Spire Inc. (SR) Income Statement

Revenue growth in 2026Q1 was robust at 13.9% year-over-year, but the pattern across quarters shows significant volatility, with 2026Q2 and 2025Q2 revenues declining 3.0% and 6.8% respectively. This suggests that growth is not uniform and may be influenced by weather and rate case timing. The durability of this growth depends on continued capital investment and constructive regulatory outcomes, which appear supportive given the consistent rate base expansion.

Operating margins in peak quarters (Q2) are strong, but off-peak quarters show thin or negative margins, indicating that the utility may not be earning its authorized return consistently across the year. The gap between authorized and earned ROE appears to be influenced by regulatory lag, as costs are recovered with a delay. Investors should monitor whether recent rate cases have narrowed this gap, as a widening could signal deteriorating regulatory relationships.

The negative net income in 2024Q4 and 2025Q4, despite positive operating income in some cases, suggests that cost recovery may not be timely, leading to interest expense and other costs weighing on earnings. However, the absence of interest expense data limits a full assessment. The regulatory construct appears to provide recovery, but the lag may be a source of volatility.

The steady increase in depreciation and amortization suggests that Spire is investing heavily in its infrastructure, which should translate into rate base growth and, ultimately, higher earnings through regulatory mechanisms. However, the EPS growth in 2026Q2 (31.1%) may be partly due to rate case outcomes rather than pure CAPEX-driven growth. The sustainability of this growth depends on the ability to recover these investments through rates.