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Can SR's Regulated Utility Focus Deliver Consistent Earnings Growth?
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Key Takeaways
Spire is shifting into a pure-play regulated gas utility through acquisitions and non-core asset sales.
The Tennessee acquisition adds 200,000 customers, 3,800 pipeline miles and $1.6B in rate base.
Spire plans $11.2B in 10-year investments to support 5-7% adjusted EPS growth.
Spire Inc. (SR - Free Report) is transforming into a pure-play regulated gas utility through strategic acquisitions and the divestiture of non-core assets. This transformation further helps in reducing business risk and improving cash flow. The company's portfolio simplification continues to support consistent earnings expansion through constructive rate outcomes and disciplined infrastructure investment.
On June 30, 2026, Spire completed the $650 million sale of its Wyoming and Oklahoma natural gas storage businesses. On April 30, 2026, it sold Spire Marketing for $215 million, with the proceeds helping fund the March 31, 2026, acquisition of Piedmont Natural Gas Tennessee.
The Tennessee acquisition adds 200,000 customers, 3,800 pipeline miles and $1.6 billion in rate base, expanding Spire’s regulated footprint and supporting long-term earnings growth without issuing common equity.
Spire strengthened its regulated-utility focus through the Piedmont Natural Gas Tennessee acquisition and the divestitures of its Marketing and Storage businesses. On April 22, 2026, Spire agreed to sell its Mississippi natural-gas business to Delta Utilities for $75 million, with the closing expected in fiscal 2027. Subject to regulatory approval, the divestiture is expected to further streamline Spire's portfolio and sharpen its focus on regulated-utility operations.
The company plans to invest $11.2 billion over 10 years, supporting 5-7% adjusted EPS growth and rate base growth of 7% in Missouri and 7.5% in Tennessee. Spire's growing regulated utility platform, combined with disciplined capital allocation and supportive regulation, is expected to drive predictable earnings growth and enhance long-term shareholder value.
Expanding the Regulated Footprint Reduces Business Risk
Expanding the regulated footprint lowers business risk by reducing exposure to commodity price volatility. A larger regulated asset base enhances earnings visibility and enables consistent long-term shareholder returns.
ONE Gas (OGS - Free Report) benefits from its fully regulated model, which supports stable earnings and cash flows, while its $4.3 billion five-year investment plan targets 7-9% annual rate base growth and 5-7% EPS growth.
UGI Corporation (UGI - Free Report) is increasing its emphasis on regulated utility operations, which provide stable and predictable earnings through the regulated natural gas distribution and support 5-7% annual EPS growth.
SR’s Earnings Estimates
The Zacks Consensus Estimate for 2026 and 2027 EPS indicates a decrease of 9.46% and an increase of 37.47%, respectively, year over year.
Image Source: Zacks Investment Research
SR’s Dividend Yield
Spire currently offers a 4.23% dividend yield, exceeding the Gas Distribution industry's 3.08% average over the past year.
Image Source: Zacks Investment Research
SR’s Stock Price Performance
In the past year, the company’s shares have risen 6.2% compared with the industry’s 11.1% growth.
View the Zacks #1 Rank List
Image: Bigstock
Can SR's Regulated Utility Focus Deliver Consistent Earnings Growth?
Key Takeaways
Spire Inc. (SR - Free Report) is transforming into a pure-play regulated gas utility through strategic acquisitions and the divestiture of non-core assets. This transformation further helps in reducing business risk and improving cash flow. The company's portfolio simplification continues to support consistent earnings expansion through constructive rate outcomes and disciplined infrastructure investment.
On June 30, 2026, Spire completed the $650 million sale of its Wyoming and Oklahoma natural gas storage businesses. On April 30, 2026, it sold Spire Marketing for $215 million, with the proceeds helping fund the March 31, 2026, acquisition of Piedmont Natural Gas Tennessee.
The Tennessee acquisition adds 200,000 customers, 3,800 pipeline miles and $1.6 billion in rate base, expanding Spire’s regulated footprint and supporting long-term earnings growth without issuing common equity.
Spire strengthened its regulated-utility focus through the Piedmont Natural Gas Tennessee acquisition and the divestitures of its Marketing and Storage businesses. On April 22, 2026, Spire agreed to sell its Mississippi natural-gas business to Delta Utilities for $75 million, with the closing expected in fiscal 2027. Subject to regulatory approval, the divestiture is expected to further streamline Spire's portfolio and sharpen its focus on regulated-utility operations.
The company plans to invest $11.2 billion over 10 years, supporting 5-7% adjusted EPS growth and rate base growth of 7% in Missouri and 7.5% in Tennessee.
Spire's growing regulated utility platform, combined with disciplined capital allocation and supportive regulation, is expected to drive predictable earnings growth and enhance long-term shareholder value.
Expanding the Regulated Footprint Reduces Business Risk
Expanding the regulated footprint lowers business risk by reducing exposure to commodity price volatility. A larger regulated asset base enhances earnings visibility and enables consistent long-term shareholder returns.
ONE Gas (OGS - Free Report) benefits from its fully regulated model, which supports stable earnings and cash flows, while its $4.3 billion five-year investment plan targets 7-9% annual rate base growth and 5-7% EPS growth.
UGI Corporation (UGI - Free Report) is increasing its emphasis on regulated utility operations, which provide stable and predictable earnings through the regulated natural gas distribution and support 5-7% annual EPS growth.
SR’s Earnings Estimates
The Zacks Consensus Estimate for 2026 and 2027 EPS indicates a decrease of 9.46% and an increase of 37.47%, respectively, year over year.
Image Source: Zacks Investment Research
SR’s Dividend Yield
Spire currently offers a 4.23% dividend yield, exceeding the Gas Distribution industry's 3.08% average over the past year.
Image Source: Zacks Investment Research
SR’s Stock Price Performance
In the past year, the company’s shares have risen 6.2% compared with the industry’s 11.1% growth.
Image Source: Zacks Investment Research
SR’s Zacks Rank
SR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.