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November 16, 2025 • 3 min read
Atmos Energy Corporation (ATO), one of the country's largest natural gas-only distributors, recently filed its annual 10-K report, providing a detailed look at its performance for the fiscal year ending September 30, 2025. Let's dive into the numbers from this filing to see how the company is performing and what's driving its results.
Atmos Energy reported a strong fiscal 2025, with net income climbing to $1.20 billion, or $7.46 per diluted share. This marks a significant increase from the $1.04 billion, or $6.83 per share, reported in fiscal 2024.
Operating revenues reached $4.7 billion for the year. A visual breakdown of the company's revenue streams and costs helps clarify how this top-line figure translated into bottom-line profit.
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A notable item in the company's financial breakdown is "Intersegment Eliminations" that are labeled as unallocated. This largely represents internal transactions where the Pipeline & Storage segment sells services to the Distribution segment. For a consolidated view of the entire company, these internal sales and costs are removed to avoid double-counting.
Atmos operates through two primary segments, both of which contributed to the year's success.
Distribution Segment: This is the company's largest division, responsible for delivering natural gas to over three million customers across eight states. The segment's net income grew to $747 million, up from $671 million in the prior year. According to the filing, this impressive performance was driven by a $184 million increase from rate adjustments and continued residential customer growth, particularly in its booming Mid-Tex division, which includes the Dallas/Fort Worth Metroplex.
Pipeline and Storage Segment: This segment acts as the infrastructure backbone, primarily serving Texas and Louisiana. It also had a stellar year, with net income rising to $452 million from $371 million in 2024. The growth was fueled by higher demand for transportation capacity as customers' peak-day needs increased.
Atmos's strong performance isn't a fluke; it's the result of a consistent and well-executed strategy: investing heavily in its infrastructure and then recovering those costs through regulatory rate increases.
In fiscal 2025, the company invested a massive $3.6 billion in capital expenditures, a significant step up from the $2.9 billion spent in 2024. These investments are crucial as they increase the company's "rate base"—the value of its assets on which it is permitted by regulators to earn a return.
The payoff from this strategy is clear. The filing details numerous successful ratemaking efforts throughout the year, which are expected to increase annual operating income by approximately $334 million. Mechanisms like the Gas Reliability Infrastructure Program (GRIP) and various Rate Review Mechanisms (RRMs) across its service territories allow Atmos to get timely returns on its safety and reliability investments.
Atmos Energy’s 2025 results paint a picture of a company firing on all cylinders. The business model of disciplined capital investment paired with a supportive regulatory environment is delivering steady and predictable growth. While the company notes risks tied to its heavy operational concentration in Texas, its performance shows that, for now, this focus is a major source of strength. As the energy landscape continues to evolve, Atmos is making a firm case for the enduring value and profitability of modern natural gas infrastructure.
Last updated: November 16, 2025