Spire Inc. Reports Reduction in Net Economic Earnings Loss to $0.14

Spire Inc. has announced a reduced net economic earnings loss of $0.14 per share for the fiscal third quarter of 2024, an improvement from the $0.42 per share loss reported in the same quarter of the previous year. The company’s focus on cost management and enhanced efficiency, coupled with its economic development initiatives, are key elements of its strategy aimed at increasing affordability for customers and promoting long-term growth. Spire also adjusted its earnings guidance for fiscal year 2024 to a range of $4.15 to $4.25 per share.

### Key Takeaways
– Spire Inc. reported a net economic earnings loss of $0.14 per share for Q3 2024.
– The company is focusing on cost management strategies to enhance customer affordability.
– Expected benefits from these strategies are projected for fiscal 2025 and 2026.
– Economic development projects are actively being pursued in Missouri and Alabama.
– The sixth sustainability report indicates progress in various target areas.
– New rates in Missouri and Alabama have positively affected Spire’s gas utilities.
– A general rate case is set to be filed in Missouri in Q4 2024.
– The updated FY 2024 earnings guidance is now $4.15 to $4.25 per share.

### Company Outlook
– Spire aims to achieve its long-term growth targets.
– Growth is anticipated in its midstream business following recent investments.
– The company expects more typical weather patterns and operational benefits in the upcoming year.
– The funds from operations (FFO) to debt ratio is above 12%, with a target range of 15% to 16%.

### Bearish Highlights
– Increased interest expenses have adversely impacted financial results.
– Restructuring charges have been incurred, but future costs remain unspecified.

### Bullish Highlights
– The acquisition of MoGas and Salt Plains has positively influenced earnings.
– The marketing segment is recognized as a valuable growth area.
– Spire is benefiting from cost control measures and a three-year financing plan that bolster financial health.

### Misses
– No information was provided regarding the expected rate increase in Missouri.
– Growth assumptions for the marketing business and expectations for interest rates were not detailed.

### Q&A Highlights
– The marketing business’s growth stems from team expansion, growing relationships, and additional contracts.
– The marketing aspect is asset-light and is well-regarded within the industry.
– Spire did not foresee lower interest rates; higher gas balances were unexpected.
– Discussions regarding dividend growth will be held with the board at year-end.
– Capital expenditures are anticipated to decline following the completion of current projects.

Spire Inc. is committed to its strategic initiatives aimed at securing long-term profitability and ensuring customer satisfaction. The company’s proactive measures in cost management, efficiency, sustainability, and community development are expected to yield benefits in the upcoming fiscal years. With a solid capital allocation strategy and positive outlook for its utilities and marketing segments, Spire is prepared to tackle forthcoming challenges while fulfilling its service commitments to customers.