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Element Solutions Inc (ESI) Q1 2026 Earnings Call Transcript

The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Element Solutions (ESI - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Basic Materials sector should help us answer this question.

Element Solutions is one of 248 companies in the Basic Materials group. The Basic Materials group currently sits at #13 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Element Solutions is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for ESI's full-year earnings has moved 5.5% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, ESI has returned 71.3% so far this year. Meanwhile, stocks in the Basic Materials group have gained about 12% on average. This means that Element Solutions is outperforming the sector as a whole this year.

Carpenter Technology (CRS - Free Report) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 35.8%.

Over the past three months, Carpenter Technology's consensus EPS estimate for the current year has increased 2.2%. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Element Solutions is a member of the Chemical - Specialty industry, which includes 44 individual companies and currently sits at #180 in the Zacks Industry Rank. On average, stocks in this group have gained 9.2% this year, meaning that ESI is performing better in terms of year-to-date returns.

Carpenter Technology, however, belongs to the Steel - Speciality industry. Currently, this 6-stock industry is ranked #231. The industry has moved +30.7% so far this year.

Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Element Solutions and Carpenter Technology as they could maintain their solid performance.

On May 18, 2026, Element Solutions Inc (ESI) shares fell 5.8% to a current price of $39.88. This decline is notable within the context of its 52-week range, whi

MIAMI--(BUSINESS WIRE)--Element Solutions Inc (NYSE: ESI) announced today that its board has declared a quarterly cash dividend of $0.08 per share of the company's common stock. The declared dividend will be paid on June 15, 2026, to stockholders of record as of the close of business on June 1, 2026. About Element Solutions Inc Element Solutions Inc is a leading specialty chemicals technology company whose businesses supply a broad range of solutions that enhance the performance of products peo.

Investors in Element Solutions Inc (ESI - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the June 18, 2026 $30.00 Call had some of the highest implied volatility of all equity options today.

What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.

What do the Analysts Think?Clearly, options traders are pricing in a big move for Element Solutions share, but what is the fundamental picture for the company? Currently, Element Solutions is a Zacks Rank #2 (Buy) in the Chemical - Specialty Industry that ranks in the Top 38% of our Zacks Industry Rank. Over the last 60 days, no analyst has increased his estimate for the current quarter, while two have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter to move from 44 cents per share to 43 cents per share in the same time period.

Given the way analysts feel about Element Solutions right now, this huge implied volatility could mean there’s a trade developing. Often times, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.

Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Has Element Solutions (ESI - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Basic Materials sector should help us answer this question.

Element Solutions is one of 248 individual stocks in the Basic Materials sector. Collectively, these companies sit at #9 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Element Solutions is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for ESI's full-year earnings has moved 1.6% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that ESI has returned about 59.4% since the start of the calendar year. In comparison, Basic Materials companies have returned an average of 10.8%. As we can see, Element Solutions is performing better than its sector in the calendar year.

One other Basic Materials stock that has outperformed the sector so far this year is Metallus (MTUS - Free Report) . The stock is up 14.6% year-to-date.

The consensus estimate for Metallus' current year EPS has increased 1.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Element Solutions is a member of the Chemical - Specialty industry, which includes 44 individual companies and currently sits at #109 in the Zacks Industry Rank. This group has gained an average of 10.4% so far this year, so ESI is performing better in this area.

In contrast, Metallus falls under the Steel - Speciality industry. Currently, this industry has 6 stocks and is ranked #167. Since the beginning of the year, the industry has moved +46.9%.

Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Element Solutions and Metallus as they could maintain their solid performance.

QXO (QXO +0.54%) did exactly what investors expected this week. The building products distribution company started by entrepreneur Brad Jacobs announced another acquisition.

Investors may wonder why QXO stock was down about 14% for the week as of Friday afternoon, according to data provided by S&P Global Market Intelligence. The company just announced its third major acquisition, and second this year. Here's what some investors might be wary about.

Image source: The Motley Fool.

Bet on the jockey QXO announced this week that it was buying TopBuild Corp (BLD +0.48%). for about $17 billion. TopBuild is the leading distributor and installer of insulation and related construction products in North America. QXO has already closed acquisitions of Beacon Roofing Supply and Kodiak Building Partners in the last year, totaling about $13.25 billion.

QXO was founded by Brad Jacobs with the goal of consolidating the $800 billion building products distribution industry and leveraging technology to enhance efficiency. Jacobs was also the founder of other successful businesses, including the transportation and logistics company XPO Logistics and equipment rental company United Rentals.

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QXO stock was always a bet on Jacobs. While the $17 billion price tag for TopBuild may be scaring some investors away, Jacobs hasn't altered his vision for QXO. The latest combination is also expected to immediately and materially boost QXO's earnings. Those positive results would be even stronger if the construction and housing markets strengthen. That's why I'm holding onto my QXO shares.

Howard Smith has positions in QXO. The Motley Fool has positions in and recommends QXO and TopBuild. The Motley Fool recommends XPO. The Motley Fool has a disclosure policy.

DAYTONA BEACH, Fla., May 05, 2026 (GLOBE NEWSWIRE) -- TopBuild Corp. (NYSE:BLD), a leading installer of insulation and commercial roofing and a specialty distributor of insulation and related building products to the construction industry in the United States and Canada, today reported results for the first quarter ended March 31, 2026.

“Our first quarter performance was in line with our expectations as we continue our focus on delivering compounding shareholder returns, driving operational excellence, and executing our long-term strategy,” said Robert Buck, CEO of TopBuild.

“In the first quarter, sales grew 17.2%, driven by the 2025 acquisitions of SPI and Progressive Roofing, offsetting the macro challenges in residential and light commercial new construction. While the residential market faces ongoing uncertainty, the heavy commercial and industrial end markets are healthy and our results are solid. We are also making excellent progress on the SPI integration and are on track to meet or exceed our original synergy targets,” Mr. Buck continued.

“M&A continues to be a priority given our strong free cash flow and robust pipeline of acquisitions across our installation and specialty distribution segments. To date in 2026, we’re pleased to have completed four acquisitions which together add more than $80 million in annual revenue, further diversify our end-market exposure and continue to position us for long-term growth.

“We are excited about our future in joining QXO, as was announced on April 19. By combining the TopBuild business with QXO, we are confident in our opportunities to accelerate our cross-selling initiatives, capitalize on procurement opportunities and leverage digital technology in a manner that will benefit our customers, employees and all stakeholders,” Mr. Buck concluded.

Financial Highlights
(comparisons are to the three months ended March 31, 2025)

         Reported Adjusted ($ in thousands) 2026  2025   2026  2025  Sales$1,445,860 $1,233,278  $1,445,860 $1,233,278  Gross Profit$400,253 $351,473  $400,273 $364,976  Gross Margin 27.7% 28.5%  27.7% 29.6% SG&A$225,210 $173,984  $222,578 $170,829  SG&A as % of Sales 15.6% 14.1%  15.4% 13.9% Operating Profit$175,043 $177,489  $177,695 $194,147  Operating Margin 12.1% 14.4%  12.3% 15.7% Net Income$104,813 $123,385  $105,375 $135,147  Net Income per diluted share$3.73 $4.23  $3.75 $4.63  EBITDA   $238,619 $234,759  EBITDA Margin    16.5% 19.0%        Sales Drivers
(comparisons are to the three months ended March 31, 2025)

         Three Months Ended March 31, 2026  Installation
Services
  Specialty
Distribution
  TopBuild,
net of 
eliminations
 Sales (in millions) $777  $737  $1,446 Sales Drivers      Volume  (9.8%)  0.3%  (5.5%)Price  (2.9%)  0.3%  (1.6%)M&A  16.9%  31.1%  24.3%Total Sales Change  4.3%  31.7%  17.2%        Segment Profitability        
(comparisons are to the three months ended March 31, 2025)

    Three Months Ended March 31, 2026($ in thousands)Installation
ServicesSpecialty DistributionOperating Profit$119,191 $80,008 Change (8.0%) 15.9%Operating Margin 15.3% 10.9%Adj. Operating Profit$119,549 $80,265 Change (13.4%) 5.7%Adj. Operating Margin 15.4% 10.9%Adj. EBITDA$149,168 $106,528 Change (5.3%) 16.6%Adj. EBITDA Margin 19.2% 14.5%    Capital Allocation
2026 Acquisitions

CompanyAnnual Revenue Month Closed($ in millions) Upstate Spray Foam Insulation and Applied Coatings (I)$19.6 FebruaryJohnson Roofing (I) 29.2 AprilEnergy Pros (I) 4.0 MayClaremont (D) 31.0 MayTotal$ 83.8  I = Installation Services, D = Specialty Distribution        In addition to the acquisitions completed as listed above, TopBuild has signed a definitive agreement to acquire Comfort Pro, an insulation installation company based in Little Suamico, Wisc. with approximately $6 million in annual sales. The transaction is expected to close in the second quarter.

About TopBuild

TopBuild Corp., headquartered in Daytona Beach, Florida, is a leading installer of insulation and commercial roofing and is also a specialty distributor of insulation and related building products to the construction industry in the United States and Canada. We provide insulation and commercial roofing installation services nationwide through our Installation Services segment which has over 200 branches located across the United States. We distribute building and mechanical insulation, insulation accessories, and other building products for the residential, commercial, and industrial end markets through our Specialty Distribution business. Our Specialty Distribution network encompasses more than 250 branches across the United States and Canada. To learn more about TopBuild please visit our website at www.topbuild.com.

Use of Non-GAAP Financial Measures

Adjusted EBITDA, incremental EBITDA margin, adjusted EBITDA margin, the “adjusted” financial measures presented above, and figures presented on a “same branch basis” are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company believes that these non-GAAP financial measures, which are used in managing the business, may provide users of this financial information with additional meaningful comparisons between current results and results in prior periods. We define same branch sales as sales from branches in operation for at least 12 full calendar months. Such non-GAAP financial measures are reconciled to their closest GAAP financial measures in tables contained in this press release. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company’s reported results under GAAP. Additional information may be found in the Company’s filings with the Securities and Exchange Commission which are available on TopBuild’s website under “SEC Filings” at www.topbuild.com.

Safe Harbor Statement

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements may address, among other things, our expected financial and operational results, the related assumptions underlying our expected results, and our plan to repurchase our common stock under stock repurchase transactions. These forward-looking statements can be identified by words such as “will,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” “may,” “project,” “estimate” or “intend,” the negative of these terms, and similar references to future periods. These views involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. Our forward-looking statements contained herein speak only as of the date of this press release. Factors or events that we cannot predict, including those described in the risk factors contained in our filings with the Securities and Exchange Commission, may cause our actual results to differ from those expressed in forward-looking statements. Although TopBuild believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, the Company can give no assurance that its expectations will be achieved and it undertakes no obligation to update any forward-looking statements as a result of new information, future events, or otherwise, except as required by applicable law.

(tables follow)

TopBuild Corp.      Condensed Consolidated Statements of Operations (Unaudited)    (in thousands, except share and per common share amounts)               Three Months Ended March 31,   2026  2025 Net sales $1,445,860     $1,233,278 Cost of sales  1,045,607   881,805 Gross profit  400,253   351,473        Selling, general, and administrative expense  225,210   173,984 Operating profit  175,043   177,489        Other income (expense), net:      Interest expense  (36,623)  (16,602)Other, net  1,327   5,086 Other expense, net  (35,296)  (11,516)Income before income taxes  139,747   165,973        Income tax expense  (34,934)  (42,588)Net income $104,813  $123,385        Net income per common share:      Basic $3.75  $4.25 Diluted $3.73  $4.23        Weighted average shares outstanding:      Basic  27,976,514   29,028,234 Diluted  28,130,208   29,174,892         TopBuild Corp.      Condensed Consolidated Statements of Comprehensive Income (Unaudited)   (in thousands)               Three Months Ended March 31,   2026  2025Net income $104,813  $123,385Other comprehensive (loss) income:      Foreign currency translation adjustment  (4,342)  229Comprehensive income $100,471  $123,614        TopBuild Corp.       Condensed Consolidated Balance Sheets and Other Financial Data (Unaudited)       (dollars in thousands)         As of   March 31,  December 31,    2026 2025 ASSETS       Current assets:       Cash and cash equivalents $268,847 $184,742 Receivables, net of an allowance for credit losses of $29,680 at March 31, 2026, and $29,081 at December 31, 2025  930,521  894,408 Inventories  515,143  505,167 Prepaid expenses and other current assets  42,148  50,478 Total current assets  1,756,659  1,634,795         Right of use assets  261,536  271,396 Property and equipment, net  286,525  291,556 Goodwill  3,070,940  3,045,227 Other intangible assets, net  1,325,038  1,351,612 Other assets  10,465  10,726 Total assets $6,711,163 $6,605,312         LIABILITIES       Current liabilities:       Accounts payable $471,217 $440,214 Current portion of long-term debt  62,500  62,500 Accrued liabilities  251,991  249,361 Short-term operating lease liabilities  87,302  86,170 Short-term finance lease liabilities  6,611  6,571 Total current liabilities  879,621  844,816         Long-term debt  2,769,888  2,784,197 Deferred tax liabilities, net  395,765  387,594 Long-term portion of insurance reserves  58,645  58,681 Long-term operating lease liabilities  190,086  200,729 Long-term finance lease liabilities  11,014  11,020 Other liabilities  1,782  2,115 Total liabilities  4,306,801  4,289,152         EQUITY  2,404,362  2,316,160 Total liabilities and equity $6,711,163 $6,605,312           As of March 31,    2026 2025 Other Financial Data       Receivables, net plus inventories less accounts payable $974,447 $731,997 Net sales, acquisition adjusted † $6,154,730 $5,329,105 Receivables, net plus inventories less accounts payable as a percent of sales (TTM) †  15.8% 13.7%        † Trailing 12 months sales have been adjusted for the pro forma effect of acquired branches                TopBuild Corp.      Condensed Consolidated Statement of Cash Flows (Unaudited)      (in thousands)               Three Months Ended March 31,   2026  2025 Cash Flows Provided by (Used in) Operating Activities:           Net income $104,813  $123,385 Adjustments to reconcile net income to net cash provided by operating activities:      Depreciation and amortization  56,295   35,791 Share-based compensation  4,629   5,042 Loss on sale of assets  327   829 Amortization of debt issuance costs  1,216   720 Provision for bad debt expense  3,412   3,666 Provision for inventory obsolescence  2,284   2,820 Impairment losses  —   9,868 Deferred income taxes, net  (20)  (1,822)Change in certain assets and liabilities, net of effects of businesses acquired:      Receivables, net  (38,542)  (1,118)Inventories  (18,336)  (2,215)Prepaid expenses and other current assets  8,198   9,646 Accounts payable  31,464   (32,342)Accrued liabilities  4,739   (1,050)Other, net  257   (631)Net cash provided by operating activities  160,736   152,589        Cash Flows Provided by (Used in) Investing Activities:      Purchases of property and equipment  (13,999)  (13,395)Acquisition of businesses, net of cash acquired  (27,888)  294 Proceeds from sale of assets  394   248 Net cash used in investing activities  (41,493)  (12,853)       Cash Flows Provided by (Used in) Financing Activities:      Repayment of long-term debt  (15,625)  (11,250)Proceeds from revolving credit facility  65,000   — Repayment of revolving credit facility  (65,000)  — Principal payments on finance lease obligations  (1,861)  — Taxes withheld and paid on employees' equity awards  (18,293)  (4,466)Exercise of stock options  1,394   — Repurchase of shares of common stock  —   (215,628)Net cash used in financing activities  (34,385)  (231,344)Impact of exchange rate changes on cash  (753)  101 Net increase (decrease) in cash and cash equivalents  84,105   (91,507)Cash and cash equivalents - Beginning of period  184,742   400,318 Cash and cash equivalents - End of period $268,847  $308,811        Supplemental disclosure of noncash activities:      Leased assets obtained in exchange for new operating lease liabilities $12,987  $17,547 Leased assets obtained in exchange for new finance lease liabilities  1,831   — Accruals for property and equipment  685   444 Excise taxes capitalized to treasury stock  —   2,156         TopBuild Corp.         Segment Data (Unaudited)         (dollars in thousands)                     Three Months Ended March 31,       2026  2025 ChangeInstallation Services         Sales $777,329 $745,533  4.3%          Operating profit, as reported $119,191 $129,616   Operating margin, as reported  15.3% 17.4%            Rationalization charges  —  8,281   Acquisition related costs  358  143   Operating profit, as adjusted $119,549 $138,040   Operating margin, as adjusted  15.4% 18.5%            Share-based compensation  428  349   Depreciation and amortization  29,191  19,167   EBITDA, as adjusted $149,168 $157,556  (5.3)%EBITDA margin, as adjusted  19.2% 21.1%            Specialty Distribution         Sales $737,080 $559,804  31.7%          Operating profit, as reported $80,008 $69,059   Operating margin, as reported  10.9% 12.3%            Rationalization charges  —  6,868   Acquisition related costs  257  37   Operating profit, as adjusted $80,265 $75,964   Operating margin, as adjusted  10.9% 13.6%            Share-based compensation  843  463   Depreciation and amortization  25,420  14,939   EBITDA, as adjusted $106,528 $91,366  16.6%EBITDA margin, as adjusted  14.5% 16.3%             TopBuild Corp.         Adjusted EBITDA (Unaudited)         (dollars in thousands)                     Three Months Ended March 31,      2026   2025 Change  Total net sales         Sales before eliminations $1,514,409  $1,305,337    Intercompany eliminations  (68,549)  (72,059)   Net sales after eliminations $1,445,860  $1,233,278  17.2%          Operating profit, as reported - segments $199,199  $198,675    General corporate expense, net  (10,674)  (9,259)   Intercompany eliminations  (13,482)  (11,927)   Operating profit, as reported $175,043  $177,489    Operating margin, as reported  12.1%  14.4%             Rationalization charges  —   15,358    Acquisition related costs †  2,652   1,300    Operating profit, as adjusted $177,695  $194,147    Operating margin, as adjusted  12.3%  15.7%             Share-based compensation  4,629   5,042    Depreciation and amortization  56,295   35,570    EBITDA, as adjusted $238,619  $234,759  1.6%EBITDA margin, as adjusted  16.5%  19.0%             Sales change period over period  212,582       EBITDA, as adjusted, change period over period  3,860       Incremental EBITDA, as adjusted, as a percentage of change in sales  1.8%                          † Acquisition related costs include corporate level adjustments as well as segment operating adjustments.                 TopBuild Corp.      Same Branch and Acquisition Metrics (Unaudited)      (dollars in thousands)               Three Months Ended March 31,   2026  2025 Net sales      Same branch:      Installation Services $651,097  $745,533 Specialty Distribution  562,934   559,804 Eliminations  (68,315)  (72,059)Total same branch $1,145,716  $1,233,278        Acquisitions (a):      Installation Services $126,232  $— Specialty Distribution  174,146   — Eliminations  (234)  — Total acquisitions  300,144   — Total net sales $1,445,860  $1,233,278        EBITDA, as adjusted      Same branch:      Installation Services $126,695  $157,557 Specialty Distribution  86,071   91,367 Eliminations  (17,077)  (14,165)Total same branch $195,689  $234,759        Acquisitions (a):      Installation Services $22,473  $— Specialty Distribution  20,457   — Total acquisitions  42,930   — Total EBITDA, as adjusted $238,619  $234,759        EBITDA, as adjusted, as a percentage of sales      Same branch (b)  17.1%   Acquisitions (c)  14.3%   Total (d)  16.5%  19.0        As Adjusted (Decremental)/Incremental EBITDA, as a percentage of change in sales      Same branch (e)  (44.6)%   Acquisitions (c)  14.3%   Total (f)  1.8%          (a) Represents current year impact of acquisitions in their first twelve months      (b) Same branch metric, as adjusted, as a percentage of same branch sales      (c) Acquired metric, as adjusted, as a percentage of acquired sales      (d) Total EBITDA, as adjusted, as a percentage of total sales      (e) Change in same branch EBITDA, as adjusted, as a percentage of change in same branch sales      (f) Change in total EBITDA, as adjusted, as a percentage of change in total sales              TopBuild Corp.         Same Branch Revenue by Line of Business (Unaudited)      (dollars in thousands)                     Three Months Ended March 31,      2026 2025 ChangeResidential:         Same branch $685,972 $769,751  (10.9)%Acquisitions (a)  23,127  —   Total Residential sales  709,099  769,751  (7.9)%          Commercial/Industrial:         Same branch $459,744 $463,527  (0.8)%Acquisitions (a)  277,017  —   Total Commercial/Industrial sales  736,761  463,527  58.9 %Total net sales $1,445,860 $1,233,278  17.2 %          (a) Represents current year impact of acquisitions in their first twelve months                 TopBuild Corp.      Non-GAAP Reconciliations (Unaudited)      (in thousands, except share and per common share amounts)               Three Months Ended March 31,   2026  2025 Gross Profit Reconciliation             Net Sales $1,445,860  $1,233,278        Gross profit, as reported $400,253  $351,473        Acquisition related costs  20   — Rationalization charges  —   13,503 Gross profit, as adjusted $400,273  $364,976        Gross margin, as reported  27.7%   28.5%Gross margin, as adjusted  27.7%  29.6%        Selling, General and Administrative Expense Reconciliation             Selling, general, and administrative expense, as reported $225,210  $173,984        Rationalization charges  —   1,855 Acquisition related costs  2,632   1,300 Selling, general, and administrative expense, as adjusted $222,578  $170,829        Operating Profit Reconciliation             Operating profit, as reported $175,043  $177,489        Rationalization charges  —   15,358 Acquisition related costs  2,652   1,300 Operating profit, as adjusted $177,695  $194,147        Operating margin, as reported  12.1%  14.4%Operating margin, as adjusted  12.3%  15.7%       Income Per Common Share Reconciliation             Income before income taxes, as reported $139,747  $165,973        Rationalization charges  —   15,358 Acquisition related costs  2,652   1,300 Income before income taxes, as adjusted  142,399   182,631        Tax rate at 26.0%  (37,024)  (47,484)Income, as adjusted $105,375  $135,147        Income per common share, as adjusted $3.75  $4.63        Weighted average diluted common shares outstanding  28,130,208   29,174,892         TopBuild Corp.      Reconciliation of Adjusted EBITDA to Net Income (Unaudited)      (in thousands)               Three Months Ended March 31,   2026 2025Net income, as reported $104,813 $123,385Adjustments to arrive at EBITDA, as adjusted:      Interest expense and other, net  35,296  11,516Income tax expense  34,934  42,588Depreciation and amortization  56,295  35,570Share-based compensation  4,629  5,042Rationalization charges  —  15,358Acquisition related costs  2,652  1,300EBITDA, as adjusted $238,619 $234,759        TopBuild Corp.               Acquisition Adjusted Net Sales (Unaudited)              (in thousands)               2025 2026 Trailing Twelve Months Ended Q2 Q3 Q4 Q1 March 31, 2026Net sales$1,297,403 $1,393,158 $1,485,247 $1,445,860 $5,621,668Acquisitions pro forma adjustment † 313,828  199,550  18,046  1,638  533,062Net sales, acquisition adjusted$1,611,231 $1,592,708 $1,503,293 $1,447,498 $6,154,730                              † Sales have been adjusted for the pro forma effect of acquired branches
               

TopBuild (BLD - Free Report) reported $1.45 billion in revenue for the quarter ended March 2026, representing a year-over-year increase of 17.2%. EPS of $3.75 for the same period compares to $4.63 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $1.42 billion, representing a surprise of +2.06%. The company delivered an EPS surprise of +2.99%, with the consensus EPS estimate being $3.64.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how TopBuild performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Net Sales- Specialty Distribution: $737.08 million compared to the $696.84 million average estimate based on three analysts. The reported number represents a change of +36.2% year over year.Net Sales- Installation Services: $777.33 million compared to the $771.12 million average estimate based on three analysts. The reported number represents a change of +6.4% year over year.Net Sales- Intercompany eliminations: $-68.55 million versus the two-analyst average estimate of $-82.88 million. The reported number represents a year-over-year change of -4.9%.Operating profit, as reported- General corporate expense, net: $-10.67 million versus $-13.15 million estimated by two analysts on average.View all Key Company Metrics for TopBuild here>>>

Shares of TopBuild have returned +19.4% over the past month versus the Zacks S&P 500 composite's +9.5% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

© Chaay_Tee / iStock via Getty Images

Pre-Market Stock Futures: Futures are trading higher on Wednesday as news of an impending end to the Iran war is sending oil prices dramatically lower. This news comes after a bounce-back Tuesday that benefited from lower oil prices, some strong earnings, and solid buying from retail investors. At the same time, hedge funds continue to sell into any market strength. In fact, BTIG reported that the 2nd-largest hedge fund selling of technology stocks in a decade matches the 3rd-largest retail fund flows into the QQQ ETF. With that in mind, the Nasdaq soared to yet another all-time high on Tuesday, closing the day up 1.03% at 25,326, while the S&P 500 also closed at an all-time high on Tuesday, up 0.81% at 7,259. The Dow Jones Industrials checked in with a gain of 0.73% to close at 49,298. The big winner on the day was the small-cap-heavy Russell 2000, which has been the leading index this year, closing up 1.64% at 2,841, and that also was another all-time high.

Treasury Bonds: After hitting some high yields Monday, not seen in months, yields were lower across the Treasury curve as buyers jumped in, especially on longer-dated U.S. debt. While concerns over the potential for inflation to continue to edge higher and the possibility of no interest rate cuts until 2027 continue to hover over the market, 5%+ yields on the 20- and 30-year bonds were too much to ignore. The 30-year long bond finished trading Tuesday at 4.99%, while the benchmark 10-year note was last seen at 4.42%.

Oil and Gas: Some selling across the energy complex was a major positive on Tuesday, as both major benchmarks finished the day lower. The lack of negative news about Iran and the passage of some ships escorted by the U.S. Navy safely through the Strait of Hormuz contributed to lower prices. Brent Crude finished the day at $110.30, down 3.64%, while West Texas Intermediate closed the session at $102.80, down 342%. The last trade for Natural gas was reported at $2.76, down 3.59%. 

Gold: As has been the rule lately, when stock prices go higher, Gold and Silver often follow along in tandem, and that was the case on Tuesday. Gold closed the day higher by 0.76% at $4,556, while Silver was last seen at $72,74, higher by 0.18%. This comes after it was reported that Central Banks from around the world were net sellers of gold in March, with a stunning 30 tonnes of outflows. 

Crypto:
The cryptocurrency market surged, with Bitcoin (BTC) breaking above $80,000 for the first time in three months and reaching $81,500. The rally was powered by more than $500 million in fresh inflows into spot Bitcoin ETFs, robust institutional buying, and growing investor appetite for higher-risk altcoins. The bullish momentum held steady despite persistent geopolitical tensions in the Middle East. At 8 AM EDT, Bitcoin traded at $82,490, while Ethereum was quoted at $2,411.

24/7 Wall St. reviews dozens of analyst research reports daily to identify new investment ideas for both investors and traders. Some of these daily analyst calls cover stocks to buy. Other calls cover stocks to sell or avoid. Remember that no single analyst call should ever be used as a basis to buy or sell a stock. 

Here are some of the top Wall Street analyst upgrades, downgrades, and initiations seen on Wednesday, May 6, 2026.  

Upgrades: Advanced Micro Devices (NASDAQ: AMD | AMD Price Prediction) was upgraded to Buy from Neutral at Goldman Sachs, which launched the target price for the chip giant to $450 from $240. American Eagle Outfitters (NYSE: AEO) was upgraded to Equal Weight from Underweight at Barclays, with a $19 target price. LCI Industries (NYSE: LCII) was raised to Buy from Neutral at Roth Capital, which has a $164 target price for the shares. GlobalFoundries (NYSE: GFS) was raised to Positive from Neutral at Susquehanna, which doubled the target price for the shares to $100 from $50. Palantir Technologies (NASDAQ: PLTR) was raised to Buy from Hold at Argus, which has a $190 target price objective. Downgrades: Abercrombie & Fitch (NYSE: ANF) was downgraded to Underweight from Equal Weight at Barclays, which cut the target price for the retailer to $76 from $95. Coupang (NYSE: CPNG) was downgraded to Neutral from Buy at Citigroup, which trimmed the target price for the stock to $22.20 from $23. IAC  (NYSE: IAC) was downgraded to Hold from Buy at Jefferies, which stays with a $44 target price for the company. Reddit (NYSE: RDDT) was downgraded to Accumulate from Buy at Phillip Securities, which dropped the target price for the stock to $200 from $240. TopBuild (NYSE: BLD) was cut to Hold from Buy at Loop Capital, which kept a $485 target price for the shares. Initiations: Celsius Holdings (NASDAQ: CELH) was initiated with a Neutral rating at Rothschild & Co Redburn, which has a $47 target price for the company. Dakota Gold (NYSE: DC) was initiated with an Outperform rating at CIBC, with an $11 target price. 
Kymera Therapeutics (NASDAQ: KYMR) was started with a Buy rating at Canaccord, with a $106 target price. Merck & Co (NYSE: MRK) was reinstated with a Neutral rating at Citigroup, which has a $125 target price for the pharmaceutical giant.

BALA CYNWYD, Pa. , May 18, 2026 (GLOBE NEWSWIRE) -- Brodsky and Smith reminds investors of the following investigations. If you own shares and wish to discuss the investigation, contact Jason Brodsky (jbrodsky@brodskysmith. com) or Marc Ackerman (mackerman@brodskysmith. com) at 855-576-4847.

$HAREHOLDER ALERT: The M&A Class Action Firm Continues to Investigate the Merger--CCRN, EEX, BLD, and QXO PR Newswire

NEW YORK, May 20, 2026

, /PRNewswire/ -- Class Action Attorney Juan Monteverde with Monteverde & Associates PC (the "M&A Class Action Firm"), has recovered millions of dollars for shareholders and is recognized as a Top 50 Firm in the 2025 ISS Securities Class Action Services Report. We are headquartered at the Empire State Building in New York City and are investigating

Cross Country Healthcare, Inc. (NASDAQ: CCRN) related to its sale to KL Criss Cross Intermediate, LLC. Under the terms of the proposed transaction Cross Country shareholders are expected to receive $13.25 per share in cash.Click here for more information https://monteverdelaw.com/case/cross-country-healthcare-inc/. It is free and there is no cost or obligation to you.

Emerald Holding, Inc. (NYSE: EEX) related to its sale to affiliates of Apollo Global Management, Inc. Under the terms of the proposed transaction Emerald shareholders are expected to receive $5.03 per share in cash.Click here for more information https://monteverdelaw.com/case/emerald-holding-inc/. It is free and there is no cost or obligation to you.

TopBuild Corp. (NYSE: BLD) related to its sale to QXO, Inc. Under the terms of the proposed transaction, TopBuild shareholders will have the right to elect to receive $505.00 in cash or 20.2 shares of QXO common stock for each TopBuild share held.Click here for more information https://monteverdelaw.com/case/topbuild-corp/. It is free and there is no cost or obligation to you.

QXO, Inc. (NYSE: QXO) related to its merger with TopBuild, Corp. Under the terms of the proposed transaction, TopBuild shareholders will have the right to elect to receive $505.00 in cash or 20.2 shares of QXO common stock for each TopBuild share held.Click here for more info https://monteverdelaw.com/case/qxo-inc/. It is free and there is no cost or obligation to you.

NOT ALL LAW FIRMS ARE THE SAME. Before you hire a law firm, you should talk to a lawyer and ask:

Do you file class actions and go to Court?When was the last time you recovered money for shareholders?What cases did you recover money in and how much?About Monteverde & Associates PC

Our firm litigates and has recovered money for shareholders…and we do it from our offices in the Empire State Building. We are a national class action securities firm with a successful track record in trial and appellate courts, including the U.S. Supreme Court.

No company, director or officer is above the law. If you own common stock in the above listed company and have concerns or wish to obtain additional information free of charge, please visit our website or contact Juan Monteverde, Esq. either via e-mail at [email protected] or by telephone at (212) 971-1341.

Contact:
Juan Monteverde, Esq.
MONTEVERDE & ASSOCIATES PC
The Empire State Building
350 Fifth Ave. Suite 4740
New York, NY 10118
United States of America
[email protected]
Tel: (212) 971-1341

Attorney Advertising. (C) 2026 Monteverde & Associates PC. The law firm responsible for this advertisement is Monteverde & Associates PC (www.monteverdelaw.com). Prior results do not guarantee a similar outcome with respect to any future matter.

View original content to download multimedia:https://www.prnewswire.com/news-releases/hareholder-alert-the-ma-class-action-firm-continues-to-investigate-the-mergerccrn-eex-bld-and-qxo-302778283.html

SOURCE Monteverde & Associates PC

QXO Building Products QXO is pushing ahead with the financing machinery behind its planned purchase of TopBuild BLD , as a Wells Fargo-led group of banks launched a $3 billion leveraged loan sale tied to the roughly $17 billion acquisition.

The loan is being marketed at about 2.25 percentage points above the benchmark rate, with a discounted price of 99 to 99.5 cents on the dollar, according to the source article. A lender call is scheduled for Monday at 11 a.m. New York time, while commitments are due Thursday at 5 p.m.

For investors, this is where the deal starts to move from headline ambition into balance-sheet reality. The broader financing package includes a $3 billion senior secured term loan facility and a $3 billion bridge loan, while a junk-bond offering could possibly follow to replace the bridge, split into two bonds of about $1.5 billion each. The rest of the acquisition will be funded with cash, preferred equity and common stock, and the deal would make QXO the second-largest publicly traded building products distributor in North America.

It has been about a month since the last earnings report for TopBuild (BLD - Free Report) . Shares have lost about 6.9% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is TopBuild due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.

TopBuild Q1 Earnings Beat Estimates on Acquisition-Led Sales GrowthTopBuild delivered a first-quarter 2026 earnings beat as acquisition-led growth more than offset softer residential demand and pricing pressure. Earnings of $3.75 per share beat the Zacks Consensus Estimate of $3.64 by 3% and declined 11.8% year over year.

Net sales climbed 17.2% year over year to $1.45 billion and topped the consensus mark of $1.41 billion by 2.5%. A key operating signal this quarter was the sales bridge; acquisitions added 24.3% to growth, while volume and price were down 5.5% and 1.6%, respectively.

BLD’s Sales Growth Powered by M&AManagement specifically cited the 2025 acquisitions of SPI and Progressive Roofing as the main drivers, helping the company push through a challenging backdrop in residential and light commercial new construction.

The revenue mix also tilted toward heavier commercial activity. Sales in Commercial/Industrial markets increased to $736.8 million compared with $463.5 million in the prior-year quarter, while Residential sales fell to $709.1 million from $769.8 million. That shift matters because it underscores how much of the quarter’s growth came from acquisitions and market exposure changes, not organic volume.

TopBuild’s Margin Profile Softer on Volume and PricingTopBuild’s gross profit was $400.3 million, up from $351.5 million a year ago, but gross margin contracted 80 basis points to 27.7%. The company attributed the decline primarily to lower sales volume and lower customer pricing.

SG&A expenses rose to $225.2 million from $174.0 million, pushing SG&A as a percentage of sales up to 15.6% from 14.1%. The higher cost burden reflected incremental expenses from acquisitions, including intangible amortization, which also weighed on year-over-year profitability.

BLD’s Segment Picture Showed a Clear SplitBy segment, Installation Services sales increased 4.3% year over year to $777.3 million. The company noted that acquisitions added 16.9% to the segment’s growth, but this was more than offset by a 9.8% decline in volume and a 2.9% impact from lower selling prices.

Specialty Distribution was the growth engine. Segment sales jumped 31.7% to $737.1 million, driven by a 31.1% lift from acquisitions, with modest contributions from price (up 0.3%) and volume (up 0.3%). Even with the strong sales print, segment operating margin slipped to 10.9% from 12.3%, largely due to acquisition-related SG&A and amortization.

BLD’s Cash Flow, Liquidity, and Capital PrioritiesBLD generated $160.7 million in operating cash flow, up from $152.6 million in the prior-year quarter, supported by working-capital benefits (notably accounts payable), partially offset by lower net income. Investing cash outflows rose to $41.5 million, driven by $27.9 million of acquisition spending and $14.0 million of capital expenditures.

As of March 31, 2026, TopBuild had $268.8 million in cash and cash equivalents and $934.1 million of availability under its revolving facility, for total liquidity of about $1.20 billion. Management also reiterated that M&A remains a priority and said it completed four acquisitions to date in 2026 that collectively add more than $80 million in annual revenues, while highlighting progress on SPI integration and synergy targets.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in fresh estimates.

VGM ScoresCurrently, TopBuild has a average Growth Score of C, a score with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Interestingly, TopBuild has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

NEW YORK & NEW ORLEANS--(BUSINESS WIRE)--Former Attorney General of Louisiana Charles C. Foti, Jr., Esq. and the law firm of Kahn Swick & Foti, LLC (“KSF”) are investigating the proposed sale of TopBuild Corp. (NYSE: BLD) to QXO, Inc. (NYSE: QXO). Under the terms of the proposed transaction, shareholders of TopBuild will have the right to elect to receive $505.00 in cash or 20.2 shares of QXO common stock (subject to proration), for each share of TopBuild that they own. KSF is seeking to de.

Posted by Defense World Staff on Mar 31st, 2026

Shares of ONE Gas, Inc. (NYSE:OGS – Get Free Report) have earned a consensus recommendation of “Hold” from the ten analysts that are currently covering the firm, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and four have issued a buy rating on the company. The average twelve-month price target among analysts that have updated their coverage on the stock in the last year is $86.8750.

Several analysts have recently weighed in on OGS shares. Weiss Ratings lowered ONE Gas from a “buy (b-)” rating to a “hold (c+)” rating in a report on Monday, January 5th. UBS Group reduced their target price on ONE Gas from $86.00 to $83.00 and set a “neutral” rating for the company in a research report on Wednesday, December 17th. Morgan Stanley set a $79.00 price target on shares of ONE Gas in a research note on Friday, February 20th. Bank of America boosted their price target on shares of ONE Gas from $90.00 to $92.00 and gave the company a “buy” rating in a report on Thursday, December 4th. Finally, Mizuho increased their price objective on shares of ONE Gas from $87.00 to $90.00 and gave the company an “outperform” rating in a research note on Wednesday, December 3rd.

Read Our Latest Stock Report on OGS

Insider Transactions at ONE Gas In other ONE Gas news, insider Brian F. Brumfield sold 1,000 shares of the firm’s stock in a transaction dated Tuesday, February 24th. The shares were sold at an average price of $86.44, for a total transaction of $86,440.00. Following the completion of the transaction, the insider owned 2,246 shares in the company, valued at $194,144.24. This trade represents a 30.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 1.38% of the stock is owned by company insiders.

Institutional Investors Weigh In On ONE Gas Several large investors have recently modified their holdings of OGS. Corient Private Wealth LLC lifted its position in shares of ONE Gas by 3.5% during the 4th quarter. Corient Private Wealth LLC now owns 4,018 shares of the utilities provider’s stock worth $312,000 after buying an additional 135 shares during the period. Tulsa Wealth Advisors INC bought a new stake in ONE Gas in the fourth quarter valued at $1,041,000. Caitong International Asset Management Co. Ltd grew its position in ONE Gas by 495.7% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 560 shares of the utilities provider’s stock valued at $43,000 after acquiring an additional 466 shares during the period. MidFirst Bank acquired a new position in ONE Gas during the fourth quarter worth $1,430,000. Finally, Mercer Global Advisors Inc. ADV lifted its holdings in shares of ONE Gas by 7.3% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 10,473 shares of the utilities provider’s stock valued at $809,000 after acquiring an additional 712 shares during the period. 88.71% of the stock is currently owned by institutional investors.

ONE Gas Stock Up 1.5% NYSE OGS opened at $86.22 on Tuesday. ONE Gas has a twelve month low of $69.75 and a twelve month high of $88.03. The stock has a market cap of $5.41 billion, a PE ratio of 19.73, a PEG ratio of 2.21 and a beta of 0.80. The firm has a 50-day simple moving average of $84.08 and a 200 day simple moving average of $81.13. The company has a debt-to-equity ratio of 0.68, a quick ratio of 0.48 and a current ratio of 0.60.

ONE Gas (NYSE:OGS – Get Free Report) last issued its quarterly earnings results on Wednesday, February 18th. The utilities provider reported $1.48 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.42 by $0.06. The firm had revenue of $689.37 million for the quarter, compared to analyst estimates of $990.44 million. ONE Gas had a return on equity of 8.24% and a net margin of 10.89%.The company’s quarterly revenue was up 9.3% compared to the same quarter last year. During the same period in the previous year, the company posted $1.34 earnings per share. ONE Gas has set its FY 2026 guidance at 4.830-4.950 EPS. On average, research analysts forecast that ONE Gas will post 4.26 EPS for the current year.

ONE Gas Increases Dividend The firm also recently announced a quarterly dividend, which was paid on Friday, March 6th. Investors of record on Friday, February 20th were paid a $0.68 dividend. The ex-dividend date of this dividend was Friday, February 20th. This is an increase from ONE Gas’s previous quarterly dividend of $0.67. This represents a $2.72 dividend on an annualized basis and a yield of 3.2%. ONE Gas’s payout ratio is presently 62.24%.

About ONE Gas (Get Free Report)

ONE Gas, Inc is a publicly traded natural gas utility company focused on the regulated distribution of natural gas to residential, commercial and industrial customers. Headquartered in Tulsa, Oklahoma, the company owns and operates an integrated system of transmission and distribution pipelines, storage facilities and compressor stations designed to deliver safe, reliable energy to end users. Its operations are governed by state utility commissions, which set rates and service standards in the markets the company serves.

The company’s service territory spans three states: Oklahoma, Kansas and the Texas Panhandle.

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All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.

Headquartered in Tulsa, ONE Gas (OGS - Free Report) is a Utilities stock that has seen a price change of 15.12% so far this year. Currently paying a dividend of $0.68 per share, the company has a dividend yield of 3.06%. In comparison, the Utility - Gas Distribution industry's yield is 2.78%, while the S&P 500's yield is 1.39%.

Looking at dividend growth, the company's current annualized dividend of $2.72 is up 1.5% from last year. Over the last 5 years, ONE Gas has increased its dividend 5 times on a year-over-year basis for an average annual increase of 4.53%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. ONE Gas's current payout ratio is 60%, meaning it paid out 60% of its trailing 12-month EPS as dividend.

Earnings growth looks solid for OGS for this fiscal year. The Zacks Consensus Estimate for 2026 is $4.73 per share, with earnings expected to increase 5.58% from the year ago period.

Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout.

Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. That said, they can take comfort from the fact that OGS is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).

Key Takeaways Consumer sentiment hit a record low in April as inflation surged and economic concerns deepened.OGS, AWR, ATO and NI show earnings estimate revisions and a steady growth outlook.Low beta and stable dividends make utility stocks attractive amid market volatility. Soaring inflation and the ongoing conflict in the Middle East have raised concerns about the health of the nation’s economy, denting consumers’ sentiment. Hundreds of billions of dollars have already been spent in the ongoing war against Iran, which is taking a toll on the economy.

Inflation also climbed to its highest level in nearly a year, making it a challenging job for the Federal Reserve to decide its future monetary policy.

Given this scenario, we recommend buying five defensive stocks from the utility sectors, namely, ONE Gas, Inc. (OGS - Free Report) , American States Water Company (AWR - Free Report) , Atmos Energy Corporation (ATO - Free Report) and NiSource Inc. (NI - Free Report) .

These stocks have seen positive earnings estimate revisions in the past 60 days, carry a Zacks Rank #2 (Buy), and are set for solid returns. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Consumer Sentiment DeclinesConsumer sentiment dropped to a record low in April on fears of a shrinking economy. The University of Michigan’s survey showed that consumer sentiment plunged to 47.6 in April, declining 10.7% from March to hit its record low.

The short-term inflation expectation over the next year jumped to 4.8% in April, up 1% from the prior month to hit its highest level since August 2025. Higher energy costs owing to the ongoing crisis in the Middle East, along with high commodity prices, are making spending difficult.

The consumer sentiment reading came just days after fresh data showed inflation surging to its highest level in nearly a year. The Commerce Department reported last week that the Consumer Price Index (CPI) increased 0.9% in March compared to February, when it had risen 0.3%. This pushed the annual inflation rate up to 3.3%, marking its highest level since May 2024.

It is also the largest monthly gain since June 2022. The jump in inflation will now add pressure on the Federal Reserve, as inflation remains above the central bank’s 2% target. Rate cuts this year are now a distant dream, with the minutes of the Fed’s last FOMC meeting indicating that several policymakers are now inclined toward a rate hike. This could make the broader market volatile again.

4 Low-Beta Utility Stocks With Growth PotentialONE GasONE Gas is a 100% regulated natural gas distribution utility. OGS provides natural gas distribution services to more than 2.3 million customers in Oklahoma, Kansas and Texas.  

ONE Gas has an expected earnings growth rate of 5.8% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.6% over the last 60 days. OGS has a Zacks Rank #2. The company has a beta of 0.75 and a current dividend yield of 3.07%.

American States Water CompanyAmerican States Water Company, along with its subsidiaries, provides fresh water, wastewater services and electricity to its customers in the United States. AWR principally works through its two major subsidiaries — Golden State Water Company and American States Utility Services.

American States Water Company has an expected earnings growth rate of 6.5% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3.2% over the last 60 days. AWR has a beta of 0.66 and a current dividend yield of 2.68%.

Atmos Energy CorporationAtmos Energy Corporation, along with its subsidiaries, is engaged in the regulated natural gas distribution and storage business. ATO serves nearly 3.3 million customers in more than 1,400 communities across eight states from the Blue Ridge Mountains in the East to the Rocky Mountains in the West. Atmos Energy operates more than 73,000 miles of transmission and distribution lines as well as 5,700 miles of interstate pipelines.

Atmos Energy has an expected earnings growth rate of 10.7% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.3% over the last 60 days. ATO has a beta of 0.69 and a current dividend yield of 2.15%.

NiSource Inc.NiSource Inc., together with its subsidiaries, provides natural gas, electricity, and other products and services in the United States. NI’s operating subsidiaries deliver energy to roughly 3.7 million customers in six states — Ohio, Pennsylvania, Virginia, Kentucky, Maryland and Indiana. NiSource has one of the nation’s largest natural gas distribution networks, as measured by the number of customers.

NiSource has an expected earnings growth rate of 7.9% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.5% over the past 60 days. NI presently has a Zacks Rank #2. NiSource has a beta of 0.61 and a current dividend yield of 2.53%.

ONE Gas (OGS - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The earnings report, which is expected to be released on May 4, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis natural gas distribution is expected to post quarterly earnings of $2.19 per share in its upcoming report, which represents a year-over-year change of +10.6%.

Revenues are expected to be $961.01 million, up 2.8% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 10.16% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for ONE Gas?For ONE Gas, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +2.98%.

On the other hand, the stock currently carries a Zacks Rank of #2.

So, this combination indicates that ONE Gas will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that ONE Gas would post earnings of $1.42 per share when it actually produced earnings of $1.48, delivering a surprise of +4.23%.

Over the last four quarters, the company has beaten consensus EPS estimates two times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

ONE Gas appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Declares Second Quarter Dividend

Analyst call and webcast scheduled tomorrow, May 5 at 11 a.m. EDT

, /PRNewswire/ -- ONE Gas, Inc. (NYSE: OGS) today announced its first quarter 2026 financial results, affirmed its 2026 financial guidance and declared its quarterly dividend.

"Our positive performance through a historically warm winter underscores the resilience of our business model and our ability to drive long‑term value while sustaining customer affordability," said Robert S. McAnnally, chief executive officer. "We are confident in our strategic plan and remain on track to achieve our 2026 financial guidance."

FINANCIAL RESULTS & HIGHLIGHTS

First quarter 2026 net income was $128.7 million, or $2.04 per diluted share, compared with $119.4 million, or $1.98 per diluted share, in the same period last year; First quarter 2026 adjusted net income was $133.4 million, or $2.11 per diluted share, compared with $120.1 million, or $1.99 per diluted share, in the same period last year; While weather across the Company's service areas was 20.5 percent warmer than normal and 24.6 percent warmer than the prior year, the impact on operating income was tempered by weather normalization mechanisms; In February 2026, the Company entered into an at-the-market equity distribution agreement under which it may issue and sell shares of common stock with an aggregate offering price up to $225 million; For the ninth consecutive year, ONE Gas was awarded the American Gas Association Safety Achievement Award for excellence in employee safety; and The board of directors declared a quarterly dividend of $0.68 per share ($2.72 annualized), payable on June 2, 2026, to shareholders of record at the close of business on May 18, 2026. FIRST QUARTER 2026 FINANCIAL PERFORMANCE

ONE Gas reported operating income of $189.6 million in the first quarter, compared with $180.5 million in the first quarter 2025, which primarily reflects an increase of $27.3 million from new rates.

This increase was partially offset by:

an increase of $6.8 million in employee-related costs due, in part, to planned investments in the Company's workforce; an increase of $1.3 million in outside services; and a decrease of $8.9 million in revenue due to lower sales and transport volumes, net of the impact of weather normalization mechanisms. Excluding interest related to KGSS-I securitized bonds, net interest expense decreased $3.0 million for the three months ending March 31, 2026. The decrease in interest expense is primarily due to commercial paper borrowings at lower rates and the implementation of Texas House Bill 4384.

Income tax expense includes a credit for amortization of the regulatory liability associated with excess deferred income taxes (EDIT) of $9.5 million and $8.1 million for the three months ended March 31, 2026, and 2025, respectively.

Capital expenditures and asset removal costs were $169.6 million for the first quarter 2026 compared with $177.7 million in the same period last year, primarily representing expenditures for system integrity and extension of service to new areas.

REGULATORY ACTIVITIES UPDATE

In April 2026, Kansas House Bill 2435 was signed into law, amending the Gas System Reliability Surcharge (GSRS) statute effective July 1, 2026. The amendment expands the qualifying infrastructure investments eligible for recovery to include all utility plant investments (excluding allocated corporate costs other than cyber-security related investments), increases the maximum monthly residential surcharge to $1.35 from $0.80 and provides added filing flexibility by allowing one GSRS filing per calendar year, rather than once every 365 days.

In March 2026, Texas Gas Service made a Gas Reliability Infrastructure Program filing for all customers requesting a $36.9 million revenue increase to be effective in July 2026.

In February 2026, Oklahoma Natural Gas filed its annual Performance-Based Rate Change application for the test year ended December 2025. The filing includes a requested $28.7 million base rate revenue increase, $2.6 million energy efficiency incentive and $14.4 million of estimated EDIT to be credited to customers in 2027. A hearing is scheduled for June 11, 2026. Rates may be implemented subject to refund on June 26, 2026.

2026 FINANCIAL GUIDANCE

ONE Gas affirmed the financial guidance it issued on Dec. 1, 2025, as supplemented on Feb. 18, 2026. For 2026, net income is expected to be in the range of $294 million to $302 million, or $4.65 to $4.77 per diluted share, while adjusted net income is expected to be in the range of $306 million to $314 million, or $4.83 to $4.95 per diluted share. The Company continues to expect long-term GAAP and adjusted net income growth of 7 to 9 percent and GAAP and adjusted net income per diluted share growth of 5 to 7 percent, consistent with its established five-year financial outlook.

Capital investments, including asset removal costs, are expected to be approximately $800 million in 2026. Capital investments for extensions to new customers are expected to be approximately $230 million.

EARNINGS CONFERENCE CALL AND WEBCAST

The ONE Gas executive management team will host a conference call on Tuesday, May 5, 2026, at 11 a.m. Eastern Daylight Time (10 a.m. Central Daylight Time). The call also will be carried live on the ONE Gas website.

To participate in the telephone conference call, dial 800-715-9871, passcode 3280987, or log on to www.onegas.com/investors and select Events and Presentations.

If you are unable to participate in the conference call or the webcast, a replay will be available on the ONE Gas website, www.onegas.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 1-800-770-2030, passcode 3280987.

NON-GAAP DISCLOSURE STATEMENT

This news release includes financial results and guidance for ONE Gas with respect to adjusted net income and adjusted net income per share, which are non-GAAP financial measures as defined by the Securities and Exchange Commission. Adjusted net income and adjusted net income per share are calculated as GAAP net income plus the deferral of an equity portion of a carrying cost attributable to shareholders' investment capitalized for regulatory purposes but not for financial reporting purposes. These carrying costs relate to property, plant and equipment that has been placed in service, but not yet reflected in base rates. Adjusted net income and adjusted net income per share should not be considered in isolation or as a substitute for GAAP net income or GAAP earnings per share.

Management believes these non‑GAAP measures provide useful information because they offer a more complete view of our overall regulatory economics, reflect the period-specific effects of certain regulatory mechanisms designed to mitigate regulatory lag associated with property, plant and equipment placed in service prior to regulatory action, and reflect the impact of regulatory timing differences that arise under the Company's rate-setting framework. These adjustments, net of applicable tax effects, are expected to recur as a result of the Company's regulatory framework and are a consistent part of our earnings profile. A reconciliation of the Company's GAAP net income and GAAP earnings per share to adjusted net income and adjusted net income per share is provided in the Appendix. 

---------------------------------------------------------------------------------------------------------------------

ONE Gas, Inc. (NYSE: OGS) is a 100% regulated natural gas utility, and trades on the New York Stock Exchange and the NYSE Texas under the symbol "OGS." ONE Gas is included in the S&P MidCap 400 Index and is one of the largest natural gas utilities in the United States.

Headquartered in Tulsa, Oklahoma, ONE Gas provides a reliable and affordable energy choice to more than 2.3 million customers in Kansas, Oklahoma and Texas. Its divisions include Kansas Gas Service, the largest natural gas distributor in Kansas; Oklahoma Natural Gas, the largest in Oklahoma; and Texas Gas Service, the third largest in Texas, in terms of customers.

For more information and the latest news about ONE Gas, visit onegas.com and follow its social channels: @ONEGas, Facebook, LinkedIn and YouTube.

Some of the statements contained and incorporated in this news release are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. The forward-looking statements relate to our anticipated financial performance, liquidity, management's plans and objectives for our future operations, our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. The following discussion is intended to identify important factors that could cause future outcomes to differ materially from those set forth in the forward-looking statements.

Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled," "likely," and other words and terms of similar meaning.

One should not place undue reliance on forward-looking statements, which are applicable only as of the date of this news release. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, costs, liquidity, markets, products, services and prices. In addition to any assumptions and other factors referred to specifically in connection with the forward-looking statements, factors that could cause our actual results to differ materially from those contemplated in any forward-looking statement include, among others, the following:

our ability to recover costs, income taxes and amounts equivalent to the cost of property, plant and equipment, regulatory assets and our allowed rate of return in our regulated rates or other recovery mechanisms; cyber-attacks, which, according to experts, continue to increase in volume and sophistication, or breaches of technology systems that could disrupt our operations or result in the loss or exposure of confidential or sensitive customer, employee, vendor, counterparty, or Company information; further, increased remote working arrangements have required enhancements and modifications to our information technology infrastructure (e.g. Internet, Virtual Private Network, remote collaboration systems, etc.), and any failures of the technologies, including third-party service providers, that facilitate working remotely could limit our ability to conduct ordinary operations or expose us to increased risk or effect of an attack; our ability to manage our operations and maintenance costs; changes in regulation of natural gas distribution services, particularly those in Oklahoma, Kansas and Texas; the economic climate and, particularly, its effect on the natural gas requirements of our residential and commercial customers; the length and severity of a pandemic or other health crisis which could significantly disrupt or prevent us from operating our business in the ordinary course for an extended period; competition from alternative forms of energy, including, but not limited to, electricity, solar power, wind power, geothermal energy and biofuels; adverse weather conditions and variations in weather, including seasonal effects on demand and/or supply, the occurrence of severe storms in the territories in which we operate, climate change, and the related effects on supply, demand, and costs; indebtedness could make us more vulnerable to general adverse economic and industry conditions, limit our ability to borrow additional funds and/or place us at competitive disadvantage compared with competitors; our ability to secure reliable, competitively priced and flexible natural gas transportation, storage, and supply, including decisions by natural gas producers to reduce production or shut-in producing natural gas wells and expiration of existing supply and transportation and storage arrangements that are not replaced with contracts with similar terms and pricing; our ability to complete necessary or desirable expansion or infrastructure development projects, which may delay or prevent us from serving our customers or expanding our business; operational and mechanical hazards or interruptions; adverse labor relations; the effectiveness of our strategies to reduce earnings lag, revenue protection strategies and risk mitigation strategies, which may be affected by risks beyond our control such as commodity price volatility, counterparty performance or creditworthiness and interest rate risk; the capital-intensive nature of our business, and the availability of and access to, in general, funds to meet our debt obligations prior to or when they become due and to fund our operations and capital expenditures, either through (i) cash on hand, (ii) operating cash flow, or (iii) access to the capital markets and other sources of liquidity; our ability to obtain capital on commercially reasonable terms, or on terms acceptable to us, or at all; limitations on our operating flexibility, earnings and cash flows due to restrictions in our financing arrangements; cross-default provisions in our borrowing arrangements, which may lead to our inability to satisfy all of our outstanding obligations in the event of a default on our part; changes in the financial markets during the periods covered by the forward-looking statements, particularly those affecting the availability of capital and our ability to refinance existing debt and fund investments and acquisitions to execute our business strategy; actions of rating agencies, including the ratings of debt, general corporate ratings and changes in the rating agencies' ratings criteria; changes in inflation and interest rates; our ability to recover the costs of upstream transportation, storage, and natural gas purchased for our customers and any related financing required to support our purchase of natural gas supply; impact of potential impairment charges; volatility and changes in markets for natural gas and our ability to secure additional and sufficient liquidity on reasonable commercial terms to cover costs associated with such volatility; possible loss of local distribution company franchises or other adverse effects caused by the actions of municipalities; payment and performance by counterparties and customers as contracted and when due, including our counterparties maintaining ordinary course terms of supply and payments; changes in existing or the addition of new environmental, safety, tax, cybersecurity and other laws or regulations to which we and our subsidiaries are subject, including those that may require significant expenditures, significant increases in operating costs or, in the case of noncompliance, substantial fines or penalties; the effectiveness of our risk-management policies and procedures, and employees violating our risk-management policies; the uncertainty of estimates, including accruals and costs of environmental remediation; advances in technology, including technologies that increase efficiency or that improve electricity's competitive position relative to natural gas; population growth rates and changes in the demographic patterns of the markets we serve in Oklahoma, Kansas and Texas, and economic conditions in these areas; acts of nature and naturally occurring disasters; political unrest and the potential effects of threatened or actual terrorism and war; the sufficiency of insurance coverage to cover losses; the effects of our strategies to reduce tax payments; changes in accounting standards; changes in corporate governance standards; existence of material weaknesses in our internal controls; our ability to comply with all covenants in our indentures and the ONE Gas Credit Agreement, a violation of which, if not cured in a timely manner, could trigger a default of our obligations; our ability to attract and retain talented employees, management and directors, and shortage of skilled-labor; unexpected increases in the costs of providing health care benefits, along with pension and postemployment health care benefits, as well as declines in the discount rates on, declines in the market value of the debt and equity securities of, and increases in funding requirements for, our defined benefit plans; and our ability to successfully complete merger, acquisition or divestiture plans, regulatory or other limitations imposed as a result of a merger, acquisition or divestiture, and the success of the business following a merger, acquisition or divestiture. These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of our forward-looking statements. Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail in Part 1, Item 1A, Risk Factors, in our Annual Report. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.

APPENDIX

ONE Gas, Inc.

CONSOLIDATED STATEMENTS OF INCOME

Three Months Ended

March 31,

(Unaudited)

2026

2025

(Thousands of dollars, except
per share amounts)

Total revenues

$      831,711

$      935,190

Cost of natural gas

393,576

512,462

Operating expenses

Operations and maintenance

146,947

135,295

Depreciation and amortization

76,785

81,704

General taxes

24,811

25,230

Total operating expenses

248,543

242,229

Operating income

189,592

180,499

Other income (expense), net

(2,097)

518

Interest expense, net

(32,358)

(35,697)

Income before income taxes

155,137

145,320

Income taxes

(26,464)

(25,901)

Net income

$      128,673

$      119,419

Earnings per share

Basic

$            2.05

$           1.99

Diluted

$            2.04

$           1.98

Average shares (thousands)

Basic

62,913

60,077

Diluted

63,204

60,266

Dividends declared per share of stock

$           0.68

$           0.67

APPENDIX

ONE Gas, Inc.

CONSOLIDATED BALANCE SHEETS

March 31,

December 31,

(Unaudited)

2026

2025

Assets

(Thousands of dollars)

Property, plant and equipment

Property, plant and equipment

$     9,852,116

$     9,734,150

Accumulated depreciation and amortization

2,640,623

2,611,952

Net property, plant and equipment

7,211,493

7,122,198

Current assets

Cash and cash equivalents

11,354

10,620

Restricted cash and cash equivalents

11,639

23,107

Total cash, cash equivalents and restricted cash and cash equivalents

22,993

33,727

Accounts receivable, net

405,157

461,631

Materials and supplies

92,987

97,595

Income tax receivable

55,552

55,552

Natural gas in storage

123,920

176,451

Regulatory assets

61,487

49,504

Other current assets

34,544

41,424

Total current assets

796,640

915,884

Goodwill and other assets

Regulatory assets

252,048

256,225

Securitized intangible asset, net

226,359

233,786

Goodwill

157,953

157,953

Pension and other postemployment benefits

47,175

47,012

Other assets

133,933

120,026

Total goodwill and other assets

817,468

815,002

Total assets

$     8,825,601

$     8,853,084

APPENDIX

ONE Gas, Inc.

CONSOLIDATED BALANCE SHEETS

(Continued)

March 31,

December 31,

(Unaudited)

2026

2025

Equity and Liabilities

(Thousands of dollars)

Equity and long-term debt

Common stock, $0.01 par value:

authorized 250,000,000 shares; issued and outstanding 62,761,990 shares at March 31, 2026;
issued and outstanding 62,692,392 shares at December 31, 2025

$            628

$            627

Paid-in capital

2,530,435

2,530,137

Retained earnings

994,838

909,355

Accumulated other comprehensive income (loss)

(179)

4

Total equity

3,525,722

3,440,123

Other long-term debt, excluding current maturities, net of issuance costs

2,133,350

2,133,018

Securitized utility tariff bonds, excluding current maturities, net of issuance costs

206,970

223,020

Total long-term debt, excluding current maturities, net of issuance costs

2,340,320

2,356,038

Total equity and long-term debt

5,866,042

5,796,161

Current liabilities

Current maturities of other long-term debt, net of issuance costs

249,798

249,674

Current maturities of securitized utility tariff bonds, net of issuance costs

31,404

30,566

Notes payable

759,700

737,400

Accounts payable

137,587

222,102

Accrued taxes other than income

71,272

75,568

Regulatory liabilities

21,638

57,277

Customer deposits

54,901

52,871

Other current liabilities

75,980

106,400

Total current liabilities

1,402,280

1,531,858

Deferred credits and other liabilities

Deferred income taxes

999,420

963,874

Regulatory liabilities

441,041

451,620

Other deferred credits

116,818

109,571

Total deferred credits and other liabilities

1,557,279

1,525,065

Commitments and contingencies

Total liabilities and equity

$     8,825,601

$     8,853,084

APPENDIX

ONE Gas, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended

(Unaudited)

2026

2025

(Thousands of dollars)

Operating activities

Net income

$       128,673

$       119,419

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

76,785

81,704

Deferred income taxes

23,293

19,146

Share-based compensation expense

3,837

3,656

Provision for doubtful accounts

2,896

2,331

Changes in assets and liabilities:

Accounts receivable

53,578

(40,690)

Materials and supplies

4,608

3,681

Natural gas in storage

52,531

92,498

Asset removal costs

(13,081)

(11,089)

Accounts payable

(78,600)

(72,871)

Accrued taxes other than income

(4,296)

2,245

Customer deposits

2,030

(1,320)

Regulatory assets and liabilities - current

(51,927)

73,872

Regulatory assets and liabilities - noncurrent

5,894

9,425

Other assets and liabilities - current

(26,105)

(11,650)

Other assets and liabilities - noncurrent

(3,803)

7,102

Cash provided by operating activities

176,313

277,459

Investing activities

Capital expenditures

(156,533)

(166,597)

Other investing expenditures

(2,697)

(2,427)

Other investing receipts

5,130

1,179

Cash used in investing activities

(154,100)

(167,845)

Financing activities

Borrowings (repayments) of notes payable, net

22,300

(102,700)

Repayment of other long-term debt

(4)

(4)

Repayment of securitized utility tariff bonds

(15,356)

(14,547)

Dividends paid

(42,678)

(40,153)

Tax withholdings related to net share settlements of stock compensation

(4,050)

(2,559)

Construction advances

6,841

—

Cash provided by financing activities

(32,947)

(159,963)

Change in cash, cash equivalents, restricted cash and restricted cash equivalents

(10,734)

(50,349)

Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period

33,727

78,537

Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period

$         22,993

$         28,188

Supplemental cash flow information:

Cash paid for interest, net of amounts capitalized

$         32,628

$         36,268

Cash paid (received) for state income taxes

$                —

$                —

Cash paid (received) for federal income taxes

$                —

$                —

APPENDIX

The following table reconciles the Company's GAAP net income and GAAP earnings per share to adjusted net income and adjusted net income per share:

ONE Gas, Inc.

Three Months Ended

March 31,

2026

2025

(Thousands of dollars, except per share amounts)

Net income - GAAP

$      128,673

$      119,419

Other income - deferred carrying cost (a)

4,725

648

Income taxes (a)

—

—

Adjusted net income - non-GAAP

$      133,398

$      120,067

Earnings per share - GAAP

Basic

$           2.05

$           1.99

Diluted

$           2.04

$           1.98

Adjusted net income per share - non-GAAP

Basic

$           2.12

$           2.00

Diluted

$           2.11

$           1.99

Average shares (thousands)

Basic

62,913

60,077

Diluted

63,204

60,266

(a) The allowance for earnings on shareholders' investment capitalized for regulatory purposes but not for financial reporting purposes
applied to property, plant and equipment placed in service, but not yet reflected in rates as authorized by our regulators or state law. This
increases book income but is non-taxable, creating a permanent tax difference.

ONE Gas, Inc.

2026 Financial Guidance: Reconciliation of non-GAAP to GAAP:

Low

Mid

High

(Thousands of dollars, except per share amounts)

Net income - GAAP

$      294,000

$      298,000

$       302,000

Other income - deferred carrying cost (a)

11,890

11,919

12,000

Income taxes (a)

—

—

—

Adjusted net income - non-GAAP

$      305,890

$      309,919

$       314,000

Earnings per share - GAAP

Basic

$           4.67

$           4.73

$            4.79

Diluted

$           4.65

$           4.71

$            4.77

Adjusted net income per share - non-GAAP

Basic

$           4.86

$          4.92

$           4.98

Diluted

$           4.83

$          4.89

$           4.95

Average shares (thousands)

Basic

62,995

62,995

62,995

Diluted

63,350

63,350

63,350

(a) The allowance for earnings on shareholders' investment capitalized for regulatory purposes but not for financial reporting purposes
applied to property, plant and equipment placed in service, but not yet reflected in rates as authorized by our regulators or state law. This
increases book income but is non-taxable, creating a permanent tax difference.

APPENDIX

ONE Gas, Inc.

INFORMATION AT A GLANCE

Three Months Ended

March 31,

(Unaudited)

2026

2025

(Millions of dollars)

Natural gas sales

$

769.9

$

870.4

Transportation revenues

40.1

43.8

Securitization customer charges

11.0

11.6

Other revenues

10.7

9.4

Total revenues

$

831.7

$

935.2

Cost of natural gas

393.5

512.5

Operating costs

171.8

160.5

Depreciation and amortization

76.8

81.7

Operating income

$

189.6

$

180.5

Net income

$

128.7

$

119.4

Capital expenditures and asset removal costs

$

169.6

$

177.7

Volumes (Bcf)

Natural gas sales

Residential

44.0

58.9

Commercial and industrial

15.0

19.2

Other

0.9

1.2

Total sales volumes delivered

59.9

79.3

Transportation

59.1

65.3

Total volumes delivered

119.0

144.6

Average number of customers (in thousands)

Residential

2,138

2,125

Commercial and industrial

163

165

Other

3

3

Transportation

11

12

Total customers

2,315

2,305

Heating Degree Days

Actual degree days

4,159

5,513

Normal degree days

5,232

5,231

Percent colder (warmer) than normal weather

(21) %

5 %

Statistics by State

Oklahoma

Average number of customers (in thousands)

939

934

Actual degree days

1,411

1,916

Normal degree days

1,798

1,797

Percent colder (warmer) than normal weather

(22) %

7 %

Kansas

Average number of customers (in thousands)

660

659

Actual degree days

2,070

2,610

Normal degree days

2,486

2,486

Percent colder (warmer) than normal weather

(17) %

5 %

Texas

Average number of customers (in thousands)

716

712

Actual degree days

678

987

Normal degree days

948

948

Percent colder (warmer) than normal weather

(28) %

4 %

Analyst Contact:

Erin Dailey

918-947-7441

Media Contact:

Leah Harper

918-947-7123

SOURCE ONE Gas, Inc.

ONE Gas (OGS - Free Report) reported $831.71 million in revenue for the quarter ended March 2026, representing a year-over-year decline of 11.1%. EPS of $2.11 for the same period compares to $1.98 a year ago.

The reported revenue represents a surprise of -13.18% over the Zacks Consensus Estimate of $958.01 million. With the consensus EPS estimate being $2.13, the EPS surprise was -0.79%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how ONE Gas performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Volumes - Natural gas sales - Transportation: 59,100.00 Mcf compared to the 64,969.62 Mcf average estimate based on two analysts.Volumes - Natural gas sales - Total volumes delivered: 119,000.00 Mcf versus 140,670.20 Mcf estimated by two analysts on average.Volumes - Natural gas sales - Total sales volumes delivered: 59,900.00 Mcf compared to the 75,700.59 Mcf average estimate based on two analysts.View all Key Company Metrics for ONE Gas here>>>

Shares of ONE Gas have remained unchanged over the past month versus the Zacks S&P 500 composite's +10% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Key Takeaways ONE Gas posted Q1 revenues of $831.7M, down 11.1% YoY, and missed estimates. OGS' natural gas volumes delivered fell 17.7% YoY to 119.0 billion cubic feet. ONE Gas expects 2026 adjusted EPS of $4.83-$4.95 and plans $800M in investments. ONE Gas, Inc. (OGS - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of $2.11, which missed the Zacks Consensus Estimate of $2.13 by 0.95%. The bottom line improved 6.03% from the year-ago quarter’s earnings.

OGS’ RevenuesONE Gas recorded revenues of $831.7 million, which missed the Zacks Consensus Estimate of $958 million by 13.15%. The top line also decreased 11.07% from $935.2 million in the prior-year quarter.

Highlights of OGS’ Q1 Earnings ReleaseTotal natural gas volumes delivered were 119.0 billion cubic feet, down 17.7% on a year-over-year basis. OGS served 2,315,000 customers, up 0.43% year over year.

Total operating expenses were $248.5 million, up 2.61% year over year. The increase in expenses was due to a rise in operations and maintenance expenses.

Operating income totaled $189.6 million, up 5.04% from $180.5 million recorded in the year-ago quarter.

OGS incurred net interest expenses of $32.4 million, down 9.35% on a year-over-year basis.

OGS’ Financial HighlightsAs of March 31, 2026, OGS had cash and cash equivalents of $23 million compared with $33.7 million as of Dec. 31, 2025.

Total long-term debt (excluding current maturities) was $2.34 billion as of March 31, 2026, compared with $2.36 billion as of Dec. 31, 2025.

Cash provided by operating activities in the first three months of 2026 was $176.3 million compared with $277.5 million in the year-ago period.

In the first quarter of 2026, capital expenditures were $156.5 million compared with $166.6 million in the year-ago period.

OGS’ 2026 GuidanceOGS expects its 2026 adjusted net income to be in the range of $306-$314 million.

The company projects 2026 adjusted earnings to be in the range of $4.83 to $4.95 per share. The Zacks Consensus Estimate for EPS is pegged at $4.78, which is below the company’s guidance.

ONE Gas projects its long-term adjusted net income to grow by 7-9% and adjusted net income per diluted share growth of 5-7% in its five-year financial plan.

In 2026, OGS plans to make capital investments, including asset removal costs, of $800 million and nearly $230 million for new customer extensions.

OGS’ Zacks RankCurrently, ONE Gas carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming ReleasesAtmos Energy (ATO - Free Report) is scheduled to report second-quarter fiscal 2026 results on May 6. The Zacks Consensus Estimate for ATO’s fiscal second-quarter EPS is pegged at $3.37, implying an increase of 11.22% from the prior-year figure.

The Zacks Consensus Estimate for the fiscal second-quarter sales is pinned at $2.24 billion, which suggests year-over-year growth of 14.77%.

UGI Corporation (UGI - Free Report) is set to report second-quarter fiscal 2026 results on May 6. The Zacks Consensus Estimate for UGI’s fiscal second-quarter EPS is pegged at $2.27, implying an increase of 2.71% from the prior-year figure.

The Zacks Consensus Estimate for fiscal second-quarter sales is pinned at $3.13 billion, which suggests year-over-year growth of 17.35%.

MDU Resources Group, Inc. (MDU - Free Report) is scheduled to report first-quarter 2026 results on May 7. The Zacks Consensus Estimate for MDU’s first-quarter EPS is pegged at 42 cents, reflecting an increase of 5% from the prior-year figure.

The Zacks Consensus Estimate for first-quarter sales is pinned at $702.32 million, which suggests year-over-year growth of 4.08%.

, /PRNewswire/ -- ONE Gas, Inc. (NYSE: OGS) today announced it will participate in the Bank of America Power, Utilities and Cleantech Conference on Wednesday, May 27, 2026, in New York City, New York. 

Curtis Dinan, president and chief operating officer, and Christopher Sighinolfi, senior vice president and chief financial officer, will be conducting a series of meetings with members of the investment community. 

The materials utilized at the conference are accessible on the ONE Gas website, www.onegas.com/investors/events-and-presentations.

ONE Gas, Inc. (NYSE: OGS) is a 100-percent regulated natural gas utility, and trades on the New York Stock Exchange and the NYSE Texas under the symbol "OGS." ONE Gas is included in the S&P MidCap 400 Index and is one of the largest natural gas utilities in the United States.

Headquartered in Tulsa, Oklahoma, ONE Gas provides a reliable and affordable energy choice to more than 2.3 million customers in Kansas, Oklahoma and Texas. Its divisions include Kansas Gas Service, the largest natural gas distributor in Kansas; Oklahoma Natural Gas, the largest in Oklahoma; and Texas Gas Service, the third largest in Texas, in terms of customers.

For more information and the latest news about ONE Gas, visit onegas.com and follow its social channels: @ONEGas, Facebook, LinkedIn and YouTube. 

Analyst Contact:
Erin Dailey
918-947-7411

Media Contact:
Leah Harper
918-947-7123

SOURCE ONE Gas, Inc.

Natural gas distribution companies offer services to transport natural gas from the region of production to millions of consumers across the United States. The utilities under the Zacks Utility Gas Distribution industry control miles of underground pipeline network to provide natural gas services to customers. The rising demand for clean-burning natural gas will create more opportunities for natural gas distribution companies.

Atmos Energy Corporation (ATO - Free Report) is well positioned to benefit from rising natural gas demand, supported by its extensive transmission and distribution network, interstate pipelines and ongoing infrastructure investments. Meanwhile, continued capital spending and infrastructure expansion across key production regions are expected to support the growth prospects of Southwest Gas Holdings (SWX - Free Report) , Brookfield Infrastructure (BIPC - Free Report) and ONE Gas (OGS - Free Report) .

About the Industry The shale boom has greatly expanded natural gas production, while the fuel’s cleaner-burning properties continue to support demand from residential, commercial and industrial customers. Natural gas distribution pipelines are essential for moving gas from interstate and intrastate transmission networks to consumers through localized pipeline systems. The United States possesses approximately 3,353 trillion cubic feet of natural gas reserves and depends on a vast 2.5 million-mile pipeline network to supply customers nationwide. Despite these strengths, the industry continues to face challenges related to aging infrastructure and the rising costs associated with maintaining and upgrading pipeline networks. Increasing adoption of alternative clean energy sources may gradually weaken natural gas demand and pipeline usage over time.

3 Key Trends Reshaping the Gas Distribution Industry Increasing Competition From Other Clean Sources: Natural gas is encountering increasing competition from alternative clean energy sources. Advances in technology have significantly lowered the cost of developing utility-scale renewable energy projects. At the same time, battery storage systems are helping address the intermittency of renewable power and ensuring a stable, around-the-clock supply of clean energy. As renewable energy becomes more cost-effective and on-site generation reduces dependence on long-distance natural gas pipeline infrastructure, investments in new pipeline projects are facing growing economic challenges.

Aging Infrastructure Creates Challenges in Operations: The U.S. natural gas distribution industry continues to struggle with aging infrastructure, with many old pipelines still in operation, which are nearing the end of their effective service life. Even with ongoing upgrades and system expansion, millions of miles of pipelines still require maintenance, raising concerns about safety, methane leaks and overall system reliability. The leaks in pipelines are resulting in service disruptions, creating safety hazards and leading to higher maintenance costs.

Strong Gas Production & Rising Demand From Data Centers: According to the U.S. Energy Information Administration (“EIA”), U.S. natural gas production is surging to new historical highs. The EIA projects dry gas output to rise from a record 107.7 billion cubic feet per day (Bcf/d) in 2025 to 110.6 Bcf/d in 2026, driven primarily by strong drilling in the Permian and Haynesville regions. Utilities and midstream operators are experiencing growing electricity demand driven by the expansion of AI and digital infrastructure. To meet the reliable baseload power requirements of data centers, utilities are increasingly relying on natural gas generation. The natural gas pipeline operators play a very important role to transport the natural gas to the end users.

Zacks Industry Rank Indicates Weak Near-Term Prospects The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates weak near-term prospects. The Zacks Utility Gas Distribution industry — a 13-stock group within the broader Zacks Utilities sector — currently carries a Zacks Industry Rank #185, which places it in the bottom 24% of the 245 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.

The industry’s positioning in the bottom 50% of the Zacks-ranked industries results from a negative earnings outlook for the constituent companies in aggregate. Since June 2025, earnings estimates for 2026 have moved down 18.5%.

Before we present a few Gas Distribution stocks that you may want to consider for your portfolio, let us look at the industry’s recent stock-market performance and valuation picture.

Gas Distribution Industry Lags the S&P 500 and the Sector The Gas Distribution industry has underperformed the Zacks S&P 500 composite and its sector over the past year. The stocks in this industry have gained 10.4% in the said time frame compared with the Utility sector’s growth of 15.8%. The Zacks S&P 500 composite has gained 31.2% in the same time frame.

Price Performance (One Year)Gas Distribution Industry Trading at a Discount Since utility companies have a lot of debt on their balance sheets, the EV/EBITDA (Enterprise Value/ Earnings before Interest Tax Depreciation and Amortization) ratio is commonly used to value them.

The industry is trading at a trailing 12-month EV/EBITDA of 11.32X compared with the Zacks S&P 500 composite’s 18.91X and the sector’s 15.58X.

 Over the past five years, the industry has traded at a high of 15.71X and a low of 11.32X, with a median of 11.9X.

Utility Gas Industry vs. S&P 500 (Past Five Years)

Utility Gas Industry vs. Sector (Past Five Years)
  4 Natural Gas Utility Stocks With Long-Term Potential Below are four stocks that have been witnessing positive earnings estimate revisions. 

Brookfield Infrastructure Corporation: This New York-based company supplies natural gas and electricity to its customers and frequently enters into agreements to pursue new growth opportunities. It signed a $5 billion deal with Bloom Energy to develop data center power solutions and formed a $20 billion partnership with Qai to support integrated AI facilities.

The current dividend yield is 4.38%. The Zacks Consensus Estimate for BIPC’s 2026 and 2027 earnings per share increased 1.58% and 1.37%, respectively, in the past 60 days. The company currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

Price and Consensus: BIPC

Atmos Energy: This Dallas, TX-based company is engaged in the regulated natural gas distribution and storage business. Atmos Energy plans to invest $4.2 billion in fiscal 2026 to strengthen its infrastructure further and efficiently serve more customers. The company continues to replace old pipelines and provide reliable services to its expanding customer base.

The current dividend yield of 2.37% is better than the Zacks S&P 500 composite’s 1.42%. Long-term (three to five years) earnings growth is currently pegged at 6.82%. The Zacks Consensus Estimate for ATO’s fiscal 2026 and 2027 earnings per share increased 1.58% and 1.37%, respectively, in the past 60 days. The company currently has a Zacks Rank #3 (Hold).

Price and Consensus: ATO

Southwest Gas Corporation: This Las Vegas, NV-based company provides regulated gas distribution and transmission services to its customers. Southwest Gas has plans to invest $6.3 billion in the 2026-2030 period. SWX’s natural gas operations have a diversified and growing customer base in three states, namely Arizona, Nevada and California. The current dividend yield is 2.99%. The Zacks Consensus Estimate for SWX’s 2026 per share increased 2.15% in the past 60 days. The company currently has a Zacks Rank #3.

Price and Consensus: SWX

ONE Gas Inc.: This Tulsa, OK- based 100% regulated natural gas distribution utility provides natural gas distribution services to more than 2.3 million customers. The company continues to make investments to strengthen its infrastructure and aims to invest $4 billion through 2029, a major portion of which will be directed toward system integrity and replacement projects. ONE Gas will invest $800 million in 2026 to further strengthen its operations.

The current dividend yield is 3.5%. Long-term earnings growth is pegged at 6.23%. The Zacks Consensus Estimate for OGS’ 2026 and 2027 earnings per share reflects year-over-year growth of 5.36% and 6.09%, respectively. The company currently has a Zacks Rank # 3.

Price and Consensus: OGS

NEW YORK, May 18, 2026 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP reminds investors of its investigation on behalf of Certara, Inc. (“Certara” or the “Company”) (NASDAQ:CERT) investors concerning the Company’s and/or members of its senior management’s possible violation of the federal securities laws or other unlawful business practices.

[LEARN MORE ABOUT THE INVESTIGATION]

What Happened?

On May 11, 2026, Certara reported its first quarter 2026 financial results. Certara disclosed that services revenue declined 4% year-over-year to $57.2 million, while services bookings declined 14% year-over-year to $66.6 million. In discussing the quarter, Certara stated that it saw “softer performance from Tier 1 customers in MIDD services” and that services performance was “mixed.” The Company also announced their exit from the regulatory business in their service segment. In response to a question about consistency between software and services performance, the Company stated that there had been “a lot of inconsistency and back and forth” over the last few quarters. On this news, the price of Certara shares declined by $1.18 per share, or approximately 19%, from $6.31 per share on May 8, 2026 to close at $5.13 on May 11, 2026.

What Should I Do?

At this stage, no lawsuit has been filed. The investigation is ongoing to determine whether claims may be brought under federal securities laws.

If you purchased or otherwise acquired Certara securities, have information, or would like to learn more about this investigation, please contact Lauren Molinaro of Kirby McInerney LLP by email at [email protected], or fill out the contact form below, to discuss your rights or interests with respect to these matters at no cost.

[LEARN MORE ABOUT SECURITES CLASS ACTIONS]

Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Contacts
Kirby McInerney LLP
Lauren Molinaro, Esq.
212-699-1171
https://www.kmllp.com
https://securitiesleadplaintiff.com/
[email protected]