Aug 5, 2026 earnings call — Transformation to a fully regulated utility company
Reaffirmed fiscal 2026 adjusted EPS guidance of $3.90 to $4.10 and a 5% to 7% long-term adjusted EPS growth target.
Revenue $0.4B (est $0.4B) · EPS $-0.26 (est $-0.32)
Key quotes
"Through the acquisition of Spire Tennessee and the divestiture of our non-core businesses, we have completed our transformation to a fully regulated company, enhancing our earnings quality and improving visibility of our long-term growth."
"In addition to this settlement, we filed a request in May to recover approximately $21 million of interest revenues associated with continued infrastructure investments across our Missouri service territory."
"We're reaffirming our 5% to 7% long-term adjusted EPS growth target using the original fiscal 2027 guidance midpoint of $5.75 as the base."
Analyst Q&A 6
Alabama ROE and Missouri weather fix
Q (Luke Fenker · Jefferies): He asked why the company requested higher allowed ROEs in Alabama and which parts of the structure matter. He also asked how the company will address weather and usage variability in Missouri's upcoming rate case.
A: Management said the Alabama process is similar to past renewals but now includes a public hearing, with hearings later this week and a commission decision expected in September. They said the conditions underlying the ROE request are higher than last time and a wider ROE range could help both company and customers, and that for Missouri they prefer decoupling and rate design to reduce weather-driven variability and will work toward a durable solution before the rate case.
"some of it is an observation that certainly, the conditions underlying the request or recommendation are higher than they were when we reset it last time." — Adam Woodard (CFO)
Capital allocation and Alabama/Tennessee timing
Q (Constantine Lednev · Wells Fargo): He asked whether the company will pull forward or add capital into jurisdictions with lower ROE lag and whether that would be accretive to the 5% to 7% growth target. He also asked about any positives from Alabama's renewal and the timeline and settlement chances for Tennessee's annual review.
A: Management said they are not looking to upsize capital and are focused on pacing and affordability to stay within the earnings growth range. They described Alabama's process as more public but not a material upside driver, and said Tennessee's annual review is unfolding as expected with no schedule acceleration and they do not expect much controversy.
"So I think that's what you're asking when you talk about pulling forward capital, we're not looking to upsize capital, if that's the question." — Scott Doyle (CEO)
Missouri settlement and 2028 guidance timing
Q (Paul Fremont · Ladenburg): He asked whether the Missouri settlement was unanimous and which parties signed it. He also asked if the settlement addressed a requested regulatory asset and when the company will give 2028 guidance.
A: Adam said the settlement was between the company, staff and the Office of Public Counsel, with one other party not signing. Scott said the settlement does not include establishing a regulatory asset and instead sets up collaborative work to find a durable solution, and Adam said they expect to give 2028 guidance on the year-end call in November.
"No, the settlement was between us and staff and the Office of Public Counsel." — Adam Woodard (CFO)
Intervenors' lower ROE recommendations
Q (Elias Jossen · JPMorgan): He asked how to view intervenors recommending 8% to 9% ROEs versus the current 9.9% allowed in Alabama.
A: Management said they are following the legislature's direction to set ROEs near the regional average. They said recommendations in the 8s are below that regional average and they believe their request sits within the regional average range.
"One of the key things they talked about was zeroing in on an ROE that is within the range of the average in the region." — Scott Doyle (CEO)
AAO settlement and lost margin recovery
Q (Mizuho): He asked whether the settlement quantified the lost margin from lower weather-related usage and if the company will recover that margin in the settlement or in the upcoming rate case.
A: Management said the settlement does not quantify or provide recovery of the lost margin from the past year. They reiterated the settlement's primary outcome is a commitment to develop a more durable and permanent solution and that rate case parameters are not yet finalized.
"No, again, the settlement does not contemplate either quantifying or recovery of the lost margin from this past year." — Scott Doyle (CEO)
Linearity of future EPS growth and 2028
Q (David Paz · Wolfe): He asked how the company expects the 5% to 7% growth range to apply after rebasing off the 2028 guide and whether 2028 will be on the high end of that range.
A: Management said '28 is expected to be a step-up year driven by the Missouri rate case, recovering lag and pulling forward some recovery through the future test year. They intend to rebase on the '28 guide and expect reasonably linear growth afterward, and confirmed the expectation that '28 would be on the higher end of the 5% to 7% off of $5.75 in '27.
"We have talked about '28 being a step-up year and the fact that it's driven by the Missouri rate case and where we'll be recovering lag, but then also pulling forward some future recovery through the future test year mechanism." — Scott Doyle (CEO)