Atmos Energy (ATO) Q1 2026 earnings summary

Executive summary

• Net income for Q1 FY2026 was $403 million, or $2.44 per diluted share, up 15% year-over-year, driven by positive rate outcomes and Texas legislation.

• Capital expenditures exceeded $1 billion, with over 85% allocated to safety and reliability initiatives.

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

• Maintained a strong financial profile with equity capitalization near 60% and $4.6 billion in available liquidity.

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

Financial highlights

• Diluted EPS for Q1 was $2.44, up from $2.23 year-over-year.

• Consolidated net income: $269 million (Distribution), $134 million (Pipeline & Storage), both up year-over-year.

• Operating income rose to $514.8 million from $459.5 million, with both segments posting double-digit growth.

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

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

Outlook and guidance

• Fiscal 2026 EPS guidance affirmed at $8.15–$8.35 per share.

• Net income guidance for FY2026 is $1,380–$1,400 million.

• Capital spending plan for fiscal 2026 is $4.2 billion.

• Anticipated capital expenditures of $26 billion between 2026 and 2030, with over 80% for safety and reliability.

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