Spire Inc. (SR) Earnings

Management highlights

### Strategic Transformation & Portfolio Update - Completed the transformation to a fully regulated company via the divestiture of non-core Spire Marketing and Spire Storage businesses, and the acquisition of Spire Tennessee - The exit of non-regulated storage and marketing businesses reduces earnings volatility, improves earnings predictability, and simplifies the company's business model - The expected sale of Spire Mississippi remains on track to close in Q1 fiscal 2027 - Integration of Spire Tennessee continues to progress well, with management still on track to exit transition services in fiscal 2027 ### Financial Performance Summary - Q3 2026 adjusted earnings per share (EPS) from continuing operations improved to a loss of 26 cents per share, compared to a loss of 29 cents per share in the prior-year quarter - Overall Q3 2026 results were in line with management expectations - Year-to-date capital expenditures through the first nine months of fiscal 2026 total nearly $600 million, allocated to system upgrades, infrastructure modernization, and new customer connections ### Regulatory Update - Spire Alabama and Spire Gulf have Rate Stabilization and Equalization (RSE) mechanism renewal hearings scheduled for August 6 and 7, 2026; management has requested an adjusted ROE of 10.5% for Spire Alabama and 10.75% for Spire Gulf, with the Alabama regulatory environment remaining constructive - In Missouri, management reached a settlement in the accounting authority order (AAO) proceeding the prior week; the settlement establishes a collaborative process to improve the existing weather normalization adjustment rider or develop a long-term alternative for the upcoming rate case - In Missouri, management filed a request in May 2026 to recover ~$21 million in interest costs from ongoing infrastructure investments, with new rates expected to take effect in November 2026; the first Missouri Future Test Year rate case filing remains on track for early November 2026 - Spire Tennessee filed its first annual review mechanism in May 2026, requesting a $14 million revenue increase with an authorized ROE of 9.8% and a $1.5 billion rate base; new rates are expected to take effect October 1, 2026 ### Financing & Capital Plan - The company has a 10-year, $11.2 billion capital investment plan that supports approximately 7% annual rate-based growth, underpinning the long-term EPS growth target - Full-year 2026 capital expenditures are expected to total ~$800 million, consistent with the 10-year plan; rate-based growth is expected to hit 7% in Missouri, 7.5% in Tennessee, and 6% regulated equity growth in Alabama and Gulf - Management maintains a target FFO-to-debt ratio of 14% to 15%, expected to be achieved by the end of 2028; the current trailing 12-month FFO-to-debt ratio is 13%, after including Spire Tennessee - A $375 million interest rate hedge portfolio is in place to mitigate exposure to rising borrowing costs; capital expenditures will be largely funded via operating cash flow and operating company debt, requiring limited annual equity issuance

Guidance

- Management reaffirms the long-term adjusted EPS growth target of 5% to 7%, with the base for this target set at the original fiscal 2027 guidance midpoint of $5.75 - Fiscal 2026 adjusted EPS guidance from continuing operations is maintained at $3.90 to $4.10 per share; this guidance excludes a full year of storage/marketing operations in Tennessee but includes Spire Mississippi - Fiscal 2027 adjusted EPS guidance is maintained at $5.40 to $5.60 per share, with no changes to expected earnings ranges for gas utility and corporate/other segments from the May 2026 update - Fiscal 2028 is expected to be a step-up year for earnings, driven by lag recovery from the Missouri rate case and the future test year mechanism; guidance for 2028 will be provided on the year-end earnings call in November 2026 - After 2028, management expects linear 5% to 7% annual adjusted EPS growth, with more stable growth across all jurisdictions

Segment performance

1. Gas Utility Segment: Reported an adjusted loss of $3 million in Q3 fiscal 2026, an improvement from the $10 million adjusted loss in the prior-year quarter. The improvement was driven by new rates in Missouri and Alabama, partially offset by mixed weather-normalized usage across jurisdictions. 2. Other Activities Segment: Reported an adjusted loss of $12 million in Q3 fiscal 2026, compared to a $3 million adjusted loss in the prior-year quarter. The wider loss reflects higher corporate costs and higher interest expense in the current period. Discontinued operations generated after-tax earnings of $253.8 million in the quarter, including a $254.6 million after-tax gain on the sale of divested non-core businesses.

Risks & headwinds

- Forward-looking statements are inherently uncertain, and actual future results may differ materially from expectations due to a range of regulatory, market, and operational risks, which are detailed in the company's SEC filings - Regulatory outcomes for upcoming RSE renewal hearings in Alabama, the Missouri rate case, and Spire Tennessee's annual review may differ from management's requests, impacting earnings and revenue growth - Rising interest rates could increase borrowing costs for capital investments, though this risk is partially mitigated by the company's existing $375 million interest rate hedge portfolio - Weather variability across service territories continues to create usage and earnings volatility, though management is working to implement updated mechanisms to reduce this exposure in Missouri - Integration of Spire Tennessee and transition away from third-party transition services by fiscal 2027 could face unanticipated delays

Analyst Q&A

• Q: What factors support the requested higher ROEs for Alabama and Gulf in the upcoming RSE renewal hearings, and which procedural/structural elements are most relevant to the proceedings? /

  A: Only a limited number of contested issues are going to hearing, as many items have already been agreed to by stakeholders. The higher ROE request reflects changed market conditions since the last RSE reset, aligned with legislative guidance to set ROEs near the regional average, which management's request falls within. Management also supports a wider ROE range for both parties and plans to preserve the existing cost control mechanism that has delivered O&M savings to customers for years. A decision from the commission is expected in late September after this week's hearings.

• Q: How will the Missouri AAO settlement address weather and usage variability in the upcoming Future Test Year rate case, and what changes are being considered? /

  A: The settlement does not resolve past lost margin from weather variability, but instead establishes a collaborative working process between the company, commission staff, and interveners to develop a durable, permanent solution ahead of the November rate filing. Management prioritizes a decoupling or rate design mechanism that reduces earnings volatility for the company while protecting customers from unpredictable bill changes, which will be finalized in the upcoming rate case.

• Q: Will management pull forward capital investments into jurisdictions with ROE lag to drive accretive growth above the 5% to 7% target after fiscal 2027? /

  A: Management has no plans to accelerate or upsize total capital investments. Capital pacing will be managed to maintain customer affordability and keep earnings growth squarely within the existing 5% to 7% long-term target, with no expected upside deviation from this range.

• Q: Is 2028 expected to land at the high end of the 5% to 7% growth range off the fiscal 2027 base? /

  A: Yes, 2028 is confirmed to be a step-up year at the high end of the 5% to 7% growth range, driven by lag recovery from the Missouri rate case and incremental recovery from the new future test year mechanism. After 2028, growth is expected to be stable and linear across all jurisdictions.