Core Insights - Spire Global, Inc. has appointed Shawn Mechelke as the new General Manager of Weather & Climate, effective November 17, 2025 [1] - Mechelke will be responsible for leading the go-to-market and sales strategy, product roadmap, and global delivery of Spire's weather and climate solutions [1] - The Weather & Climate team, which includes meteorologists and data scientists, will report to Mechelke [1]

Core Viewpoint - Spire, Inc. (SR) is making strategic investments to enhance operational reliability and customer service, leveraging new technologies to improve service quality and reduce costs, making it a strong investment case in the Zacks Utility-Gas distribution industry [1] Growth Outlook - The Zacks Consensus Estimate for fiscal 2026 earnings per share (EPS) is projected to increase by 14.64% year over year to $5.09 [2] - Fiscal 2026 revenue is estimated at $2.52 billion, indicating a year-over-year growth of 1.85% [2] - Long-term EPS growth is projected to improve by 5-7% annually, with a three to five-year earnings growth rate forecasted at 7.77% [2] Return to Shareholders - Spire has been consistently increasing shareholder value through dividends, currently paying a quarterly dividend of 82.5 cents per share, leading to an annualized dividend of $3.30 [3] - The current dividend yield stands at 3.61%, significantly higher than the Zacks S&P 500 composite average of 1.1% [3] Investments Focus - Spire plans a 10-year capital investment of $11.2 billion, with 70% allocated to safety and operational reliability improvements, 19% for customer expansion, and 11% for other essential activities [4] - These investments aim to enhance service efficiency and meet the rising demand from an expanding customer base [4] Debt Structure - Spire's total debt to capital ratio is 53.23%, which is better than the sector average of 60.90%, indicating lower debt usage compared to peers [5] - The times interest earned (TIE) ratio at the end of fiscal 2025 was 2.6, suggesting the company can meet its interest payment obligations comfortably [5] Stock Price Performance - Over the past year, Spire's shares have increased by 27.6%, outperforming the industry's growth of 8.3% [6]

Market Overview - The CNN Money Fear and Greed index increased to a reading of 22.2, remaining in the "Extreme Fear" zone, up from a previous reading of 18.1 [4][5] - U.S. stocks mostly closed lower, with the Dow Jones index dropping approximately 310 points to 47,147.48 [3] - The S&P 500 decreased by 0.05% to 6,734.11, while the Nasdaq Composite rose by 0.13% to 22,900.59 [3] Sector Performance - Most sectors in the S&P 500 ended negatively, with materials, financials, and communication services experiencing the largest losses [2] - Conversely, energy and information technology sectors performed well, closing higher despite the overall market trend [2] Company-Specific Movements - Nvidia Corp. (NASDAQ:NVDA) saw a gain of 1.8%, recovering partially from a prior drop of 3.6% [1] - Micron Technology Inc. (NASDAQ:MU) experienced a significant increase of over 4% [1] - Spire Inc. (NYSE:SR) shares fell more than 2% following the release of its fourth-quarter results [2] Upcoming Earnings - Investors are anticipating earnings results from Aramark (NYSE:ARMK), Aecom (NYSE:ACM), and Helmerich and Payne Inc. (NYSE:HP) [3]

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Core Insights - Spire Inc. reported a wider-than-expected fourth-quarter loss, with an adjusted loss of $0.47 per share, missing analyst estimates of a $0.43 loss, and revenue of $334.1 million, significantly below expectations of $422.84 million [1] - Despite the loss, the company raised its earnings outlook for the next two fiscal years, projecting adjusted earnings of $5.25 to $5.45 per share for fiscal 2026 and $5.65 to $5.85 per share for fiscal 2027, both above consensus estimates [2] Financial Performance - For fiscal 2025, Spire reported adjusted earnings of $4.44 per share, reflecting a 7.5% increase from $4.13 in the prior year [2] - The Gas Utility segment generated adjusted earnings of $231.4 million in fiscal 2025, up from $220.8 million the previous year, driven by new rates at Spire Alabama and higher surcharge revenues at Spire Missouri [3] - The Midstream segment's earnings increased to $56.3 million from $33.5 million, attributed to expanded storage capacity and contract renewals at higher rates [3]

Core Viewpoint - The company aims to generate a 7%+ income yield by investing in a portfolio of energy stocks while minimizing the risk of principal loss [1] Group 1 - The service offers subscribers access to exclusive investment ideas earlier than they are released to the general public, with many ideas not released at all [1] - Subscribers receive in-depth research that is not available to the general public [1] - A two-week free trial is currently being offered for the service [1]

Core Insights - The company aims to generate a 7%+ income yield by investing in a portfolio of energy stocks while minimizing the risk of principal loss [1] Group 1 - The service offers subscribers access to exclusive investment ideas earlier than they are released to the general public, with many ideas not being released at all [1] - Subscribers receive more in-depth research compared to what is available to the general public [1] - A two-week free trial is currently being offered for the service [1]

Customer Base and Service Areas - Spire Missouri serves approximately 1.2 million customers, while Spire Alabama serves over 0.4 million customers, making them the largest natural gas distributors in their respective states[27][28]. - The annual average number of customers for Spire Missouri and Spire Alabama in fiscal 2025 was 1,213,375 and 429,628, respectively[35]. Revenue Sources and Financial Performance - For fiscal year 2025, Spire's total operating revenues from the Gas Utility segment were primarily derived from residential customers (66%), followed by commercial and industrial customers (23%)[34]. - Spire Missouri and Spire Alabama's operating revenues for fiscal 2025 are approximately 92% and 81% from residential, commercial, and industrial customers, respectively[38]. - In fiscal 2025, transportation customers contributed about 2% of operating revenues for Spire Missouri and 16% for Spire Alabama[39]. - Operating revenues for the year ended September 30, 2025, totaled $2,476.4 million, a decrease of $116.6 million compared to $2,593.0 million in 2024[180]. - The decrease in Gas Utility operating revenues for fiscal 2025 was primarily due to a $285.5 million reduction in gas cost recoveries across all utilities[184]. - Operating revenues for the twelve months ended September 30, 2025, decreased by $193.3 million compared to the prior year, primarily due to lower gas cost recoveries of $239.8 million[195]. Natural Gas Sales and Transportation - The total volume of natural gas sold and transported by Spire in 2025 was 3,275.2 million CCF, an increase from 3,089.5 million CCF in 2024[35]. - Spire Missouri purchased 36.5 Bcf of natural gas through the Enable MRT system and 27.6 Bcf through the Southern Star system in fiscal 2025[43]. - Spire Alabama purchased approximately 55.3 Bcf of natural gas from SNG and 8.9 Bcf from Transco in fiscal 2025[48]. - The peak day send out for Spire Missouri East was 0.95 Bcf on January 21, 2025, while Spire Alabama's peak was 0.6 Bcf on the same day[44][49]. Regulatory Environment and Compliance - Utilities are regulated by state public service commissions, impacting their ability to charge rates, recover costs, and maintain profitability[71]. - The Infrastructure System Replacement Surcharge (ISRS) allows expedited recovery of infrastructure investments, but any disallowance of costs could affect revenue timing and cash flows[73]. - The Rate Stabilization and Equalization (RSE) mechanism requires annual rate reviews, with existing terms continuing beyond September 30, 2025, unless modified[74]. - Compliance with federal safety regulations may impose significant costs and liabilities, requiring ongoing assessments and potential capital expenditures[76]. - Environmental laws may necessitate significant expenditures and increase operating costs, with potential fines for non-compliance[80]. - Delays in cost recovery due to regulatory processes can adversely affect the Utilities' liquidity[81]. Competition and Market Risks - The principal competition for Spire comes from local electric companies and other fuel suppliers, with a growing trend towards renewable energy sources[37]. - Increased competition may hinder the Utilities' ability to retain or acquire customers, adversely affecting business and financial performance[94]. - Spire's natural gas storage business faces competition from pipelines and independent storage providers, which could reduce demand and drive rates down[96]. Financial Metrics and Adjustments - Adjusted earnings and adjusted earnings per share are used to evaluate financial performance, excluding impacts from fair value accounting and non-recurring items[167]. - The contribution margin for the year ended September 30, 2025, was $1,455.2 million, an increase of $93.7 million from $1,361.5 million in 2024, indicating a growth of 6.9%[180]. - Interest expense increased by $5.4 million due to costs associated with the bridge facility for the Piedmont Tennessee acquisition, although overall interest expense declined by $2.4 million year-over-year[181]. - The weighted-average short-term interest rates decreased from 5.7% in the prior year to 4.5% in the current year, contributing to lower interest expenses[181]. Acquisitions and Growth Strategies - The company is pursuing an acquisition of Piedmont Natural Gas for approximately $2.48 billion, subject to regulatory approvals, which carries integration and approval risks[127]. - The acquisition of Piedmont Natural Gas's Tennessee business is valued at $2.48 billion, aimed at expanding Spire's regulated utility footprint and increasing scale[171]. - The transaction is expected to close in Q1 2026, pending regulatory approvals, including from the Tennessee Public Utility Commission[173]. - Spire plans to finance the acquisition through a mix of debt, equity, and potential sales of natural gas storage facilities[172]. Employee and Operational Insights - Spire's workforce consisted of 3,497 employees as of September 30, 2025, with ongoing initiatives to improve safety and employee well-being[20][21]. - The company has a comprehensive enterprise risk management process to address significant risks, including cybersecurity threats[136]. - Spire's cybersecurity program is overseen by the Board of Directors, with regular updates on developments and risks[137]. Dividend and Stock Performance - Spire has maintained continuous common stock dividends since 1946, dependent on its subsidiaries' ability to generate sufficient net income and cash flows[108]. - Spire's common stock has continuously paid dividends since 1946, marking 22 consecutive years of increasing dividends as of 2025[153]. - As of September 30, 2025, Spire Missouri had $1,999.8 million available to pay dividends, free from restrictions[161]. - Spire's cumulative total return increased from $100.00 in 2020 to $190.57 by 2025, reflecting strong performance relative to the S&P 500 Utilities Index[155]. Economic and Environmental Factors - Warmer-than-normal weather and climate change could adversely affect the Utilities' heating energy sales, impacting financial results[98]. - The Utilities have mechanisms like Weather Normalization Adjustment riders to recover fixed costs during winter months, but these do not fully mitigate the impact of warmer weather[99]. - Economic downturns could lead to decreased energy consumption and increased bad debt expenses, adversely impacting revenues and cash flows[131]. Risks and Liabilities - The company faces risks from operational factors, including the availability of contracted gas supplies and pipeline capacity, which could adversely impact financial results[90]. - Spire's financial condition may be adversely affected by unexpected losses from litigation or business risks, despite having insurance and indemnification strategies[128]. - Changes in income tax policy could impact the Company's financial condition, particularly regarding the utilization of net operating losses (NOLs)[82]. - Rising interest rates could decrease the fair values of reporting units, leading to potential future impairments[124]. - The company has pension and postretirement benefit plans that are subject to investment and interest rate risks, potentially impacting financial condition and requiring accelerated funding[122].

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Financial Data and Key Metrics Changes - Adjusted EPS for Fiscal 2025 was $4.44, up 7.5% from $4.13 in Fiscal 2024, reflecting growth across all segments driven by infrastructure investments [5][14] - Adjusted earnings for Fiscal 2025 totaled $275.5 million compared to $247.4 million in the prior year, with a fourth-quarter adjusted loss of $24 million due to seasonality [14][15] - The company invested $922 million in Fiscal 2025, with nearly 90% allocated to utilities to enhance system reliability and safety [6] Business Line Data and Key Metrics Changes - Gas utilities earned $231 million, an increase of almost 5% from the previous year, driven by interest recovery in Missouri and new rates in Alabama [15] - Midstream earnings rose to $56 million, up nearly $23 million, due to additional capacity and asset optimization in Spire Storage [15] - Gas marketing earnings increased to $26 million, reflecting a well-positioned business despite higher storage and transportation fees [15] Market Data and Key Metrics Changes - New rates in Missouri became effective in October, and Alabama is undergoing a rate stabilization process [7][19] - The company noted that natural gas remains the most affordable energy source compared to electricity, which is two to three times more expensive [7] Company Strategy and Development Direction - The company is focused on a long-term capital plan totaling $11.2 billion, with 70% dedicated to safety and reliability projects [16][12] - The pending acquisition of the Piedmont Natural Gas Tennessee business is expected to close in the first quarter of calendar 2026, enhancing operational capabilities across states with constructive regulatory frameworks [10][12] - The company aims for long-term adjusted EPS growth of 5%-7%, supported by expected rate-based growth in Missouri and Tennessee [9][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving Fiscal 2026 adjusted EPS guidance of $5.25-$5.45, driven by regulatory outcomes and infrastructure investments [23][17] - The company is committed to maintaining a strong balance sheet while pursuing strategic growth and operational excellence [23][24] - Management highlighted the importance of regulatory engagement and disciplined cost management to support ongoing investments [23] Other Important Information - The company approved a dividend increase of 5.1%, marking the 23rd consecutive year of dividend growth [9] - The company is evaluating the sale of its gas storage facilities as a potential source of funds [11] Q&A Session Summary Question: Long-term growth rate and earned ROEs - Management indicated that earned returns in Missouri are improving, with a future test year rate case planned for next year [28][29] Question: FFO to debt target - Management expects to move towards the middle of the threshold bands for both Moody's and S&P, driven by recoveries in Missouri [33][34] Question: Financing mix and timing - Management confirmed confidence in a balanced mix of debt and equity, with minimal common equity issuance expected [39][40] Question: O&M assumptions and integration planning - Management aims to keep O&M expenses below inflation and will incorporate best practices during integration [41][42] Question: Future test year rate adjustment - Management acknowledged the need for collaboration among all parties to understand the new rate-making process [59][60] Question: Dividend payout ratios and growth - Management targets a payout ratio of 55%-65% and expects dividends to grow at the earnings growth rate [64] Question: Long-term capital needs and equity - Management anticipates minimal equity needs, around $0-$50 million annually, to support utility CapEx [66]