Spire (SR) Q3 2024 earnings summary

Executive summary

• Fiscal Q3 2024 net economic earnings (NEE) loss was $0.14 per share, improving from $0.42 loss year-over-year, with net loss of $12.6 million ($0.28/share) versus $21.6 million ($0.48/share) last year.

• Year-to-date net income reached $276.8 million ($4.76/share), up from $248.6 million ($4.51/share) in the prior year.

• Launched a customer affordability initiative in Q3, incurring $4.4–$4.6 million in charges, with benefits expected in 2025–2026.

• Economic development efforts and recent acquisitions, including MoGas and Salt Plains, supported long-term growth and Midstream segment expansion.

• Published sixth sustainability report and added to S&P Dividend Aristocrats Index, highlighting progress in ESG and dividend growth.

Financial highlights

• Q3 operating revenues were $414.1 million, down from $418.5 million year-over-year; year-to-date revenues were $2,299.2 million, down from $2,355.9 million.

• Q3 contribution margin increased to $250.8 million from $222.7 million, driven by higher rates and improved midstream performance.

• Q3 operating income was $30.7 million, up from $12.0 million last year; year-to-date operating income was $468.5 million, up from $422.5 million.

• Gas utilities improved to a Q3 NEE loss of $11 million, $1.3 million better year-over-year, due to new rates offset by higher depreciation and bad debt.

• Interest expense rose due to higher rates and balances; O&M expenses for gas utility down $1.7 million year-over-year.

Outlook and guidance

• FY 2024 NEE guidance narrowed and lowered to $4.15–$4.25 per share due to lower Missouri margin and higher interest and bad debt expenses.

• Long-term NEE per share growth targeted at 5%–7%, driven by 7%–8% annual utility rate base growth.

• 10-year capital investment plan raised to $7.3 billion through 2033; 2024 capex increased to $830 million.

• Expect return to normal margins in Missouri and benefit from lower cost structure in FY 2025.

• Utility rate base growth expected at 7–8%.