Spire Inc.

What they do

Spire operates regulated natural gas utilities through Spire Missouri, Spire Alabama, Spire Gulf and Spire Mississippi, serving residential, commercial and industrial customers. It also owns FERC-regulated pipelines, including the 263-mile Spire MoGas Pipeline and the 65-mile Spire STL Pipeline. Following fiscal 2026 divestitures, the company's continuing operations are the gas utilities, excluding Spire Tennessee. The company reports two segments historically, Gas Utility and Gas Marketing, but Gas Marketing has been sold.

Revenue drivers

• Gas Utility — The core regulated utility segment earns revenue from natural gas distribution to residential, commercial and industrial customers across Missouri, Alabama, Mississippi and Gulf Coast service areas. Rates are set by state regulators, with mechanisms such as the ISRS and RSE supporting infrastructure investment recovery.
• Spire Alabama — A regulated utility subsidiary whose earnings improved year-over-year in the fiscal 2026 third quarter on new rates and higher usage net of weather mitigation, per the earnings release.
• Spire Missouri — A regulated utility subsidiary operating under rate mechanisms including the ISRS and PGA, contributing to Gas Utility segment results.
• Gas Marketing (divested) — Spire Marketing provided natural gas marketing services and was reported as a separate segment. The company completed its divestiture during fiscal 2026, so it is no longer part of continuing operations.

Recent performance

For the fiscal 2026 third quarter ended June 30, Spire reported a net loss from continuing operations of $42.6 million, or $(0.72) per diluted share, compared with a prior-year net loss of $13.3 million, or $(0.29) per share. Adjusted loss from continuing operations was $15.7 million, or $(0.26) per share, versus a loss of $13.3 million, or $(0.29) per share a year ago. The Gas Utility segment posted an adjusted loss of $3.2 million, an improvement from a $10.0 million loss a year earlier, while the Other category showed a $12.5 million adjusted loss. Quarterly revenue was $334.1 million at 2025-09-30 and $762.2 million at 2025-12-31, per XBRL data. Full-year fiscal 2025 revenue was $2.48 billion with net income of $271.7 million and diluted EPS of $4.37.

Strategy

Management says it has largely completed portfolio optimization, having divested the Spire Marketing and Spire Storage businesses to become a simpler, fully regulated utility. CEO Scott Doyle stated the company is focused on safely delivering reliable service, investing in infrastructure and creating long-term shareholder value. Spire reaffirmed fiscal 2026 adjusted earnings guidance from continuing operations of $3.90–$4.10 and fiscal 2027 guidance of $5.40–$5.60. The company also reaffirmed a long-term adjusted earnings growth target of 5–7%.

Risks

• Regulatory rate risk — Utility revenues depend on rate decisions by state commissions such as the APSC and Missouri regulators, which could delay or reduce recovery of costs and infrastructure investment.
• Divestiture execution risk — The completed sales of Spire Marketing and Spire Storage and the Piedmont Tennessee transaction carry transaction, transition and financing costs, including $36.0 million of pre-tax acquisition activities in the fiscal 2026 third quarter.
• Weather and usage variability — Gas Utility results are sensitive to weather and customer usage, as shown by the earnings release citing higher Spire Alabama usage net of weather mitigation as a driver.
• Commodity price and fair value exposure — The company uses NYMEX and ICE natural gas contracts and fair value accounting for energy-related transactions, which can create earnings timing volatility excluded from adjusted results.

Outlook

Management reaffirmed fiscal 2026 adjusted earnings guidance from continuing operations of $3.90–$4.10 and fiscal 2027 guidance of $5.40–$5.60. It also reaffirmed a long-term adjusted earnings growth target of 5–7%. The company says its portfolio optimization is largely complete and it is positioned to execute on strategic priorities, with results and guidance reflecting continuing gas utility operations excluding Spire Tennessee.