Gold prices dip as December rate cut bets wane; economic data in focus
Introduction & Market Context
Spire Inc (NYSE:SR) presented its fiscal year 2025 results on November 14, 2025, reporting a 7.5% increase in adjusted earnings per share (EPS) to $4.44, up from $4.13 in the previous year. Despite the annual growth, the company’s fourth-quarter performance fell short of expectations, with an adjusted loss of $0.47 per share compared to the forecasted loss of $0.43. Following the earnings release, Spire’s stock dropped 2.33% in pre-market trading to $87.08.
The natural gas utility highlighted its achievements across operational, regulatory, and financial fronts while outlining ambitious growth plans for the coming years, including its pending acquisition of Piedmont Natural Gas Tennessee business.
As shown in the following slide summarizing key messages from the presentation:
Quarterly Performance Highlights
Spire’s full-year adjusted earnings reached $275.5 million, representing a 7.5% year-over-year increase. The growth was driven by improvements across all business segments, with Gas Utility contributing $10.6 million, Midstream adding $22.8 million, and Gas Marketing providing $2.5 million in additional earnings.
The company’s fourth quarter, however, showed an adjusted loss of $24.1 million or $0.47 per share, missing analyst expectations. This seasonal loss, while typical for gas utilities during warmer months, was larger than anticipated. The quarterly performance breakdown reveals the challenges faced in the final quarter of the fiscal year:
Spire’s adjusted earnings for the full fiscal year 2025 showed strong performance across segments, as illustrated in the following chart:
Strategic Initiatives
A key focus of Spire’s presentation was the update on its acquisition of Piedmont Natural Gas Tennessee business, which is on track to close in the first quarter of calendar 2026. The company has completed the Hart-Scott-Rodino review and is awaiting approval from the Tennessee Public Utility Commission. Spire plans to finance the acquisition with a balanced mix of debt, equity, and hybrid securities, while minimizing common equity issuance. The company is also evaluating the potential sale of gas storage facilities as a source of funds.
The following slide provides details on the acquisition progress:
Spire also unveiled its comprehensive 10-year capital expenditure plan totaling $11.2 billion. The plan allocates 70% of investments to safety and reliability, 19% to customer expansion, and 11% to other initiatives. The company expects to recover approximately 96% of these investments through various regulatory mechanisms.
As shown in the capital plan overview:
The company emphasized the affordability advantage of natural gas compared to electricity across its service territories. According to Spire’s data, electricity costs 2 to 3 times more than natural gas in its states, with natural gas bills representing only 1.06% to 1.85% of household income.
This cost advantage is illustrated in the following comparison:
Forward-Looking Statements
Looking ahead, Spire provided guidance for fiscal years 2026 and 2027, projecting adjusted EPS of $5.25 to $5.45 for FY26 and $5.65 to $5.85 for FY27. These forecasts represent a continued growth trajectory supported by rate base expansion and strategic investments.
The company’s growth outlook is visualized in this slide:
Spire’s long-term strategy focuses on expanding its earnings power across jurisdictions, with total capitalization expected to grow from $8.2 billion in FY26 to $10.7 billion by FY30. Missouri remains the largest contributor at 56% of capitalization, followed by Gulf/Mississippi (20-21%), Alabama (19-20%), and Tennessee (4%).
The following chart illustrates this jurisdictional growth:
The company also announced a 5.1% increase in its annualized dividend to $3.30 per share for 2026, marking the 23rd consecutive year of dividend increases and 81 years of continuous payment. Spire is part of the S&P’s Dividend Aristocrats Index and targets a dividend payout ratio of 55-65%.
Financial Outlook
For fiscal year 2026, Spire provided segment-specific guidance, with Gas Utility expected to contribute $285-315 million, Midstream $42-48 million, and Gas Marketing $19-23 million. The company’s financing plan for its base business (excluding the Tennessee acquisition) includes $0-$50 million in equity per year from FY26 to FY28, with the remainder funded through debt.
Scott Doyle, President and Chief Executive Officer, emphasized the company’s focus on operational excellence, regulatory achievements, and financial performance. "We are focused on our strategy to grow organically, invest in infrastructure and drive operational excellence," Doyle stated in the presentation.
Despite the positive long-term outlook, investors appeared to focus on the quarterly miss, with the stock trading down following the earnings release. The company will need to demonstrate consistent execution of its growth strategy and successful integration of the Tennessee business to regain investor confidence in the coming quarters.
Full presentation:
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.