10-QPeriod: Q2 FY2026

ATMOS ENERGY CORP Quarterly Report for Q2 Ended Mar 31, 2026

Filed May 6, 2026For Securities:ATO

Summary

Atmos Energy Corporation (ATO) reported strong financial results for the six months ended March 31, 2026, with net income increasing by 18% to $984.9 million, or $5.92 per diluted share, compared to the same period in the prior year. This growth was primarily driven by favorable rate outcomes stemming from significant investments in safety and reliability initiatives across its regulated natural gas distribution and pipeline segments. The company continues to execute its substantial capital expenditure program, with over 80% of its projected $26 billion investment between fiscal years 2026 and 2030 dedicated to enhancing system safety and reliability. Atmos Energy benefits from regulatory mechanisms that aim to reduce 'regulatory lag,' allowing for timely recovery of these investments. With a strong equity capitalization of 60.9% as of March 31, 2026, and substantial liquidity, the company appears well-positioned to fund its ongoing capital projects and strategic objectives.

Financial Highlights

42 data points
Beta

Revenue

$1.96B

Net Income

$581.90M

29.7% Net Margin

EPS (Diluted)

$3.47

Total Assets

$30.38B

Cash & Equivalents

$127.11M

Free Cash Flow

$723.49M

Financial Statements
Beta
Revenue$1.96B
Operating Income$764.80M
Net Income$581.90M
EPS (Basic)$3.49
EPS (Diluted)$3.47
Shares Outstanding (Basic)166.46M
Shares Outstanding (Diluted)167.81M

Key Highlights

  • 1Net income for the six months ended March 31, 2026, rose 18% to $984.9 million ($5.92/diluted share), driven by rate case outcomes and infrastructure spending recovery.
  • 2Operating income for the distribution segment increased 14.4% due to rate adjustments, primarily in the Mid-Tex Division, and customer growth.
  • 3Pipeline and storage segment operating income saw a 26.2% increase, largely from rate adjustments following GRIP filings and increased capacity contracts.
  • 4Capital expenditures for the six months totaled $2,036.9 million, with over 85% allocated to safety and reliability improvements in distribution and transportation systems.
  • 5The company maintained strong liquidity, with approximately $4.1 billion in total liquidity, including cash, equity forward sales agreements, and undrawn credit facilities.
  • 6Equity capitalization stood at a healthy 60.9% as of March 31, 2026.
  • 7Atmos Energy remains compliant with all debt covenants, reporting a total debt-to-total-capitalization ratio of 40%.

Frequently Asked Questions

The primary driver of Atmos Energy's 18% increase in net income for the six months ended March 31, 2026, was favorable rate outcomes from implemented regulatory proceedings and legislation related to infrastructure spending, which offset increased depreciation and safety-related expenses.

Atmos Energy is making significant capital investments, with $2,036.9 million spent in the first six months of fiscal year 2026. Over 85% of this spending is dedicated to improving the safety and reliability of its distribution and transportation systems.

As of March 31, 2026, Atmos Energy maintained a strong equity capitalization of 60.9% and reported a total debt-to-total-capitalization ratio of 40%, well within its debt covenants. The company also had approximately $4.1 billion in total liquidity.

The filing notes that during the first six months of fiscal 2026, Atmos Energy implemented regulatory proceedings resulting in a $135.3 million increase in annual operating income. Additionally, as of March 31, 2026, ratemaking efforts were in progress seeking a total increase in annual operating income of $599.2 million across various divisions and rate actions.