Spire (SR) Investor presentation summary

Business overview and strategy

• Operates regulated natural gas utilities serving nearly 2 million customers in AL, MO, MS, and TN, with over 70,000 miles of pipeline and a focus on regulated assets.

• Strategic focus on organic growth, infrastructure investment, and continuous improvement to deliver value and sustainability.

• Business mix is over 90% regulated, targeting to be fully regulated by FY27, with a robust $11.2B 10-year capex plan and 5-7% long-term EPS growth.

• Recent acquisition of Piedmont Natural Gas Tennessee adds 200,000 customers and $1.6B rate base, enhancing scale and diversification.

• Strategic divestitures of non-core assets reinforce focus on regulated utilities and improve earnings visibility.

Financial performance and outlook

• 1H FY26 adjusted earnings from continuing operations reached $317.5M, up from $261.4M in 1H FY25, driven by new rates and cost management.

• FY26 adjusted EPS guidance is $3.90–$4.10, with FY27 guidance reaffirmed at $5.40–$5.60; 5-7% long-term EPS growth target maintained.

• Dividend increased for 23 consecutive years, with 2026 annualized dividend up 5.1% to $3.30 per share and a targeted payout ratio of 55-65%.

• 10-year capital plan totals $11.2B, with 70% allocated to safety and reliability, and 96% of investments expected to be recovered via regulatory mechanisms.

• Financing plan includes $0–$50M equity per year (FY26–FY28) and multiple debt issuances, with FFO/debt target lowered to 14–15%.

Regulatory and operational highlights

• Operates in constructive regulatory jurisdictions with above average or average RRA rankings and mechanisms like RSE, RSA, and ARM supporting earnings stability.

• Missouri experienced lower weather-driven usage in FY26, leading to a $28M margin shortfall and regulatory filings to recover losses.

• Significant investment in pipeline replacement and upgrades, with $1.6B invested since 2020, improving safety and reducing methane emissions.

• Regulatory updates include ongoing RSE renewal in Alabama and Gulf, ISRS filings in Missouri, and ARM filing in Tennessee.

• Customer affordability remains a focus, with natural gas rates significantly lower than electricity and bills representing a small portion of household spending.