ATMOS ENERGY CORP has recently released its 10-K report, detailing its operations in the regulated natural gas distribution, and pipeline and storage businesses in the United States. The company operates through two segments, Distribution, and Pipeline and Storage. The Distribution segment distributes natural gas to approximately 3.4 million residential, commercial, public authority, and industrial customers, while the Pipeline and Storage segment engages in the pipeline and storage operations, managing five underground storage facilities in Texas.
In ITEM 7.Management’s Discussion and Analysis of Financial Condition and Results of Operations, ATMOS ENERGY CORP highlighted its commitment to being the safest provider of natural gas services, requiring significant levels of capital spending to modernize its natural gas distribution system and operating costs to deliver natural gas safely and reliably. The company anticipates making significant capital expenditures for the foreseeable future, with an expected spending of approximately $26 billion between fiscal years 2026 and 2030, with more than 80 percent dedicated to safety and reliability spending.
The company's consolidated net income for the fiscal year ended September 30, 2025, was $1,198.8 million, or $7.46 per diluted share, compared to net income of $1,042.9 million, or $6.83 per diluted share in the prior year. The year-over-year increase in net income of $155.9 million largely reflects positive rate outcomes driven by safety and reliability spending. Additionally, fiscal 2025 results were favorably impacted by $26.2 million as a result of Texas legislation related to infrastructure spending. However, these increases were partially offset by higher bad debt expense, increased employee-related costs, depreciation and property tax expenses, and higher spending on safety and compliance-related activities.
Capital expenditures for fiscal 2025 were $3.6 billion, with approximately 87 percent invested to improve the safety and reliability of the company's distribution and transportation systems. As of September 30, 2025, the company's equity capitalization was 60.3 percent, with approximately $4.9 billion in total liquidity.
In the Distribution segment, the company's ability to earn its authorized rates is based on its ability to improve the rate design in various ratemaking jurisdictions to minimize regulatory lag and separate the recovery of approved rates from customer usage patterns. The company completed regulatory proceedings in its distribution segment in fiscal 2025, resulting in an increase in annual operating income of $333.6 million.
As a result of these announcements, the company's shares have moved -1.6% on the market, and are now trading at a price of $175.12. Check out the company's full 10-K submission here.
