Q3 2026 Spire Inc Earnings Call Transcript
Key Points
- Spire Inc (SR) completed the divestitures of Spire Marketing and Spire Storage, simplifying its business to a fully regulated company and reducing earnings volatility.
- The company reported an improved adjusted loss of $0.26 per share for the third quarter, compared to a loss of $0.29 per share in the prior year period.
- Spire Inc (SR) reaffirmed its fiscal 2026 and 2027 adjusted EPS guidance and its long-term 5% to 7% adjusted EPS growth target, supported by a $11.2 billion capital plan.
- The company reached a settlement in the Missouri accounting authority order proceeding, which provides a path to develop a more durable weather normalization mechanism.
- Spire Inc (SR) is progressing well with the integration of Spire Tennessee, filing its first annual review mechanism and expecting new rates to be effective October 1, 2026.
- The company maintains a $375 million interest rate hedge portfolio to mitigate exposure to rising borrowing costs.
- Spire Inc (SR) reported an adjusted net loss of $15 million for the third quarter, reflecting continued seasonal weakness.
- The company's O&M expenses increased by approximately $4 million, primarily due to higher bad debt expense.
- Spire Inc (SR) faces regulatory uncertainty in Alabama, with interveners recommending lower ROEs (8%-9%) compared to the company's requested 10.5% and 10.75%.
- The Missouri settlement does not include recovery of lost margins from lower weather-related usage, leaving that issue unresolved.
- Spire Inc (SR) expects 2026 to be a transition year for credit metrics, with FFO to debt currently at 13%, below the 14%-15% target expected by 2028.
- The company's other activities segment reported a wider adjusted loss of $12 million, driven by higher corporate costs and interest expense.
Good day, and welcome to the Spire Inc., third quarter fiscal year 2026 earnings conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Megan McPhail, Managing Director of Investor Relations. Please go ahead.
Good morning, and welcome to Spire's fiscal 2026 third quarter earnings call. On the call today are Scott Doyle, President and Chief Executive Officer; and Adam Woodard, Executive Vice President and CFO. We issued an earnings news release this morning that can be accessed on our website at spireenergy.com, along with a slide presentation that accompanies our webcast.
Before we begin, let me cover our Safe Harbor statement and use of non-GAAP earnings measures. Today's call, including responses to questions, may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation
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