Atmos Energy (ATO) Q2 2026 earnings summary

Executive summary

• Year-to-date net income reached $984.9 million, or $5.92 per diluted share, up 18% year-over-year, driven by positive rate outcomes and favorable Texas legislation.

• Fiscal 2026 EPS guidance raised to $8.40–$8.50, up from $8.15–$8.35.

• Capital expenditures for the first half totaled $2.0 billion, with over 85% allocated to safety and reliability.

• Annual dividend increased 14.9% to $4.00 per share, marking 42 consecutive years of growth.

• Regulatory actions implemented or approved increased annual operating income by $135.3 million, with nearly $600 million in additional rate requests pending.

Financial highlights

• Q2 net income was $582 million, up from $486 million year-over-year; six-month net income was $984.9 million, up from $837 million.

• Q2 diluted EPS was $3.47, up from $3.03; six-month diluted EPS was $5.92, up from $5.26.

• Operating revenues for the six months were $3,304.99 million, up from $3,126.50 million year-over-year.

• Distribution segment operating income increased 14.4% to $915.1 million; pipeline and storage segment operating income rose 26.2% to $364.4 million for the six months.

• Cash flow from operating activities was $1,031.5 million, down from $1,205.0 million, mainly due to timing of gas cost recoveries.

Outlook and guidance

• Fiscal 2026 EPS guidance increased to $8.40–$8.50; net income guidance: $1,410–$1,430 million.

• Capital expenditures projected at $4.2 billion for fiscal 2026.

• O&M expected in the range of $865 million–$885 million, reflecting Rule 77102 deferrals.

• Effective tax rate projected at 19–21%.

• 6%–8% EPS and dividend growth targeted for 2027 and beyond, using new guidance as base.