Research · Sep 3, 2026
[SR] Spire Inc. Thesis 2026: Pipeline Replacement Capex Sustains Multi-Year Rate Base Growth
Spire Inc. FY2025 (Sep 2025) adj. EPS ~$4.85 with rate base growing to ~$8.65B (+10% YoY) on ~$795M capex deployed across MO/AL/MS pipeline replacement programs. Dividend $3.105 covered at ~60-65% payout ratio. Missouri rate case filed mid-2025 seeking ~$290M annual revenue increase — outcome FY2026 critical for capex deployment continuity. FY2026 thesis: rate case constructive outcome (allowed ROE ~9.75-10%) sustains capex pace; rate base toward $9.5B; adj. EPS toward $5.10-5.40; dividend growth ~4-7% annually; key terminal-value risk: state-level building electrification policies (none in MO/AL/MS but federal direction creates uncertainty).
Research · Apr 10, 2026
SR Closes $2.48B Piedmont Deal: Undervalued Utility With 5–7% EPS Growth Ahead?
Spire completes $2.48B buy of DUK's Tennessee gas unit, expanding into Nashville growth markets with accretive EPS potential. SR's fwd P/E at 15.8x undervalues the scale-up, though leverage bears watching; DUK uses proceeds for capex efficiency. Bullish on SR for 5-7% EPS trajectory.
Research · Apr 10, 2026
DUK Sells Indiana Gas Unit for $2.15B — What It Means for Duke's Strategy
Piedmont Natural Gas closed its $2.48B sale of Tennessee operations to Spire on March 31, 2026, delivering cash to Duke Energy for strategic reinvestment. The move streamlines the portfolio toward high-growth electric assets amid utility consolidation. Investors benefit from deleveraging and sustained dividends, supporting a bullish outlook.
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