Atmos Energy (ATO) Q1 2026 earnings summary

Executive summary

• Net income for Q1 FY2026 was $403 million, or $2.44 per diluted share, up from $351.9 million and $2.23 per share year-over-year, driven by positive rate outcomes and Texas legislation.

• Over $1 billion in capital expenditures, with 85%–89% focused on safety and reliability enhancements.

• Customer base grew by nearly 54,000 over the past 12 months, with strong growth in Texas and high satisfaction ratings.

• Maintained strong liquidity of $4.6 billion and equity capitalization near 60%.

• Annual dividend increased 14.9% to $4.00 per share, marking 42 consecutive years of growth.

Financial highlights

• Diluted EPS for Q1 was $2.44, up from $2.23, with net income margin and operating income both improving year-over-year.

• Capital expenditures rose to $1,033.3 million from $891.2 million year-over-year.

• Operating income increased to $514.8 million, with segment growth in both Distribution and Pipeline & Storage.

• Cash flow from operating activities was $308.1 million, up from $282.0 million.

• Rate increases and legislative changes contributed over $122 million in annualized operating income.

Outlook and guidance

• Fiscal 2026 EPS guidance is $8.15–$8.35 per share, with net income guidance of $1,380–$1,400 million.

• Capital spending plan for fiscal 2026 is $4.2 billion, with long-term plans for $26 billion through 2030.

• Annual dividend rebased to $4 per share, with planned growth in line with 6%-8% EPS growth.

• O&M expenses (excluding bad debt) guided at $865–$885 million; D&A at $785–$795 million; interest at $340–$350 million.

• Liquidity sources expected to be sufficient for all capital and working capital needs in fiscal 2026.