10-QPeriod: Q1 FY2026

ATMOS ENERGY CORP Quarterly Report for Q1 Ended Dec 31, 2025

Filed February 3, 2026For Securities:ATO

Summary

Atmos Energy Corporation (ATO) reported a strong third quarter for fiscal year 2026, with net income increasing by 15% to $403.0 million compared to the prior year's $351.9 million. This growth was primarily driven by positive rate outcomes stemming from significant investments in safety and reliability, complemented by favorable legislative impacts in Texas related to infrastructure spending. The company's distribution segment saw a 10.5% increase in operating income, largely due to rate adjustments and customer growth, while the pipeline and storage segment experienced a 15.4% rise, supported by rate adjustments and increased contracted capacity. Capital expenditures remained robust at $1.03 billion, with over 85% allocated to enhancing the safety and reliability of its infrastructure. The company also successfully completed approximately $1.1 billion in long-term debt and equity financing, maintaining a strong equity capitalization of 59.9% as of December 31, 2025. With robust liquidity and strategic capital investments focused on modernization and safety, Atmos Energy is well-positioned to continue its growth trajectory and meet the evolving needs of its service areas.

Financial Highlights

42 data points
Beta

Revenue

$1.34B

Net Income

$402.96M

30.0% Net Margin

EPS (Diluted)

$2.44

Total Assets

$29.80B

Cash & Equivalents

$371.51M

Free Cash Flow

$308.06M

Financial Statements
Beta
Revenue$1.34B
Operating Income$514.76M
Net Income$402.96M
EPS (Basic)$2.48
EPS (Diluted)$2.44
Shares Outstanding (Basic)162.73M
Shares Outstanding (Diluted)164.87M

Key Highlights

  • 1Net income increased 15% year-over-year to $403.0 million, or $2.44 per diluted share.
  • 2Operating income for the Distribution segment grew 10.5% to $349.2 million.
  • 3Operating income for the Pipeline and Storage segment grew 15.4% to $165.5 million.
  • 4Capital expenditures totaled $1.03 billion, with over 85% dedicated to safety and reliability improvements.
  • 5The company successfully raised approximately $1.1 billion in long-term debt and equity financing.
  • 6Equity capitalization stood strong at 59.9% as of December 31, 2025.
  • 7Positive rate outcomes and Texas infrastructure legislation contributed significantly to financial performance.

Frequently Asked Questions

The primary drivers of Atmos Energy's 15% year-over-year increase in net income were positive rate outcomes from investments in safety and reliability, and favorable legislative impacts in Texas related to infrastructure spending. These factors collectively boosted operating income in both the distribution and pipeline segments.

Atmos Energy invested $1.03 billion in capital expenditures during the quarter, with over 85% of this amount dedicated to improving the safety and reliability of its distribution and transportation systems. This focus on infrastructure modernization is a key strategy for the company.

As of December 31, 2025, Atmos Energy maintained strong financial health with approximately $4.6 billion in total liquidity. This includes $367.0 million in cash and cash equivalents, $1.1 billion in available proceeds from equity forward sales agreements, and $3.1 billion in undrawn credit facilities. The company's equity capitalization was robust at 59.9%.

Regulatory actions, including implemented and pending rate adjustments, are significantly influencing Atmos Energy's performance. During the quarter, regulatory proceedings resulted in an increase of $122.5 million in annual operating income, reflecting the company's success in recovering investments made in infrastructure and safety through approved rates.