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Jun 30
Southwest Gas Q2 2025 Earnings Report
Southwest Gas reported a Q2 2025 net loss driven by tax impacts from Centuri stock sales, while adjusted EPS and operating margin improved year over year.
Key Takeaways
Southwest Gas posted a Q2 2025 net loss of $12.9 million, largely due to tax impacts from Centuri divestitures. However, adjusted EPS rose to $0.53 and operating margin expanded, reflecting regulatory wins and customer growth.
Reported net loss of $12.9 million, primarily due to tax consequences from Centuri stock sales.
Adjusted EPS rose to $0.53 from $0.31 in Q2 2024, a 71% increase.
Utility operating margin increased by $26.6 million, driven by rate relief and customer growth.
Utility ROE over the trailing twelve months improved to 8.3%.
Southwest Gas
Southwest Gas
Southwest Gas Revenue by Segment
Revenue by Segment
Natural Gas Distribution Revenue
CapyFin.com Forward Guidance
The company reaffirmed its full-year 2025 guidance, expecting net income between $265 million and $275 million and capex of ~$880 million. It targets a 6-8% CAGR for adjusted net income and rate base through 2029.
Positive Outlook
- 2025 net income expected between $265M and $275M.
- Targeting $880M in capital expenditures for 2025.
- 6-8% CAGR for adjusted net income from 2025 to 2029.
- 6-8% CAGR for rate base over the same period.
- Great Basin 2028 expansion could add $1.2B–$1.6B in capital investment opportunity.
Challenges Ahead
- Tax expense from Centuri stock sales impacted Q2 results.
- Lower interest income on deferred PGA balances compared to prior year.
- Higher depreciation and amortization driven by 7% increase in gas plant.
- Increased operations and maintenance costs, particularly labor and external services.
- Uncertainty around the full separation timing and execution of Centuri.