Atmos Energy Corp (NYSE: ATO) reported a rise in its fiscal first-quarter profit on Tuesday and announced a double-digit increase to its annual dividend, fueled by infrastructure investment and regulatory rate adjustments.
The Dallas-based natural gas distributor posted net income of $403.0 million, or $2.44 per diluted share, for the quarter ended December 31, 2025. This represents an increase from the $352.0 million, or $2.23 per share, reported in the prior-year period.
Financial Position
The company ended the quarter with a strong liquidity profile of approximately $4.6 billion.Financing activities included the issuance of $600 million in 30-year senior notes at a 5.45% coupon rate in October 2025. Equity capitalization stood at 60% as of December 31, 2025.
Atmos Energy currently serves approximately 3.4 million customers across eight states.
Segment Performance and Drivers
The company’s growth was supported by both its primary business segments:
- Distribution: Net income for this segment rose to $269 million from $240 million a year ago. Performance was bolstered by $47.7 million in rate adjustments primarily in the Mid-Tex division and a $20.0 million boost from the implementation of Texas HB 4384.
- Pipeline & Storage: Net income increased to $134 million from $112 million in the previous year. Gains were driven by $20.2 million in rate adjustments and increased “through-system” activities.
Operational costs also rose, with depreciation, amortization, and property taxes increasing by a combined $29.2 million across both segments.
Capital Spending and Regulatory Strategy
Atmos Energy invested $1.03 billion in capital expenditures during the first quarter, with 89%.Through 2030, the company anticipates approximately $26 billion in total capital spending.
On the regulatory front, the company has successfully implemented $122.9 million in annualized operating income increases as of early February 2026, including a significant $138.5 million Rate Review Mechanism (RRM) in the Mid−Tex Cities. An additional $81.2 million in rate requests remain in progress across jurisdictions including Dallas, Colorado, Tennessee, and Kansas.
Dividend and Outlook
In a signal of confidence in its long-term growth, the company’s board declared a quarterly dividend of $1.00 per common share, bringing the indicated annual dividend to $4.00. This reflects a 14.9% increase over fiscal 2025 and marks Atmos Energy’s 42nd consecutive year of rising dividends.
Atmos Energy affirmed its fiscal 2026 earnings guidance, maintaining a range of $8.15 to $8.35 per diluted share.The company also expects full-year capital expenditures to reach approximately $4.2 billion.
