Inquired how Spire plans to address weather and usage variability in the upcoming future test year case, and what changes could better align recovery with customer usage patterns.

Management stated that decoupling mechanisms and rate design are key to reducing variability. They aim for a durable, permanent solution that protects both the company and customers, hoping to resolve it before the future test year filing. “Our desire there is to put in place a mechanism that both protects the company, but also protects the customer as well.”

Asked if Spire anticipates more incremental capital or pull forward into jurisdictions with lower ROE lag, and if this would be accretive within the 5-7% growth target post '27.

Management clarified that they are not looking to upsize or accelerate capital, but rather manage affordability and pace capital within the stated earnings growth range. “it's not about a pull forward of capital as far as an acceleration of capital, but it's managing affordability for our customers, the pacing of capital and having it squarely within the earnings growth range that we've described for the market.”

Asked if the Missouri AAO settlement was unanimous and which parties signed on, and if it dealt with the regulatory asset request.

Adam stated the settlement was between Spire, staff, and the Office of Public Counsel, with one other party not signing. Scott clarified that the settlement does not quantify or allow recovery of lost margin or establish a regulatory asset, but rather focuses on collaborative work for a future solution. “No, the settlement was between us and staff and the Office of Public Counsel.”

Spire (SR) Q3 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q3 FY26)· Utilities· Aug 5, 2026

Source: earnings call transcript

Executive summary

Spire Q3 FY26 — Fully Regulated Focus and Reaffirmed EPS Growth

Spire Inc. reported Q3 FY26 results in line with expectations, marking a significant quarter with the completion of non-core divestitures and a sharpened focus on fully regulated utility operations. The company reaffirmed its long-term EPS growth target, supported by a substantial capital plan and constructive regulatory frameworks. Management emphasized a commitment to operational excellence, customer affordability, and disciplined financial management, with ongoing regulatory progress across its jurisdictions.

Highlights

Adjusted earnings per share from continuing operations improved by $0.03 per share, from a loss of $0.29 to $0.26 per share in the prior year quarter.
Completed divestitures of Spire Marketing and Spire Storage, transforming into a fully regulated company.
Reaffirmed fiscal 2026 adjusted EPS guidance of $3.90 to $4.10 per share and fiscal 2027 guidance of $5.40 to $5.60 per share.
Reaffirmed long-term adjusted EPS growth target of 5% to 7% using the original FY27 guidance midpoint of $5.75 as the base.
Reached a settlement in the Missouri accounting authority order proceeding, providing a path to improve revenue recovery and reduce earnings volatility.

Concerns

Reported an adjusted loss of $0.26 per share from continuing operations in Q3 FY26.
O&M expense increased by approximately $4 million, primarily due to higher bad debt expense.
Other activities reported an adjusted loss of $12 million, reflecting higher corporate costs and interest expense.
Current FFO to debt stands at 13%, below the target of 14% to 15% expected by the end of 2028.

Guidance & targets

Category	Target	Timeline	Confidence
Long-term adjusted EPS growth target	5% to 7% high materiality	Long-term	High
Adjusted EPS guidance from continuing operations	$3.90 to $4.10 per share high materiality	FY26 · 2026	High
Adjusted EPS guidance	$5.40 to $5.60 per share high materiality	FY27 · 2027	High
Rate base growth	7% medium materiality	Long-term	High
Rate base growth	7.5% medium materiality	Long-term	High
Regulated equity growth	6% medium materiality	Long-term	High
Full year capital expenditures	approximately $800 million medium materiality	FY26 · 2026	High
FFO to debt target	14% to 15% medium materiality	End of 2028	High
Missouri interest revenues	$21 million low materiality	Annual	High
Spire Tennessee revenue increase	$14 million low materiality	Annual	High
Missouri future test year rate case filing	Filing expected medium materiality	Early November 2026	High
FY28 EPS guidance	Expected on year-end call high materiality	FY28 · 2028	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Gas Utilities The improvement was primarily driven by new rates in Missouri (ISRS) and Alabama (CCM), and higher customer usage net of weather mitigation in Alabama, partially offset by lower usage net of weather mitigation in Missouri. O&M expense increased primarily due to higher bad debt expense. Results were also affected by higher depreciation, taxes other than income taxes, and interest expense. Prior year adjusted loss: $10 millionO&M expense increase: $4 million	—	—	—	Adjusted loss of $3 million
Other Activities Reflects higher corporate costs and higher interest expense in the current year. Prior year adjusted loss: $3 million	—	—	—	Adjusted loss of $12 million

Deals & partnerships

Spire Marketing Sale of non-core business

Completed divestiture in Q3 FY26, contributing to the transformation to a fully regulated company.

Spire Storage Sale of non-core business

Completed divestiture in Q3 FY26, contributing to the transformation to a fully regulated company.

Spire Mississippi Sale of non-core business

Sale still targeted to close in the first quarter of fiscal 2027.

Spire Tennessee Integration of acquired utility operations

Integration progressing well, with key milestones to exit transition services in fiscal 2027.

Capital programs

10-year capital plan underway $11.2 billion

Funding: operating company debt and cash from operations

Start: FY26

Benefit:Supports 7% rate base growth in Missouri, 7.5% in Tennessee, 6% regulated equity growth in Alabama and Gulf

This plan underpins confidence in delivering 5% to 7% adjusted EPS growth over time. Requires limited annual equity issuance.

Fiscal 2026 capital expenditures underway approximately $800 million

Period spend: nearly $600 million

Spent to date: nearly $600 million (first nine months)

Start: FY26

Benefit:System upgrades, infrastructure modernization, and new business connections

Consistent with the 10-year $11.2 billion capital plan. Nearly $600 million invested in the first nine months of the year.

Risks & headwinds

Higher bad debt expense Q3 FY26

$4 million increase in O&M

Mitigation:Utility run rate O&M continues to track below the rate of inflation.

Higher corporate costs and interest expense Q3 FY26

Contributed to $9 million increase in adjusted loss for 'other activities'

Transition year for credit metrics FY26

FFO to debt currently 13% vs. target 14-15%

Mitigation:Expect to reach FFO to debt target of 14% to 15% by the end of 2028. Gain on sale of divested businesses pushes this metric higher through the transition period.

Weather and usage variability Past year

Lost margin from lower weather-related usage (not quantified in settlement)

Mitigation:Missouri AAO settlement provides a path for collaboration to develop improvements or consider a potential alternative to the WNAR in the next rate case, aiming for a durable and permanent solution.

What to watch in Q4 FY26

Alabama RSE Renewal Decision

September

Current Hearings scheduled for August 6 and 7

Target Decision from the commission

Why it matters

The RSE renewal will determine key elements like authorized ROE, ROE range, and capital structure, impacting future rate-setting and investment recovery.

We look forward to wrapping up the hearings that are scheduled later this week and then expect a decision from the commission later in September.

Find out whether SR delivers this. Inve re-checks your case every morning.

Q&A highlights

Asked about key factors supporting higher allowed ROEs for Alabama and Gulf, and which elements (term, customer charge, control mechanisms) are most relevant in the upcoming renewal hearings.

Management explained the process is similar to past renewals but now more public. They justified the ROE requests by current market conditions and alignment with regional averages, citing legislative guidance. They highlighted the value of the cost control mechanism for customers.

“We are solidly in that range and feel comfortable with both our request and where we sit today.”

asked by Luke Fenker · answered by Scott Doyle

2 min read 5 chapters

Detailed narrative

Strategic Transformation

Spire completed the divestitures of Spire Marketing and Spire Storage, transitioning to a fully regulated company. This move is expected to reduce earnings volatility and enhance predictability, with the sale of Spire Mississippi still targeted for Q1 FY27. The company's future earnings are now supported by rate base growth and constructive regulatory mechanisms, aligning with its goal to deliver predictable earnings growth and long-term value creation.

Regulatory Progress in Alabama

The RSE renewal process for Spire Alabama and Spire Gulf is progressing, with hearings scheduled for August 6 and 7. Spire has requested an adjusting point ROE of 10.5% for Spire Alabama and 10.75% for Spire Gulf, asserting these requests are within the regional average.

Management expects a decision from the commission later in September, highlighting the RSE framework's support for predictable regulatory outcomes and timely investment recovery.

Missouri Regulatory Developments

A settlement was reached in the accounting authority order (AAO) proceeding in Missouri, focusing on enhancing the weather normalization adjustment rider (WNAR) and committing to collaborative work for a durable solution to reduce earnings volatility. This settlement does not quantify or allow recovery of past lost margin.

Additionally, Spire filed a request to recover approximately $21 million of interest revenues, with new rates expected in November, and plans to file its first Missouri future test year rate case in early November 2026.

Spire Tennessee Integration and Regulatory Filing

The integration of Spire Tennessee continues to progress well, with key milestones to exit transition services expected in fiscal 2027. The subsidiary filed its first annual review mechanism in May 2026, requesting a $14 million revenue increase. This filing reflects an authorized ROE of 9.8%, a capital structure of 49% equity and 51% debt, and a rate base of $1.5 billion as of December 31, 2025, with new rates anticipated by October 1, 2026.

Capital Investment and Financing Strategy

Spire invested nearly $600 million in capital expenditures in the first nine months of FY26, primarily for system upgrades, infrastructure modernization, and new business connections. The company expects full-year FY26 capex of $800 million, consistent with its $11.2 billion 10-year capital plan.

This plan is substantially funded by operating company debt and cash from operations, requiring limited annual equity issuance, and is supported by a $375 million interest rate hedge portfolio to mitigate rising borrowing costs.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.