Atmos Energy Stock Earnings Reports

Atmos Energy reported fiscal 2026 Q1 net income of $403 million, or $2.44 diluted EPS (up 9.4% YoY). Q1 capex was roughly $1.0 billion, with over 85% directed to safety and reliability investments across distribution, transmission and storage. The company reiterated rebased FY26 guidance of $8.15–$8.35 EPS and reset the FY26 dividend to $4.00, with intent to grow dividends in line with 6–8% annual EPS growth. The quarter included a $35 million ($0.16 EPS) benefit from Texas House Bill 4384 deferrals, though management cautioned that the run rate is timing-dependent and not appropriate to simply annualize. Atmos Pipeline-Texas (APT) hit several project milestones (55 miles of 36” pipeline to Groesbeck, 13 miles placed in service on the Line WA Loop with remaining miles expected this spring, takeaway capacity more than doubled at Bethel, and two interconnects adding 700,000 Mcf/day). Customer additions remain steady (+~54,000 in the 12 months ending 12/31/25, ~42,000 in Texas); customer satisfaction metrics remain high (98% for the quarter, J.D. Power recognition). APT through-system volumes were slightly lower (maintenance-related), but spreads widened significantly (avg $3.99 vs $1.56 prior year), contributing ~ $7 million operating income. Consolidated O&M rose ~$23 million driven by compliance/safety work (+$12M), higher employee costs (+$5M) and maintenance timing. Regulatory activity: $123 million of annualized operating income increases have been implemented in distribution; five filings in progress (~$81M) and one planned filing this fiscal year targeting ~ $400M of annualized operating income. Financing: completed over $1.0 billion of long-term debt/equity financing in the quarter (including $600M long-term debt in Oct 2025) and settled $472M of equity forwards; equity capitalization ~60%, no short-term debt outstanding, and available liquidity ~$4.6 billion (including ~$1.1B net proceeds under forward sale agreements). Management believes results position the company to achieve rebased FY26 guidance and remain on track for the $4.2B FY26 capex plan.