Spire (SR) Q1 2025 earnings summary

Executive summary

• Q1 FY25 adjusted earnings per share were $1.34, down from $1.47 in Q1 FY24, reflecting lower Gas Marketing results and higher interest expense, partially offset by Gas Utility and Midstream growth.

• Net income for Q1 FY25 was $81.3 million ($1.34/share), down from $85.1 million ($1.52/share) year-over-year.

• Operating revenues decreased to $669.1 million from $756.6 million year-over-year, mainly due to lower gas cost recoveries and reduced volumetric usage.

• The company remains focused on cost management, customer affordability, and organic growth through infrastructure investment.

• CEO Steve Lindsey will return from leave on February 10th; leadership transition is expected to be smooth.

Financial highlights

• Q1 adjusted earnings: $81.1 million ($1.34/share) vs. $82.7 million ($1.47/share) last year; net income was $81.3 million ($1.34/share) compared to $85.1 million ($1.52/share) last year.

• Operating income increased to $148.8 million from $139.2 million year-over-year.

• Contribution margin increased year-over-year, driven by higher ISRS revenues and Midstream growth.

• Q1 capex was $260 million, with significant investment in infrastructure upgrades and advanced meter installations.

• Net cash from operating activities improved to $81.1 million, up from $70.0 million year-over-year.

Outlook and guidance

• FY25 adjusted EPS guidance reaffirmed at $4.40–$4.60; long-term adjusted EPS growth target of 5–7% maintained.

• 10-year capital investment plan remains at $7.4 billion, with $790 million planned for FY25.

• Spire Missouri rate case seeks $289.5 million revenue increase, with average customer bills expected to rise 15% if approved.

• Marketing segment expected to deliver within original guidance despite Q1 softness.

• Management expects sufficient liquidity and access to capital markets to meet requirements.