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Southwest Gas
🇺🇸 NYSE:SWX
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Mar 31

Southwest Gas Q1 2025 Earnings Report

Reported financial results for the first quarter ended March 31, 2025, reaffirmed guidance, achieved an 8.2% last-twelve-months' utility ROE, and received an $80.2 million annual revenue increase from a completed Arizona rate case.

Key Takeaways

Southwest Gas Holdings reported a significant increase in net income in the first quarter of 2025, reaching $113.87 million compared to $87.737 million in the same period last year. This improvement was primarily driven by higher operating margin in the natural gas distribution segment and improved performance in the utility infrastructure services segment. Adjusted net income also saw a substantial rise, increasing by 21% year-over-year.

Net income for Q1 2025 was $113.87 million, a significant increase from $87.737 million in Q1 2024.

Adjusted net income for Q1 2025 was $119.371 million, up from $98.461 million in Q1 2024.

Diluted earnings per share were $1.58, compared to $1.22 in the prior year's quarter.

The natural gas distribution segment's net income contribution increased to $142.942 million from $135.825 million in Q1 2024.

Total Revenue
$1.3B
Previous year: $1.58B
-18.0%
EPS
$1.65
Previous year: $1.37
+20.4%
Utility ROE (LTM)
8.2%
Customer Growth Rate (LTM)
1.8%
New Meter Sets (LTM)
40K
Gross Profit
$287M
Previous year: $300M
-4.3%
Cash and Equivalents
$406M
Previous year: $458M
-11.3%

Southwest Gas

Southwest Gas

Forward Guidance

Southwest Gas Holdings reaffirmed its forward-looking guidance for the Southwest Gas segment, projecting 2025 net income between $265 million and $275 million and capital expenditures of approximately $880 million. The company also provided targets for adjusted net income and rate base compound annual growth rates between 2025 and 2029, ranging from 6.0% to 8.0%. Total capital expenditures for this period are estimated at $4.3 billion.

Positive Outlook

  • Reaffirmed 2025 net income guidance of $265 million to $275 million for the natural gas distribution segment.
  • Projected 2025 capital expenditures of approximately $880 million for customer growth, system improvements, and pipe replacement programs.
  • Targeted 2025-2029 adjusted net income CAGR of 6.0% to 8.0%.
  • Planned $4.3 billion in capital expenditures from 2025 to 2029.
  • Targeted 2025-2029 rate base CAGR of 6.0% to 8.0%.

Challenges Ahead

  • Guidance assumes $3 million to $5 million in COLI earnings.
  • CAGR calculations use 2025 as the base year.
  • No specific negative forward guidance points were explicitly mentioned in the report regarding the natural gas distribution segment's outlook.

Company Overview

Full financial data and analysis

View Southwest Gas