SPIRE ALABAMA INC
For the period ended Mar 31, 2026. Filed May 6, 2026.
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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.
Mar 31, 2026 · Filed May 6, 2026
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 2025-12-31; filed 2026-02-03.
0001193125-26-034779
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-06.
0001193125-26-208452
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 155 previous paragraphs and 185 current paragraphs.
78 unchanged; 39 reworded; 48 added; 38 removed; 0 previous and 20 current paragraphs rearranged.
Tables are not compared: 10 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 (48)
Current report
The satisfaction of conditions to, and the timing and completion of, the announced dispositions (including receiptof required regulatory approvals).
Current report
RECENT EVENTS
Current report
Acquisition of Tennessee Piedmont Natural Gas business. On March 31, 2026, Spire completed the acquisition of the Tennessee assets of Piedmont Natural Gas, a wholly-owned subsidiary of Duke Energy, to acquire its Tennessee natural gas business for a total cash purchase price of $2.50 billion. The Company expects the acquisition to increase Spire’s scale of regulated business in one of the fastest growing regions in the U.S. and expand regulatory diversity. Upon closing, Piedmont’s Tennessee business began doing business as Spire Tennessee.
Current report
Sale of Spire Marketing. On March 28, 2026, Spire, entered into an agreement to sell Spire Marketing Inc., to Boardwalk. The transaction provides for a cash purchase price of $212.0, subject to customary closing adjustments, and is expected to be accounted for as a disposition upon closing.
Current report
Sale of Spire Storage. On April 14, 2026, Spire, entered into an agreement to sell Spire Storage to Subterra Energy Holdings, LLC an affiliate of I Squared Capital. The transaction provides for total consideration of approximately $650.0, consisting of $600.0 payable in cash at closing and a $50.0 deferred payment expected to be received in fiscal 2027, subject to customary closing adjustments, and is expected to be accounted for as a disposition upon closing.
Current report
Sale of Spire Mississippi. On April 21, 2026, Spire entered into an agreement to sell Spire Mississippi Inc., to Delta Utilities. The transaction provides for a cash purchase price of $75.0, subject to customary purchase price adjustments, and is expected to close during the second half of Spire’s fiscal year 2026, subject to regulatory approval by the Mississippi Public Service Commission and other customary closing conditions.
Current report
For additional information on the transaction above, see Note 2– Acquisitions and Note 3 - Divestitures.
Current report
Gas Utility - Spire Tennessee
Current report
Spire Tennessee is the largest investor-owned natural gas distribution utility in the state of Tennessee and is regulated by the TPUC.Spire Tennessee is a regulated natural gas utility engaged in the purchase, retail distribution, and sale of natural gas to more than 200,000 customers primarily in the Nashville metropolitan area and surrounding communities in Tennessee. Spire Tennessee delivers natural gas to customers at rates and in accordance with tariffs authorized by the TPUC. The earnings of Spire Tennessee are primarily generated by the sale of heating energy.
Current report
Total Company
Current report
Net income for the quarter was $282.2 versus $209.3 in the prior-year quarter. The increase was driven by the continuing operations of our utilities, which increased by $36.6, partially offset by higher corporate expenses and pipeline operations, net, of $8.3, combined with discontinued operations, which increased $44.6. Growth at Spire Marketing was the principal driver of the growth in net income from discontinued operations. The Company will describe further the results of its ongoing business.
Current report
Continuing Operations
Current report
Includes transaction, transition and financing costs for the Piedmont Tennessee Transaction.
Current report
Other income increased $1.4 versus the prior-year quarter. The principal driver of the variance was favorable interest income that was only partly offset with unfavorable investment activity with non-qualified benefit trusts.
Current report
Taxes, other than income taxes increased $8.0, driven by higher pass-through gross receipts taxes, and higher property taxes due to higher amortization levels of regulatory deferrals along with continued infrastructure investments.
Current report
Resulting net income for the quarter ended March 31, 2026 increased $37.3 versus the prior-year quarter.
Current report
Operating revenues for the three months ended March 31, 2026 decreased $21.8 from the same period in the prior year. This decrease was attributable to unfavorable volume impacts of $17.o, a year-over year net increase in the customer refund provision of $7.2, and a $4.6 decrease in gas cost recoveries. These negative impacts more than offset the $7.4 increase resulting from the annual RSE update.
Current report
Reported O&M expenses for the three months ended March 31, 2026 decreased $3.7 versus the prior-year quarter. This reduction was primarily driven by lower expense levels for non-payroll operations, combined with lower employee-related costs.
Current report
Depreciation and amortization expenses increased $3.2 versus the prior-year period due to rate changes and ongoing capital investments.
Current report
EARNINGS– SIX MONTHS ENDED March 31, 2026
Current report
Spire
Current report
Total Company
Current report
Net income for the year-to-date ended March 31, 2026 was $377.2 versus $290.6 in the comparable prior-year period. The increase was driven by the continuing operations of our utilities, which increased by $62.7, partially offset by higher corporate expenses and pipeline operations, net, of $18.7, combined our discontinued operations, which increased $42.6. Growth at Spire Marketing was the primary driver of the growth in net income from discontinued operations. The Company will describe further the results of its ongoing business.
Current report
Continuing Operations
Current report
Net Income and Adjusted Earnings
Current report
Includes transaction, transition and financing costs for the Piedmont Tennessee Transaction.
Current report
Other income increased $6.1 versus the prior-year period. Excluding the NSC Transfer impact the increase was $3.5. The principal drivers of the increase was interest income and favorable mark-to-market activity and investment gains in non-qualified benefit trusts. These benefits more than offset a decline of gas-carrying cost credits at Spire Missouri.
Current report
For the year-to-date ended March 31, 2026, Gas Utility net income and adjusted earnings were higher than the corresponding prior-year period by $62.7 and $65.7, respectively. The year-to-date change in net income was driven by the $ 61.1 improved performance of Spire Missouri and the $5.9 increase from Spire Alabama, partly offset by the $3.0 (after-tax) goodwill impairment relating to the divestiture of Spire Mississippi.
Current report
The primary driver of the current year increase in revenue was the $132.6 impact of the October 2025 Missouri rate case implementation. Current year revenue also benefited from higher off system sales of $16.7and Spire Alabama’s favorable annual RSE update impact of $8.1. These favorable impacts more than offset the $29.4 negative impact of lower volume usage net of weather mitigation adjustments, the $6.3 reduction attributable to lower gas cost recoveries, and the $2.9 net unfavorable change in the customer refund provision at Spire Alabama.
Current report
Contribution margin increased $118.4 versus the prior year. Contribution margin benefited from the $132.6 impact of the October 2025 Missouri rate case implementation, $7.9 attributable to the Alabama RSE annual update, combined with $5.4 higher off system sales. As previously disclosed, most of the Alabama RSE benefit was offset by year-over-year changes to the customer refund provision. These favorable impacts more than offset the $24.8 negative volumetric margin net of weather mitigation at Spire Missouri and Spire Alabama and the $2.8 net unfavorable change to the Spire Alabama customer refund provision.
Current report
Taxes, other than income taxes, increased $13.2, due to $4.4 higher gross receipts taxes resulting from higher revenues, combined with higher property tax expense due primarily to higher amortization levels of regulatory deferrals in Missouri along with continued infrastructure investments.
Current report
Operating revenues for the six months ended March 31, 2026 were $125.6 higher than the comparable prior-year period. The increase was primarily the result of four drivers: $132.6 due to implementation of the most recent rate case, higher off-system sales of $15.3, $4.4 higher gross receipts tax, and $2.3 incremental ISRS revenues. These favorable impacts were only partly offset by the $23.4 unfavorable volume impact (net of weather mitigation), and $5.3 lower gas cost recoveries.
Current report
Contribution margin for the six months ended March 31, 2026 increased $114.8 from the same period in the prior year, primarily due to the $132.6 increase relating to implementation of the most recent rate case, combined with the $3.8 impact of higher off-system sales and $2.3 incremental ISRS charges. These favorable impacts more than offset the unfavorable $23.4 weather-mitigated margin impact.
Current report
Degree days in Spire Missouri’s service areas during the six months ended March 31, 2026 were 11.5% warmer than normal, and 4.8% warmer than the same period last year. Spire Missouri’s total system volume sold and transported were 1,101.7 million centum (Latin for “hundred”) cubic feet (CCF) for the current year, compared with 1,181.7 million CCF for the same period in the prior year. Total off-system volume sold and transported were 47.0 million CCF for the current-year, compared with 47.9 million CCF a year ago.
Current report
O&M expenses for the six months ended March 31, 2026 increased $6.7 versus the corresponding prior-year period. Excluding the NSC Transfer impact, O&M expense increased $5.9. This increase reflects higher expense levels for non-payroll operations, insurance, and bad debt expense that were only partly offset by lower employee-related costs and administrative expenses.
Current report
Taxes, other than income taxes increased $13.2, driven by higher pass-through gross receipts taxes and higher property taxes, due primarily to higher amortization levels of regulatory deferrals along with continued infrastructure investments.
Current report
Resulting net income for the six months ended March 31, 2026 increased $61.1 versus the six months ended March 31, 2025.
Current report
Operating revenues for the six months ended March 31, 2026 decreased $0.5 from the same period in the prior year. This decrease was attributable to unfavorable volume impacts of $6.0, a year-over year net increase in the customer refund provision of $2.9, and a $1.0 decrease in gas cost recoveries. These negative impacts more than offset the $8.1 increase resulting from the annual RSE update.
Current report
Contribution margin was $5.1 higher versus the prior-year comparable period, driven primarily by the favorable $7.9 annual RSE rate update, combined with $1.6 increase attributable to off-system sales. These impacts were only partly offset by a $2.8 decline relating to the year-over year net increase in the customer refund provision and a $1.4 reduction resulting from lower (weather-mitigated) volume.
Current report
Depreciation and amortization expenses increased $2.8 versus the prior-year period due to rate changes and ongoing capital investments.
Showing the first 40 of 48 passages. Open the source sections for the rest.
Removed paragraphs (38)
Previous report
Gas Marketing
Previous report
Spire Marketing is engaged in the marketing of natural gas and related activities on a non-regulated basis and is reported in the Gas Marketing segment. Spire Marketing markets natural gas to customers across the U.S. (and into Canada), including customers inside and outside of the Utilities’ service areas. It holds firm transportation and storage contracts in order to effectively manage its transactions with counterparties, which primarily include producers, municipalities, electric and gas utility companies, and large commercial and industrial customers.
Previous report
Midstream
Previous report
Spire’s midstream operations consist of Spire Storage West LLC, Spire Storage Salt Plains LLC (jointly, “Spire Storage”), Spire STL Pipeline LLC (“Spire STL Pipeline”), and Spire MoGas Pipeline. Spire MoGas Pipeline (or simply “MoGas”), a 263-mile FERC-regulated natural gas pipeline and a connected 75-mile gas distribution system in Missouri, was acquired by Spire Midstream LLC, a subsidiary of Spire, on January 19, 2024. Spire STL Pipeline owns and operates a FERC-regulated 65-mile pipeline connecting the Rockies Express Pipeline in Scott County, Illinois, to delivery points in St. Charles County and St. Louis County, Missouri, including MoGas and Spire Missouri’s storage facility, and its operating revenue is derived primarily from Spire Missouri as its foundation shipper. Spire Storage is engaged in the storage of natural gas in both the western and midcontinent regions of the United States. Spire Storage West, located in Wyoming, consists of two storage fields operating under one FERC market-based rate tariff, while Spire Storage Salt Plains, located in Oklahoma, operates under intrastate jurisdiction with authorizations from FERC under Section 311 of the Natural Gas Policy Act to provide certain interstate storage, transportation, and hub services.
Previous report
On October 8, 2025, FERC approved the merger of Spire STL Pipeline into Spire MoGas Pipeline, which the Company made effective January 1, 2026 by consolidating operations under a single Spire MoGas Pipeline certificate and FERC tariff while maintaining existing rates and service continuity.
Previous report
The fair value and timing adjustments are made in instances where the accounting treatment differs from what management considers the economic substance of the underlying transaction, including the following:
Previous report
Net unrealized gains and losses on energy-related derivatives that are required by GAAP fair value accounting associated with current changes in the fair value of financial and physical transactions prior to their completion and settlement. These unrealized gains and losses result primarily from two sources:
Previous report
changes in the fair values of physical and/or financial derivatives prior to the period of settlement; and
Previous report
ineffective portions of accounting hedges, required to be recorded in earnings prior to settlement, due to differences in commodity price changes between the locations of the forecasted physical purchase or sale transactions and the locations of the underlying hedge instruments;
Previous report
Lower of cost or market adjustments to the carrying value of commodity inventories resulting when the net realizable value of the commodity falls below its original cost, to the extent that those commodities are economically hedged; and
Previous report
Realized gains and losses resulting from the settlement of economic hedges prior to the sale of the physical commodity.
Previous report
These adjustments eliminate the impact of timing differences and the impact of current changes in the fair value of financial and physical transactions prior to their completion and settlement. Unrealized gains or losses are recorded in each period until being replaced with the actual gains or losses realized when the associated physical transactions occur. Management believes that excluding the earnings volatility caused by recognizing changes in fair value prior to settlement and other timing differences associated with related purchase and sale transactions provides a useful representation of the economic effects of only the actual settled transactions and their effects on results of operations. While management uses these non-GAAP measures to evaluate all of its businesses, the net effect of these fair value and timing adjustments on the Utilities’ earnings is minimal because gains or losses on their natural gas derivative instruments are deferred pursuant to state regulation.
Previous report
PENDING ACQUISITION
Previous 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 “Piedmont Tennessee Transaction”). The strategic rationale for the Company is described below:
Previous report
We expect the Piedmont Tennessee 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.
Previous report
We expect the Piedmont Tennessee Transaction to provide robust growth driven by customer additions and system integrity and reliability 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.
Previous report
We expect the Piedmont Tennessee 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.
Previous 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.
Previous report
Spire expects to fund the purchase price and related transaction and financing costs with:
Previous report
$900.0 aggregate principal amount of its 6.250% Series A and 6.450% Series B junior subordinated notes due 2056, issued on November 24, 2025;
Previous report
$825.0 aggregate principal amount of senior unsecured notes to be issued by Spire Tennessee upon closing of the Piedmont Tennessee Transaction through private placements pursuant to a master note purchase agreement dated December 17, 2025; and
Previous report
a draw of approximately $725.0 under a bridge facility upon the closing of the Piedmont Tennessee Transaction.
Previous report
The Company entered into a committed senior unsecured bridge facility on August 22, 2025 provided by a syndicate of banks led by BMO Capital Markets. At December 31, 2025, the facility provided up to $725.0 of committed capacity, consisting of $125.0 bridge term loan and $600.0 delayed draw term loan. The loan bears interest at Adjusted Term SOFR plus 1.375% or Base Rate Plus 0.375% and matures 364 days after funding. As of December 31, 2025, the facility remains undrawn. While these issuances and the initial bridge draw will fund the acquisition at closing, the Company expects to subsequently refinance the bridge borrowings and optimize its capital structure through a balanced mix of debt, equity, and hybrid securities.
Previous report
In connection with the financing plan, Spire is considering selling certain non-core assets to help fund the acquisition. Any sales would be subject to board approval and customary closing conditions, including regulatory approval.
Previous report
The Piedmont Tennessee Transaction is expected to close in the first quarter of calendar 2026, subject to customary closing conditions, including approval by the TPUC. On October 31, 2025, FERC approved the transfer of gas supply contracts to Spire. The applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act expired without objection, satisfying one of the key regulatory requirements for the transaction.
Previous report
Divestiture
Previous report
Other income increased $4.7 versus the prior-year quarter. Of the reported variance, $2.6 was attributable to the Postretirement Non-Service Costs Transfer (“NSC Transfer”), which has no impact on net income. The driver of the remaining $2.1 variance was favorable investment activity with non-qualified benefit trusts and interest income.
Previous report
Gas Utility
Previous report
Gas Marketing
Previous report
Including $7.1 (after-tax) unfavorable mark-to-market activity, net income decreased $4.8. The $2.3 quarter-over-quarter increase in adjusted earnings primarily reflects incremental realized business portfolio optimization activities in the current year.
Previous report
Contribution margin decreased $6.7 versus the prior-year quarter, reflecting the $9.5 (pre-tax) unfavorable mark-to-market activity. Excluding this impact, contribution margin increased $2.8, reflecting the favorable drivers noted above. O&M expenses were flat with prior-year levels.
Previous report
Midstream
Previous report
Net income and adjusted earnings for the Company’s Midstream segment for the quarter ended December 31, 2025 versus the prior-year quarter increased $0.7, respectively. The increase was driven by higher Spire Storage earnings, reflecting additional storage capacity.
Previous report
Revenues in the current quarter increased $5.5 versus the prior-year quarter, reflecting the higher activity with storage. O&M expenses were down $1.2 quarter-over-quarter, due primarily to storage expansion ramp-up costs in the prior year that did not repeat.
Previous report
Other
Previous report
Resulting net income for the quarter ended December 31, 2025 increased $23.8 versus the prior-year quarter.
Previous report
Operating revenues for the three months ended December 31, 2025 increased $21.3 from the same period in the prior year. The increase in operating revenue was attributable to favorable volume impacts of $11.o, annual net RSE update of $5.0, and a $3.6 increase in current year gas cost recoveries. $4.3 of the RSE benefit was the result of the prior year being burdened with a $4.3 customer refund provision.
Previous report
In addition to the commercial paper program and revolving credit facility, the Company has access to a fully committed bridge facility in connection with the pending Piedmont Tennessee Transaction. The facility provides up to $2.48 billion in short-term financing. At December 31, 2025, the facility provided up to $725.0 of committed capacity, consisting of $125.0 bridge term loan and $600.0 delayed draw term loan. The loan bears interest at Adjusted Term SOFR plus 1.375% or Base Rate Plus 0.375% and matures 364 days after funding. As of December 31, 2025, the facility remains undrawn. For information about these resources, see Note 12, Acquisitions and Divestitures
Reworded paragraphs (39)
Previous wording
This section analyzes the financial condition and results of operations of Spire Inc. (the “Company”), Spire Missouri Inc., and Spire Alabama Inc. Spire Missouri, Spire Alabama and Spire EnergySouth are wholly owned subsidiaries of the Company. Spire Missouri, Spire Alabama and the subsidiaries of Spire EnergySouth (Spire Gulf and Spire Mississippi) are collectively referred to as the “Utilities.” This section includes management’s view of factors that affect the respective businesses of the Company, Spire Missouri and Spire Alabama, explanations of financial results including changes in earnings and costs from the prior periods, and the effects of such factors on the Company’s, Spire Missouri’s and Spire Alabama’s overall financial condition and liquidity.
Current wording
This section analyzes the financial condition and results of operations of Spire Inc. (the “Company”), Spire Missouri Inc., and Spire Alabama Inc. Spire Missouri, Spire Alabama and Spire EnergySouth are wholly-owned subsidiaries of the Company. Spire Missouri, Spire Alabama, the subsidiaries of Spire EnergySouth (Spire Gulf and Spire Mississippi), and Spire Tennessee are collectively referred to as the “Utilities.” This section includes management’s view of factors that affect the respective businesses of the Company, Spire Missouri and Spire Alabama, explanations of financial results including changes in earnings and costs from the prior periods, and the effects of such factors on the Company’s, Spire Missouri’s and Spire Alabama’s overall financial condition and liquidity.
Previous wording
Certain matters discussed in this report, excluding historical information, include forward-looking statements. Certain words, such as “may,” “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “seek,” “target,” and similar words and expressions identify forward-looking statements that involve uncertainties and risks. Future developments may not be in accordance with our current expectations or beliefs and the effect of future developments may not be those anticipated. Among the factors that may cause results or outcomes to differ materially from those contemplated in any forward-looking statement are:
Current wording
Certain matters discussed in this report, excluding historical information, include forward-looking statements. 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. Certain words, such as “may,” “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “seek,” “target,” and similar words and expressions identify forward-looking statements that involve uncertainties and risks. Future developments may not be in accordance with our current expectations or beliefs and the effect of future developments may not be those anticipated. Among the factors that may cause results or outcomes to differ materially from those contemplated in any forward-looking statement are:
Previous wording
On January 1, 2026, after the close of the reporting period, the Company completed the sale of a non‑core equity interest that was outside its reportable segments. The investment had previously been accounted for under the equity method and carried an immaterial value. The Company received approximately $30.0 in cash proceeds from the sale and expect to recognize a pre-tax gain in its second quarter of fiscal 2026.
Current wording
Sale of Non-Core Equity Interest. During the second quarter of fiscal 2026, the Company completed the sale of a non-core equity interest that was outside its reportable segments. The investment had previously been accounted for under the equity method and was carried at an immaterial value. The Company received approximately $30.0 in cash proceeds and recognized a pre-tax gain of approximately $28.9, which is included in “Gain on Sale of Subsidiary” in the Condensed Consolidated Statements of Operations.
Previous wording
The Company has three reportable segments: Gas Utility, Gas Marketing, and Midstream. Spire’s earnings are derived primarily from its Gas Utility segment, which reflects the regulated activities of the Utilities. Due to the seasonal nature of the Utilities’ business and the volumetric Spire Missouri rate design, earnings of Spire and each of the Utilities are typically concentrated during the heating season of November through April each fiscal year.
Current wording
Due to recently announced corporate transactions the Company has one reportable segment: Gas Utility. See Note 12 - Segment Information for additional information on Spire’s segment structure. Spire’s earnings are derived primarily from its Gas Utility segment, which reflects the regulated activities of the Utilities. Due to the seasonal nature of the Utilities’ business and the volumetric Spire Missouri rate design, earnings of Spire and each of the Utilities are typically concentrated during the heating season of November through April each fiscal year.
Previous wording
Other components of the Company’s consolidated information include Spire’s subsidiaries engaged in the operation of a natural gas liquids pipeline and risk management, among other activities, and unallocated corporate items, including certain debt and associated interest costs.
Current wording
Other components of the Company’s consolidated information include Spire’s subsidiaries include subsidiaries engaged in the transportation of natural gas, risk management, among other activities, and unallocated corporate items, including certain debt and associated interest costs.
Previous wording
Adjusted earnings and adjusted earnings per share are non-GAAP measures that 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, the largely non-cash impacts of impairments, and other non-recurring or unusual items such as certain regulatory, legislative or GAAP standard-setting actions. In addition, adjusted earnings per share would exclude the impact, in the fiscal year of issuance, of any shares issued to finance such activities that have yet to be included in adjusted earnings.
Current wording
Adjusted earnings and adjusted earnings per share are non-GAAP measures that exclude from net income to the extent incurred in a given period the impacts of acquisition, divestiture and restructuring activities, the largely non-cash impacts of impairments, and the impact of certain regulatory, legislative or GAAP standard-setting actions. Second quarter fiscal 2026 excludes the cost of redemption of preferred stock. In addition, adjusted earnings per share would exclude the impact, in the fiscal year of issuance, of any shares issued to finance such activities that have yet to be included in adjusted earnings.
Previous wording
In addition to operating revenues and operating expenses, management also uses the non-GAAP measure of contribution margin when evaluating results of operations. Contribution margin is defined as operating revenues less natural gas costs and gross receipts tax expense. The Utilities pass to their customers (subject to prudence review by, as applicable, the MoPSC, APSC or MSPSC) increases and decreases in the wholesale cost of natural gas in accordance with their PGA clauses or GSA riders. The volatility of the wholesale natural gas market results in fluctuations from period to period in the recorded levels of, among other items, revenues and natural gas cost expense. Nevertheless, increases and decreases in the cost of gas associated with system gas sales volumes and gross receipts tax expense (which are calculated as a percentage of revenues), with the same amount (excluding immaterial timing differences) included in revenues, have no direct effect on operating income. Therefore, management believes that contribution margin is a useful supplemental measure, along with the remaining operating expenses, for assessing the Company’s and the Utilities’ performance.
Current wording
In addition to operating revenues and operating expenses, management also uses the non-GAAP measure of contribution margin when evaluating results of operations. Contribution margin is defined as operating revenues less natural gas costs and gross receipts tax expense. The Utilities pass to their customers (subject to prudence review by, as applicable, the MoPSC, APSC, MSPSC or TPUC) increases and decreases in the wholesale cost of natural gas in accordance with their PGA clauses or GSA riders. The volatility of the wholesale natural gas market results in fluctuations from period to period in the recorded levels of, among other items, revenues and natural gas cost expense. Nevertheless, increases and decreases in the cost of gas associated with system gas sales volumes and gross receipts tax expense (which are calculated as a percentage of revenues), with the same amount (excluding immaterial timing differences) included in revenues, have no direct effect on operating income. Therefore, management believes that contribution margin is a useful supplemental measure, along with the remaining operating expenses, for assessing the Company’s and the Utilities’ performance.
Previous wording
** Adjusted earnings per share is calculated by replacing consolidated net income with consolidated adjusted earnings in the GAAP diluted earnings per share calculation, which includes reductions for cumulative preferred dividends and participating shares.
Current wording
*** Adjusted earnings per share is calculated by replacing consolidated net income with consolidated adjusted earnings in the GAAP diluted earnings per share calculation, which includes reductions for cumulative preferred dividends and participating shares and in the second quarter of 2026, excludes the $8.0 impact of the February 2026 cost of redemption of Spire’s 5.9% Series A Preferred Stock, including related depositary shares.
Previous wording
The increase in interest expense reflects higher average levels of long-term debt in the current year, which includes the financing activity undertaken in preparation for the pending Piedmont Tennessee Transaction. Financing costs related to the acquisition activity totaled approximately $3.8 in the current quarter. The increase in the servicing costs for long-term debt were only partly mitigated by lower average levels of short-term debt and lower effective interest rates on short-term debt. Weighted-average short-term interest rates were 4.1% in the current-year quarter versus 4.6% in the prior-year quarter.
Current wording
The increase in interest expense reflects higher average long-term debt rates and higher levels of long-term debt in the current year, which includes the financing activity undertaken for the Piedmont Tennessee Transaction. Financing costs related to the acquisition activity totaled approximately $5.8 in the current quarter. The increase in the servicing costs for long-term debt were only partly mitigated by lower average levels of short-term debt and lower effective interest rates on short-term debt. Weighted-average short-term interest rates were 3.8% in the current-year quarter versus 4.5% in the prior-year quarter.
Previous wording
The Company’s other activities generated a $19.2 loss in the three months ended December 31, 2025, $8.3 higher than the prior year period. The major contributor to this variance was $8.5 pre-tax ($6.5 after-tax) of current year costs associated with the pending Piedmont Tennessee acquisition. Higher corporate expenses and interest expense in the current year were the other contributors to the higher current year loss.
Current wording
The Company’s other activities generated a $14.2 loss in the three months ended March 31, 2026, $8.3 higher than the prior year period. The major contributor to this variance was $30.8 pre-tax of current year costs associated with the pending Piedmont Tennessee acquisition that was mostly offset by the $28.9 gain on the sale of a non-core subsidiary. Higher corporate expenses and interest expense in the current year were the other contributors to the higher current year loss.
Previous wording
For the quarter ended December 31, 2025, Gas Utility net income and adjusted earnings were higher than the corresponding prior-year period by $26.1, respectively. The quarterly change was driven by the improved performance of Spire Missouri and Spire Alabama totaling $23.8 and $3.9, respectively, partially offset by a $1.6 decrease at Spire EnergySouth.
Current wording
For the quarter ended March 31, 2026, Gas Utility net income and adjusted earnings were higher than the corresponding prior-year period by $36.6 and $39.6, respectively. The quarterly net income change was driven by the improved performance of Spire Missouri and Spire Alabama totaling $37.3 and $2.0, respectively, partially offset by the $3.0 (after-tax) goodwill impairment associated with the pending sale of Spire Mississippi.
Previous wording
The primary driver of the current year increase in revenue was the $46.4 impact of the October 2025 Missouri rate case implementation and the $11.0 usage increase in Spire Alabama. Current year revenue also benefited from higher off system sales, higher gas cost recoveries, ISRS billings and Spire Alabama’s annual RSE update. $4.3 of the RSE benefit was the result of the prior year being burdened with a $4.3 customer refund provision.
Current wording
The primary driver of the current year increase in revenue was the $78.4 impact of the October 2025 Missouri rate case implementation. Current year revenue also benefited from higher off system sales. Spire Alabama’s favorable annual RSE update impact of $7.4 was almost completely offset by the year-over-year $7.2 increase in the customer refund provision. These favorable impacts more than offset the $29.5 negative impact of lower volume usage net of weather mitigation adjustments and the $13.6 reduction attributable to lower gas cost recoveries.
Previous wording
Contribution margin increased $48.0 versus the prior-year quarter. Contribution margin benefited from the $46.4 impact of the October 2025 Missouri rate case implementation, $2.2 Spire Missouri ISRS growth, and $4.9 from Spire Alabama’s annual RSE update. As previously disclosed, $4.1 of the RSE variance was the result of the prior year being burdened with a $4.1 customer refund provision. These favorable impacts more than offset the $4.8 negative volumetric margin net of weather mitigation at Spire Missouri and Spire Alabama.
Current wording
Contribution margin increased $70.4 versus the prior-year quarter. Contribution margin benefited from the $78.4 impact of the October 2025 Missouri rate case implementation, combined with $4.0 higher off system sales. As previously disclosed, most of the Alabama RSE benefit was offset by year-over-year changes to the customer refund provision. These favorable impacts more than offset the $12.2 negative volumetric margin net of weather mitigation at Spire Missouri and Spire Alabama.
Previous wording
Depreciation and amortization expenses for the quarter ended December 31, 2025 were $6.7 higher than the same period in the prior year primarily driven by rate changes at Spire Missouri combined with continued infrastructure capital expenditures across all the Utilities.
Current wording
Depreciation and amortization expenses for the quarter ended March 31, 2026 were $12.1 higher than the same period in the prior year primarily driven by rate changes at Spire Missouri and Spire Alabama, combined with continued infrastructure capital expenditures across all the Utilities.
Previous wording
Taxes, other than income taxes, increased $6.0, due to $3.2 higher gross receipts taxes resulting from higher revenues, combined with higher property and real estate tax expense.
Current wording
Taxes, other than income taxes, increased $7.2, due to $1.2 higher gross receipts taxes resulting from higher revenues, combined with higher property tax expense due primarily to higher amortization levels of regulatory deferrals in Missouri along with continued infrastructure investments.
Previous wording
Interest expense increased $1.7. While both Spire Missouri and Spire Alabama benefited from lower average short-term interest rates in the current year, the impact at Spire Missouri was more than offset by the impact of higher average levels of long-term debt in the current year.
Current wording
Interest expense increased $1.5. While both Spire Missouri and Spire Alabama benefited from lower average short-term interest rates in the current year, the impact at Spire Missouri was more than offset by the impact of higher average levels of long-term debt in the current year.
Previous wording
Operating revenues for the quarter ended December 31, 2025 were $58.9 higher than the comparable prior-year period. The increase was primarily the result of four drivers: $46.4 due to implementation of the most recent rate case, higher off-system sales of $7.6, incremental ISRS revenues totaling $2.2, and higher gas cost recoveries of $3.7. These favorable impacts were only partly offset by a negative volume impact (net of weather mitigation) of $3.1.
Current wording
Operating revenues for the quarter ended March 31, 2026 were $66.7 higher than the comparable prior-year period. The increase was primarily the result of three drivers: $78.4 due to implementation of the most recent rate case, higher off-system sales of $7.7, and $2.2 higher gross receipts tax. These favorable impacts were only partly offset by $9.0 lower gas cost recoveries and negative volume impact (net of weather mitigation) of $12.5.
Previous wording
Contribution margin for the three months ended December 31, 2025 increased $46.2 from the same period in the prior year, primarily due to the $46.4 increase relating to implementation of the most recent rate case, combined with $2.2 incremental ISRS billings, which more than offset the unfavorable $3.1 weather-mitigated margin impact.
Current wording
Contribution margin for the three months ended March 31, 2026 increased $68.6 from the same period in the prior year, primarily due to the $78.4 increase relating to implementation of the most recent rate case, combined with the $3.0 impact of higher off-system sales. These favorable impacts more than offset the unfavorable $12.5 weather-mitigated margin impact.
Previous wording
Degree days in Spire Missouri’s service areas during thethree months ended December 31, 2025 were 9.3% warmer than normal, but 10.6% colder than the comparable prior year period. Spire Missouri’s total system volume sold and transported were 472.2 million centum (Latin for “hundred”) cubic feet (CCF) for the quarter, compared with 450.6 million CCF for the same period in the prior year. Total off-system volume sold and transported were 29.7 million CCF for the current-year quarter, compared with 21.9 million CCF a year ago.
Current wording
Degree days in Spire Missouri’s service areas during thethree months ended March 31, 2026 were 13.1% warmer than normal, and 13.6% warmer than the comparable prior year period. Spire Missouri’s total system volume sold and transported were 629.5 million centum (Latin for “hundred”) cubic feet (CCF) for the quarter, compared with 731.1 million CCF for the same period in the prior year. Total off-system volume sold and transported were 17.3 million CCF for the current-year quarter, compared with 25.9 million CCF a year ago.
Previous wording
O&M expenses for the current-year quarter increased $3.5 versus the prior-year quarter. Excluding the NSC Transfer impact, the increase was $2.7. This increase reflects higher expense levels for non-payroll operations and insurance expense that were only partly offset by lower post-retirement benefit costs and administrative expenses.
Current wording
O&M expenses for the current-year quarter increased $3.2 versus the prior-year quarter. This increase reflects higher expense levels for non-payroll operations and bad debt expense that were only partly offset by employee-related costs.
Previous wording
Depreciation and amortization expenses increased $7.1 versus the prior-year quarter due to higher rates approved in the recent rate case, in addition to ongoing capital investments. Taxes, other than income taxes increased $5.2, driven by higher pass-through gross receipts taxes combined with higher property taxes.
Current wording
Depreciation and amortization expenses increased $8.8 versus the prior-year quarter due to higher rates approved in the recent rate case, in addition to ongoing capital investments.
Previous wording
Interest expense increased $2.1, reflecting higher average levels of long-term debt in the current year. The increase in the servicing costs for long-term debt were only partly mitigated by lower average levels of short-term debt and lower effective interest rates on short-term debt.
Current wording
Interest expense increased $1.9, reflecting higher average levels of long-term debt in the current year. The increase in the servicing costs for long-term debt were only partly mitigated by lower average levels of short-term debt and lower effective interest rates on short-term debt.
Previous wording
Contribution margin was $3.6 higher versus the prior-year quarter, driven primarily by a favorable $4.9 annual RSE rate update. The prior year RSE customer refund provision discussed above represented $4.1 of this increase. These rate impacts were only partly offset by a $1.7 decline relating to volumetric margin net of weather mitigation.
Current wording
Contribution margin was $1.5 higher versus the prior-year quarter, driven primarily by the favorable $7.1 annual RSE rate update, combined with $1.0 increase attributable to off-system sales. These impacts were only partly offset by a $6.9 decline relating to the year-over year net increase in the customer refund provision.
Previous wording
As measured in degree days, temperatures in Spire Alabama’s service area during the three months ended December 31, 2025, were 9.7% colder than normal, and 49.0% colder than a year ago. Spire Alabama’s total system volume sold and transported were 243.3 million CCF for the three months ended December 31, 2025, compared with 259.8 million CCF for the same period in the prior year. Total off-system volume sold and transported were 15.5 million CCF for the current-year quarter, compared with 16.7 million CCF off-system volume sold and transported in last year’s first quarter.
Current wording
As measured in degree days, temperatures in Spire Alabama’s service area during the three months ended March 31, 2026, were 9.8% warmer than normal, and 11.2% warmer than a year ago. Spire Alabama’s total system volume sold and transported were 316.9 million CCF for the three months ended March 31, 2026, compared with 344.8 million CCF for the same period in the prior year. Total off-system volume sold and transported were 18.0 million CCF for the current-year quarter, compared with 18.8 million CCF off-system volume sold and transported in last year’s first quarter.
Previous wording
Interest expense for the current-year quarter decreased $0.3 versus the prior-year quarter, primarily the result of lower long-term debt levels combined with lower short-term interest rates, which more than offset higher current year average short-term borrowings.
Current wording
Interest expense for the current-year quarter decreased $0.4 versus the prior-year quarter, primarily the result of lower average long-term debt levels combined with lower short-term interest rates, which more than offset higher current year average short-term borrowings.
Previous wording
For the quarter ended December 31, 2025, resulting net income increased $3.9 versus the prior-year quarter.
Current wording
For the quarter ended March 31, 2026, resulting net income increased $2.0 versus the prior-year quarter.
Previous wording
Reported operation and maintenance (“O&M”) expenses for the three months ended December 31, 2025 were $4.7 higher than the prior-year quarter. Excluding the impact of the NSC Transfer, O&M expenses were $2.3 higher than the prior-year quarter, as higher expense levels for non-payroll operations and bad debt expense were only partly offset by lower post-retirement benefit costs and administrative expenses.
Current wording
Reported operation and maintenance (“O&M”) expenses for the six months ended March 31, 2026 were $3.9 higher than the prior year. Excluding the NSC Transfer impact, O&M expenses were $1.3 higher than the comparable prior year period. Lower employee-related costs and administrative expenses more than offset higher expense levels for non-payroll operations and bad debt expense.
Previous wording
Reported O&M expenses for the three months ended December 31, 2025 increased $0.5 versus the prior-year quarter. After excluding the impact of the NSC Transfer, O&M expenses in the current year quarter were $0.8 lower than the corresponding prior year period. Higher bad debt expense was more than offset by lower post-retirement benefit costs and lower administrative expenses.
Current wording
Reported O&M expenses for the six months ended March 31, 2026 decreased $3.2 versus the prior-year period. After excluding the impact of the NSC Transfer, O&M expenses in the current year quarter were $4.7 lower than the corresponding prior year period. This reduction was primarily driven by lower expense levels for non-payroll operations, combined with lower employee-related costs.
Previous wording
For thethree months ended December 31, 2025, net cash from operating activities decreased $0.1 from the corresponding period of fiscal 2024. The key drivers of the favorable change are regulatory timing and fluctuations in working capital items, as discussed below in the Future Cash Requirements section.
Current wording
For thesix months ended March 31, 2026, net cash from operating activities increased $37.6 compared with the corresponding period of fiscal 2025, which included a $35.4 increase attributable to discontinued operations from the corresponding period of fiscal 2025. The key change was driven primarily by regulatory timing differences and fluctuations in working capital items, as discussed below in the Future Cash Requirements section.
Previous wording
For the three months ended December 31, 2025, net cash used in investing activities was $58.8 less than the same period in the prior year. Total capital expenditures were $57.8 lower than last year, with a $20.8 spending decrease in the Utilities, and a $36.6 spending decrease for Midstream.
Current wording
For the six months ended March 31, 2026, net cash used in investing activities decreased by $2,389.0 compared with the same period in the prior year. The change was primary attributable to the Piedmont Tennessee Transaction. Total capital expenditures were $84.2 lower than last year, with a $10.9 spending decrease in the Utilities, and approximately $73.3 decreases related to discounting operations.
Previous wording
Lastly, for the three months ended December 31, 2025, net cash provided by financing activities decreased $67.0 compared with thethree months ended December 31, 2024. The decrease was driven primarily by $1,116.0 reduction in net short‑term debt, partially offset by $1,100.0 in incremental long‑term debt issuances discussed below in the Source of Funds section. Financing cash flows were also impacted by a $32.5 decrease in stock issuances and a $12.7 increase in financing costs relative to the three months ended December 31, 2024.
Current wording
Lastly, for the six months ended March 31, 2026, net cash provided by financing activities increased $2,384.7 compared with thesix months ended March 31, 2025. The increase was driven primarily by $3,325.0 in borrowings predominately related to Piedmont Tennessee Transaction, $200.0 of junior subordinated notes issuances, and $400.0 of senior notes refinancing. These increases were partially offset by $580.5 reduction in debt, and the redemption of $250.0 of preferred shares. Financing cash flows were also impacted by a $74.9 decrease in stock issuances and a $27.9 increase in financing costs compared with the prior year period.
Previous wording
Spire’s material cash requirements as of December 31, 2025, are related to pending Piedmont Tennessee Transaction, capital expenditures, principal and interest payments on long-term debt, natural gas purchase obligations, and dividends. The pending acquisition will require financing of $2.48 billion, expected to be funded through a balanced mix of debt, equity and hybrid securities. In connection with the financing plan, Spire is considering selling certain non-core assets, to help fund the acquisition. The sale is subject to board approval. For information about these resources, see Note 6, Financing. Excluding the pending acquisition, there were no material changes outside the ordinary course of business from the future cash requirements discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2025. Total Company capital expenditures are planned to be $809 for fiscal 2026.
Current wording
Spire’s material cash requirements as of March 31, 2026, are related to the Piedmont Tennessee Transaction, capital expenditures, principal and interest payments on long-term debt, natural gas purchase obligations, and dividends. The acquisition required financing of $2.50 billion.
Previous wording
Factoring in the current portion of long-term debt, the Company’s long-term consolidated capitalization consisted of 41% equity at December 31, 2025 and 47% equity at September 30, 2025, respectively. At December 31, 2025, Spire had outstanding principal of long-term debt totaling $4,971.5, of which $2,168.0 was issued by Spire Missouri, $715.0 was issued by Spire Alabama, and $2,088.5 was issued by Spire and other subsidiaries.
Current wording
Factoring in the current portion of long-term debt, the Company’s long-term consolidated capitalization consisted of 36% equity at March 31, 2026 and 47% equity at September 30, 2025, respectively. At March 31, 2026, Spire had outstanding principal of long-term debt totaling $6,296.5, of which $2,168.0 was issued by Spire Missouri, $715.0 was issued by Spire Alabama, and $3,413.6 was issued by Spire and other subsidiaries.
Previous wording
Effective October 27, 2024, Spire Missouri was authorized by the MoPSC to issue conventional term loans, first mortgage bonds, unsecured debt, preferred stock and common stock in an aggregate amount not to exceed $850.0 any time from that date through December 31, 2027. Under this authorization, through October 23, 2025, Spire Missouri has issued $74.4 of common stock and $350 of first mortgage bonds. Approximately $426.0 remains available for issuance under this authorization. Spire Alabama has no standing authority to issue long-term debt and must petition the APSC for each planned issuance.
Current wording
Effective October 27, 2024, Spire Missouri was authorized by the MoPSC to issue conventional term loans, first mortgage bonds, unsecured debt, preferred stock and common stock in an aggregate amount not to exceed $850.0 any time from that date through December 31, 2027. Under this authorization, through October 23, 2025, Spire Missouri has issued $74.4 of common stock and $350.0 of first mortgage bonds. Approximately $426.0 remains available for issuance under this authorization. Spire Alabama has no standing authority to issue long-term debt and must petition the APSC for each planned issuance.
Previous wording
On December 17, 2025, Spire Tennessee entered into a Master Note Purchase Agreement to issue $825.0 of senior unsecured notes in a private placement. The notes will be issued in multiple tranches with maturities from 2029 to 2038 and fixed interest rates ranging from 4.59% to 5.44%. Closing is contingent upon completion of the Piedmont Tennessee Transaction and is expected by June 30, 2026. Proceeds will fund the acquisition. The agreement includes customary covenants, including a Consolidated Capitalization Ratio not exceeding 70%, and provides for optional and mandatory prepayment under specified conditions. For more information about the senior unsecured notes, see Note 6, Financing.
Current wording
On December 17, 2025, Spire Tennessee entered into a Master Note Purchase Agreement to issue $825.0 of senior unsecured notes in a private placement. In connection with the closing of the Piedmont Tennessee Transaction on March 31, 2026, Spire Tennessee issued the notes in multiple tranches with maturities from 2029 to 2038 and fixed interest rates ranging from 4.59% to 5.44%. Proceeds were used to fund the acquisition. The agreement includes customary covenants, including a Consolidated Capitalization Ratio not exceeding 70%, and provides for optional and mandatory prepayment under specified conditions. For more information about the senior unsecured notes, see Note 8, Financing.
Previous wording
On January 12, 2026, Spire issued $200.0 of 6.375% junior subordinated notes due 2086. Interest is payable semiannually, and the notes rank junior to all existing and future senior indebtedness. Net proceeds, together with other funds, are expected to be used to redeem all outstanding shares of Spire’s 5.90% Series A Cumulative Redeemable Perpetual Preferred Stock (aggregate $250.0 liquidation preference) or for other general corporate purposes. For more information about the junior subordinated notes, see Note 6, Financing.
Current wording
On January 12, 2026, Spire issued $200.0 of 6.375% junior subordinated notes due 2086. Interest is payable semiannually, and the notes rank junior to all existing and future senior indebtedness. Net proceeds, together with other funds, were used to redeem all outstanding shares of Spire’s 5.90% Series A Cumulative Redeemable Perpetual Preferred
Previous wording
The Company, Spire Missouri and Spire Alabama have evaluated or are in the process of evaluating the effects that recently issued accounting standards will have on the companies’ financial position or results of operations upon adoption, but none are currently expected to have a significant impact.
Current wording
The Company, Spire Missouri and Spire Alabama have evaluated or are in the process of evaluating the effects that recently issued accounting standards will have on the companies’ financial position or results of operations upon adoption.
Previous wording
Our discussion and analysis of our financial condition, results of operations, liquidity and capital resources are based upon our financial statements, which have been prepared in accordance with GAAP, which requires that we make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. We evaluate our estimates on an ongoing basis. We base our estimates on historical experience and on various other assumptions that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. Our critical accounting estimates used in the preparation of our financial statements are described in Item 7 of Spire, Spire Missouri, and Spire Alabama’s combined Annual Report on Form 10-K for the fiscal year ended September 30, 2025, and include regulatory accounting, employee benefits and postretirement obligations, and income taxes. There were no significant changes to critical accounting estimates during the three months ended December 31, 2025.
Current wording
Our discussion and analysis of our financial condition, results of operations, liquidity and capital resources are based upon our financial statements, which have been prepared in accordance with GAAP, which requires that we make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. We evaluate our estimates on an ongoing basis. We base our estimates on historical experience and on various other assumptions that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. Our critical accounting estimates used in the preparation of our financial statements are described in Item 7 of Spire, Spire Missouri, and Spire Alabama’s combined Annual Report on Form 10-K for the fiscal year ended September 30, 2025, and include regulatory accounting, employee benefits and postretirement obligations, and income taxes. There were no significant changes to critical accounting estimates during the six months ended March 31, 2026.
Previous wording
The two interest rate swaps entered into during the first quarter of fiscal 2025 are hedging $350.0 of the Company's short-term commercial paper program. As of December 31, 2025, the Company has recorded through accumulated other comprehensive income a cumulative mark-to-market net gain of $14.0 on open swap contracts.
Current wording
The two interest rate swaps entered into during the first quarter of fiscal 2025 are hedging $350.0 of the Company's short-term commercial paper program. As of March 31, 2026, the Company has recorded through accumulated other comprehensive income a cumulative mark-to-market net gain of $3.5 on open swap contracts.
Rearranged current paragraphs (20)
Current report — wording carried from elsewhere
Reported operation and maintenance (“O&M”) expenses for the three months ended March 31, 2026 were $0.8 lower than the prior-year quarter as higher expense levels for non-payroll operations and bad debt expense were more than offset by lower employee-related costs and administrative expenses.
Current report — wording carried from elsewhere
This section contains discussion and analysis of the results for the six months ended March 31, 2026 compared to the results for the six months ended March 31, 2025, in total and by registrant and segment.
Current report — wording carried from elsewhere
The following tables reconcile the Company’s adjusted earnings to the most comparable GAAP number, net income.
Current report — wording carried from elsewhere
** Income tax adjustments include amounts calculated by applying federal, state, and local income tax rates applicable to ordinary income to the amounts of the pre-tax reconciling items.
Current report — wording carried from elsewhere
***Adjusted earnings per share is calculated by replacing consolidated net income with consolidated adjusted earnings in the GAAP diluted earnings per share calculation, which includes reductions for cumulative preferred dividends and participating shares and in the second quarter of 2026, excludes the $8.0 impact of the February 2026 cost of redemption of Spire’s 5.9% Series A Preferred Stock, including related depositary shares.
Current report — wording carried from elsewhere
Reconciliations of contribution margin to the most directly comparable GAAP measure are shown below.
Current report — wording carried from elsewhere
Select variances for the six m0nths ended March 31, 2026 compared to the six months ended March 31, 2025 are summarized in the following table and discussed below.
Current report — wording carried from elsewhere
The increase in interest expense reflects higher levels of long-term debt and corresponding higher average long-term debt rates in the current year, which includes the financing activity undertaken for the Piedmont Tennessee Transaction. Financing costs related to the acquisition activity totaled approximately $9.6 for the six months ended March 31, 2026.. The increase in the servicing costs for long-term debt were only partly mitigated by lower average levels of short-term debt and lower effective interest rates on short-term debt. Weighted-average short-term interest rates were 4.1% in the current year versus 4.5% in the prior year.
Current report — wording carried from elsewhere
The increase in income taxes primarily reflects the higher current-year pre-tax book income.
Current report — wording carried from elsewhere
The Company’s other activities generated a $30.3 loss in the six months ended March 31, 2026, $18.7 higher than the prior year period. The major contributor to this variance was $38.8 pre-tax of current year costs associated with the Piedmont Tennessee acquisition that was mostly offset by the $28.9 gain on the sale of a non-core subsidiary. Higher corporate expenses and interest expense in the current year were the other contributors to the higher current year loss.
Current report — wording carried from elsewhere
The increase in Gas Utility operating revenues was attributable to the following factors:
Current report — wording carried from elsewhere
The year-over-year increase in Gas Utility contribution margin was attributable to the following factors:
Current report — wording carried from elsewhere
Depreciation and amortization expenses for the year-to-date ended March 31, 2026 were $18.9 higher than the same period in the prior year primarily driven by rate changes at Spire Missouri and Spire Alabama, combined with continued infrastructure capital expenditures across all the Utilities.
Current report — wording carried from elsewhere
Interest expense increased $3.2. While both Spire Missouri and Spire Alabama benefited from lower average short-term interest rates in the current year, the impact at Spire Missouri was more than offset by the impact of higher average levels of long-term debt in the current year.
Current report — wording carried from elsewhere
Depreciation and amortization expenses increased $15.9 versus the prior-year period due to higher rates approved in the recent rate case, in addition to ongoing capital investments.
Current report — wording carried from elsewhere
Interest expense increased $4.0, reflecting higher average levels of long-term debt in the current year. The increase in the servicing costs for long-term debt were only partly mitigated by lower average levels of short-term debt and lower effective interest rates on short-term debt.
Current report — wording carried from elsewhere
As measured in degree days, temperatures in Spire Alabama’s service area during the six months ended March 31, 2026, were 5.0% warmer than normal, but 0.2% colder than a year ago. Spire Alabama’s total system volume sold and transported were 560.2 million CCF for the six months ended March 31, 2026, compared with 604.6 million CCF for the same period in the prior year. Total off-system volume sold and transported were 33.5 million CCF for the current-year period, compared with 35.5 million CCF off-system volume sold and transported in the prior year period.
Current report — wording carried from elsewhere
Interest expense for the current year decreased $0.7 versus the prior-year period, primarily the result of lower average long-term debt levels combined with lower short-term interest rates, which more than offset higher current year average short-term borrowings.
Current report — wording carried from elsewhere
For information about these resources, see Note 8, Financing. Excluding the acquisition and divestitures, there were no material changes outside the ordinary course of business from the future cash requirements discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2025. Total Company capital expenditures are planned to be $797 for fiscal 2026.
Current report — wording carried from elsewhere
Stock (aggregate $250.0 liquidation preference) or for other general corporate purposes. For more information about the junior subordinated notes, see Note 8, Financing.