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Mar 31, 2025
Atmos Q2 2025 Earnings Report
Atmos reported solid financial results in Q2 FY25 with increased earnings and continued infrastructure investments.
Key Takeaways
Atmos delivered strong Q2 FY25 results with growth in net income and EPS, driven by rate adjustments and customer growth, while maintaining robust capital investment in safety and reliability.
Net income rose to $486 million, up from $432 million in the prior-year quarter.
Diluted EPS for the quarter was $3.03, compared to $2.85 last year.
Capital expenditures reached $839.7 million for the quarter, with 85% focused on safety and reliability.
Operating income increased to $628.9 million, driven by both distribution and pipeline & storage segments.
Forward Guidance
Atmos raised its fiscal 2025 EPS guidance, driven by operational efficiencies, tax savings, and customer growth.
Positive Outlook
- Increased FY25 EPS guidance to $7.20–$7.30.
- Anticipated $21 million in reduced property taxes in Texas.
- Expected $14 million reduction in bad debt expense in Mississippi.
- Planned capital spending of approximately $3.7 billion.
- Strong regulatory outcomes supporting future revenue growth.
Challenges Ahead
- Rising employee-related costs are expected to pressure margins.
- Ongoing increases in depreciation and property taxes.
- Higher compliance-related O&M expenses projected.
- Bad debt expense volatility due to regulatory changes.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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