10-KPeriod: FY2025

ATMOS ENERGY CORP Annual Report, Year Ended Sep 30, 2025

Filed November 14, 2025For Securities:ATO

Summary

Atmos Energy Corporation (ATO) reported a strong fiscal year 2025, with net income increasing by approximately 15% to $1.199 billion, or $7.46 per diluted share. This growth was primarily driven by successful rate outcomes, reflecting investments in safety and reliability, and favorable legislative impacts in Texas regarding infrastructure spending. The company's capital expenditure program remained robust, with $3.6 billion invested, predominantly in modernizing its distribution and transmission systems to enhance safety and reliability. Atmos Energy also maintained a solid financial position, ending the year with approximately $4.9 billion in total liquidity and an equity capitalization of 60.3%, demonstrating its ability to fund its extensive capital investment plans and meet its financial obligations. The company's operational strategy continues to focus on modernizing infrastructure and reducing regulatory lag, which is supported by regulatory mechanisms in place across its service territories that allow for timely recovery of capital expenditures. Atmos Energy's commitment to safety is a core tenet, reflected in the significant portion of capital allocation dedicated to system integrity. The company's diversified operations across eight states provide a stable revenue base, and its proactive approach to regulatory engagement positions it well for continued investment and service delivery.

Financial Statements
Beta
Revenue$4.70B
Operating Income$1.56B
Net Income$1.20B
EPS (Basic)$7.54
EPS (Diluted)$7.46
Shares Outstanding (Basic)158.94M
Shares Outstanding (Diluted)160.57M

Key Highlights

  • 1Net income increased by approximately 15% to $1.199 billion ($7.46 per diluted share) in fiscal year 2025, driven by rate outcomes and Texas infrastructure legislation.
  • 2Capital expenditures totaled $3.6 billion, with over 80% dedicated to safety and reliability investments in modernizing infrastructure.
  • 3The company ended fiscal year 2025 with strong liquidity of approximately $4.9 billion and an equity capitalization of 60.3%.
  • 4Regulatory mechanisms, including formula rate mechanisms and infrastructure programs, allow for efficient recovery of capital expenditures, with most recoverable within six to twelve months.
  • 5Atmos Energy operates in eight states, serving approximately 3.4 million customers, demonstrating a diversified and stable operating base.
  • 6The company's safety-focused vision is supported by ongoing investments in pipeline integrity and system modernization.
  • 7Total operating revenues increased to $4.7 billion in fiscal year 2025, reflecting growth in both the distribution and pipeline and storage segments.

Frequently Asked Questions

Atmos Energy's financial performance in fiscal year 2025 was primarily driven by positive rate outcomes resulting from investments in safety and reliability, and favorable legislative impacts in Texas related to infrastructure spending. These factors contributed to a 15% increase in net income.

Atmos Energy funds its capital expenditure program through a combination of internally generated cash flows and external debt and equity financing. The company has access to a $1.5 billion commercial paper program, $3.1 billion in committed revolving credit facilities, and a $8.0 billion shelf registration statement, providing ample liquidity and financial flexibility.

Atmos Energy employs several strategies to reduce regulatory lag, including implementing formula rate mechanisms in four states that allow for annual rate reviews and adjustments, and infrastructure programs in all states that permit annual rate adjustments for qualifying capital expenditures. These programs enable the company to recover approximately 95% of its capital expenditures within six months.

While Atmos Energy's purchased gas cost adjustment mechanisms generally insulate its own earnings from commodity price fluctuations, it mitigates the impact on customers by using a combination of physical storage, fixed-price forward contracts, and financial instruments to manage natural gas price volatility, particularly during the winter heating season. For the 2024-2025 heating season, it hedged approximately 24.0 Bcf of winter flowing gas requirements.