Can SR's Strategic Investments Support Sustainable Long-Term Growth?

Spire Inc. SR benefits from its strategic capital investment plan by directing resources toward gas utility infrastructure, system upgrades and new business opportunities. These investments are likely to expand its regulated asset base and enhance earnings visibility over the coming years.

Spire plans to invest $797 million in fiscal 2026 and about $11.2 billion through fiscal 2035, with 70% allocated to safety and reliability, 19% to customer expansion and 11% to other areas. These investments support the company’s 5-7% long-term adjusted earnings per share (EPS) growth target. 

These investments support rate filings that enable cost recovery, authorized returns and sustainable regulated earnings growth. Spire expects rate-base growth of about 7% in Missouri and 7.5% in Tennessee, while regulated equity growth is expected to reach about 6% in Alabama and the Gulf region. 

The company’s growth reflects its regulated utility focus and expanding customer base, driven by organic growth and acquisitions. Spire completed its acquisition of Piedmont Natural Gas’ Tennessee business, adding more than 200,000 customers and nearly 3,800 pipeline miles, strengthening its Tennessee footprint.

Meanwhile, the completed sales of Spire Marketing and Spire Storage have sharpened the company’s focus on regulated utilities and helped fund the Tennessee acquisition, positioning Spire for more predictable earnings and cash-flow growth.

Overall, Spire’s significant infrastructure investments, Tennessee expansion and stronger regulated utility focus could support more stable and sustainable earnings growth.

Capital Investment Fueling Utility Expansion

Regulated gas utilities are boosting capital investments to upgrade aging infrastructure, expand distribution capacity and enhance system reliability in response to growing demand. These expenditures can expand the regulated rate base while supporting long-term earnings through regulatory mechanisms. Alongside SR, other utilities are also pursuing significant capital investment plans, as highlighted below.

Atmos Energy ATO plans to invest approximately $4.2 billion in fiscal 2026 and $26 billion through 2030, with more than 80% allocated to safety and reliability.

MDU Resources MDU plans to invest nearly $3.1 billion through 2030 to modernize infrastructure, meet growing customer demand and enhance system reliability.

The Zacks Rundown on SR

SR’s Earnings Estimates

The Zacks Consensus Estimate for 2026 and 2027 EPS indicates a decrease of 9.68% and an increase of 37.31%, respectively, year over year.

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SR’s Dividend Yield

Spire currently offers a 3.99% dividend yield, exceeding the Gas Distribution industry's 3.07% average over the past year.

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SR’s Stock Price Performance

In the past year, the company’s shares have risen 9% compared with the industry’s 7.6% growth.

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SR’s Zacks Rank

SR currently has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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