Executive Summary

Q3 FY25 delivered a clean beat on all key consensus metrics: Adj. EPS $0.01 vs ($0.08) est. (beat by $0.09), revenue $421.9M vs $419.3M est. (beat by ~$2.6M), EBITDA $148.9M vs $120.3M est. (beat by ~$28.6M). Strength was broad-based with midstream storage expansion and asset optimization the primary upside drivers ; estimates from S&P Global*.
Guidance held: management reaffirmed FY25 adjusted EPS of $4.40–$4.60 and raised FY25 capex to $875M (from $840M), underscoring confidence in project execution and regulatory recovery .
Strategic catalyst: announced acquisition of Piedmont Natural Gas’ Tennessee business for $2.48B; accretive to adjusted EPS and aligned with 5–7% long‑term EPS CAGR; close expected in 1Q26 pending approvals .
Regulatory momentum: unanimous stipulation in Missouri rate case for ~$210M annual revenue increase (includes $72.6M ISRS); if approved, new rates effective 10/24/25, expected to lift utility earnings in FY26 as SR earns closer to allowed ROE .

What Went Well and What Went Wrong

What Went Well
- Midstream outperformance: Q3 adjusted earnings rose to $16.2M (from $13.9M), driven by added storage capacity and optimization; CFO noted ~75% of midstream YOY increase from storage on a net income basis .
- Marketing recovery: Gas Marketing adjusted earnings improved to $5.3M (from $1.0M) as the business was “well‑positioned to create value” .
- Regulatory progress and clarity: Unanimous stipulation in Missouri and ISRS inclusion; CEO emphasized “constructive step” and focus on affordability and reliability .
What Went Wrong
- Higher cost base: O&M up $5.3M YOY in Gas Utility due to higher employee costs; depreciation up $3.3M on elevated capex; partly offset by lower insurance claims and lower interest expense .
- Usage headwinds: Lower usage (net of weather mitigation) at Spire Missouri dampened contribution margin gains from ISRS in the quarter .
- Other segment drag: “Other” adjusted loss of $7.4M (vs. $8.2M) still weighed on consolidated results; higher interest expense and absence of prior-year hedge benefit noted across YTD .

Financial Results

Consolidated trend and year-over-year comparisons

Metric	Q1 2025	Q2 2025	Q3 2025
Operating Revenues ($M)	$669.1	$1,051.3	$421.9
Diluted EPS (GAAP)	$1.34	$3.51	$0.29
Adjusted EPS (Non-GAAP)	$1.34	$3.60	$0.01

Q3 actual vs estimates vs prior year

Metric	Q3 2024	Q3 2025 Actual	Q3 2025 Consensus
Revenue ($M)	$414.1	$421.9	$419.3*
EBITDA ($M)	$104.5 (calc from 2024 CM/OP; see below)	$148.9 (company-reported EBITDA; press attachment) [GetEstimates actual]*	$120.3*
EPS (Adj.)	$(0.14)	$0.01	$(0.08)*

Values retrieved from S&P Global*

Profitability metrics

Margin	Q3 2024	Q2 2025	Q3 2025
EBIT Margin %	7.90%*	29.53%*	17.35%*
Net Income Margin %	-3.04%*	19.91%*	4.95%*

Values retrieved from S&P Global*

Segment adjusted earnings (Non-GAAP)

Segment (Adj. earnings, $M)	Q3 2024	Q3 2025
Gas Utility	$(11.0)	$(10.0)
Gas Marketing	$1.0	$5.3
Midstream	$13.9	$16.2
Other	$(8.2)	$(7.4)
Total	$(4.3)	$4.1
Per Diluted Share	$(0.14)	$0.01

KPIs and operating drivers

KPI	Q3 2024	Q3 2025
Contribution Margin – Consolidated ($M)	$250.8	$299.1
O&M Expense – Consolidated ($M)	$126.7	$130.6
Depreciation & Amortization ($M)	$71.4	$75.7
Operating Income ($M)	$30.7	$69.2
Capex – YTD ($M)	$(631.5) (9M)	$(699.7) (9M)

Notes: Contribution margin removes pass-through gas and gross receipts taxes. Adjusted metrics are non‑GAAP as defined by SR .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted EPS	FY25	$4.40–$4.60	$4.40–$4.60	Maintained
Capex	FY25	$840M	$875M	Raised
10‑yr Capex Plan	FY25–FY34	$7.4B	$7.4B	Maintained
LT Adj. EPS CAGR	Multi‑year	5–7%	5–7%	Maintained
Dividend	Ongoing	$0.755/qtr prior year	$0.785/qtr declared 7/31/25	Increased YOY
Segment Mix	FY25	Utility lower end; Midstream mid-range (prior)	Utility lower; Midstream higher within ranges	Updated mix commentary

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1–Q2 FY25)	Current Period (Q3 FY25)	Trend
Regulatory outcomes (MO rate case, ISRS)	Emphasis on ISRS revenues; reaffirmed guidance while progressing rate updates	Unanimous stipulation filed for ~$210M revenue increase; new rates targeted 10/24/25 pending approval; inclusion of small general service in WNAR	Improving visibility, constructive trajectory
Midstream/storage expansion	Storage expansion, higher rates, optimization driving growth	Expansion complete; returns “exceeding expectations”; ~75% of YOY midstream increase from storage	Stronger growth driver
O&M discipline	O&M down slightly in Q2; YTD cost control initiatives	YTD O&M run-rate <1% above prior year; target at/below inflation	Stable/positive
Capital plan and rate base growth	10‑yr $7.4B plan; FY25 capex stepped up from $790M→$840M	FY25 capex raised to $875M; Missouri rate base growth 7–8% underpinning 5–7% EPS CAGR	Increasing spend with returns clarity
M&A/Portfolio	None	$2.48B Piedmont TN acquisition; accretive to adj. EPS; balanced financing incl. bridge and potential non‑utility asset sales	New strategic leg
Balance sheet/FFO-to-debt	Not highlighted in Q1–Q2 PRs	FFO/debt 15–16% still the target; timeline could be slower through acquisition transition	Discipline reiterated

Management Commentary

CEO strategic stance: “We delivered strong third quarter earnings… we continue to expect to deliver 2025 adjusted earnings per share in a range of $4.40 to $4.60.”
On M&A fit and growth: “The acquisition… represents a compelling strategic fit… expanding our regulated utility footprint… supports our long-term adjusted earnings per share growth of 5–7%.”
Regulatory tone: “The unanimous stipulation and agreement… represents a constructive step… a shared commitment to safely delivering reliable and affordable energy.”
CFO on outlook: “We are affirming our fiscal 2025 adjusted EPS guidance… expect utility earnings to be lower in the range and midstream earnings to be higher in the range.”
CFO on 2026 uplift: “With new rates in Missouri… we anticipate adjusted earnings at our Utility segment to be meaningfully higher in 2026.”

Q&A Highlights

Balance sheet metrics: Management reaffirmed FFO/debt target of 15–16%; may take longer to re-attain through the acquisition transition, but remains the goal .
Midstream run-rate: ~90% of the YOY midstream increase tied to storage; on net income, ~75% storage/25% pipeline; expansion complete with returns above expectations .
Pipeline opportunities: Electric load growth in Missouri creating low‑capex opportunities on pipelines over future years .
Marketing cadence: Q3 was well‑positioned; summer quarter tends to be quieter; management comfortable with full‑year targets .
O&M trajectory: Target at/below inflation; YTD O&M <1% above prior year despite quarter-specific one‑timers .

Estimates Context

Q3 FY25 vs S&P Global consensus:
- Revenue: $421.9M vs $419.3M est. (beat by ~$2.6M) ; estimate from S&P Global*.
- EBITDA: $148.9M vs $120.3M est. (beat by ~$28.6M); estimates/actual from S&P Global*.
- Adj. EPS: $0.01 vs ($0.08) est. (beat by $0.09); estimates/actual from S&P Global*.
Forward look (select): FY25 Q4 revenue/EPS estimates exist but are outside the focal quarter; FY26 Q1 EPS est. ~$1.60; use with caution pending year‑end guidance update [GetEstimates].
Values retrieved from S&P Global

Key Takeaways for Investors

Q3 was a clear beat driven by midstream storage and solid execution; the quarter also marked a transition to higher regulatory visibility in Missouri ahead of FY26 .
Guidance intact with higher capex signals more growth investment now paired with pending rate alignment; expect utility earnings uplift in FY26 as new MO rates take effect .
The TN acquisition is a meaningful scale and quality upgrade; financing flexibility includes bridge, balanced capital (debt/equity/hybrid) and potential non‑utility asset sales—monitor leverage metrics vs FFO/debt targets (15–16%) .
O&M discipline continues to underpin affordability and earnings quality; year‑to‑date O&M trending below 1% increase despite inflationary pressures .
Midstream expansion is complete and performing above expectations; watch for sustained contribution from storage in FY26 and beyond .
Near‑term trading catalysts: formal approval of the MO stipulation and new rate effective date, regulatory milestones on TN acquisition, any capital recycling (non‑utility asset sale), and year‑end guidance reset for FY26 .

Notes on non‑GAAP and sources: Adjusted earnings, contribution margin and related reconciliations provided by SR; see press release and 8‑K exhibits for definitions and reconciliations . All document-based figures include citations. Consensus and margin metrics with asterisks are Values retrieved from S&P Global*.

SPIRE INC (SR)·Q3 2025 Earnings Summary