Spire Q1 results beat on new rates at Missouri, Alabama

Overview

• Natural gas company's fiscal Q1 revenue beat analyst expectations

• Adjusted EPS for fiscal Q1 beat analyst expectations

• Gas Utility earnings rose due to new rates at Spire Missouri and Alabama

Outlook

• Spire affirms fiscal 2026 adjusted EPS guidance of $5.25–$5.45

• Spire expects fiscal 2027 adjusted EPS of $5.65–$5.85

• Company targets $11.2 bln capital investment through fiscal 2035

Result Drivers

• NEW RATES - Gas Utility earnings increased due to new rates at Spire Missouri and Spire Alabama, partially offset by lower volumetric margins and higher depreciation expenses

• ADDITIONAL CAPACITY - Midstream earnings grew due to increased capacity at Spire Storage, offset by higher depreciation and interest expenses

• PORTFOLIO OPTIMIZATION - Gas Marketing earnings rose due to improved portfolio optimization

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the natural gas utilities peer group is "buy"

• Wall Street's median 12-month price target for Spire Inc is $94.50, about 10.8% above its February 2 closing price of $85.32

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nPn8Xvq8ta

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