The quarter broadly met, rather than reset, expectations. Adjusted EPS was a $0.26 loss, essentially in line with the published estimates that clustered around a roughly $0.25–$0.28 loss; reported revenue of $420.2 million was above one published $407.2 million estimate, though utility revenue includes fuel costs largely passed through to customers and is less informative than margin and EPS. The full-year adjusted-EPS range stayed at $3.90–$4.10, so there is no outlook upgrade to turn a narrow quarterly comparison into a stronger read. (Third Quarter Results; Guidance and Outlook)
| Metric | Fiscal Q3 2026 | Fiscal Q3 2025 | Expectation / context |
|---|---|---|---|
| Adjusted EPS from continuing operations | $(0.26) | $(0.29) | Published consensus roughly $(0.25)–$(0.28) (Third Quarter Results) |
| GAAP EPS from continuing operations | $(0.72) | $(0.29) | Includes transaction, transition and financing costs (Third Quarter Results) |
| Operating revenue | $420.2M | $352.5M | Published estimate: $407.2M (Condensed Consolidated Statements of Income) |
| Gas Utility adjusted loss | $(3.2M) | $(10.0M) | Underlying utility result improved (Adjusted Earnings by Segment) |
| Other adjusted loss | $(12.5M) | $(3.3M) | Corporate costs and interest expense worsened (Adjusted Earnings by Segment) |
| FY26 adjusted-EPS guidance | $3.90–$4.10 | — | Reaffirmed; no change (Guidance and Outlook) |
The regulated utility engine did improve, but the benefit did not fully reach consolidated earnings. Gas Utility’s adjusted loss narrowed by $6.8 million as new Missouri and Alabama rates, higher infrastructure-surcharge revenue, favorable Alabama cost-control performance, and off-system sales lifted contribution margin by $30.6 million. But higher depreciation, property taxes and interest absorbed much of that improvement, while the non-utility “Other” loss widened by $9.2 million. In short, the core regulated operations are tracking better, but financing and corporate costs remain a meaningful offset. (Gas Utility; Other; Contribution Margin and Reconciliation to GAAP)
The much weaker GAAP loss is primarily deal-cost noise, not a like-for-like collapse in operations. Continuing-operations GAAP EPS fell to $(0.72), but $36.0 million of pre-tax acquisition-related costs and a $1.5 million impairment account for most of the gap to adjusted EPS. The completed Marketing and Storage divestitures also produced a $254.6 million after-tax gain in discontinued operations, which lifts total reported EPS but does not improve the ongoing utility earnings base investors use for guidance. (Adjusted Earnings and Reconciliation to GAAP; Discontinued Operations)
The strategic simplification is now more confirmed than newly informative. Completing the two divestitures advances the planned shift toward a fully regulated utility portfolio, but the filing does not raise either FY26 or FY27 earnings guidance. Net debt and interest costs are higher following the Tennessee acquisition financing—long-term debt reached $5.76 billion at June 30 versus $3.37 billion at the prior fiscal year-end—so execution on the promised earnings growth still depends on rate recovery and returns from the larger utility investment base. (Condensed Consolidated Balance Sheets; Guidance and Outlook)
Read the original 8-K on SEC EDGAR ↗