Atmos Energy Corporation
ATO
$170.54 -0.44%
Exchange: NYSE | Sector: Utilities | Industry: Regulated Gas
Q2 2025
Published: May 7, 2025

Earnings Highlights

  • Revenue of $1.95B up 18.4% year-over-year
  • EPS of $3.03 increased by 7% from previous year
  • Gross margin of 48.1%
  • Net income of 485.58M
  • "We updated our fiscal '25 earnings per share guidance to a range of $7.20 to $7.30." - Kevin Akers
ATO
Company ATO

Executive Summary

Atmos Energy delivered a solid QQ2 2025 performance, supported by through-system (APT) activity and ongoing Texas customer growth. In the quarter, revenue of $1.950B generated gross profit of $0.938B and net income of $0.486B, translating to basic EPS of $3.05 and diluted EPS of $3.03. For the first six months of fiscal 2025, diluted EPS reached $5.26, up 6.7% year over year, with operating income up 14.6%. Management raised full-year FY25 EPS guidance to a range of $7.20-$7.30 (from $7.05-$7.25 prior), reflecting stronger-than-expected APT through-system contributions and resilient regulated earnings. Capex guidance remains at approximately $3.7B, and liquidity stands at $5.3B, with $1.7B of net ATM proceeds available to satisfy remaining equity needs for 2025 and planned needs for 2026.

The growth story centers on Texas demand, large-scale APT projects (Line WA Loop and Bethel to Groesbeck), and a robust pipeline of regulated investments targeting safety, reliability, and service expansion. Atmos continues to emphasize disciplined O&M management amid growth and increased line locating, pipeline inspection, and system monitoring activities. The company also highlighted regulatory progress across multiple jurisdictions (West Texas, Mid-Tex, Kentucky, and Colorado timing) and the potential uplift from regulatory assets and cloud computing cost treatments.

Overall, Atmos remains well-positioned in a regulated utility context with strong cash generation, meaningful capex plans, and a favorable long-term growth trajectory driven by Texas energy demand and infrastructure modernization. Key risks include regulatory approvals, O&M cost escalation, weather-driven demand variability, cyber/operational risks, and the timing of APT revenues in 2026 and beyond.

Key Performance Indicators

Revenue
Increasing
1.95B
QoQ: 65.86% | YoY: 18.41%
Gross Profit
Increasing
937.97M
48.09% margin
QoQ: 27.63% | YoY: 42.56%
Operating Income
Increasing
628.94M
QoQ: 36.88% | YoY: 14.15%
Net Income
Increasing
485.58M
QoQ: 38.00% | YoY: 12.40%
EPS
Increasing
3.05
QoQ: 35.56% | YoY: 7.02%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q2 2025 1,950.50 3.03 +18.4% View
Q1 2025 1,176.00 2.23 +1.5% View
Q4 2024 657.94 0.88 +12.0% View
Q3 2024 701.55 1.08 +5.9% View
Q2 2024 1,647.23 2.85 +6.9% View