Northwest Natural Holding Company (NYSE:NWN) is included among the 14 Best Utility Dividend Stocks to Buy Now. Northwest Natural Holding Company (NYSE:NWN) operates natural gas distribution utilities serving the Pacific Northwest and Texas, as well as water and wastewater utilities serving customers across six states. Northwest Natural Holding Company (NYSE:NWN) received a lift on November 12 when Stifel analyst Selman Akyol raised the stock’s price target from $50 to $52, while maintaining a ‘Buy’ rati ...

Financial Performance - Operating revenues for Q3 2025 increased to $164.7 million, up 20.3% from $136.9 million in Q3 2024[14] - Net income for the nine months ended September 30, 2025, was $55.5 million, compared to $33.9 million for the same period in 2024, representing a 63.8% increase[14] - The company reported a loss from operations of $12.4 million for Q3 2025, an improvement from a loss of $19.3 million in Q3 2024[14] - Net income for the nine months ended September 30, 2025, increased to $55,526,000, up from $33,869,000 in 2024, representing a growth of 63.9%[20] - Operating revenues for the nine months ended September 30, 2025, reached $776,845,000, compared to $744,156,000 in 2024, reflecting an increase of 4.4%[21] - The company experienced a net loss of $27,080,000 for the three months ended September 30, 2025, compared to a net loss of $26,348,000 in 2024[21] - For the three months ended September 30, 2025, NW Holdings reported operating revenues of $164.7 million, up from $146.7 million in the same period of 2024[161] - The net income for the nine months ended September 30, 2025, was $59.2 million, compared to $19.3 million for the same period in 2024[161] Expenses and Liabilities - Total operating expenses for Q3 2025 were $177.2 million, a 13.3% increase from $156.3 million in Q3 2024[14] - Current liabilities increased to $742.8 million as of September 30, 2025, compared to $567.4 million in 2024, a 30.8% rise[18] - Long-term debt rose to $2.13 billion as of September 30, 2025, compared to $1.56 billion in 2024, indicating a 37.0% increase[18] - Interest paid, net of capitalization, increased to $90,500,000 for the nine months ended September 30, 2025, compared to $57,837,000 in 2024[20] - Interest expense for NW Holdings was $30,435,000 for the three months ended September 30, 2025, compared to $19,060,000 in the same period of 2024[71] Assets and Equity - Total assets as of September 30, 2025, were $5.85 billion, up from $4.94 billion a year earlier, reflecting a 18.3% increase[16] - Total equity increased to $1,470,909,000 as of September 30, 2025, compared to $1,219,886,000 in 2024, reflecting a growth of 20.6%[25] - Total assets as of September 30, 2025, were $4,793,810,000, up from $4,498,485,000 in 2024, showing an increase of 6.6%[23] Cash Flow - Cash provided by operating activities for the nine months ended September 30, 2025, was $265,852,000, an increase from $219,697,000 in 2024, marking a rise of 21%[20] - The company reported a decrease in cash and cash equivalents to $35,830,000 at the end of the period, down from $46,808,000 in 2024[20] - The cash and cash equivalents for NW Holdings decreased to $32.203 million as of September 30, 2025, down from $35.047 million in 2024, representing a decline of 5.4%[40] - NW Natural's cash and cash equivalents increased to $20.265 million as of September 30, 2025, compared to $18.268 million in 2024, reflecting an increase of 10.9%[40] Capital Expenditures - Capital expenditures for the nine months ended September 30, 2025, totaled $332,652,000, compared to $294,261,000 in 2024, indicating an increase of 13%[20] - Capital expenditures for NW Holdings totaled $109,988,000 for the three months ended September 30, 2025, compared to $95,332,000 in the same period of 2024[71] - NW Holdings' total capital expenditures for the nine months ended September 30, 2025, were $262.698 million, compared to $264.673 million in the same period of 2024[73] Acquisitions - The acquisition of SiEnergy Operating, LLC on January 7, 2025, expanded the company's regulated natural gas distribution activities into Texas, serving metropolitan areas including Houston, Dallas, and Austin[29] - NW Holdings acquired SiEnergy Operating, LLC for a total consideration of $271.1 million in cash and $156.1 million of assumed debt, serving approximately 79,000 customers in Texas[153] - Preliminary goodwill of $171.1 million was recognized from the SiEnergy acquisition, primarily due to its natural gas utility service territory and expected growth benefits[156] - The acquisition of Hughes Gas Resources, Inc. (rebranded as Pines Holdings) was completed for $60.8 million in cash, expanding SiEnergy's customer base by approximately 7,000 in Texas[158] Regulatory and Environmental Liabilities - The company has recorded environmental liabilities totaling $115.6 million as of September 30, 2025, compared to $82.2 million in 2024, representing a 40.6% increase[201] - The Portland Harbor Superfund site cleanup is estimated to cost approximately $1.05 billion, with a potential variance of -30% to +50%[202] - NW Natural has recorded a liability of $52.8 million for the Gasco sediment clean-up, reflecting the low end of the estimated costs ranging from $52.8 million to $350 million[206] - The estimated costs for remedial alternatives at the Gasco uplands site range from $41.5 million to $358 million, with NW Natural recording a liability of $41.5 million[213] Shareholder Returns - The company declared dividends of $0.49 per share for Q3 2025, slightly up from $0.4875 per share in Q3 2024[19] - The company paid cash dividends on common stock totaling $57,573,000 for the nine months ended September 30, 2025, compared to $53,760,000 in 2024, an increase of 7.4%[27] Derivatives and Hedging - NW Holdings hedged approximately 80% of forecasted sales volume for the 2024-25 gas year, including 64% in financial hedges[178] - Unrealized losses from natural gas derivatives for the three months ended September 30, 2025, amounted to $31.6 million[179] - For the nine months ended September 30, 2025, NW Natural reported realized net losses of $69.5 million from natural gas financial derivative contracts, compared to net losses of $83.2 million for the same period in 2024, indicating a 16.5% improvement year-over-year[182] Employee Benefits and Compensation - NW Natural made cash contributions of $8.4 million to its defined benefit pension plans for the nine months ended September 30, 2025, compared to $17.9 million for the same period in 2024[141] - The net periodic benefit cost charged to expense for NW Natural was $13.002 million for the nine months ended September 30, 2025, up from $8.270 million in 2024, reflecting an increase of 57.5%[139] - During the nine months ended September 30, 2025, 66,018 RSUs were granted under the LTIP with a weighted-average grant date fair value of $41.68 per share[124] Miscellaneous - The company does not have any material contract assets or liabilities, as net accounts receivable and accrued unbilled revenue balances are unconditional[87] - The company has not posted collateral with counterparties as of September 30, 2025, minimizing liquidity risk through diversification and credit limits[183]

Financial Data and Key Metrics Changes - Northwest Natural Holdings reported a loss of $0.73 per share for Q3 2025, relatively unchanged from a loss of $0.71 per share in Q3 2024 [18] - Adjusted earnings per share increased to $1.52 year-to-date in 2025, compared to $0.88 for the same period in 2024, reflecting strong earnings across all business segments [20] Business Line Data and Key Metrics Changes - The gas utility segment's earnings per share improved slightly, while Sea Energy contributed an additional $0.04 of earnings per share for Q3 2025 compared to the same period last year [18] - The water segment's earnings per share increased by $0.04, driven by new rates at the largest water utility in Arizona and additional revenues from ICH Utilities [19] Market Data and Key Metrics Changes - The combined utility customer growth rate was 10.9% for the 12 months ended September 30, 2025, primarily due to gas utility acquisitions in Texas [6] - Northwest Natural Water's customer base grew at a rate of 4.1%, including three small acquisitions, with organic growth at 2.4% [13] Company Strategy and Development Direction - The company is focused on expanding its customer base, investing in systems, and achieving operational excellence through cost efficiency [5] - A robust long-term capital plan is in place, reaffirming a long-term earnings growth rate of 4%-6% [6] - The company is prioritizing organic growth while also looking for tuck-in acquisition opportunities, particularly in fragmented markets like Texas [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in executing against the 2025 plan and achieving results above the midpoint of the adjusted earnings range of $2.75 to $2.95 per share [6][20] - The company is well-positioned to meet regional energy needs through investments in long-duration assets like the Mist storage facility [11] Other Important Information - The board approved a dividend increase, marking the 70th consecutive year of annual dividend increases [6] - The company has liquidity of approximately $437 million as of September 30, 2025, with no material debt maturities in 2025 [21][22] Q&A Session Summary Question: Lower equity requirement for 2025 - Management indicated that the lower equity requirement is due to better cash flow generation and reassessment of capital structure throughout the year [24] Question: Additional tuck-in opportunities in Texas - Management noted that while tuck-in opportunities exist, the focus is currently on organic growth, particularly in Texas, Arizona, and Idaho [25] Question: Change in rate case timing in Oregon - Management mentioned that the Oregon commission is exploring multi-year planning, which could be beneficial for future rate cases [27][28] Question: Status of hydrogen pilot projects - Management confirmed that hydrogen blending tests have been successful, but broader hydrogen production projects are uncertain due to funding reallocations [29][30]

Financial Performance - Adjusted EPS for YTD Q3 2025 was $1.52, compared to $0.88 for the same period in the prior year[15, 24] - The company expects results to be above the midpoint of the 2025 adjusted EPS range of $2.75 - $2.95[15, 33] - NWN Gas Utility EPS increased by $0.58 YTD, primarily due to new rates in Oregon[28] - SiEnergy Gas Utility EPS increased by $0.20 YTD, reflecting the first year of results after acquisitions[28] - NWN Water Utility EPS increased by $0.14 YTD, mainly due to new rates in Arizona and earnings from acquired utilities[28] Growth and Investment - Over $330 million was invested in gas and water systems in the first nine months of 2025[15] - Over 95,000 gas and water utility connections were added in the last 12 months, representing a combined growth rate of 10.9%[15] - The company reaffirmed a long-term EPS growth target of 4% - 6% from the midpoint of the 2025 adjusted EPS guidance range[15, 33] Strategic Initiatives - The Oregon general rate case resulted in a $20.7 million revenue requirement increase and a 9.5% ROE[16] - A multi-year general rate case request in Washington provides a total $42.4 million revenue requirement increase over three years and a 10.2% ROE starting in year 2[16]

Financial Performance - Reported a net loss of $0.73 per share for Q3 2025, compared to a net loss of $0.71 per share in Q3 2024[3] - Achieved net income of $1.36 per share for the first nine months of 2025, up from $0.88 per share in the same period of 2024[3] - Net income for the nine months ended September 30, 2025, was $55,526,000, a 63.9% increase from $33,869,000 in 2024[46] - The company reported a GAAP net loss of $29,890,000 for Q3 2025, compared to a loss of $27,167,000 in Q3 2024[49] - Adjusted net income for the nine months ended September 30, 2025, was $62,203,000, compared to $33,869,000 in 2024, representing an 83.8% increase[49] Revenue and Growth - Operating revenues for Q3 2025 reached $164.728 million, a 20.2% increase from $136.934 million in Q3 2024[43] - NWN Gas Utility net income increased by $25.4 million (or $0.58 per share) primarily due to new rates in Oregon[16] - NWN Water net income increased by $6.3 million (or $0.14 per share) year-to-date, driven by an $11.2 million increase in operating revenues from new rates and acquisitions[22] - NWN Water's operating revenues rose by $3.2 million in Q3 2025, mainly due to new rates at its largest utility in Arizona[21] - The increase in NWN Gas Utility's margin was $68.1 million, primarily from the Oregon rate case[16] Capital Expenditures and Investments - Invested $333 million in gas and water systems in the first nine months of 2025 to enhance growth and reliability[3] - Total capital expenditures for the nine months ended September 30, 2025, were $332,652,000, up from $294,261,000 in 2024, indicating a 13.0% increase[46] - Long-term debt issued in 2025 amounted to $560,000,000, significantly higher than $150,000,000 in 2024[46] - Cash used in investing activities for the nine months ended September 30, 2025, was $667,480,000, compared to $326,295,000 in 2024, reflecting a 104.0% increase[46] Debt and Equity - Issued $185 million of inaugural investment-grade bonds at SiEnergy, refinancing existing debt[3] - Long-term debt increased to $2.128 billion in Q3 2025 from $1.555 billion in Q3 2024, reflecting a rise of 37.0%[45] - Common stock equity as a percentage of total capital structure decreased to 37.0% in Q3 2025 from 43.9% in Q3 2024[43] Dividends and Shareholder Returns - Increased annual indicated dividend rate to $1.97 per share, marking the 70th consecutive year of dividend increases[3] Future Outlook - Expects 2025 results to be above the midpoint of updated GAAP EPS guidance range of $2.59 to $2.79[3] - Reaffirmed long-term EPS growth rate target of 4% to 6% compounded annually[8] - GAAP EPS guidance for 2025 is projected between $2.59 and $2.79, with adjusted EPS guidance between $2.75 and $2.95[48] Utility Connections and Service Expansion - Added over 95,000 gas and water utility connections in the last 12 months, resulting in a combined growth rate of 10.9% as of September 30, 2025[3] - NWN Water serves approximately 197,000 people through about 79,000 meters and provides services to an additional 38,000 connections[34] - SiEnergy Gas Utility serves nearly 87,000 meters in the greater metropolitan areas of Houston, Dallas, and Austin, Texas[33] Operating Expenses - Total operating expenses for Q3 2025 were $177.151 million, up from $156.266 million in Q3 2024, representing a 13.4% increase[43] - Operations and maintenance expenses for NWN Water increased by $3.6 million due to the addition of ICH activities[22] Cash Flow - Cash provided by operating activities increased to $265,852,000 in 2025 from $219,697,000 in 2024, reflecting a 20.9% growth[46] - Cash and cash equivalents decreased to $32.203 million in Q3 2025 from $35.047 million in Q3 2024, a decline of 5.3%[45] - Cash, cash equivalents, and restricted cash at the end of the period were $35,830,000, down from $46,808,000 at the end of the same period in 2024[46]

Core Insights - Regency Capital Management Inc. sold its entire position in Northwest Natural Holding Company, liquidating 74,078 shares for an estimated value of $2.94 million as of October 20, 2025 [2][3][10] Company Overview - Northwest Natural Holding Company operates as a regulated utility focused on natural gas distribution and storage, along with water utility and renewable energy operations [5][6] - The company serves approximately 786,000 gas meters and provides water to about 80,000 people through roughly 33,000 water and wastewater connections in the Pacific Northwest and Texas [6][7] - Financial metrics include a revenue of $1.24 billion, net income of $103.25 million, and a dividend yield of 4.10% as of October 20, 2025 [4] Recent Performance - As of October 20, 2025, shares of NWN were priced at $46.66, reflecting a 15.2% increase over the past year, outperforming the S&P 500 by 5.43 percentage points [3][10] - Over the last three years, NWN shares generated a total return of only 18%, with a compound annual growth rate (CAGR) of 5.8%, significantly lagging behind the Utilities Select Sector SPDR Fund (54% total return, 15.5% CAGR) and the S&P 500 (84% total return, 22.6% CAGR) [11]

Group 1 - Energy-related stocks can be vulnerable to global market volatility and geopolitical disruptions, but some companies thrive due to consistent demand in household and business-staple niches [1] - Northwest Natural Holding Company is highlighted as an example of a company that performs well regardless of macroeconomic conditions [1] Group 2 - The analyst has been involved in stock investing and macroeconomic analysis for nearly a decade, focusing on various sectors including banks, telecommunications, logistics, and hotels [1] - The analyst's experience includes trading in both the ASEAN and US markets, with a diversified portfolio across different industries and market capitalizations [1]

Core Insights - Energy-related stocks can be affected by global market volatility and geopolitical disruptions, but some companies, like Northwest Natural Holding Company, can thrive due to consistent demand in household and business staple niches [1] Group 1: Market Dynamics - Energy stocks are typically vulnerable to global market fluctuations and geopolitical events [1] - Certain companies in the energy sector maintain strong performance due to their positioning in essential markets with stable demand [1] Group 2: Investment Strategy - The article highlights the importance of portfolio diversification, suggesting that investors should consider stocks in various sectors rather than concentrating solely on banks and properties [1] - The author emphasizes the value of engaging in stock markets for long-term financial growth, including retirement planning and trading profits [1]

Core Points - Northwest Natural Holding Company (NW Natural Holdings) will release its third quarter and year-to-date 2025 earnings on November 5, 2025, at 8 a.m. Pacific Time [1] - The company has been in operation for over 166 years and is headquartered in Portland, Oregon [3] - NW Natural Holdings provides essential energy, water, and wastewater services to over one million meters across seven states [4] Company Overview - NW Natural Holdings owns several subsidiaries, including Northwest Natural Gas Company, SiEnergy Operating, NW Natural Water Company, and NW Natural Renewables [3] - The NWN Gas Utility serves approximately 2 million people through about 807,000 meters in Oregon and Southwest Washington, with a modern pipeline system and 21.6 Bcf of underground gas storage capacity [5] - SiEnergy Gas Utility is one of the fastest-growing natural gas distribution utilities in the U.S., serving over 83,000 meters in Texas [6] - NWN Water Utility provides water distribution and wastewater services to around 195,000 people through approximately 78,600 meters, along with operation and maintenance services to an additional 40,000 connections [7] - NWN Renewables focuses on leading the energy transition by providing renewable fuels [8]

Core Points - Northwest Natural Holding Company has increased its quarterly dividend to 49.25 cents per share, with an annual dividend rate of $1.97 per share [1] - The dividend payment is scheduled for November 14, 2025, to shareholders of record on October 31, 2025 [1] Company Overview - Northwest Natural Holding Company is headquartered in Portland, Oregon, and has been in operation for over 166 years, owning several subsidiaries including NW Natural Gas Company, SiEnergy Operating, NW Natural Water Company, and NW Natural Renewables [1][2] - The company provides essential energy, water, and wastewater services to over one million meters across seven states, emphasizing safety, environmental stewardship, and community care [2] Natural Gas Utility - NW Natural Gas Utility serves approximately 2 million people in over 140 communities through about 807,000 meters in Oregon and Southwest Washington, featuring one of the most modern pipeline systems in the nation [3] - The utility owns and operates 21.6 billion cubic feet (Bcf) of underground gas storage capacity in Oregon [3] Water Utility - NWN Water Utility offers water distribution and wastewater services to communities in the Pacific Northwest, Texas, Arizona, and California, serving an estimated 195,000 people through approximately 78,600 meters [5] - The utility also provides operation and maintenance services to an additional 40,000 connections [5] Growth and Recognition - SiEnergy Gas Utility is recognized as one of the fastest-growing natural gas distribution utilities in the nation, serving over 83,000 meters in the metropolitan areas of Houston, Dallas, and Austin, Texas [4] - The company has been recognized by Ethisphere as one of the World's Most Ethical Companies for four consecutive years and consistently achieves high customer satisfaction scores according to J.D. Power & Associates [2]