SPIRE ALABAMA INC
For the period ended Jun 30, 2025. Filed Aug 5, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 5, 2025
SR$88.81-0.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-04-30.
0000950170-25-060698
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-05.
0000950170-25-102597
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 167 previous paragraphs and 182 current paragraphs.
104 unchanged; 53 reworded; 22 added; 8 removed; 2 previous and 3 current paragraphs rearranged.
Tables are not compared: 17 previous and 17 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (22)
Current report
Pending Acquisition
Current report
On July 27, 2025, Spire entered into an agreement with Piedmont Natural Gas, a wholly-owned Subsidiary of Duke Energy, to acquire its Tennessee natural gas business that serves more than 200,000 customers in the Nashville area (the “Transaction”). The strategic rationale for the Company is described below:
Current report
We expect the Transaction to allow Spire to significantly expand its regulated utility footprint in high-quality jurisdictions and significantly increase the scale of its regulated business while delivering on Spire’s commitment to growth and creating long-term shareholder value.
Current report
We expect the Transaction to provide robust growth driven by customer additions and system integrity investments, aligned with Spire’s investment strategy. These long-term investments are expected to be supported by Tennessee’s constructive regulatory environment support of natural gas.
Current report
We expect the Transaction to support Spire’s long-term adjusted earnings per share growth expectations and provide meaningful investment opportunities. The acquisition is expected to generate incremental cash flow to support investment in the business, shareholder returns and dividend growth.
Current report
The stated purchase price of the Transaction is $2.48 billion subject to adjustment, including adjustments based on net working capital, regulatory assets and liabilities and capital expenditures at closing. The Transaction is supported by a fully committed bridge facility with BMO Capital Markets Corp. for the entire purchase price.
Current report
We expect permanent financing of the acquisition will be funded through a balance mix of debt, equity and hybrid securities. Spire is also evaluating the sale of non-utility assets, such as natural gas storage facilities, as a potential source of funds.
Current report
The Transaction is expected to close in the first quarter of calendar 2026, subject to customary closing conditions, including the approval of the Tennessee Public Utility Commission and the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.
Current report
For the quarter ended June 30, 2025, Gas Utility net loss and adjusted loss were lower than the corresponding prior-year period by $4.4 and $1.0, respectively. The quarterly change in net income was driven by the $3.8 and $1.6 growth of Spire Missouri and Spire Alabama, respectively. The variance differential between the $4.4 net loss and the $1.0 adjusted loss performance was primarily the result of the prior-year quarter GAAP result including $3.3 (after-tax) charges related to the Company’s customer affordability initiative that was excluded from adjusted earnings.
Current report
Contribution margin increased $4.2 versus the prior-year quarter. Contribution margin benefited from the $8.8 Spire Missouri ISRS growth and the $1.1 increase in off-system sales at both Spire Missouri and Spire Alabama. These favorable impacts more than offset the $2.2 net unfavorable impact of weather-mitigated volume margins at Spire Missouri. The quarter’s results were also unfavorably impacted by a $1.0 lower benefit attributable to Spire Alabama’s Cost Control Measure (CCM).
Current report
Including $21.4 (after-tax) favorable mark-to-market activity, net income increased $25.7. Adjusted income, after removing the mark-to-market activity, increased $4.3. Gas Marketing’s business portfolio was well-positioned to create value.
Current report
Contribution margin increased $33.6 versus the prior-year quarter, reflecting the $28.5 (pre-tax) favorable mark-to-market activity. Excluding this impact, contribution margin increased $5.1. As noted above, Gas Marketing’s business portfolio was well-positioned to create value.
Current report
O&M expenses for the current-year quarter increased $1.3 versus the prior-year quarter. Excluding the impact of the NSC Transfer, O&M expenses were $0.2 higher than the prior-year quarter. After excluding the $3.5 prior year charge relating to the Company’s customer affordability initiative, O&M expenses were $3.7 higher than the prior-year quarter. Lower bad debt expense was more than offset by higher field operations and employee costs.
Current report
Reported other income increased by $0.9 versus the prior-year quarter, but decreased $0.2 after removing the impact of the NSC Transfer. Favorable mark-to-market unrealized gains on non-qualified benefit trusts was offset by a $1.5 decrease in gas carrying cost credits. Interest expense decreased $1.0, reflecting lower average short-term interest rates in the current year more than offsetting the incremental interest expense related to higher average debt levels.
Current report
Resulting net loss for the quarter ended June 30, 2025 decreased $3.8 versus the prior-year quarter.
Current report
Contribution margin was slightly below the prior-year quarter, as a lower CCM benefit was mostly offset by off-system sales and weather-mitigated volumetric impacts.
Current report
Depreciation and amortization expenses decreased $0.6 versus the comparable prior-year period as change in rates offset the impact of ongoing capital investments.
Current report
Taxes, other than income taxes decreased $0.3 driven by lower pass-through gross receipts taxes.
Current report
EARNINGS– NINE MONTHS ENDED June 30, 2025
Current report
Including $4.9 (after-tax) favorable mark-to-market activity, net income increased $3.5. The $1.4 year-over-year decrease in adjusted earnings reflects higher storage and transportation fees in the current year.
Current report
Reported O&M expenses for the nine months ended June 30, 2025 increased $1.8 versus the corresponding prior-year period. Excluding the NSC Transfer impact, O&M expense decreased $0.8. After excluding the $3.5 prior-year charge relating to the Company’s customer affordability initiative, O&M expenses were $2.7 higher than the corresponding prior year period. Higher employee-related costs were only partly mitigated by lower bad debt expense costs and lower
Current report
Depreciation and amortization expenses decreased $1.0 versus the comparable prior-year period as changes in rates offset the impact of ongoing capital investments. Taxes, other than income taxes decreased $3.1, driven by lower pass-through gross receipts taxes.
Removed paragraphs (8)
Previous report
For the quarter ended March 31, 2025, Gas Utility net income and adjusted earnings were higher than the corresponding prior-year period by $6.9 and $7.2, respectively. The quarterly change in net income was driven by the $7.7 growth of Spire Missouri, which offset slightly lower performance by Spire Alabama and Spire EnergySouth.
Previous report
Contribution margin increased $14.7 versus the prior-year quarter. Contribution margin benefited from the $8.7 Spire Missouri ISRS growth and $6.5 favorable volumetric impact of Spire Missouri. The current year period also benefited from Spire Alabama’s annual rate update, which includes the benefit of the reversal of the $4.1 customer refund provision that was recorded in the first quarter of the current fiscal year. These favorable impacts more than offset the $7.1 net unfavorable impact of weather-mitigated volume margins at Spire Alabama.
Previous report
Including $12.5 (after-tax) unfavorable mark-to-market activity, net income decreased $13.2. The $0.7 quarter-over-quarter decrease in adjusted earnings primarily reflects reduced volatility in regional basis differentials combined with higher transportation and storage fees.
Previous report
O&M expenses for the current-year quarter decreased $0.8 versus the prior-year quarter. Excluding the impact of the NSC Transfer, O&M expenses were $1.9 lower than the prior-year quarter, as lower expense levels for A&G and support functions resulting from customer affordability initiatives implemented last year were partially offset by bad debt expense.
Previous report
Contribution margin was slightly below the prior-year quarter, as favorable RSE adjustments, including the benefit of the reversal of the $4.1 customer refund provision that was recorded in the first quarter of the current fiscal year, and higher off-system sales were offset by the net unfavorable impact of weather-mitigated volume margins.
Previous report
EARNINGS– SIX MONTHS ENDED March 31, 2025
Previous report
Net income and net adjusted earnings decreased $22.2 and $5.7, respectively, versus the prior-year period. The decrease in adjusted earnings primarily reflects reduced volatility in regional basis differentials combined with higher transportation and storage fees.
Previous report
O&M expenses for the six months ended March 31, 2025 increased $0.5 versus the corresponding prior-year period. Excluding the NSC Transfer impact, O&M expense decreased $1.0. Lower A&G and support function costs resulting from customer affordability initiatives implemented last year more than offset higher bad debt expense.
Reworded paragraphs (53)
Previous wording
The decrease in interest expense reflects lower effective interest rates on long-term and short-term debt that more than offset higher average levels of debt in the current year. Weighted-average short-term interest rates were 4.5% in the current-year quarter versus 5.8% in the prior-year quarter.
Current wording
The increase in interest expense reflects interest on higher average levels of debt in the current year that more than offset lower effective interest rates on short-term debt. Weighted-average short-term interest rates were 4.5% in the current-year quarter versus 5.6% in the prior-year quarter.
Previous wording
Other income decreased $4.3 versus the prior-year quarter, $5.2 after removing the $0.9 benefit attributable to the Postretirement Non-Service Costs Transfer (“NSC Transfer”), which has no impact on net income. The principal drivers of the decline were a decline of gas carrying cost credits at Spire Missouri, and unfavorable mark-to-market unrealized losses on non-qualified benefit trusts.
Current wording
Other income increased $2.2 versus the prior-year quarter, $1.3 after removing the $0.9 benefit attributable to the Postretirement Non-Service Costs Transfer (“NSC Transfer”), which has no impact on net income. The principal driver of the increase was favorable mark-to-market unrealized gains on non-qualified benefit trusts that more than offset a decline of gas carrying cost credits at Spire Missouri.
Previous wording
The primary driver of the current year decrease in revenue was the $137.0 impact of lower gas cost recoveries across all utilities, driven principally by lower PGA rates at Spire Missouri. These reductions were only partly offset by higher volumetric usage, current year ISRS billings and favorable net RSE adjustments at Spire Alabama.
Current wording
The primary driver of the current year decrease in revenue was the $31.2 impact of lower gas cost recoveries across all utilities, driven principally by lower PGA recovery and volume, including weather mitigation, at Spire Missouri. These reductions were only partly offset by higher current year ISRS billings and off-system sales.
Previous wording
Reported operation and maintenance (“O&M”) expenses for the three months ended March 31, 2025 were $1.2 higher than the prior-year quarter. Excluding the impact of the NSC Transfer, O&M expenses were $0.2 higher than the prior-year quarter, as lower expense levels for Administrative and General (“A&G”) and support functions resulting from customer affordability initiatives implemented last year were more than offset by higher field operations costs and bad debt expense.
Current wording
Reported operation and maintenance (“O&M”) expenses for the three months ended June 30, 2025 were $0.3 lower than the prior-year quarter. Excluding the impact of the NSC Transfer, O&M expenses were $1.2 lower than the prior-year quarter. After excluding the $4.4 relating to the Company’s customer affordability initiative in the prior-year, O&M expenses were $3.2 higher than the prior-year quarter. Lower bad debt expense and insurance claims were more than offset by higher outside service expenses and employee costs.
Previous wording
Taxes, other than income taxes, decreased $5.6, primarily due to lower gross receipt taxes resulting from lower revenues. Depreciation and amortization expenses for the quarter ended March 31, 2025 were $4.1 higher than the same period in the prior year primarily driven by continued infrastructure capital expenditures across all the Utilities. Interest expense decreased $4.5, with both Spire Missouri and Spire Alabama benefiting from lower average short-term interest rates in the current year. The benefit of gas carrying cost credits at Spire Missouri, included in other income, decreased $3.2 versus the corresponding prior-year quarter.
Current wording
Taxes, other than income taxes, decreased $1.2, primarily due to $2.8 lower gross receipt taxes resulting from lower revenues more than offsetting an increase in property tax. Depreciation and amortization expenses for the quarter ended June 30, 2025 were $3.3 higher than the same period in the prior year primarily driven by continued infrastructure capital expenditures across all the Utilities. Interest expense decreased $1.7, with both Spire Missouri and Spire Alabama benefiting mostly from lower average short-term and long-term interest rates partially offset by higher balances in the current year. The benefit of gas carrying cost credits at Spire Missouri, included in other income, decreased $1.5 versus the corresponding prior-year quarter, but was more than offset by unrealized gains in non-qualified benefit trusts.
Previous wording
Contribution margin decreased $17.0 versus the prior-year quarter, reflecting the $16.7 (pre-tax) unfavorable mark-to-market activity. Excluding this impact, contribution margin decreased $0.3, reflecting the unfavorable drivers noted above. O&M expenses were slightly higher than prior-year levels, the result of higher spend on outside services in the current year.
Current wording
O&M expenses were slightly lower than prior-year levels, the result of lower spend on outside services in the current year that more than offset slightly higher employee costs.
Previous wording
Net income and adjusted earnings for the Company’s Midstream segment for the quarter ended March 31, 2025 versus the prior-year quarter increased $12.0, respectively. The increase was driven by higher Spire Storage earnings, reflecting increased asset optimization, additional storage capacity and contract renewals at higher rates.
Current wording
Our Midstream segment includes storage and pipeline operations which in the quarter consisted of an approximate net income mix of 75% and 25%, respectively. Net income and adjusted earnings for the Company’s Midstream segment for the quarter ended June 30, 2025 versus the prior-year quarter increased $2.4 and $2.3, respectively. Approximately 65% of the increase in net income was attributable to our storage operations. The increase was driven by higher Spire Storage earnings, reflecting increased asset optimization and additional storage capacity.
Previous wording
Revenues in the current quarter increased $16.9 versus the prior-year quarter, reflecting the higher rates and activity with storage. O&M expenses were up $0.4 over the prior-year period, due primarily to costs associated with the higher storage activity in the current year.
Current wording
Revenues in the current quarter increased $9.7 versus the prior-year quarter, reflecting the higher activity with storage. O&M expenses were up $3.4 over the prior-year period, due primarily to costs associated with the higher storage activity in the current year.
Previous wording
The Company’s other activities generated an $11.4 loss in the three months ended March 31, 2025, in line with prior-year performance. Higher interest expense in the current year was mostly offset by lower corporate expenses.
Current wording
The Company’s other activities generated a $7.4 loss in the three months ended June 30, 2025, $1.0 less versus prior-year performance. Gains from non-qualified benefit and insurance trusts more than offset higher interest expense in the current year.
Previous wording
Revenues for the quarter ended March 31, 2025 were $94.9 lower than the comparable prior-year period. Lower PGA gas costs reduced gas cost recoveries by $113.0. This reduced revenue driver also resulted in reduced gross receipts taxes of $4.1. These negative impacts were only partly offset by $8.7 incremental ISRS revenues, $7.3 attributable to higher off-system sales and favorable volume impacts of $6.5 in the current-year quarter.
Current wording
Revenues for the quarter ended June 30, 2025 were $18.7 lower than the comparable prior-year period. Lower PGA gas cost recovery reduced revenues by $27.0. Volume, including weather mitigation, further reduced revenues by $2.2. These reduced revenue drivers also resulted in reduced gross receipts taxes of $2.4. These negative impacts were only partly offset by $8.8 incremental ISRS revenues and $4.9 growth attributable to higher off-system sales in the current-year quarter.
Previous wording
Contribution margin for the three months ended March 31, 2025 increased $15.5 from the same period in the prior year, primarily due to the $8.7 incremental ISRS billings and favorable $28.4 volumetric usage net of ($21.9) weather mitigation.
Current wording
Contribution margin for the three months ended June 30, 2025 increased $6.3 from the same period in the prior year, primarily due to the $8.8 incremental ISRS billings that was only partly offset by $2.2 unfavorable volumetric usage net of weather mitigation.
Previous wording
Degree days in Spire Missouri’s service areas during thethree months ended March 31, 2025 were 0.6% colder than normal and 17.8% colder than the same period last year. Spire Missouri’s total system volume sold and transported were 731.1 million centum (Latin for “hundred”) cubic feet (CCF) for the quarter, compared with 640.7 million CCF for the same period in the prior year. Total off-system volume sold and transported were 25.9 million CCF for the current-year quarter, compared with 21.6 million CCF a year ago.
Current wording
Degree days in Spire Missouri’s service areas during thethree months ended June 30, 2025 were 20.5% warmer than normal, but 30.4% colder than the same period last year. Spire Missouri’s total system volume sold and transported were 220.5 million centum (Latin for “hundred”) cubic feet (CCF) for the quarter, compared with 209.2 million CCF for the same period in the prior year. Total off-system volume sold and transported were 17.6 million CCF for the current-year quarter, compared with 13.2 million CCF a year ago.
Previous wording
Depreciation and amortization expenses increased $3.9 versus the prior-year quarter due to ongoing capital investments. Taxes, other than income taxes decreased $4.4 driven by lower pass-through gross receipts taxes.
Current wording
Depreciation and amortization expenses increased $3.7 versus the prior-year quarter due to ongoing capital investments. Taxes, other than income taxes decreased $1.0 driven by lower pass-through gross receipts taxes partially offset by higher property tax expense.
Previous wording
Operating revenues for the three months ended March 31, 2025 decreased $7.1 from the same period in the prior year. The decrease in operating revenue was principally due to a $24.0 decrease in gas cost recovery. This reduction was only partly offset by a $9.5 increase due to volumetric usage, and favorable RSE adjustments of $5.9.
Current wording
Operating revenues for the three months ended June 30, 2025 decreased $4.7 from the same period in the prior year. The decrease in operating revenue was principally due to a $4.2 decrease in gas cost recovery, a $1.1 decrease due to volumetric usage (net of weather mitigation), and $1.1 lower CCM benefit in the current year.
Previous wording
As measured in degree days, temperatures in Spire Alabama’s service area during the three months ended March 31, 2025, were 0.7% colder than normal, and 7.6% colder than a year ago. Spire Alabama’s total system volume sold and transported were 344.8 million CCF for the three months ended March 31, 2025, compared with 322.7 million CCF for the same period in the prior year. Total off-system volume sold and transported were 18.8 million CCF for the current-year quarter, compared with 7.4 million CCF off-system volume sold and transported in last year’s second quarter.
Current wording
As measured in degree days, temperatures in Spire Alabama’s service area during the three months ended June 30, 2025, were 8.2% colder than normal, but 4.1% warmer than a year ago. Spire Alabama’s total system volume sold and transported were 241.3 million CCF for the three months ended June 30, 2025, compared with 231.8 million CCF for the same period in the prior year. Total off-system volume sold and transported were 23.0 million CCF for the current-year quarter, compared with 28.2 million CCF off-system volume sold and transported in last year’s second quarter.
Previous wording
Reported O&M expenses for the three months ended March 31, 2025 increased $2.2 versus the prior-year quarter. After excluding the impact of the NSC Transfer, O&M expenses in the current year quarter were $2.4 higher than the corresponding prior year period. Higher field operations costs and bad debt expense were only partly offset by lower A&G and support function costs resulting from customer affordability initiatives implemented last year.
Current wording
Reported O&M expenses for the three months ended June 30, 2025 decreased $1.4 versus the prior-year quarter. After excluding the impact of the NSC Transfer, O&M expenses in the current year quarter were $1.2 lower than the corresponding prior year period. After excluding the $0.6 prior-year charge relating to the Company’s customer affordability initiative, run-rate O&M expenses were $0.6 lower than the prior-year quarter. Lower employee costs and insurance claims were only partly offset by higher outside services expense.
Previous wording
Interest expense for the current-year quarter decreased $0.9 versus the prior-year quarter, primarily the result of lower short-term borrowings, combined with lower short-term interest rates.
Current wording
Interest expense for the current-year quarter decreased $0.8 versus the prior-year quarter, primarily the result of the impact of higher short-term borrowings being more than offset by lower short-term interest rates.
Previous wording
For the quarter ended March 31, 2025, resulting net income decreased $0.7 versus the prior-year quarter.
Current wording
For the quarter ended June 30, 2025, resulting net income increased $1.6 versus the prior-year quarter.
Previous wording
This section contains discussion and analysis of the results for the six months ended March 31, 2025 compared to the results for the six months ended March 31, 2024, in total and by registrant and segment.
Current wording
This section contains discussion and analysis of the results for the nine months ended June 30, 2025 compared to the results for the nine months ended June 30, 2024, in total and by registrant and segment.
Previous wording
Select variances for the six m0nths ended March 31, 2025 compared to the six months ended March 31, 2024 are summarized in the following table and discussed below.
Current wording
Select variances for the nine m0nths ended June 30, 2025 compared to the nine months ended June 30, 2024 are summarized in the following table and discussed below.
Previous wording
The decrease in interest expense reflects lower effective interest rates that more than offset higher average levels of debt in the current year. Weighted-average short-term interest rates were 4.5% in the current-year period versus 5.8% in the prior-year period.
Current wording
The decrease in interest expense reflects lower effective interest rates partially offset by higher average levels of debt in the current year. Weighted-average short-term interest rates were 4.5% in the current-year period versus 5.7% in the prior-year period.
Previous wording
Other income decreased $21.2 versus the prior-year period, $20.8 excluding the impact of the Postretirement Non-Service Costs Transfer (“NSC Transfer”), which has no impact on net income. The principal drivers of the decline was a one-time $8.2 pre-tax hedging gain recognized in the prior year period, a decline of gas-carrying cost credits at Spire Missouri of $7.1, and unfavorable mark-to-market unrealized losses on non-qualified benefit trusts.
Current wording
Other income decreased $19.0 versus the prior-year period, $19.5 excluding the impact of the Postretirement Non-Service Costs Transfer (“NSC Transfer”), which has no impact on net income. The principal drivers of the decline was a one-time $8.2 pre-tax hedging gain recognized in the prior year period, a decline of gas-carrying cost credits at Spire Missouri of $8.6 and unfavorable mark-to-market unrealized losses on non-qualified benefit trusts.
Previous wording
For the year-to-date ended March 31, 2025, Gas Utility net income and adjusted earnings were higher than the corresponding prior-year period by $9.2, respectively. The year-to-date change in net income was driven by the combined improved performance of Spire Alabama and Spire EnergySouth totaling $5.1, and a $4.1 increase at Spire Missouri.
Current wording
For the nine months ended June 30, 2025, Gas Utility net income and adjusted earnings were higher than the corresponding prior-year period by $13.6 and 10.2, respectively. Adjusted earnings growth was lower than net income growth primarily due to excluding the $3.3 after-tax charge relating to the customer affordability initiative that was recorded in the prior year. The year-to-date change in net income was driven by growth at both Spire Missouri and Spire Alabama totaling $7.9 and $5.5, respectively.
Previous wording
The primary driver of the current year decrease in revenue was the $238.3 impact of lower gas cost recoveries across all utilities, driven principally by lower PGA rates at Spire Missouri. These reductions were only partly offset by higher current year ISRS billings and higher off-system sales, impacts of Spire Alabama’s volumetric usage, Spire Missouri weather-mitigated volume, and favorable Spire Alabama RSE adjustments.
Current wording
The primary driver of the current year decrease in revenue was the $269.5 impact of lower gas cost recoveries across all utilities, driven principally by lower PGA rates at Spire Missouri. This was only partly offset by higher current year ISRS billings and higher off-system sales, impacts of Spire Alabama’s volumetric usage, Spire Missouri weather-mitigated volume, and favorable Spire Alabama RSE adjustments.
Previous wording
Contribution margin increased $23.1 versus the comparable prior-year period. Contribution margin benefited from the $15.7 Spire Missouri ISRS growth, $5.1 of growth from Spire Alabama’s RSE adjustments, Spire Missouri volumetric usage net of weather mitigation, and higher off-system sales. These favorable impacts more than offset the $4.1 negative impact of Spire Alabama’s volume usage net of weather mitigation adjustments.
Current wording
Contribution margin increased $27.3 versus the comparable prior-year period. Contribution margin benefited from the $24.5 Spire Missouri ISRS growth, $5.1 of growth from Spire Alabama’s RSE adjustments, and higher off-system sales. These favorable impacts more than offset the $4.0 negative impact of Spire Alabama’s volume usage net of weather mitigation adjustments and lower CCM benefit.
Previous wording
Reported operation and maintenance (“O&M”) expenses for the six months ended March 31, 2025 were $0.5 lower than the six months ended March 31, 2024. Excluding the impact of the NSC Transfer, O&M expenses were $0.4 lower than the prior-year period. Higher bad debt expense was more than offset by lower A&G and support function costs resulting from customer affordability initiatives implemented last year.
Current wording
Reported operation and maintenance (“O&M”) expenses for the nine months ended June 30, 2025 were $0.8 lower than the nine months ended June 30, 2024. Excluding the impact of the NSC Transfer, O&M expenses were $1.6 lower than the prior-year period. After excluding the $4.4 prior year charge relating to the Company’s customer affordability initiative, O&M expenses were $2.8 higher than the corresponding prior-year period. Higher employee-related costs in the current year were only partly mitigated by lower insurance claims and lower non-payroll costs resulting from customer affordability initiatives implemented last year.
Previous wording
Taxes, other than income taxes, decreased $9.2, primarily due to lower gross receipt taxes resulting from lower revenues. Depreciation and amortization expenses for the quarter ended March 31, 2025 were $8.0 higher than the same period in the prior year primarily driven by continued infrastructure capital expenditures across all the Utilities. Interest expense decreased $8.4, with both Spire Missouri and Spire Alabama benefiting from lower average short-term interest rates in the current year. The benefit of gas carrying cost credits at Spire Missouri, included in other income, decreased $7.1 versus the corresponding prior-year period.
Current wording
Taxes, other than income taxes, decreased $10.4, primarily due to lower gross receipt taxes resulting from lower revenues. Depreciation and amortization expenses for the quarter ended June 30, 2025 were $11.3 higher than the same period in the prior year primarily driven by continued infrastructure capital expenditures across all the Utilities.
Previous wording
Contribution margin decreased $29.8 versus the prior-year period, reflecting $22.0 (pre-tax) unfavorable mark-to-market activity. Excluding this impact, contribution margin decreased $7.8, reflecting the unfavorable drivers noted above. O&M expenses were slightly higher than prior-year levels, the result of marginally higher employee-related costs in the current year.
Current wording
Contribution margin increased $3.8 versus the prior-year quarter, reflecting the $6.5 (pre-tax) favorable mark-to-market activity. Excluding this impact, contribution margin decreased $2.8, reflecting the higher costs noted above.
Previous wording
Net income and adjusted earnings for the Company’s Midstream segment for the six months ended March 31, 2025 versus the comparable prior-year period increased $23.1 and $21.6, respectively. The increase was driven by higher Spire Storage earnings, reflecting increased asset optimization, additional storage capacity and contract renewals at higher rates, combined with the acquisition of MoGas in the second quarter of the prior year.
Current wording
Our Midstream segment includes storage and pipeline operations which currently consist of an approximate year-to-date net income mix of 75% and 25%, respectively. Net income and adjusted earnings for the Company’s Midstream segment for the nine months ended June 30, 2025 versus the comparable prior-year period increased $25.5 and $23.9, respectively. Approximately 90% of the increase was attributable to our storage operations. The increase was driven by higher storage earnings, reflecting increased asset optimization, additional storage capacity and contract renewals at higher rates, combined with the acquisition of MoGas in the second quarter of the prior year.
Previous wording
Revenues in the current year increased $35.5 versus the prior-year period, reflecting the higher rates and activity with storage. O&M expenses were up $2.8 year-over-year, due primarily to costs associated with the higher storage activity in the current year, combined with non-recurring Spire MoGas acquisition costs of $1.9 in the prior year.
Current wording
Revenues in the current year increased $45.2 versus the prior-year period, reflecting the higher rates and activity with storage. O&M expenses were up $6.2 year-over-year, due primarily to costs associated with the higher storage activity in the current year, combined with non-recurring Spire MoGas acquisition costs of $2.1 in the prior year.
Previous wording
The Company’s other activities generated a $22.3 loss in the six months ended March 31, 2025. The major contributor to this variance was the $8.2 pre-tax ($6.3 after-tax) interest rate swap gain in the prior year that did not repeat. The remaining variance was mostly a result of higher interest expense in the current year that was only partly offset by lower corporate expenses.
Current wording
The Company’s other activities generated a $29.7 loss in the nine months ended June 30, 2025, $7.9 higher than the prior year. The major contributor to this variance was the $8.2 pre-tax ($6.3 after-tax) interest rate swap gain in the prior year that did not repeat. The remaining variance was mostly a result of higher interest expense in the current year that was offset by lower corporate expenses.
Previous wording
Revenues for the six months ended March 31, 2025 were $172.8 lower than the comparable prior-year period. Lower unit gas costs reduced gas cost recoveries by $198.1. This reduced revenue driver also resulted in reduced gross receipts taxes of $7.1. These negative impacts were only partly offset by $15.7 incremental ISRS revenues, $13.1 attributable to higher off-system sales in the current-year, and increased weather-mitigated customer usage of $3.1 versus the prior-year period.
Current wording
Revenues for the nine months ended June 30, 2025 were $191.5 lower than the comparable prior-year period. Lower PGA rates reduced gas cost recoveries by $225.1. This reduced revenue driver also resulted in reduced gross receipts taxes of $9.5. These negative impacts were only partly offset by $24.5 incremental ISRS revenues, $18.0 attributable to higher off-system sales in the current-year, and increased weather-mitigated customer usage versus the prior-year period.
Previous wording
Contribution margin for the six months ended March 31, 2025 increased $19.6 from the same period in the prior year, primarily due to the $15.7 incremental ISRS billings and favorable $3.1 weather-mitigated customer usage impact.
Current wording
Contribution margin for the nine months ended June 30, 2025 increased $25.9 from the same period in the prior year, primarily due to the $24.5 incremental ISRS billings and favorable $0.9 weather-mitigated customer usage impact.
Previous wording
Degree days in Spire Missouri’s service areas during the six months ended March 31, 2025 were 7.1% warmer than normal, though 10.6% colder than the same period last year. Spire Missouri’s total system volume sold and transported were 1,181.7 million centum (Latin for “hundred”) cubic feet (CCF) for the current year, compared with 1,090.4 million CCF for the same period in the prior year. Total off-system volume sold and transported were 47.9 million CCF for the current-year, compared with 23.8 million CCF a year ago.
Current wording
Degree days in Spire Missouri’s service areas during the nine months ended June 30, 2025 were 8.2% warmer than normal, though 11.8% colder than the same period last year. Spire Missouri’s total system volume sold and transported were 1,402.2 million centum (Latin for “hundred”) cubic feet (CCF) for the current year, compared with 1,299.6 million CCF for the same period in the prior year. Total off-system volume sold and transported were 65.5 million CCF for the current-year, compared with 37.0 million CCF a year ago.
Previous wording
Depreciation and amortization expenses increased $7.5 versus the comparable prior-year period due to ongoing capital investments. Taxes, other than income taxes decreased $6.3, driven by lower pass-through gross receipts taxes.
Current wording
Depreciation and amortization expenses increased $11.2 versus the comparable prior-year period due to ongoing capital investments. Taxes, other than income taxes decreased $7.3, driven by lower pass-through gross receipts taxes.
Previous wording
Other income declined by $9.9 versus the prior-year period, primarily driven by the decrease in gas carrying cost credits of $7.1 and unfavorable mark-to-market unrealized losses on non-qualified benefit trusts. Interest expense decreased $5.6, primarily reflecting lower average short-term interest rates in the current year.
Current wording
Other income declined by $9.0 versus the prior-year period, $11.6 after excluding the impact of the NSC Transfer. The decrease was primarily driven by the decrease in gas carrying cost credits of $8.6 and unfavorable mark-to-market unrealized losses on non-qualified benefit trusts. Interest expense decreased $6.6, primarily reflecting lower average short-term interest rates in the current year that offset the impact of higher average debt levels.
Previous wording
Resulting net income for the six months ended March 31, 2025 increased $4.1 versus the six months ended March 31, 2024.
Current wording
Resulting net income for the nine months ended June 30, 2025 increased $7.9 versus the nine months ended June 30, 2024.
Previous wording
Operating revenues for the six months ended March 31, 2025 decreased $28.8 from the same period in the prior year. The decrease in operating revenue was principally due to a $40.2 decrease in gas cost recovery, combined with lower gross receipts taxes totaling $1.9. These negative impacts were only partly offset by volumetric usage totaling $6.5, and favorable RSE adjustments of $5.3.
Current wording
Operating revenues for the nine months ended June 30, 2025 decreased $33.5 from the same period in the prior year. The decrease in operating revenue was principally due to a $44.4 decrease in gas cost recovery, combined with lower gross receipts taxes totaling $2.2. These negative impacts were only partly offset by volumetric usage totaling $5.4, and favorable RSE renewal of $5.3.
Previous wording
Contribution margin was $2.2 higher versus the prior-year period, driven primarily by a favorable $5.1 RSE update and higher off-system sales, partially offset by net unfavorable volume usage and weather mitigation adjustments of $4.1.
Current wording
Contribution margin was $1.6 higher versus the prior-year period, driven primarily by a net favorable $5.1 RSE update and higher off-system sales, partially offset by net unfavorable volume usage and weather mitigation adjustments of $4.0 and $1.0 lower CCM benefit.
Previous wording
As measured in degree days, temperatures in Spire Alabama’s service area during the six months ended March 31, 2025, were 5.4% warmer than normal, but 3.7% colder than a year ago. Spire Alabama’s total system volume sold and transported were 604.6 million CCF for the six months ended March 31, 2025, compared with 552.0 million CCF for the same period in the prior year. Total off-system volume sold and transported were 35.5 million CCF for the current-year period, compared with 33.9 million CCF off-system volume sold and transported in the prior year period.
Current wording
As measured in degree days, temperatures in Spire Alabama’s service area during the nine months ended June 30, 2025, were 4.2% warmer than normal, but 2.9% colder than a year ago. Spire Alabama’s total system volume sold and transported were 845.9 million CCF for the nine months ended June 30, 2025, compared with 783.9 million CCF for the same period in the prior year. Total off-system volume sold and transported were 58.5 million CCF for the current-year period, compared with 62.1 million CCF off-system volume sold and transported in the prior-year period.
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Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
Interest expense decreased $10.1, with both Spire Missouri and Spire Alabama benefiting mostly from lower average short-term interest rates in the current year. The benefit of gas carrying cost credits at Spire Missouri, included in other income, decreased $8.6 versus the corresponding prior-year period.
Current report — wording carried from elsewhere
O&M expenses were slightly lower than prior-year levels, the result of higher spend on outside services in the current year that were more than offset by lower employee costs.
Current report — wording carried from elsewhere
Administrative and General (“A&G”) and support function costs resulting from customer affordability initiatives implemented last year.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Other income declined by $4.2 versus the prior-year quarter, primarily driven by the decrease in gas carrying cost credits of $3.2 and unfavorable mark-to-market unrealized losses on non-qualified benefit trusts. Interest expense decreased $3.0, primarily reflecting lower average short-term interest rates in the current year.
Previous report — wording carried elsewhere
Resulting net income for the quarter ended March 31, 2025 increased $7.7 versus the prior-year quarter.