The guidance cut for FY2026 continuing ops is the key negative signal, reflecting weather-related volume weakness that was not fully mitigated. However, the strategic pivot to pure-play regulated utilities (via divestitures and the Tennessee acquisition) supports long-term earnings visibility. Monitor Q3 results for weather normalization and integration progress on the Tennessee assets. The 5-7% long-term EPS growth target remains intact, providing a floor for valuation.
Price Chart
Executive Summary
Spire reported fiscal Q2 2026 adjusted EPS of $3.76 from continuing operations, up 18.6% YoY from $3.17, driven by new utility rates and the completed Tennessee acquisition. However, lower weather-related usage in Missouri weighed on results, causing management to lower FY2026 adjusted EPS guidance from continuing operations to $3.90-$4.10 from a prior range that implied higher expectations. The company also completed the sale of Spire Marketing and announced agreements to sell Spire Storage and Spire Mississippi, sharpening its focus on regulated utilities.
Key Financial Metrics
Key Facts
- Q2 2026 adjusted EPS from continuing operations: $3.76 vs $3.17 YoY (+18.6%)
- Q2 2026 GAAP net income from continuing operations: $217.6M ($3.51/diluted share) vs $189.3M ($3.17) YoY
- Completed acquisition of Piedmont Natural Gas Tennessee business on March 31, 2026
- Completed sale of Spire Marketing post-quarter-end; announced agreements to sell Spire Storage and Spire Mississippi
- FY2026 adjusted EPS guidance from continuing operations lowered to $3.90-$4.10 (from prior $5.25-$5.45, which included discontinued ops)
- FY2027 adjusted EPS guidance reaffirmed at $5.40-$5.60
- Long-term adjusted EPS growth target of 5-7% reaffirmed
- Gas Utility segment adjusted earnings: $234.8M vs $195.2M YoY, driven by new rates in Missouri and Alabama
- Contribution margin increased $70.4M, partially offset by lower weather-related usage and customer refund provisions
- Operating cash flow YTD: $491.4M vs $453.8M YoY
- Capital expenditures for continuing operations in FY2026 expected to be $797M
Financial Impact
Q2 adjusted EPS beat by ~18.6% YoY, but FY2026 guidance lowered by ~25% at the midpoint due to reclassification of discontinued ops and weather headwinds
Risk Factors
- Lower weather-related usage in Missouri may persist, pressuring utility margins
- Integration risks from the Piedmont Tennessee acquisition and ongoing divestitures
- Higher interest expense from increased debt balances ($5.76B long-term debt vs $3.37B at Sept 2025)
- Regulatory lag or adverse rate case outcomes in Missouri and Alabama
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-207533 |
| Document: sr-20260506.htm | 0001193125-26-207533 |
| Document: 0001193125-26-207533-index-headers.html | 0001193125-26-207533 |
| Document: 0001193125-26-207533-index.html | 0001193125-26-207533 |
| Document: 0001193125-26-207533.txt | 0001193125-26-207533 |
| 8-K Data (Synthetic) | 0001193125-26-207533 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
May 6, 2026 24w ago | 8-K | $25.00 $23.26 | ▼ −6.96% | ▼ −9.02% | $20.31 (−18.76%) |
Apr 30, 2026 25w ago | 8-K | $24.26 $23.37 | ▼ −3.66% | ▼ −6.73% | $20.31 (−16.28%) |
Apr 22, 2026 26w ago | 8-K | $24.78 $23.94 | ▼ −3.39% | ▼ −8.17% | $20.31 (−18.04%) |
Apr 15, 2026 27w ago | 8-K | $25.01 $24.01 | ▼ −4.00% | ▼ −12.14% | $20.31 (−18.79%) |
US Market Status
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