating Income** | $12.7 | $11.3 | $142.7 | $137.7 | | **Net Income** | $4.5 | $2.9 | $90.2 | $84.7 | [Notes to Financial Statements](index=22&type=section&id=Notes%20to%20Financial%20Statements) Notes detail accounting policies, revenue disaggregation, regulatory updates, financing activities, and the pending acquisition of Piedmont Natural Gas's Tennessee business - Spire's business is composed of **three reportable segments**: Gas Utility (core business), Gas Marketing, and Midstream, with earnings typically concentrated in the **November-April heating season**[55](index=55&type=chunk)[56](index=56&type=chunk) - Spire Missouri filed a general rate case and reached a settlement agreement in principle for a base rate increase of **$210.0 million**, which, if approved, will support recovery of system investments[78](index=78&type=chunk) - Spire Alabama operates under a **Rate Stabilization and Equalization (RSE) mechanism**, allowing for annual rate reviews, and for fiscal 2025, **no adjustment was required** to base rates effective December 1, 2024[81](index=81&type=chunk)[82](index=82&type=chunk) - On July 29, 2025, Spire announced an agreement to acquire Piedmont Natural Gas Company's Tennessee business for **$2.48 billion in cash**, with the transaction expected to close in the **first quarter of calendar 2026**[140](index=140&type=chunk) - On May 1, 2025, Spire Missouri issued **$150.0 million** of First Mortgage Bonds in two tranches for general corporate purposes[94](index=94&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=44&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial results for the three and nine months ended June 30, 2025, covering segment performance, the pending acquisition, liquidity, and capital resources [Overview and Pending Acquisition](index=45&type=section&id=Overview%20and%20Pending%20Acquisition) Spire's earnings are driven by its Gas Utility, Gas Marketing, and Midstream segments, with a key strategic focus on the pending $2.48 billion acquisition of Piedmont Natural Gas's Tennessee business - Spire entered into an agreement to acquire Piedmont Natural Gas's Tennessee business, serving over 200,000 customers in the Nashville area, for **$2.48 billion**[153](index=153&type=chunk) - The acquisition is expected to be funded through a mix of **debt, equity, and hybrid securities**, with **potential sales of non-utility assets** like gas storage facilities to support financing[154](index=154&type=chunk) [Results of Operations - Three Months Ended June 30, 2025](index=50&type=section&id=Results%20of%20Operations%20-%20Three%20Months%20Ended%20June%2030%2C%202025) Spire Inc. reported adjusted earnings of $4.1 million for Q3 FY2025, driven by stronger performance in Gas Marketing and Midstream segments Adjusted Earnings (Loss) [Non-GAAP] - Q3 FY2025 vs Q3 FY2024 | (In millions) | Q3 2025 | Q3 2024 | | :--- | :--- | :--- | | **Gas Utility** | $(10.0) | $(11.0) | | **Gas Marketing** | $5.3 | $1.0 | | **Midstream** | $16.2 | $13.9 | | **Other** | $(7.4) | $(8.2) | | **Total** | $4.1 | $(4.3) | - Midstream segment earnings increased by **$2.3 million**, driven by higher Spire Storage earnings from increased asset optimization and additional capacity[178](index=178&type=chunk) - Gas Marketing adjusted income increased by **$4.3 million** as its business portfolio was well-positioned to create value[176](index=176&type=chunk) [Results of Operations - Nine Months Ended June 30, 2025](index=55&type=section&id=Results%20of%20Operations%20-%20Nine%20Months%20Ended%20June%2030%2C%202025) Spire Inc.'s adjusted earnings for the nine months ended June 30, 2025, were $299.6 million, primarily driven by growth in the Midstream and Gas Utility segments Adjusted Earnings (Loss) [Non-GAAP] - YTD FY2025 vs YTD FY2024 | (In millions) | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | | **Gas Utility** | $263.0 | $252.8 | | **Gas Marketing** | $22.3 | $23.7 | | **Midstream** | $44.0 | $20.1 | | **Other** | $(29.7) | $(21.6) | | **Total** | $299.6 | $275.0 | - Midstream segment earnings grew significantly, with a **$23.9 million** increase driven by storage asset optimization, new capacity, higher contract rates, and the MoGas acquisition[212](index=212&type=chunk) - Gas Utility contribution margin increased by **$27.3 million**, mainly due to a **$24.5 million** increase from Spire Missouri's ISRS mechanism[206](index=206&type=chunk) [Liquidity and Capital Resources](index=60&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $582.9 million in operating cash flow, plans $875 million in capital expenditures, and holds investment-grade debt ratings - Net cash from operating activities decreased to **$582.9 million** for the first nine months of fiscal 2025 from **$829.5 million** in the prior year, driven by regulatory timing and working capital fluctuations[228](index=228&type=chunk) - Total capital expenditures for fiscal 2025 are planned to be approximately **$875 million**[232](index=232&type=chunk) Debt Ratings | Entity | S&P | Moody's | | :--- | :--- | :--- | | **Spire Inc. senior unsecured** | BBB | Baa2 | | **Spire Missouri senior secured** | A | A1 | | **Spire Alabama senior unsecured** | BBB+ | A2 | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=62&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk were reported, with the company utilizing $725.0 million in interest rate swaps to hedge against interest rate volatility - As of June 30, 2025, Spire had outstanding interest rate swaps with a total notional amount of **$725.0 million** to hedge against interest rate volatility[246](index=246&type=chunk) [Item 4. Controls and Procedures](index=63&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures are effective, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that disclosure controls and procedures for Spire Inc., Spire Missouri, and Spire Alabama are **effective** as of the end of the reporting period[248](index=248&type=chunk)[250](index=250&type=chunk)[252](index=252&type=chunk) - **No material changes** to internal control over financial reporting occurred during the quarter ended June 30, 2025[249](index=249&type=chunk)[251](index=251&type=chunk)[253](index=253&type=chunk) [PART II. OTHER INFORMATION](index=64&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity security sales, other information, and a list of exhibits [Item 1. Legal Proceedings](index=64&type=section&id=Item%201.%20Legal%20Proceedings) Details on legal, environmental, and regulatory proceedings are referenced in Notes 5 and 11, with no material effects expected - For details on legal proceedings, the report refers to **Note 5** and **Note 11** of the financial statements[254](index=254&type=chunk) [Item 1A. Risk Factors](index=64&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors were reported compared to the prior fiscal year-end - **No material changes** in risk factors were reported for the period[255](index=255&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=64&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Minor repurchases of 54 common shares occurred to cover employee tax withholding obligations related to restricted stock vesting - During the quarter, **54 shares** of common stock were repurchased at an average price of **$76.54 per share** to cover employee tax withholding obligations[257](index=257&type=chunk) [Item 5. Other Information](index=64&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated any Rule 10b5-1 trading plans during the quarter - **No directors or officers adopted or terminated any Rule 10b5-1 trading plans** during the quarter[260](index=260&type=chunk) [Item 6. Exhibits](index=65&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including agreements, indentures, plans, and certifications

Core Insights - Spire Inc. reported third-quarter fiscal 2025 earnings of $0.01 per share, exceeding the Zacks Consensus Estimate of a loss of $0.09 by 111.1% [1][8] - Total revenues for the quarter were $421.9 million, surpassing the Zacks Consensus Estimate of $413 million by 2.16% and increasing 1.9% from $414.1 million in the year-ago quarter [2][8] Financial Performance - Operating expenses decreased by 8% to $352.7 million from $383.4 million in the prior-year period [3] - Operating income rose to $69.2 million compared to $30.7 million in the prior-year quarter [3] - Net interest expenses increased by 2.3% year over year to $49.9 million [3] Segment Performance - Gas Utility segment reported an adjusted loss of $10 million, an improvement from a loss of $11 million in the year-ago period [4] - Gas Marketing segment's adjusted earnings increased to $5.3 million from $1 million in the year-ago quarter [4] - Midstream segment's adjusted earnings rose by 16.5% to $16.2 million, driven by higher storage earnings [5] Financial Highlights - Cash and cash equivalents as of June 30, 2025, were $13.1 million, up from $4.5 million as of September 30, 2024 [6] - Long-term debt as of June 30, 2025, totaled $3.5 billion, down from $3.7 billion as of September 30, 2024 [6] - Net cash provided by operating activities in the first nine months of fiscal 2025 was $582.9 million, compared to $829.5 million in the year-ago period [6] Guidance - Spire expects fiscal 2025 earnings to be in the range of $4.40-$4.60 per share, with the Zacks Consensus Estimate at $4.50 per share [9] - The company plans a 10-year capital investment of $7.4 billion, aiming for annual rate-based growth of 7-8% [9] - Capital expenditures for fiscal 2025 are expected to be $875 million, an increase from the previous guidance of $840 million [9]

Financial Performance - Q3 FY25 adjusted earnings were $001 per share, compared to $(014) in Q3 FY24[8] - The company affirms FY25 adjusted EPS guidance range of $440 to $460[8] - Q3 YTD FY25 capex reached $700 million, driven by Gas Utility investment[26] - The company raised FY25 capex target to $875 million from $840 million[26] Strategic Initiatives - The company entered into an agreement to acquire the Piedmont Natural Gas Tennessee business from Duke Energy for $248 billion[8] - Combined investment opportunities related to the Piedmont Natural Gas Tennessee acquisition are estimated at $44 billion over five years (2025-2029)[10] - The company's 10-year capex plan remains at $74 billion (FY25-FY34)[8, 30] Regulatory Updates - A unanimous settlement agreement was filed on August 4, 2025, in the Missouri rate case, projecting a $210 million annual revenue increase[8, 15] - The Missouri Public Service Commission (MoPSC) approved $190 million in Infrastructure System Replacement Surcharge (ISRS) revenues, effective May 2025[8] - The new rates in Missouri are expected to be effective October 24, 2025, leading to an average residential customer bill increase of approximately 11%, or around $9 per month[15] Growth Outlook - The company maintains a long-term adjusted EPS growth target of 5-7%, using the original FY24 guidance midpoint of $435 as a base[8, 9]

Core Insights - Spire reported revenue of $421.9 million for the quarter ended June 2025, reflecting a year-over-year increase of 1.9% and surpassing the Zacks Consensus Estimate by 2.16% [1] - The company achieved an EPS of $0.01, a significant improvement from -$0.14 in the same quarter last year, resulting in an EPS surprise of 111.11% [1] Revenue Performance - Operating Revenues from Gas Utility were $347.5 million, which was below the estimated $356.49 million, marking a decline of 6.8% year-over-year [4] - Gas Marketing revenues reached $43.1 million, exceeding the average estimate of $20.22 million, representing a substantial increase of 103.3% year-over-year [4] - Midstream revenues were reported at $42.2 million, surpassing the estimate of $31.86 million, with a year-over-year growth of 29.9% [4] - Other revenues amounted to $5.7 million, exceeding the estimate of $4.47 million, reflecting an 18.8% increase year-over-year [4] - Eliminations reported a figure of -$16.6 million, slightly better than the estimated -$17 million, with a year-over-year change of -2.9% [4] Operating Income - Operating Income from Gas Marketing was $28.7 million, significantly higher than the estimated $1.48 million [4] - Midstream Operating Income was reported at $23.8 million, exceeding the average estimate of $18.55 million [4] - Gas Utility Operating Income was $16.6 million, which fell short of the estimated $23.65 million [4] - Other Operating Income was $0.1 million, compared to the estimated -$0.23 million [4] Stock Performance - Spire's shares have returned 2.6% over the past month, outperforming the Zacks S&P 500 composite's 1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - Spire reported quarterly earnings of $0.01 per share, exceeding the Zacks Consensus Estimate of a loss of $0.09 per share, and showing improvement from a loss of $0.14 per share a year ago, resulting in an earnings surprise of +111.11% [1] - The company posted revenues of $421.9 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.16% and showing an increase from $414.1 million year-over-year [2] - Spire's stock has increased by approximately 11.9% since the beginning of the year, outperforming the S&P 500's gain of 7.6% [3] Earnings Outlook - The future performance of Spire's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook, including current consensus earnings expectations for upcoming quarters [4][6] - The current consensus EPS estimate for the next quarter is -$0.34 on revenues of $310.77 million, while for the current fiscal year, it is $4.50 on revenues of $2.44 billion [7] Industry Context - The Utility - Gas Distribution industry, to which Spire belongs, is currently ranked in the top 30% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Sempra, another company in the same industry, is expected to report quarterly earnings of $0.83 per share, reflecting a year-over-year decline of 6.7%, with revenues anticipated to be $3.15 billion, up 4.7% from the previous year [9][10]

Core Insights - Spire Inc. reported adjusted earnings per share of $0.01 for the third quarter of fiscal 2025, an increase of $0.15 compared to the previous year, driven by improved performance across all segments [1][7] - The company reaffirmed its fiscal 2025 adjusted earnings guidance range of $4.40 to $4.60 per share, indicating confidence in sustainable growth and long-term value creation [2][17] - Spire announced the acquisition of Piedmont Natural Gas Tennessee business for $2.48 billion, expected to close in the first quarter of calendar 2026, which is anticipated to enhance its regulated utility footprint and financial performance [3][7] Financial Performance - For the third quarter ended June 30, 2025, Spire reported a net income of $20.9 million, or $0.29 per diluted share, compared to a loss of $12.6 million, or $(0.28) per share, in the same period last year [7][25] - Adjusted earnings for the third quarter were $4.1 million, or $0.01 per share, compared to a loss of $4.3 million, or $(0.14) per share, in the prior year [7][27] - The Gas Utility segment reported an adjusted loss of $10.0 million, an improvement from a loss of $11.0 million in the previous year, while Gas Marketing and Midstream segments saw adjusted earnings of $5.3 million and $16.2 million, respectively [5][11][12] Segment Analysis - The Gas Utility segment's contribution margin increased by $4.2 million, primarily due to higher Infrastructure System Replacement Surcharge revenues, despite lower usage net of weather mitigation [8][15] - Gas Marketing adjusted earnings increased significantly from $1.0 million to $5.3 million, attributed to the business being well-positioned to create value [11] - Midstream adjusted earnings rose from $13.9 million to $16.2 million, driven by higher storage earnings due to additional capacity and asset optimization [12][16] Strategic Initiatives - The acquisition of Piedmont Natural Gas Tennessee is seen as a strategic fit that supports long-term adjusted earnings per share growth of 5-7% [3][7] - The company filed a unanimous stipulation and agreement in the Spire Missouri rate case, which is pending approval by the Missouri Public Service Commission, reflecting a commitment to reliable and affordable energy [4][7] - Spire's capital investment target is set at $7.4 billion over the next 10 years, focusing on infrastructure upgrades and new business in the Gas Utility segment, with fiscal 2025 capital expenditures increased to $875 million from $840 million [18][17]

Core Viewpoint - The Zacks Utilities sector is expected to see a 0.7% increase in earnings for Q2 2025, driven by higher revenues of 7.5%, supported by new rates, cost-saving initiatives, and customer growth [1] Group 1: Earnings Expectations - MDU Resources Group is anticipated to benefit from customer growth in electric and natural gas sectors, with an Earnings ESP of +20% and a Zacks Rank 2, despite a projected earnings decrease of 59.4% year-over-year [7][8] - ONE Gas is expected to report earnings of $1.75 per share, reflecting a 37.8% increase from the previous year, supported by new rates and infrastructure investments, with an Earnings ESP of +3.22% and a Zacks Rank 2 [9][10] - Sempra Energy's earnings are projected at 83 cents per share, a decrease of 6.7% from the prior year, benefiting from renewable energy investments and data center demand, with an Earnings ESP of +0.60% and a Zacks Rank 2 [11] - Spire is expected to show an improvement in fiscal third-quarter earnings, with a projected loss of 9 cents per share, indicating a 35.7% improvement year-over-year, supported by advanced meter installations and customer growth, with an Earnings ESP of +14.81% and a Zacks Rank 3 [12][13] Group 2: Factors Influencing Performance - Utility providers are benefiting from higher electricity rates, acquisitions, cost reductions, and energy-efficiency programs, which enhance their overall performance [3] - The installation of smart meters is improving operational efficiency and customer engagement, leading to reduced costs and increased revenue [4] - The growing demand from data centers, particularly those supporting artificial intelligence, is significantly increasing electricity consumption, positively impacting utility revenues [5] - Economic improvements in service territories are creating fresh demand for utility services, further boosting revenues [4][5][6]

Summary of Spire's Acquisition Conference Call Company and Industry - **Company**: Spire (SR) - **Industry**: Natural Gas Utility Core Points and Arguments - **Acquisition Announcement**: Spire announced the acquisition of Piedmont Natural Gas Tennessee LDC business from Duke Energy for $2.48 billion on a cash-free, debt-free basis, marking a significant strategic milestone for the company [4][5] - **Strategic Fit**: The acquisition enhances Spire's scale, diversifies its portfolio, and reinforces its commitment to long-term sustainable growth, particularly in the Nashville Metro Area, one of the fastest-growing regions in the U.S. [5][6] - **Earnings Growth**: The acquisition is expected to be accretive to adjusted earnings per share (EPS) and supports Spire's long-term growth target of 5% to 7% [6][16] - **Infrastructure Expansion**: The deal will add nearly 3,800 miles of distribution and transmission pipelines, approximately 205,000 customers, and a rate base of $1.6 billion to Spire's existing utility segment [7][12] - **Regulatory Environment**: Tennessee is described as having a constructive regulatory environment, which is expected to support timely recovery of capital investments through an annual rate review mechanism [14][23] - **Financial Benefits**: The acquisition is projected to increase Spire's five-year capital plan by over 25% and produce significant cost efficiencies across the enterprise [8][10] Additional Important Content - **Customer Base Growth**: The acquisition will increase Spire's customer base by 12% and expand its pipeline network by 6% [12] - **Operational Excellence**: Piedmont Natural Gas has a strong track record of operational excellence and customer service, aligning with Spire's values [7][14] - **Geographic Diversity**: The acquisition improves Spire's geographic diversity, enhancing its presence across Missouri, Alabama, Mississippi, and now Tennessee [12][15] - **Market Dynamics**: The Nashville Metro Area is home to major employers and has a robust housing market, supporting long-term growth for Spire [13] - **Financing Strategy**: Spire plans to secure a bridge facility for the acquisition and is pursuing a permanent financing plan that includes a balanced mix of debt, equity, and hybrid securities [10][39] - **Regulatory Approval Timeline**: Spire expects to file for regulatory approval with the Tennessee Public Utility Commission within 45 days and anticipates closing the transaction in 2026 [10][23] This summary encapsulates the key points discussed during the conference call regarding Spire's acquisition of Piedmont Natural Gas, highlighting the strategic, financial, and operational implications of the transaction.