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Image source: The Motley Fool. Wednesday, August 5, 2026 at 9:00 a.m. ET Managing Director of Investor Relations - Megan McPhail President and Chief Executive Officer - Scott Doyle Executive Vice President and Chief Financial Officer - Adam Woodard Operator: Good day, and welcome to the Spire Inc. Third Quarter Fiscal Year 2026 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Megan McPhail, Managing Director of Investor Relations. Please go ahead. Megan McPhail: Good morning, and welcome to Spire's Fiscal 2026 Third Quarter Earnings Call. On the call today are Scott Doyle, President and Chief Executive Officer; and Adam Woodard, Executive Vice President and CFO. We issued an earnings news release this morning that can be accessed on our website at spireenergy.com, along with a slide presentation that accompanies our webcast. Before we begin, let me cover our safe harbor statement and use of non-GAAP earnings measures. Today's call, including responses to questions, may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These statements include, among others, statements regarding our expectations, plans and objectives for future performance, future operating results, earnings guidance, capital investment plans and the expected timing and benefits of risk associated with acquisitions, dispositions and related integration and transition activities. Our forward-looking statements on today's call speak only as of today, and we assume no duty to update them unless required by law. Although our forward-looking statements are based on estimates and assumptions that we believe are reasonable, there are various uncertainties and risk factors that may cause future performance or results to be different than those anticipated. These risks and uncertainties are outlined in our quarterly and annual filings with the SEC. In our comments, we will be discussing non-GAAP measures used by management when evaluating our performance and results of operations. Explanations and reconciliations of these measures to their GAAP counterparts are contained in both our news release and slide presentation. With that, I will now turn the call over to Scott. Scott Doyle: Good morning, and thank you for joining us. Over the past year, we've taken significant steps to position Spire into a stronger, more focused company. Through the acquisition of Spire Tennessee and the divestiture of our non-core businesses, we have completed our transformation to a fully regulated company, enhancing our earnings quality and improving visibility of our long-term growth. As we look ahead, we believe we are well positioned to benefit from the growing importance of natural gas in the nation's energy future. The EIA recently forecasted that both U.S. natural gas production and demand will reach record levels in 2026, reinforcing the critical role natural gas plays in providing reliable, affordable energy to homes, businesses and communities across the country and the world. Today, we'll discuss our third quarter results, the progress we've made advancing our strategy and the opportunities we see to continue creating long-term value for our customers, communities and shareholders. Turning now to our performance for the quarter on Slide 4. This quarter marked another important step forward in executing our strategy. From a financial perspective, adjusted earnings per share from continuing operations improved to a loss of $0.26 per share compared to a loss of $0.29 per share in the prior year quarter, representing an improvement of $0.03 per share. More importantly, we continue to safely and reliably serve our customers while maintaining our focus on affordability, operational excellence and disciplined cost management. Strategically, this was a very significant quarter for Spire. We completed the divestitures of Spire Marketing and Spire Storage, further simplifying the company and sharpening our focus on our regulated utility operations. At the same time, integration of Spire Tennessee continues to progress well, and we remain on track to achieve key milestones to exit transition services in fiscal 2027. On the regulatory front, we continue to make progress across all of our jurisdictions. Spire Alabama and Spire Gulf have renewal hearings for the rate stabilization and equalization or RSE mechanism scheduled later this week on August 6 and 7. In Missouri, last week, we reached a settlement in the accounting authority order proceeding. And as a reminder, Spire Tennessee filed its annual review mechanism with the Tennessee Public Utility Commission in May. Adam will provide more details on each activity during his remarks. Finally, I'm pleased to reaffirm our fiscal 2026 and 2027 adjusted EPS guidance ranges as well as our long-term adjusted EPS growth target of 5% to 7%. Moving to Slide 5. Our priorities remain unchanged and centered on operational excellence and customer affordability, constructive regulatory execution, financial discipline and the successful integration of Spire Tennessee. These priorities continue to guide our actions and support our long-term growth strategy. With the completion of the marketing and storage divestitures, we're now operating as a fully regulated company. Moving to Slide 6. Spire is now positioned around a mix of gas utilities in a FERC-regulated pipeline with the expected sale of Spire Mississippi still targeted to close in the first quarter of fiscal 2027. The exit of the storage and marketing businesses reduces earnings volatility and enhances predictability, representing an important shift. Our earnings outlook is now supported by rate base growth, constructive regulatory mechanisms and a more straightforward business model with a clear path to deliver predictable earnings growth and long-term value creation. With that, I'll now turn the call over to Adam. Adam Woodard: Thanks, Scott, and good morning, everyone. I'll begin on Slide 7 with our third quarter results, which were in line with our expectations and support our outlook for the remainder of the year. For the quarter, we reported an adjusted loss of $15 million or $0.26 per share compared to an adjusted loss of $13 million or $0.29 per share in the prior year quarter. Fiscal 2025 results included $0.06 per share of preferred dividend expense that did not recur this year following the redemption of our preferred shares. The Gas Utilities segment reported an adjusted loss of $3 million in the quarter, improving from a $10 million loss in the prior year. The improvement was primarily driven by new rates in Missouri and Alabama, including ISRS rates implemented in Missouri this spring and the CCM mechanism in Alabama. Higher customer usage net of weather mitigation in Alabama was partially offset by lower usage net of weather mitigation in Missouri. O&M expense increased by approximately $4 million, primarily due to higher bad debt expense. Utility run rate O&M continues to track below the rate of inflation. Results were also affected by higher depreciation, taxes other than income taxes and interest expense, reflecting updated amortization schedules, higher long-term debt balances and other investments supporting our utility operations. And finally, other activities reported an adjusted loss of $12 million compared to a loss of $3 million in the prior year, reflecting higher corporate costs and higher interest expense in the current year. Spire's earnings from discontinued operations were $253.8 million during the third fiscal quarter, which includes an after-tax gain on sale of $254.6 million. Turning to Slide 8. We're reaffirming our 5% to 7% long-term adjusted EPS growth target using the original fiscal 2027 guidance midpoint of $5.75 as the base. This growth outlook is supported by approximately 7% rate base growth and our $11.2 billion 10-year capital plan. For fiscal 2026, we are reaffirming adjusted EPS guidance from continuing operations of $3.90 to $4.10 per share. That guidance excludes a full year of storage, marketing and Tennessee, but includes Mississippi. For fiscal 2027, we are reaffirming adjusted EPS guidance of $5.40 to $5.60 per share. Our Gas Utility and Corporate and other expected earnings ranges remain unchanged from our call in May. Moving to Slide 9. In the first nine months of the year, we invested nearly $600 million in capital expenditures driven by system upgrades, infrastructure modernization and new business connections at the gas utilities. We continue to expect full year 2026 capital expenditures of approximately $800 million across our utilities, consistent with our 10-year $11.2 billion capital plan. These investments support rate base growth of 7% in Missouri and 7.5% in Tennessee with 6% regulated equity growth in Alabama and Gulf, underpinning our confidence in delivering 5% to 7% adjusted EPS growth over time. Turning to our financing plan on Slide 10. We expect to substantially fund our capital expenditure program with operating company debt and cash from operations, thus requiring limited annual equity issuance. Importantly, to help alleviate pressure from rising interest rates, we have a $375 million interest rate hedge portfolio that helps mitigate exposure to higher borrowing costs. Following the reduction in business risk from our recent portfolio actions, our FFO to debt target is 14% to 15%, which we expect to reach by the end of 2028. While admittedly, 2026 is a transition year for our credit metrics with businesses being both acquired and divested. Our current FFO to debt stands at 13% after factoring in trailing 12 months funds from operations, inclusive of Spire Tennessee. Our gain on sale of divested businesses pushes this metric even higher through this transition period. Turning now to an update on regulatory matters, starting with Alabama on Slide 11. The RSE renewal process began earlier this year and is progressing as expected. As a reminder, the RSE is a formula-based rate-setting mechanism that allows rates to be adjusted annually within an approved ROE range, providing a more streamlined alternative to frequent general rate cases. Every three to four years, the mechanism is renewed, allowing key elements such as the authorized ROE, ROE range, capital structure and other key provisions to be reviewed and approved by the Alabama Public Service Commission. Hearings for RSE renewals are scheduled for August 6 for Spire Alabama and August 7 for Spire Gulf. The proceedings are focused on a limited number of items, including the ROE, ROE range, term of the RSE, the cost control mechanism and the customer charge. We have requested an adjusting point ROE of 10.5% for Spire Alabama and 10.75% for Spire Gulf. The Alabama regulatory environment remains constructive. The RSE framework supports predictable regulatory outcomes and timely recovery of investments for the benefit of customers. Turning to Missouri on Slide 12. We continue to make progress on several important regulatory initiatives. First, we're pleased to have reached a settlement in the accounting authority order proceeding last week. The settlement recognizes the need to enhance the existing weather normalization adjustment rider or WNAR, and provides a path for collaboration to develop improvements or consider a potential alternative in our next rate case. This is an important step towards improving revenue recovery and reducing earnings volatility while helping protect customers through more stable and predictable bills. In addition to this settlement, we filed a request in May to recover approximately $21 million of interest revenues associated with continued infrastructure investments across our Missouri service territory. We expect those new rates to become effective in November. Finally, we remain on track to file our first Missouri future test year rate case in early November 2026. This filing will represent an important milestone and is expected to further align rates with our ongoing investments while supporting the safe and reliable service our customers depend on. Turning now to Slide 13. Less than two months after closing of the acquisition, Spire Tennessee filed its first annual review mechanism on May 20, 2026, requesting a $14 million revenue increase. The filing reflects an authorized ROE of 9.8%, a capital structure of 49% equity and 51% debt and a rate base of $1.5 billion as of December 31, 2025. New rates are expected to be effective October 1, 2026. To sum up our remarks today, Spire is operating from a position of greater focus with a fully regulated business profile, constructive regulatory frameworks and a disciplined capital investment strategy. We remain confident in our ability to deliver 5% to 7% long-term EPS growth, supported by our $11.2 billion capital plan while continuing to create long-term value for shareholders. Thank you for joining us today. Now we're ready to take your questions. Operator: The first question today comes from Julien Dumoulin-Smith with Jefferies. Luke Fenker: Luke Fenker on for Julien. I just wanted to ask on Alabama. You disclosed requests for higher allowed ROEs at both Alabama and Gulf. Can you talk about the key factors supporting that? And how you think about the upcoming renewal hearings? Can you maybe like help frame which elements of the structure are more relevant, the term, customer charge or control mechanisms? Scott Doyle: Luke, Adam and I will tag team this. Maybe just kind of ground everybody, the process that's unfolding in Alabama, it's very similar to the process we've used to update attributes associated with that mechanism for many years, but now has the addition of a more formalized or transparent public hearing. And so historically, we've negotiated that renewal every three to four years with an agreement reached and then presented to the commission. And so just from a process standpoint, we look forward to wrapping up the hearings that are scheduled later this week and then expect a decision from the commission later in September. But let me let Adam speak to kind of the underpinnings of the ROE request and then just maybe make sure we clarify the elements that are under consideration this week. Adam? Adam Woodard: Yes, Luke, we did reach an agreement on several issues. So it's only a limited number of issues that are going to hearing later this week. But on the ROE, some of it is an observation that certainly, the conditions underlying the request or recommendation are higher than they were when we reset it last time. And so that's baked into that as well. But besides the ROE and the range, we do think a little bit wider range will be in the benefit of both us and the customer. But the cost control mechanism has been very valuable for customers as far as delivering O&M savings back to customers over the last several years and certainly want to preserve that ability to do that. Scott Doyle: And Luke, this is Scott again. I'd just comment again on ROE. Go back to the legislative session, one of the key points that you made about ROEs, particularly in Alabama is setting them close to the average for the region. We are solidly in that range and feel comfortable with both our request and where we sit today. Luke Fenker: Awesome. And then maybe on Missouri, the AAO settlement recognizes the need to enhance weather normalization. Can you discuss how you anticipate addressing weather and usage variability in the upcoming future test year case? What kind of changes could better align with recovery and customer usage patterns going forward? Scott Doyle: Yes. Good question. Primarily, I think a lot of the best ways to address that is through decoupling mechanisms and rate design that helps remove some of the variability associated with recovery, particularly here in Missouri, where we have a pretty good wide range of weather patterns, not only just throughout the year, but even within the winter weather months. Our desire there is to put in place a mechanism that both protects the company, but also protects the customer as well. And I think that's where, as we've been talking with the commission, with staff and other interveners is a strong desire to collaborate on a solution that's durable and permanent. And so in that context, as you mentioned, the rate case is the place where we can get that ultimately finalized. This settlement that we've reached allows us to meet in advance of the rate case filing and work towards a solution perhaps that can be resolved in time for the actual future test year filing so that we can then turn everyone's attention and focus on the future test year implementation. Operator: The next question comes from Constantine Lednev with Wells Fargo. Constantine Lednev: Just in terms of maybe capital allocation on a forward basis with kind of the more streamlined business mix that you're highlighting and the improving regulatory constructs, in particular with Missouri, do you anticipate more incremental capital or pull forward into jurisdictions with lower ROE lag? And maybe just framing that as would that be accretive within the 5% to 7% growth target post '27? Scott Doyle: Constantine, good question. We've been fairly direct and public about as we get ready to file this case and we think about the future test year, it's not about a pull forward of capital as far as an acceleration of capital, but it's managing affordability for our customers, the pacing of capital and having it squarely within the earnings growth range that we've described for the market. So I think that's what you're asking when you talk about pulling forward capital, we're not looking to upsize capital, if that's the question. Constantine Lednev: Okay. Understood. Maybe just a quick follow-up on the renewal process in Alabama. Are there any net positives that you would highlight from the proceeding kind of like the wider ROE band opportunity and maybe how that scales versus the assumptions that are embedded in the current '27 guidance? Scott Doyle: Yes. I think the primary way to look at this proceeding in Alabama is it's just a much more public process to what's been undertaken, as I was mentioning earlier, for many years. This mechanism has worked very well from a planning standpoint, both for the company and for a clarity to the commission as to how the company is spending its resources and how it's investing its capital across the plan year. And as everyone knows on the call, this is a forward-looking mechanism. And so we've set rates based on a budget. And as a result, there's a lot of transparency, both in the spend and an understanding of how the money is spent throughout the year as we have routine check-ins or points of test with the commission in which all those results are reviewed. So when I think about like just -- thinking about upside associated with the outcomes, I don't look to that as being a material driver necessarily in how this is unfolding at the commission. It's primarily as it's historically been just getting all the factors correct that underpin the actual way that rates are set in Missouri -- I'm sorry, in Alabama. Constantine Lednev: Okay. Understood. And maybe one kind of housekeeping item, just on the annual review in Tennessee. Just maybe your thoughts on kind of potential to settle and just the kind of deadlines that are set and just the general kind of engagement with stakeholders, any kind of feedback that you'll be able to provide? Scott Doyle: Yes. I think it's unfolding as expected. I would not look to an acceleration of the schedule at this time. This is our first time to file. And as you can imagine, there are -- we filed using historical costs that were a part of the previous owner of that system. And so as we walk through it, we don't expect a lot of controversy associated with that. But Tennessee, our experience has been they follow the time lines, and that's what we would expect in this process as well. Operator: The next question comes from Paul Fremont with Ladenburg. Paul Fremont: I guess my first question would really relate to the Missouri settlement. Can you -- was it a unanimous settlement? And if not, which parties signed on to the settlement? Adam Woodard: Paul, this is Adam. No, the settlement was between us and staff and the Office of Public Counsel. I believe there was one other party that didn't -- was not a signatory, but we feel like it was the conclusion of the discussions that we were having. Paul Fremont: Great. And then your original request, if I'm not mistaken, included sort of a request to establish a regulatory asset. Does the settlement deal with that aspect of your request or not? Scott Doyle: Paul, this is Scott. No, it does not. The primary outcome of the settlement is the collaborative work that we're going to do to develop a durable and permanent solution. Paul Fremont: Okay. Great. And then last question for me. Can we expect guidance for 2028 at some point in the not-too-distant future? Adam Woodard: Yes. Paul, this is Adam. We do expect to give guidance on the year-end call in November for '28. Operator: The next question comes from Eli Jossen with JPMorgan. Just one for me. Elias Jossen: Maybe circling back to Alabama. I wanted to touch on the recommendations of the 8% to 9% ROEs we've seen from some of the intervenors and how we think about that versus the 9.9% allowed. Just broader context there would be great. Scott Doyle: Eli, I would just go back to, as I mentioned earlier, we're taking a queue from the legislature as they looked at some of the work that they were doing this past session as they work to change the structure of the commission. One of the key things they talked about was zeroing in on an ROE that is within the range of the average in the region. And so a recommendation that's in the 8s is below average. And so we believe we've submitted and continue to operate within the range that's within the average in the region. Operator: The next question comes from Gabe Moreen with Mizuho. Unknown Analyst: This is [indiscernible] for Gabe. I just kind of wanted to get a little more clarity on the AAO. I know you guys -- when you put in the last slide, it was to recover lost margin resulting from the lower weather-related usage. Is that a quantifiable amount that you reached in the settlement? Or is that something we're going to kind of wait and hear for? Scott Doyle: Yes. No, again, the settlement does not contemplate either quantifying or recovery of the lost margin from this past year. The primary outcome of the settlement is a commitment to work towards a more durable and permanent solution. Unknown Analyst: Okay. So would you guys look to recover those margins in the upcoming rate case compared to in the settlement at the end of the year? Scott Doyle: Yes. No. I mean, I think our rate case, we haven't finalized its -- the parameters associated with that filing. Our focus right now is on developing a forward solution to this mechanism to ensure it's more durable and permanent. Operator: The next question comes from David Paz with Wolfe Research. David Paz: So as we look forward to your rebasing EPS growth off the 2028 guide in November, can you please just remind me what you have said about the linearity of the 5% to 7% off of the initial 27%? Did you expect that kind of be off of the initial 27% to be about 6% each year? Was '28 going to be on the high end of that 5% to 7% or more? Scott Doyle: Yes. Thanks, David. We have talked about '28 being a step-up year and the fact that it's driven by the Missouri rate case and where we'll be recovering lag, but then also pulling forward some future recovery through the future test year mechanism. So that was the discussion around rebasing on the '28 guide, which is our intent that we feel like that's going to be a cleaner base there. On a go-forward position from '28, we do expect pretty good linearity. It still remains to be seen as far as what the exact path of Missouri will be with the future test year filings, but we -- Tennessee and Alabama are relatively linear and Missouri will become more so in the future. David Paz: Okay. So just as we stand today, the 2028 – the expectation for 2028 would be on the higher end of the 5% to 7% off of $5.75 in '27? Scott Doyle: Yes. Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Scott Doyle for any closing remarks. Scott Doyle: Thank you, Chloe, and thank you all on the call for your continued interest in Spire. We look forward to seeing many of you on the road in September at investor conferences and meetings. Everyone, have a great day. 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Interested in Spire Inc.? Here are five stocks we like better. Spire is now fully regulated after completing the divestitures of Spire Marketing and Spire Storage, reducing earnings volatility; the Spire Mississippi sale remains expected in fiscal Q1 2027. Fiscal Q3 adjusted loss improved to $0.26 per share from $0.29 a year earlier, helped by stronger utility results and the absence of preferred-dividend expense. Spire reaffirmed fiscal 2026 EPS guidance of $3.90–$4.10 and fiscal 2027 guidance of $5.40–$5.60. Spire continues to pursue substantial investment and regulatory growth, including an $11.2 billion 10-year capital plan, Alabama rate-mechanism renewals, Missouri infrastructure cost recovery and a Tennessee revenue-increase request. 3 Recession-Ready Stocks That Thrive When the Economy Sputters Spire (NYSE:SR) reported a fiscal third-quarter adjusted loss from continuing operations of $15 million, or $0.26 per share, compared with an adjusted loss of $13 million, or $0.29 per share, a year earlier, as the utility completed divestitures that shifted its business profile to fully regulated operations. President and Chief Executive Officer Scott Doyle said the company has completed the sale of its Spire Marketing and Spire Storage businesses, while continuing to integrate Spire Tennessee following its acquisition. The company still expects to complete the sale of Spire Mississippi in the first quarter of fiscal 2027. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling 3 Stocks Investing $650 Billion in the U.S.—Should You Invest? “With the completion of the marketing and storage divestitures, we're now operating as a fully regulated company,” Doyle said. He said the portfolio changes reduce earnings volatility and improve the predictability of the company’s results, which are now supported by rate-base growth, regulatory mechanisms and its regulated utility and pipeline operations. The adjusted per-share loss improved year over year in part because fiscal 2025 results included $0.06 per share of preferred dividend expense. That expense did not recur after the company redeemed its preferred shares. → No Hangover: Revisiting Microsoft One Week After Earnings MarketBeat ‘Stock of the Week’: Spirit Realty deal rattles REITs Spire’s Gas Utility segment posted an adjusted loss of $3 million, improving from a $10 million loss in the prior-year quarter. Chief Financial Officer Adam Woodard said new rates in Missouri and Alabama contributed to the improvement, including Missouri ISRS rates implemented during the spring and Alabama’s CCM mechanism. Higher customer usage, net of weather mitigation, in Alabama was partly offset by lower usage, net of weather mitigation, in Missouri. Operations and maintenance expense increased about $4 million, primarily due to higher bad-debt expense, although Woodard said utility run-rate O&M remains below inflation. → MarketBeat Week in Review – 08/03 - 08/07 The company’s other activities recorded an adjusted loss of $12 million, compared with a $3 million loss in the prior-year period, reflecting higher corporate costs and interest expense. Spire also reported $253.8 million in earnings from discontinued operations, including a $254.6 million after-tax gain on the sales of businesses. Spire reaffirmed its fiscal 2026 adjusted EPS guidance from continuing operations of $3.90 to $4.10. The guidance excludes a full year of Spire Storage, Spire Marketing and Spire Tennessee, but includes Spire Mississippi. The company also reaffirmed fiscal 2027 adjusted EPS guidance of $5.40 to $5.60 and its long-term adjusted EPS growth target of 5% to 7%. Woodard said the long-term growth target uses the original fiscal 2027 guidance midpoint of $5.75 as its base. During the question-and-answer session, Doyle said fiscal 2028 is expected to be a “step-up year,” driven by recovery of regulatory lag in Missouri and the use of a future test-year mechanism. He said the company expects more linear growth after 2028, with Tennessee and Alabama already relatively linear and Missouri expected to become more so. For the first nine months of fiscal 2026, Spire invested nearly $600 million in capital expenditures, primarily for system upgrades, infrastructure modernization and new customer connections. The company continues to expect about $800 million in full-year capital expenditures across its utilities. The company’s 10-year capital plan totals $11.2 billion. Woodard said it supports estimated rate-base growth of 7% in Missouri and 7.5% in Tennessee, along with 6% regulated equity growth in Alabama and Spire Gulf Coast. Spire expects to substantially fund its capital program using operating-company debt and cash from operations, with limited annual equity issuance. It also has a $375 million interest-rate hedge portfolio intended to reduce exposure to higher borrowing costs. The company is targeting funds from operations-to-debt of 14% to 15% by the end of 2028. Woodard said its current FFO-to-debt ratio was 13% after incorporating trailing 12-month funds from operations that include Spire Tennessee. In Alabama, hearings on renewals of the rate stabilization and equalization mechanism were scheduled for Aug. 6 for Spire Alabama and Aug. 7 for Spire Gulf. Spire has requested an adjusting-point return on equity of 10.5% for Spire Alabama and 10.75% for Spire Gulf. Doyle said the proceedings represent a more formal and public version of a renewal process that has historically been negotiated every three to four years. He said the company expects a commission decision later in September. Woodard said the remaining hearing issues include the ROE range, the term of the mechanism, the cost-control mechanism and the customer charge. Addressing lower ROE recommendations from some interveners, Doyle said Spire believes its requested returns are within the regional average referenced during Alabama’s recent legislative session. In Missouri, Spire reached a settlement with commission staff and the Office of Public Counsel in an accounting authority order proceeding. The settlement does not quantify or provide recovery for lost margin associated with lower weather-related usage during the past year, according to Doyle. Instead, it creates a process to collaborate on improvements to the weather normalization adjustment rider or a potential alternative in the company’s next rate case. Spire also filed in May to recover about $21 million of interest revenues tied to continued infrastructure investments in Missouri, with new rates expected to take effect in November. The company expects to file its first Missouri future test-year rate case in early November 2026. In Tennessee, Spire filed its first annual review mechanism on May 20, requesting a $14 million revenue increase. The filing reflects a 9.8% authorized ROE, a capital structure of 49% equity and 51% debt, and a $1.5 billion rate base as of Dec. 31, 2025. New rates are expected to become effective Oct. 1, 2026. Spire Inc (NYSE: SR), formerly known as The Laclede Group, is a regulated natural gas distribution company headquartered in St. Louis, Missouri. Through its three operating divisions—Spire Missouri, Spire Alabama and Spire Mississippi—the company delivers natural gas to more than 1.7 million residential, commercial and industrial customers. Spire's service territory spans key markets in the central and southern United States, including metropolitan St. Louis, central Alabama and central Mississippi. Founded in 1857 as the Laclede Gas Light Company, the business has grown through strategic acquisitions, notably Alabama Gas Corporation in 2013 and Mississippi Gas in 2016. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Spire Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Completed the divestiture of Spire Marketing and Spire Storage, finalizing the transition to a fully regulated utility model to enhance earnings predictability. Integration of Spire Tennessee is progressing as planned, with the company on track to exit transition services by fiscal 2027. Performance improvement in the Gas Utilities segment was driven by new rates in Missouri and Alabama, offsetting higher bad debt and interest expenses. The strategic shift to a fully regulated profile is intended to reduce earnings volatility and align growth with rate base expansion and constructive regulatory mechanisms. Management highlighted the critical role of natural gas in the energy future, citing EIA forecasts of record production and demand levels in 2026. Operational focus remains centered on affordability and disciplined cost management, with utility O&M tracking below the rate of inflation. Reaffirmed long-term adjusted EPS growth target of 5% to 7%, using the original fiscal 2027 midpoint of $5.75 as the base. Growth is underpinned by a $11.2 billion 10-year capital plan supporting approximately 7% rate base growth. Fiscal 2026 is characterized as a transition year for credit metrics due to concurrent acquisition and divestiture activities. Management expects fiscal 2028 to be a 'step-up' year for earnings, driven by the recovery of regulatory lag and the implementation of the Missouri future test year. The company targets an FFO-to-debt ratio of 14% to 15% by the end of 2028, supported by reduced business risk from portfolio simplification. Reached a settlement in the Missouri accounting authority order proceeding, establishing a collaborative path to improve weather normalization mechanisms. The sale of Spire Mississippi remains targeted for closure in the first quarter of fiscal 2027. Maintained a $375 million interest rate hedge portfolio to mitigate exposure to higher borrowing costs and alleviate pressure on credit metrics. Reported a significant after-tax gain on sale of $254.6 million from discontinued operations during the third fiscal quarter. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management stated that current economic conditions and regional averages support their request for ROEs of 10.5% and 10.75%. The requested wider ROE range is intended to benefit both the company and customers while preserving the value of the cost control mechanism. The company aims to implement decoupling mechanisms or rate designs that remove recovery variability caused by wide-ranging weather patterns. The recent settlement allows for collaborative solution-building ahead of the formal future test year rate case filing in November 2026. Management confirmed that 2028 will likely be at the higher end of the 5% to 7% growth range due to the Missouri rate case outcome. Specific fiscal 2028 guidance is expected to be provided during the year-end earnings call in November.

This article first appeared on GuruFocus. Adjusted EPS (Continuing Operations): Loss of $0.26 per share, an improvement of $0.03 from the prior year quarter's loss of $0.29 per share. Adjusted Net Loss: $15 million, compared to an adjusted loss of $13 million in the prior year quarter. Gas Utility Segment Adjusted Loss: $3 million, improving from a $10 million loss in the prior year. Other Activities Adjusted Loss: $12 million, compared to a loss of $3 million in the prior year. Discontinued Operations Earnings: $253.8 million for the third fiscal quarter, including an after-tax gain on sale of $254.6 million. O&M Expense: Increased by approximately $4 million, primarily due to higher bad debt expense. Capital Expenditures (First Nine Months): Nearly $600 million invested. Fiscal 2026 Adjusted EPS Guidance: Reaffirmed at $3.90 to $4.10 per share from continuing operations. Fiscal 2027 Adjusted EPS Guidance: Reaffirmed at $5.40 to $5.60 per share. Long-Term Adjusted EPS Growth Target: Reaffirmed at 5% to 7%. Rate Base Growth: Approximately 7% in Missouri and 7.5% in Tennessee, with 6% regulated equity growth in Alabama and Gulf. FFO to Debt: Currently stands at 13%. Warning! GuruFocus has detected 7 Warning Signs with SR. Is SR fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Spire Inc (NYSE:SR) completed the divestitures of Spire Marketing and Spire Storage, simplifying its business to a fully regulated company and reducing earnings volatility. The company reported an improved adjusted loss of $0.26 per share for the third quarter, compared to a loss of $0.29 per share in the prior year period. Spire Inc (NYSE:SR) reaffirmed its fiscal 2026 and 2027 adjusted EPS guidance and its long-term 5% to 7% adjusted EPS growth target, supported by a $11.2 billion capital plan. The company reached a settlement in the Missouri accounting authority order proceeding, which provides a path to develop a more durable weather normalization mechanism. Spire Inc (NYSE:SR) is progressing well with the integration of Spire Tennessee, filing its first annual review mechanism and expecting new rates to be effective October 1, 2026. The company maintains a $375 million interest rate hedge portfolio to mitigate exposure to rising borrowing costs. Spire Inc (NYSE:SR) reported an adjusted net loss of $15 million for the third quarter, reflecting continued seasonal weakness. The company's O&M expenses increased by approximately $4 million, primarily due to higher bad debt expense. Spire Inc (NYSE:SR) faces regulatory uncertainty in Alabama, with interveners recommending lower ROEs (8%-9%) compared to the company's requested 10.5% and 10.75%. The Missouri settlement does not include recovery of lost margins from lower weather-related usage, leaving that issue unresolved. Spire Inc (NYSE:SR) expects 2026 to be a transition year for credit metrics, with FFO to debt currently at 13%, below the 14%-15% target expected by 2028. The company's other activities segment reported a wider adjusted loss of $12 million, driven by higher corporate costs and interest expense. Q: As we look forward to your rebasing EPS growth off the 2028 guide in November, can you please just remind me what you have said about the linearity of the 5% to 7% off of the initial 2027? Did you expect that kind of be off of the initial 2027 to be about 6% each year? Was 2028 going to be on the high end of that 5% to 7% or more?A: Scott Doyle (CEO): We have talked about 2028 being a step-up year, driven by the Missouri rate case where we'll be recovering lag and pulling forward some future recovery through the future test year mechanism. That was the discussion around rebasing on the 2028 guide, which was our intent. We feel like that's going to be a cleaner base there. On a go-forward position from 2028, we do expect pretty good linearity. It still remains to be seen as far as what the exact path of Missouri will be with the future test year filings. Tennessee and Alabama are relatively linear and Missouri will become more so in the future. When asked if the expectation for 2028 would be on the higher end of the 5% to 7% off of $5.75, Doyle confirmed, "Yes." Q: You disclosed requests for higher allowed ROEs at both Alabama and Gulf. Can you talk about the key factors supporting that, and how you think about the upcoming renewal hearings? Can you maybe help frame which elements of the structure are more relevant, the term customer charge or control mechanisms?A: Scott Doyle (CEO): The process unfolding in Alabama is very similar to the process we've used to update attributes associated with that mechanism for many years, but now it has the addition of a more formalized or transparent public hearing. Historically, we've negotiated that renewal every three to four years with an agreement reached and then presented to the commission. We look forward to wrapping up the hearings scheduled later this week and expect a decision from the commission later in September. Adam Woodard (CFO): We did reach an agreement on several issues, so it's only a limited number of issues going to hearing. On the ROE, some of it's an observation that the conditions underlying the request are higher than they were when we reset it last time. Besides the ROE and the range, we do think a little bit wider range would be in the benefit of both us and the customer. The cost control mechanism has been very valuable for customers as far as delivering O&M savings back to customers over the last several years. Scott Doyle (CEO): One of the key points the legislature made about ROEs, particularly in Alabama, is setting them close to the average for the region. We are solidly in that range and feel comfortable with both our request and where we sit today. Q: On the Missouri AAO settlement, can you discuss how you anticipate addressing weather and usage variability in the upcoming future test year case, and what kind of changes could better align with recovery and customer usage patterns going forward?A: Scott Doyle (CEO): A lot of the best ways to address that is through decoupling mechanisms and rate design that helps remove some of the variability associated with recovery, particularly here in Missouri, where we have a pretty good wide range of weather patterns. Our desire there is to put in place a mechanism that both protects the company but also protects the customer as well. As we've been talking with the commission, with staff, and other interveners, there is a strong desire to collaborate on a solution that's durable and permanent. The settlement allows us to meet in advance of the rate case filing and work towards a solution that can be resolved in time for the actual future test year filing. Q: Was the Missouri settlement a unanimous settlement? If not, which parties signed onto the settlement? And did the settlement deal with the regulatory asset aspect of your original request?A: Adam Woodard (CFO): No, the settlement was between us and staff and the Office of Public Counsel. I believe there was one other party that was not a signatory. Scott Doyle (CEO): The settlement does not deal with the regulatory asset aspect. The primary outcome of the settlement is the collaborative work that we're going to do to develop a durable and permanent solution. Q: In terms of capital allocation on a forward basis with the more streamlined business mix and improving regulatory constructs, do you anticipate more incremental capital or pull forwards into jurisdictions with lower ROE lag? Would that be accretive within the 5% to 7% growth target post 2027?A: Scott Doyle (CEO): We've been fairly direct and public about as we get ready to file this case and think about the future test year, it's not about a pull forward of capital as far as an acceleration of capital, but it's managing affordability for our customers, the pacing of capital, and having it squarely within the earnings growth range that we've described for the market. We're not looking to upsize capital. Q: On the Alabama renewal process, are there any net positives you would highlight from the proceeding, like the wider ROE band opportunity, and how does that scale versus the assumptions embedded in the current 2027 guidance?A: Scott Doyle (CEO): The primary way to look at this proceeding in Alabama is it's just a much more public process to what's been undertaken for many years. This mechanism's worked very well from a planning standpoint, both for the company and for clarity to the commission. When I think about upside associated with the outcomes, I don't look to that as being a material driver necessarily in how this is unfolding at the commission. It's primarily, as it's historically been, just getting all the factors correct that underpin the actual way that rates are set. Q: On the annual review in Tennessee, just your thoughts on the potential to settle, the deadlines that are set, and the general engagement with stakeholders. Any feedback you'd be able to provide?A: Scott Doyle (CEO): It's unfolding as expected. I would not look to an acceleration of the schedule at this time. This is our first time to file, and we filed using historical costs that were a part of the previous owner of that system. As we walk through it, we don't expect a lot of controversy associated with that. Tennessee, our experience has been they follow the timelines, and that's what we would expect in this process as well. Q: Circling back to Alabama, wanted to touch on the recommendations of the 8%-9% ROEs we'd seen from some of the interveners and how we think about that versus the 9.9 allowed. Just broader context there would be great.AFor the complete transcript of the earnings call, please refer to the full earnings call transcript.

ST. LOUIS, Aug. 5, 2026 /PRNewswire/ -- Spire Inc. (NYSE: SR) today reported results for its fiscal 2026 third quarter ended June 30. Highlights include: Completed divestitures of Spire Marketing and Spire Storage businesses Net loss from continuing operations of $42.6 million, or $(0.72) per diluted share, compared to a net loss of $13.3 million, or $(0.29) per share, a year ago Adjusted loss* from continuing operations of $15.7 million, or $(0.26) per share, compared to a loss of $13.3 million, or $(0.29) per share a year ago Reaffirmed fiscal 2026 adjusted earnings guidance from continuing operations of $3.90–$4.10 Reaffirmed fiscal 2027 adjusted earnings guidance range of $5.40–$5.60 Reaffirmed long-term adjusted earnings growth target of 5-7% Following the divestitures of the Spire Marketing and Spire Storage businesses, results and guidance discussed in this release reflect continuing operations for the gas utilities, excluding Spire Tennessee, unless otherwise noted. Results for the quarter reflect solid performance across the utilities supported by new rates, infrastructure investment and disciplined cost management. Gas Utility earnings improved year-over-year, driven by new rates, higher Spire Alabama usage, net of weather mitigation, and favorable Cost Control Mechanism (CCM) performance. "Our third quarter results demonstrate the benefits of our focused utility strategy and the meaningful progress we've made in transforming Spire into a simpler, fully regulated business," said Scott Doyle, president and chief executive officer of Spire. "With our portfolio optimization largely complete, we are well positioned to execute on our strategic priorities. The strength of our results enables us to reaffirm our fiscal 2026 and 2027 earnings guidance as we remain focused on safely delivering reliable service for our customers, investing in infrastructure and creating sustainable long-term value for our shareholders." Adjusted earnings exclude from net income, as applicable, the impacts of fair value accounting and timing adjustments associated with energy-related transactions, the impacts of acquisition, divestiture and restructuring activities, and the largely non-cash impacts of other non-recurring or unusual items such as impairments and certain regulatory, legislative, or GAAP standard-setting actions. Continuing operations For the third fiscal quarter of 2026, Spire reported a consolidated net loss from continuing operations of $42.6 million, $(0.72) per diluted share, compared to a prior-year net loss of $13.3 million, or $(0.29) per diluted share. Adjusted earnings from continuing operations reflected a loss of $15.7 million, or $(0.26) per share, compared to a loss of $13.3 million, or $(0.29) per share last year. Gas Utility Gas Utility reported a loss on an adjusted earnings basis of $3.2 million, compared to a loss of $10.0 million in the prior year, reflecting improvement at both Spire Missouri and Spire Alabama. Contribution margin increased $30.6 million, driven primarily by new Spire Missouri rates effective October 2025, higher Missouri Infrastructure System Replacement Surcharge (ISRS) revenues, and Spire Alabama rates under the Rate Stabilization and Equalization (RSE) mechanism that were effective December 2025. Margin also benefited from higher Spire Alabama usage, net of weather mitigation, and favorable CCM performance. Favorable off-system sales at Spire Missouri and Spire Alabama also benefited earnings. Operation and maintenance expense was $3.8 million higher in the quarter compared to prior year. After adjusting for the impact of a pension reclass and bad debt expense, operation and maintenance expense increased $0.4 million, reflecting higher non-payroll expenses partially offset by a reduction in employee-related costs. Depreciation expense increased $11.8 million year over year, driven by capital investment and updated depreciation schedules implemented under Spire Missouri's new rates. Taxes other than income taxes increased $4.0 million primarily reflecting revised property tax amortization included in new rates at Spire Missouri. Interest expense increased $2.4 million due to higher long-term debt balances, partially offset by lower long-term and short-term rates. Other Spire's other activities reported an adjusted loss from continuing operations of $12.5 million versus an adjusted loss of $3.3 million in the prior year. The variance in earnings is primarily due to higher corporate costs and interest expense. Discontinued operations Spire's earnings from discontinued operations was $253.8 million during the third fiscal quarter, which includes an after-tax gain on sale of $254.6 million. Continuing operations For the first nine months of fiscal 2026, Spire reported consolidated net income of $262.8 million ($4.21 per diluted share) compared to prior-year net income of $248.1 million ($4.05 per diluted share). Adjusted earnings were $301.8 million ($5.01 per share) compared to $248.1 million ($4.05 per share) last year. Gas Utility results reflect strong performance across all utilities. Earnings increased primarily due to new Spire Missouri rates effective in October 2025, higher Spire Missouri ISRS revenues and Spire Alabama rates under the RSE mechanism effective December 2025. Earnings also benefited from favorable CCM performance in Spire Alabama and increased off-system sales in both Spire Missouri and Spire Alabama. Usage, net of weather mitigation, was higher in Spire Alabama but lower in Spire Missouri. Operation and maintenance expense increased $7.7 million; however, after adjusting for the impact of a pension reclass and bad debt expense, O&M was essentially flat year over year. These benefits were partially offset by higher depreciation costs, increased taxes other than income taxes, higher interest expense and a Spire Alabama customer refund provision. Spire's other activities reflect higher corporates costs and interest expense in the current year. Discontinued operations Spire's earnings from discontinued operations was $325.6 million during the first nine months of fiscal 2026, which includes an after-tax gain on sale of $254.6 million. Guidance and Outlook Spire continues to expect fiscal 2026 adjusted earnings from continuing operations to be in the range of $3.90–$4.10 per share, reflecting year-to-date results as well as the classification of Spire Marketing and Spire Storage as discontinued operations. This guidance excludes Spire Tennessee results. Spire continues to expect fiscal 2027 adjusted EPS to be in the range of $5.40–$5.60 from our ongoing businesses, which reflects a full year of earnings contributions from Spire Tennessee. Our 10-year $11.2 billion capital investment target through fiscal 2035 is driven by investment in infrastructure and new business. This plan supports Spire's long-term adjusted earnings per share growth of 5-7% using the original fiscal 2027 adjusted EPS guidance midpoint of $5.75 as a base. Expected total capital expenditures for continuing operations in fiscal 2026 is $797 million. Conference Call and Webcast Spire will host a conference call and webcast today to discuss its fiscal 2026 third quarter financial results. To access the call, please dial the applicable number approximately 5–10 minutes in advance. The webcast can be accessed at Investors.SpireEnergy.com under Events & Presentations. A replay of the call will be available until August 12, 2026, by dialing 855-669-9658 (U.S. and Canada), or 412-317-0088 (international). The replay access code is 1744375. About Spire At Spire (NYSE: SR), our vision is to deliver a stronger energy future as an industry-leading natural gas provider. We safely and reliably serve the natural gas needs of close to 2 million homes and businesses through gas utilities in Alabama, Mississippi, Missouri and Tennessee, making us one of the largest publicly traded natural gas companies in the country. We are committed to transforming our business through growing organically, investing in infrastructure and driving continuous improvement. Learn more at SpireEnergy.com. Forward-Looking Information and Non-GAAP Measures This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, including statements regarding our expectations, plans and objectives for future performance, future operating results, earnings guidance, capital investment plans, and the expected timing and benefits of, and risks associated with, acquisitions, dispositions and related integration and transition activities (including the acquisition of the Piedmont Natural Gas Tennessee business, the sale of Spire Marketing and the announced sales of Spire Storage and Spire Mississippi), are forward-looking statements. Forward-looking statements may be identified by words such as "estimates," "expects," "projects," "anticipates," "intends," "targets," "plans," "forecasts," "may," "likely," "would," "should," "anticipated" and similar expressions. Although the forward-looking statements contained in this news release are based on estimates and assumptions that management believes are reasonable, various uncertainties and risk factors may cause future performance or results to be different than those anticipated, including, among other things, weather conditions and catastrophic events; economic factors; the competitive environment; governmental and regulatory policy and action; the satisfaction of conditions to, and the timing and completion of, the announced dispositions (including receipt of required regulatory approvals); our ability to realize anticipated benefits from completed and announced transactions; transaction costs and potential disruption from completed and announced transactions; and our ability to retain and hire key personnel. More complete descriptions and listings of these uncertainties and risk factors can be found in the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the Securities and Exchange Commission. Such forward-looking statements are made based on information available as of the date of this document, and Spire undertakes no obligation to revise or update such statements to reflect subsequent events or circumstances, except as otherwise required by securities and other applicable laws. This news release includes the non-GAAP financial measures of "adjusted earnings," "adjusted earnings per share," and "contribution margin." Management also uses these non-GAAP measures internally when evaluating the Company's performance and results of operations. Adjusted earnings exclude from net income, to the extent incurred in a given period, the impacts of acquisition, divestiture and restructuring activities and the largely non-cash impacts of impairments, and the impacts of certain regulatory, legislative, or GAAP standard-setting actions. Contribution margin adjusts revenues to remove the costs that are directly passed on to customers and collected through revenues, which are the wholesale cost of natural gas and gross receipts taxes. These internal non-GAAP operating metrics should not be considered as an alternative to, or more meaningful than, GAAP measures such as operating income, net income, or earnings per share. 132.4Total Current Liabilities2,132.52,548.52,086.5Deferred Credits and Other Liabilities:Deferred income taxes1,054.6887.4900.5Pension and postretirement benefit costs43.174.7105.0Asset retirement obligations596.9577.7593.0Regulatory liabilities777.6578.0582.0Other141.3136.7138.4Liabilities associated with assets held for sale—7.47.1Total Deferred Credits and Other Liabilities2,613.52,261.92,326.0Total Capitalization and Liabilities$14,091.4$11,575.3$11,396.3 Investor Contact: Megan L. McPhail 314-309-6563 [email protected] Contact: Jason Merrill 314-342-3300 [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/spire-reports-fy26-third-quarter-results-302843129.html

Atmos Energy Corporation ATO ) is scheduled to release third-quarter fiscal 2026 results on Aug 5, after market close. In the last reported quarter, the company delivered an earnings surprise of 2.97%.Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results. The Zacks Consensus Estimate for earnings is pegged at $1.34 per share, indicating a year-over-year increase of 15.52%. The Zacks Consensus Estimate for revenues is pinned at $1.04 billion, implying a year-over-year improvement of 23.73%.The Zacks Consensus Estimate for Total consolidated distribution throughput volumes in the fiscal third quarter is pegged at 78,000 MMcf, indicating a 3.5% year-over-year increase. Atmos Energy's fiscal third-quarter earnings are expected to have benefited from continued customer additions, fueled by strong economic and population growth across its service territories. Expanding residential and commercial demand, particularly in Texas, is expected to have supported natural gas distribution revenues in the fiscal third quarter.Higher natural gas demand is expected to have supported the company's fiscal third-quarter performance. Ongoing rate implementations and constructive regulatory mechanisms are also expected to have provided a tailwind to earnings.The company's systematic capital investments in transmission and distribution infrastructure are expected to have benefited fiscal third-quarter results. These investments likely enhanced the safety and reliability of its network while supporting earnings.However, higher operating, maintenance and compliance costs, along with commodity price volatility, remain key risks for the to-be-reported quarter. Our proven model does not predict an earnings beat for Atmos Energy this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below.Earnings ESP: The company’s Earnings ESP is -0.75%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Zacks Rank: Currently, Atmos Energy carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here. Atmos Energy Corporation price-eps-surprise | Atmos Energy Corporation Quote Investors may consider the following players from the same sector, as these also have the right combination of elements to post an earnings beat this reporting cycle. Duke Energy Corporation DUK is scheduled to report second-quarter results on Aug. 4 and is likely to have registered an earnings beat. It has an Earnings ESP of +0.16% and a Zacks Rank #3 at present.DUK’s long-term (three to five years) earnings growth rate is 6.76%. The Zacks Consensus Estimate for second-quarter EPS is pinned at $1.29, which implies a year-over-year increase of 3.20%.Southwest Gas SWX is scheduled to report second-quarter results on Aug. 5 and is likely to have come up with an earnings beat. It has an Earnings ESP of +5.64% and a Zacks Rank #2 at present.SWX’s long-term earnings growth rate is 9.89%. The Zacks Consensus Estimate for second-quarter EPS is pinned at 47 cents, which implies a year-over-year decrease of 11.32%.Spire SR is set to report third-quarter fiscal 2026 results on Aug 5 and is likely to have come up with an earnings beat. It has an Earnings ESP of +16.67% and a Zacks Rank #3 at present.SR’s long-term earnings growth rate is 11.17%. The Zacks Consensus Estimate for third-quarter fiscal sales is pinned at $397.87 million, which suggests a year-over-year decline of 5.70%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Atmos Energy Corporation (ATO) : Free Stock Analysis Report Duke Energy Corporation (DUK) : Free Stock Analysis Report Southwest Gas Corporation (SWX) : Free Stock Analysis Report Spire Inc. (SR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Public Service Enterprise Group Incorporated PEG is scheduled to release second-quarter 2026 results on Aug. 4, before market open. The company delivered an earnings surprise of 5.4% in the last reported quarter. Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results. The company’s continued investments in grid modernization and infrastructure upgrades are anticipated to have improved operational efficiency and service reliability. The implementation of favorable electric and gas base distribution rates is expected to have boosted the company’s bottom line. Robust demand growth across the company’s service territories, driven by the rapid expansion of data centers and constructive rate decisions secured in the prior quarters, is expected to have lifted the top line in the second quarter. Rising electricity demand from high-energy-use customers is likely to have strengthened sales volumes.The company’s quarterly earnings are expected to have continued to benefit from energy efficiency programs, mainly by turning them into regulated investments that generate stable returns over time. The ongoing Gas System Modernization Program, which began its next phase during the first quarter, likely continued contributing to earnings through additional infrastructure investments and regulated returns.However, higher interest expense and operating and maintenance expenses might have offset some of the positives in the to-be-reported quarter. The Zacks Consensus Estimate for earnings is pegged at 80 cents per share, indicating a year-over-year increase of 3.9%.The consensus estimate for revenues is pinned at $2.70 billion, implying a 3.8% decline year over year. Our proven model does not predict an earnings beat for Public Service Enterprise this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below. Public Service Enterprise Group Incorporated price-eps-surprise | Public Service Enterprise Group Incorporated Quote Earnings ESP: The company’s Earnings ESP is -2.36%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Zacks Rank: Currently, Public Service Enterprise carries a Zacks Rank of 3. You can see the complete list of today's Zacks #1 Rank stocks here. Investors may consider the following players from the same sector, as these have the right combination of elements to post an earnings beat this reporting cycle.Pinnacle West Capital PNW is likely to come up with an earnings beat when it reports second-quarter results on Aug. 4. It has an Earnings ESP of +0.95% and a Zacks Rank of 2 at present.PNW’s long-term (three to five years) earnings growth rate is 5.81%. The Zacks Consensus Estimate for earnings is pinned at $1.49 per share, which implies a year-over-year decrease of 5.7%. Duke Energy DUK is likely to come up with an earnings beat when it reports second-quarter results on Aug. 4. It has an Earnings ESP of +0.16% and a Zacks Rank of 3 at present.The Zacks Consensus Estimate for DUK’s earnings is pinned at $1.29 per share, which implies a year-over-year increase of 3.2%. The consensus estimate for sales implies a year-over-year increase of 2.8%. Spire SR is likely to come up with an earnings beat when it reports fiscal third-quarter results on Aug. 5. It has an Earnings ESP of +16.67% and a Zacks Rank of 3 at present.SR’s long-term earnings growth rate is 11.17%. The Zacks Consensus Estimate for sales is pinned at $397.9 million, which implies a year-over-year decrease of 5.7%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Public Service Enterprise Group Incorporated (PEG) : Free Stock Analysis Report Duke Energy Corporation (DUK) : Free Stock Analysis Report Pinnacle West Capital Corporation (PNW) : Free Stock Analysis Report Spire Inc. (SR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Pinnacle West Capital Corporation PNW is scheduled to release second-quarter 2026 results on Aug. 4, before the market opens. The company delivered an earnings surprise of 1000% in the last reported quarter.Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results. The Zacks Consensus Estimate for earnings is pegged at $1.49 per share, which implies a year-over-year decrease of 5.70%.The Zacks Consensus Estimate for revenues is pinned at $1.40 billion, indicating an increase of 3.08% from the year-ago reported number.The Zacks Consensus Estimate for total electric sales is pegged at 9,722.3 gigawatt-hour, up 3.09% from the year-ago quarter’s reported figure. Pinnacle West's second-quarter earnings are expected to have benefited from robust economic growth across its Arizona service territory. Strong expansion in semiconductor manufacturing and customer growth are likely to have driven higher retail electricity sales in the second quarter.  Continued expansion by Taiwan Semiconductor Manufacturing Company and its supply-chain partners likely boosted industrial electricity demand for Pinnacle West.The company's second-quarter earnings are expected to have been supported by sustained retail customer growth and rising electricity demand. Pinnacle West's continued focus on cost management is expected to have supported the to-be-reported quarter's earnings by improving operating efficiency and controlling expenses.PNW's second-quarter earnings are expected to have benefited from continued investments in grid modernization and transmission infrastructure. The investments likely contributed to higher transmission revenues and improved grid reliability, benefiting the company's upcoming quarterly results.However, higher financing costs and property taxes associated with increased plant-in-service are likely to have partially offset these positive factors in the second quarter. Our proven model predicts an earnings beat for Pinnacle West Capital this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, as is the case here, as you will see below.Earnings ESP: The company’s Earnings ESP is +0.95%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Zacks Rank: Currently, Pinnacle West Capital carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here. Pinnacle West Capital Corporation price-eps-surprise | Pinnacle West Capital Corporation Quote Investors may also consider the following player from the same sector, as it has the right combination of elements to post an earnings beat this reporting cycle.Duke Energy Corporation DUK is scheduled to report second-quarter 2026 results on Aug. 4 and is likely to have registered an earnings beat. It has an Earnings ESP of +0.16% and a Zacks Rank #3 at present.DUK’s long-term (three to five years) earnings growth rate is 6.76%. The Zacks Consensus Estimate for second-quarter EPS is pinned at $1.29, which implies a year-over-year increase of 3.20%.Southwest Gas SWX is scheduled to report second-quarter 2026 results on Aug. 5 and is likely to have come up with an earnings beat. It has an Earnings ESP of +5.64% and a Zacks Rank #2 at present.SWX’s long-term earnings growth rate is 9.89%. The Zacks Consensus Estimate for second-quarter EPS is pinned at 47 cents, which implies a year-over-year decrease of 11.32%.Spire SR is set to report third-quarter fiscal 2026 results on Aug. 5 and is likely to have come up with an earnings beat. It has an Earnings ESP of +16.67% and a Zacks Rank #3 at present.SR’s long-term earnings growth rate is 11.17%. The Zacks Consensus Estimate for third-quarter fiscal sales is pinned at $397.87 million, which suggests a year-over-year decline of 5.70%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pinnacle West Capital Corporation (PNW) : Free Stock Analysis Report Duke Energy Corporation (DUK) : Free Stock Analysis Report Southwest Gas Corporation (SWX) : Free Stock Analysis Report Spire Inc. (SR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

MDU Resources (MDU) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on August 6, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This energy, mining, construction and utilities company is expected to post quarterly earnings of $0.08 per share in its upcoming report, which represents a year-over-year change of +14.3%. Revenues are expected to be $398 million, up 13.3% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 4.35% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For MDU Resources, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that MDU Resources will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that MDU Resources would post earnings of $0.42 per share when it actually produced earnings of $0.39, delivering a surprise of -7.14%. Over the last four quarters, the company has beaten consensus EPS estimates just once. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. MDU Resources doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Among the stocks in the Zacks Utility - Gas Distribution industry, Spire (SR), is soon expected to post loss of $0.24 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of 0%. This quarter's revenue is expected to be $397.87 million, down 5.7% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for Spire has been revised 2% up to the current level. Nevertheless, the company now has an Earnings ESP of +16.67%, reflecting a higher Most Accurate Estimate. When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that Spire will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MDU Resources Group, Inc. (MDU) : Free Stock Analysis Report Spire Inc. (SR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research