In This Article:
Spire Inc. SR reported first-quarter fiscal 2025 earnings of $1.34 per share, which lagged the Zacks Consensus Estimate of $1.42 by 5.6%. The company’s bottom line also declined 8.8% from $1.47 reported in the year-ago quarter.
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SR’s Revenues
Total revenues for the reported quarter were $669.1 million, which missed the Zacks Consensus Estimate of $726 million by 7.8%. The top line also decreased 11.6% from $756.6 million in the year-ago quarter.
Spire Inc. Price, Consensus and EPS Surprise
Spire Inc. price-consensus-eps-surprise-chart | Spire Inc. Quote
Highlights of SR’s Earnings Release
Operating expenses totaled $520.3 million, down 15.7% from $617.4 million recorded in the prior-year period.
Operating income came in at $148.8 million compared with $139.2 million in the prior-year quarter.
Net interest expenses decreased 5.1% year over year to $48 million.
SR’s Segmental Performance
Gas Utility: The segment reported adjusted earnings of $77.8 million, indicating an improvement of 2.6% from the prior-year quarter’s figure. The improvement reflected an increase in contribution margin due to higher Spire Missouri ISRS revenues and higher margins at Spire Alabama due to the annual rate update and usage net of weather mitigation.
Gas Marketing: The segment reported adjusted earnings of $2.2 million, indicating a decline of 69.4% from the prior-year quarter’s reported actuals. The decrease in earnings is a result of higher storage and transportation costs, along with less volatility in regional basis differences.
Midstream: Adjusted earnings from this segment totaled $12 million, up a massive 400% from the year-ago quarter’s reported number. This increase was driven by higher Spire Storage earnings, reflecting additional capacity and new renewals at higher rates.
Other: This segment reported an adjusted loss of $10.9 million compared with a loss of $2.7 million in the prior-year quarter.
SR’s Financial Highlights
Cash and cash equivalents as of Dec. 31, 2024, were $11.5 million compared with $4.5 million as of Sept. 30, 2024.
Long-term debt (less current portion) as of Dec. 31, 2024, totaled $3,697.7 million compared with $3,704.4 million as of Sept. 30, 2024.
Net cash provided by operating activities in the fiscal first quarter totaled $81.1 million compared with $70 million in the year-ago period.
SR’s 2025 Guidance
Spire still expects its fiscal 2025 earnings to be in the range of $4.40-$4.60 per share. The Zacks Consensus Estimate is pegged at $4.51 per share, which is higher than the midpoint of the company’s guided range.
SR still expects its 10-year capital investment to be $7.4 billion. This planned investment is expected to drive an annual rate-based growth of 7-8%. Capital expenditures for fiscal 2025 are expected to be $790 million.