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Sep 30, 2025
Southwest Gas Q3 2025 Earnings Report
Southwest Gas posted a modest improvement in continuing operations for Q3 2025, supported by customer growth and regulatory gains.
Key Takeaways
Southwest Gas Holdings reported a Q3 net income of $4.2 million from continuing operations, up from a loss in the prior year. This was driven by improved operating margin, lower interest expense, and steady customer growth across its regulated gas territories.
Net income from continuing operations rose to $4.2 million, up $13.4 million YoY
Natural Gas Distribution segment contributed $5.5 million to net income
Utility ROE reached 8.3% for the trailing twelve months
Company added 40,000 new meter sets, achieving a 1.8% customer growth rate
Revenue by Segment
Forward Guidance
Southwest Gas reaffirmed its 2025 outlook, with net income expected toward the high end of the guidance range, backed by capital investment and steady growth.
Positive Outlook
- 2025 net income projected at $265–$275 million
- Capital expenditures of ~$880 million planned for 2025
- Rate base CAGR expected at 6–8% through 2029
- Customer growth momentum with 40,000 new meter sets
- Strong balance sheet and credit upgrades to BBB+
Challenges Ahead
- Higher income tax expense impacted net earnings
- Increased depreciation and amortization due to growing plant base
- Lower interest income from regulatory balances
- Persistent increases in labor and insurance costs
- Continued impact from over-collected PGA balances on interest deductions
Historical Earnings Impact
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Avg. Return Before/After Earnings
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