Spire Alabama Serves 0.4M Customers, Regulated by APSC

TL;DR

**Spire Alabama is a rock-solid, regulated utility, providing predictable cash flow to its parent Spire Inc. through its dominant position in Alabama's natural gas distribution.**

AI Summary

Spire Alabama Inc., a subsidiary of Spire Inc., filed its 10-K for the fiscal year ended September 30, 2025. As the largest natural gas distribution utility in Alabama, it serves over 0.4 million residential, commercial, and industrial customers in central and northern Alabama, including Birmingham and Montgomery. Spire Alabama's operations are regulated by the Alabama Public Service Commission (APSC), which authorizes its rates and tariffs. The company purchases natural gas from interstate and intrastate suppliers for retail distribution and sale, and also transports gas for large commercial and industrial customers. Its common stock, with a par value of $0.01 per share, consists of 1,972,052 shares, all owned by its parent company, Spire Inc. Spire Alabama had 748 employees as of September 30, 2025, with 389 covered by labor agreements, including those with USW Local 12030 and United Association of Gas Fitters Local 548, whose contracts expire in April 2026 and April 2028, respectively. The company's earnings are typically concentrated during the heating season from November through April.

Why It Matters

Spire Alabama's stable, regulated utility operations provide essential natural gas services to over 400,000 customers in key Alabama markets like Birmingham and Montgomery, ensuring reliable energy access. For investors in parent company Spire Inc. (SR), Spire Alabama represents a consistent revenue stream within the Gas Utility segment, contributing to overall financial stability. Its regulatory framework with the APSC provides a degree of predictability, differentiating it from more volatile energy sectors. The company's labor agreements, covering 389 employees, are crucial for operational continuity and employee relations, impacting service delivery and potential competitive advantages in the regional energy market.

Risk Assessment

Risk Level: low — Spire Alabama operates as a regulated utility, which inherently reduces market volatility risks. Its rates and tariffs are authorized by the Alabama Public Service Commission (APSC), providing a stable revenue environment. The company's status as a subsidiary with all equity owned by Spire Inc. further insulates it from direct public market pressures.

Analyst Insight

Investors should view Spire Alabama as a stable, foundational asset within Spire Inc.'s portfolio, contributing to consistent earnings. Monitor APSC regulatory decisions and the renewal of labor contracts, particularly the United Association of Gas Fitters Local 548 contract expiring in April 2028, for any potential operational impacts.

Financial Highlights

debt To Equity

X.X

revenue

$X

operating Margin

X%

total Assets

$X

total Debt

$X

net Income

$X

eps

$X

gross Margin

X%

cash Position

$X

revenue Growth

+X%

Key Numbers

• 0.4 million — customers served (residential, commercial, and industrial customers in central and northern Alabama)
• 1,972,052 — shares outstanding (Spire Alabama common stock, all owned by Spire Inc.)
• 748 — employees (total employees of Spire Alabama as of September 30, 2025)
• 389 — employees covered by labor agreements (as of September 30, 2025)
• April 30, 2026 — contract end date (for USW Local 12030 covering 193 employees)
• April 30, 2028 — contract end date (for United Association of Gas Fitters Local 548 covering 196 employees)

Key Players & Entities

• Spire Alabama Inc. (company) — largest natural gas distribution utility in Alabama
• Spire Inc. (company) — parent company and holding company
• Alabama Public Service Commission (regulator) — regulates Spire Alabama's rates and tariffs
• Birmingham (location) — city served by Spire Alabama
• Montgomery (location) — state capital served by Spire Alabama
• $0.01 (dollar_amount) — par value per share of common stock
• 1,972,052 (dollar_amount) — shares of common stock outstanding for Spire Alabama
• 748 (dollar_amount) — total employees of Spire Alabama as of September 30, 2025
• USW Local 12030 (company) — union with contract expiring April 30, 2026
• United Association of Gas Fitters Local 548 (company) — union with contract expiring April 30, 2028

FAQ

Risk Factors

• APSC Rate Regulation [high — regulatory]: Spire Alabama's operations are subject to regulation by the Alabama Public Service Commission (APSC), which authorizes its rates and tariffs. Changes in regulatory decisions, including rate case outcomes or disallowances, can significantly impact the company's revenue and profitability. The company's ability to recover costs and earn a fair rate of return is dependent on APSC approvals.
• Labor Agreement Expirations [medium — operational]: The company has two significant labor agreements expiring in the near future: USW Local 12030 in April 2026 and United Association of Gas Fitters Local 548 in April 2028. A substantial portion of its workforce (389 out of 748 employees) is covered by these agreements. Potential work stoppages, strikes, or unfavorable renegotiated terms could disrupt operations and increase labor costs.
• Natural Gas Price Volatility [medium — market]: Spire Alabama purchases natural gas from interstate and intrastate suppliers for distribution and sale. Fluctuations in natural gas commodity prices can impact the cost of goods sold and, if not fully recoverable through approved rates, affect profit margins. Extreme price volatility can also influence customer demand.
• Seasonal Demand Concentration [medium — operational]: The company's earnings are typically concentrated during the heating season from November through April. This seasonality exposes the company to risks associated with warmer-than-average winters, which can reduce demand and revenue. Conversely, colder winters can increase demand but also strain infrastructure.
• Infrastructure Integrity and Safety [high — operational]: As a natural gas distributor, Spire Alabama is responsible for maintaining the integrity and safety of its extensive pipeline network. Aging infrastructure, potential leaks, or accidents could lead to significant repair costs, regulatory penalties, and reputational damage. Compliance with safety regulations is paramount.
• Parent Company Dependence [low — financial]: Spire Alabama is a wholly-owned subsidiary of Spire Inc., with all 1,972,052 shares owned by the parent. While this provides potential access to capital, it also means the subsidiary's financial health and strategic decisions are closely tied to the parent company's overall financial condition and objectives.
• Cybersecurity Threats [medium — cybersecurity]: The company's operations rely on sophisticated information technology systems for managing distribution, customer service, and financial reporting. A successful cyberattack could disrupt operations, compromise sensitive data, and lead to significant financial and reputational harm. The company is required to implement measures to protect against such threats.

Industry Context

Spire Alabama operates within the regulated natural gas distribution utility sector in Alabama. This industry is characterized by significant capital investment in infrastructure, stable but regulated customer demand, and a strong reliance on commodity prices. Key trends include the ongoing transition towards cleaner energy sources, increasing focus on cybersecurity, and the need for continuous infrastructure modernization to ensure safety and reliability.

Regulatory Implications

The company's operations are heavily influenced by the Alabama Public Service Commission (APSC), which dictates rates and service standards. Any adverse regulatory changes, such as unfavorable rate case decisions or stricter environmental compliance mandates, could negatively impact financial performance. Maintaining a constructive relationship with the APSC and demonstrating compliance with all regulations is critical for sustained operations.

What Investors Should Do

1. Monitor APSC proceedings and rate case outcomes.
2. Assess labor negotiation progress and outcomes.
3. Evaluate natural gas price hedging strategies and commodity cost pass-through mechanisms.

Key Dates

• 2026-04-30: USW Local 12030 Labor Contract Expiration — This contract covers 193 employees and its expiration poses a risk of labor disruption or increased costs if negotiations are unfavorable.
• 2028-04-30: United Association of Gas Fitters Local 548 Labor Contract Expiration — This contract covers 196 employees and its expiration presents a similar risk of labor disruption or cost increases in the medium term.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC) that provides a comprehensive summary of a company's financial performance. (This document is the 10-K filing for Spire Alabama Inc., providing the basis for this analysis.)

APSC

Alabama Public Service Commission, the state agency responsible for regulating utilities in Alabama. (The APSC regulates Spire Alabama's rates and tariffs, significantly impacting its revenue and profitability.)

Interstate and Intrastate Suppliers

Suppliers of natural gas that operate either across state lines (interstate) or within a single state (intrastate). (Spire Alabama relies on these suppliers for its natural gas supply, making it subject to the pricing and availability from these sources.)

Par Value

A nominal value assigned to a security by the issuer, often a very small amount like $0.01 per share for common stock. (Indicates the nominal value of Spire Alabama's common stock, which is entirely owned by its parent company, Spire Inc.)

Subsidiary

A company controlled by a parent company. (Spire Alabama Inc. is a subsidiary of Spire Inc., meaning its operations and financial performance are consolidated into the parent's reporting.)

Tariffs

Schedules of rates and charges that a utility company can charge its customers for services, approved by a regulatory body. (The APSC authorizes Spire Alabama's tariffs, which directly determine the company's revenue streams.)

Year-Over-Year Comparison

This analysis is based on the 10-K for the fiscal year ended September 30, 2025. A comparison to the previous year's filing would require access to that document to identify changes in revenue, net income, margins, debt levels, and any newly identified risk factors or changes in existing ones. Without the prior year's 10-K, a direct year-over-year comparison of key metrics and risk landscape cannot be provided.

Key Financial Figures

• $1.00 — ange on which registered Common Stock $1.00 par value SR New York Stock Exchang
• $25.00 — le Perpetual Preferred Stock, par value $25.00 per share SR.PRA New York Stock Exc
• $0.01 — Alabama Inc. Common Stock, par value $0.01 per share (all owned by Spire Inc.) 1
• $6,000 — s, all employees are eligible for up to $6,000 annually in tuition assistance and have

Filing Documents

• sr-20250930.htm (10-K) — 12326KB
• sr-ex10_47.htm (EX-10.47) — 1166KB
• sr-ex10_48.htm (EX-10.48) — 309KB
• sr-ex10_49.htm (EX-10.49) — 939KB
• sr-ex19.htm (EX-19) — 112KB
• sr-ex21.htm (EX-21) — 48KB
• sr-ex23_1.htm (EX-23.1) — 4KB
• sr-ex23_2.htm (EX-23.2) — 3KB
• sr-ex23_3.htm (EX-23.3) — 4KB
• sr-ex31_1.htm (EX-31.1) — 35KB
• sr-ex31_2.htm (EX-31.2) — 35KB
• sr-ex31_3.htm (EX-31.3) — 35KB
• sr-ex32_1.htm (EX-32.1) — 19KB
• sr-ex32_2.htm (EX-32.2) — 20KB
• sr-ex32_3.htm (EX-32.3) — 21KB
• img8740566_0.jpg (GRAPHIC) — 67KB
• img8740566_1.jpg (GRAPHIC) — 130KB
• img150071893_0.jpg (GRAPHIC) — 108KB
• 0001193125-25-282583.txt ( ) — 52537KB
• sr-20250930.xsd (EX-101.SCH) — 2763KB
• sr-20250930_htm.xml (XML) — 15171KB

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS 3 Item 1

Business

Business 4 Item 1A

Risk Factors

Risk Factors 10 Item 1B Unresolved Staff Comments 21 Item 1C Cybersecurity 21 Item 2

Properties

Properties 22 Item 3

Legal Proceedings

Legal Proceedings 22 Item 4 Mine Safety Disclosures 22 Information about our Executive Officers (Item 401(b) of Regulation S-K) 23 PART II 24 Item 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 24 Item 6 (Reserved) 25 Item 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 26 Item 7A

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 39 Item 8

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 40 Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 108 Item 9A

Controls and Procedures

Controls and Procedures 108 Item 9B Other Information 109 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 109 PART III 110 Item 10 Directors, Executive Officers and Corporate Governance 110 Item 11

Executive Compensation

Executive Compensation 110 Item 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 110 Item 13 Certain Relationships and Related Transactions, and Director Independence 110 Item 14 Principal Accounting Fees and Services 110 PART IV 111 Item 15 Exhibits, Financial Statement Schedules 111 Item 16 Form 10-K Summary 116

SIGNATURES

SIGNATURES 117 1 Table of Contents GLOSSARY OF KEY TERMS AND ABBREVIATIONS AOCI Accumulated other comprehensive income or loss NYMEX New York Mercantile Exchange, Inc. APSC Alabama Public Service Commission NYSE New York Stock Exchange ASC Accounting Standards Codification O&M Operation and maintenance expense ASU Accounting Standards Update OCI Other comprehensive income or loss CCF A gas measurement which represents a unit of volume equal to one hundred cubic feet OFO Operational Flow Order CCM Cost Control Measure PGA Purchased Gas Adjustment Company Spire and its subsidiaries unless the context suggests otherwise RSE Rate Stabilization and Equalization EPS Earnings per share SEC U.S. Securities and Exchange Commission ESR Enhanced Stability Reserve Spire Spire Inc. FASB Financial Accounting Standards Board Spire Alabama Spire Alabama Inc. FERC Federal Energy Regulatory Commission Spire EnergySouth Spire EnergySouth Inc., parent of Spire Gulf and Spire Mississippi GAAP Accounting principles generally accepted in the United States of America Spire Gulf Spire Gulf Inc. Gas Marketing Segment including Spire Marketing, which provides natural gas marketing services Spire Marketing Spire Marketing Inc. Gas Utility Segment including the operations of the Utilities Spire Mississippi Spire Mississippi Inc. GSA Gas Supply Adjustment Spire Missouri Spire Missouri Inc. ICE Intercontinental Exchange Spire MoGas Pipeline or MoGas Spire MoGas Pipeline LLC, a 263-mile FERC-regulated natural gas pipeline, together with Omega Pipeline, a connected 75-mile distribution system in Missouri ISRS Infrastructure System Replacement Surcharge Spire STL Pipeline Spire STL Pipeline LLC, a 65-mile FERC-regulated natural gas pipeline it constructed and operates to deliver natural gas into eastern Missouri Midstream Segment includin

View Full Filing

View this 10-K filing on SEC EDGAR