Spire Inc. Lowers FY26 Earnings Guidance Despite Q2 Profit Growth
SR sits 27% above its 52-week low of $69.94.
Summary
Spire Inc. reported increased Q2 net income and adjusted earnings but reduced its fiscal 2026 adjusted earnings guidance from continuing operations to $3.90-$4.10 per share, citing lower weather-related usage.
Key Events · Earnings and Guidance · SR
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Q2 Earnings Growth
Second quarter net income increased to $217.6 million ($3.51 per diluted share) from $189.3 million ($3.17 per share) a year ago. Adjusted earnings from continuing operations rose to $223.7 million ($3.76 per share) from $189.3 million ($3.17 per share).
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FY26 Guidance Lowered
Spire updated its fiscal 2026 adjusted earnings guidance from continuing operations to a range of $3.90–$4.10 per share, reflecting a reduction from prior expectations due to lower weather-related usage.
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Strategic Divestitures and Acquisitions
The company completed the acquisition of the Piedmont Natural Gas Tennessee business and advanced divestitures of non-core businesses, including the completed sale of Spire Marketing and announced agreements to sell Spire Storage and Spire Mississippi.
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Long-Term Outlook Reaffirmed
Fiscal 2027 adjusted earnings guidance of $5.40–$5.60 and the long-term adjusted earnings growth target of 5-7% were reaffirmed.
Analysis · SR · Energy & Transportation
This 8-K details Spire Inc.'s second-quarter fiscal 2026 financial results, which showed year-over-year growth in net income and adjusted earnings. However, the company revised its fiscal 2026 adjusted earnings guidance downwards, primarily due to lower weather-related usage in Missouri. While the company reaffirmed its fiscal 2027 and long-term growth targets and highlighted successful strategic divestitures and acquisitions, the immediate reduction in current-year guidance presents a negative signal for investors. This indicates near-term operational headwinds impacting profitability despite strategic progress.
At the time of this filing, SR was trading at $89.02 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $5.3B. The 52-week trading range was $69.94 to $95.31. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.