Accessibility StatementSkip Navigation LAS VEGAS, Sept. 5, 2025 /PRNewswire/ -- Southwest Gas Holdings, Inc. (NYSE: SWX) ("Southwest Gas Holdings" or the "Company") today announced the closing of the previously announced registered public offering of Centuri Holdings, Inc. (NYSE: CTRI) ("Centuri") common stock (the "Offering"). Southwest Gas Holdings, as the selling stockholder, sold 27,362,210 existing shares of Centuri's common stock at a price to the public of $19.60 per share. Southwest Gas Holding ...

Financial Data and Key Metrics Changes - The trailing twelve-month return on equity (ROE) increased to 8.3% from 8% in the previous two years [7] - Full year net income guidance is reaffirmed at $265 million to $275 million [9][40] - The utility reported record net income for 2025 with modest increases in operating and maintenance (O&M) expenses compared to the previous year [9] Business Line Data and Key Metrics Changes - The utility segment saw higher margins supported by rate relief and continued customer growth, with a $26.6 million increase in utility operating margin [28][30] - O&M expenses increased by $7 million, primarily due to higher labor and benefit costs [31] - Other income increased by $3.6 million, driven by gains from COLI policies and a one-time nonoperating gain [32] Market Data and Key Metrics Changes - Approximately 40,000 new meter sets were added over the last twelve months, indicating robust growth in the utility's service area [14][26] - The Great Basin expansion project received significant interest, with potential capacity requests estimated at 1.76 billion cubic feet per day [15][17] Company Strategy and Development Direction - The company aims to position itself as a premier pure play, fully regulated natural gas business, focusing on operational and financial performance improvements [6] - The regulatory strategy includes pursuing alternative ratemaking in Nevada, which is expected to reduce regulatory lag and support price stability [7][22] - The company plans to invest approximately $4.3 billion over the next five years to support safety, reliability, and economic development [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the regulatory strategy and the positive economic outlook in service areas, which supports growth [40] - The company is optimistic about the impacts of the new legislation in Nevada and the completion of the Arizona rate case [20][21] - Management highlighted the importance of maintaining a strong balance sheet to support capital investments and stockholder value [13][38] Other Important Information - The company successfully executed two secondary public offerings of Century shares, generating over $470 million in net proceeds used to repay debt [10][34] - The company no longer expects to issue new equity under its ATM program in 2025 [13][35] - The balance sheet remains strong, with over $350 million in cash and more than $1 billion in liquidity [14][38] Q&A Session Summary Question: Clarification on Great Basin expansion and return profile - Management confirmed that the increase in the project cost range is purely volume-driven from additional shipper requests for capacity [45][46] Question: Timeline for Nevada rate case and alternative rate making - Management indicated that the Nevada rate case and the new legislation could work complementarily, and they do not see an advantage in delaying the next rate case [50][51] Question: Duration and cadence of Arizona rate case - Management is evaluating the timing of the next Arizona rate case and the potential for formula rates, considering ongoing rate cases in the state [60][61] Question: Clarification on COLI gains and interest savings - Management confirmed that the COLI gains contributed positively to the corporate segment, and interest savings from debt repayment will continue to benefit the company [64][65] Question: Confidence in Great Basin project and CPCN filing - Management expressed confidence in proceeding with the CPCN filing once sufficient precedent agreements are signed, indicating strong project viability [68][70]

Financial Data and Key Metrics Changes - The company reported a trailing twelve-month return on equity (ROE) of 8.3%, an increase from 8% in the previous two years [8] - Full year net income guidance remains between $265 million to $275 million [9] - The utility reported record net income for 2025 with modest increases in operating and maintenance (O&M) expenses compared to the previous year [9][30] Business Line Data and Key Metrics Changes - The utility segment saw higher margins supported by rate relief and continued customer growth, with utility operating margin increasing by $26.6 million [29][31] - O&M expenses increased by $7 million year-over-year, primarily due to higher labor and benefit costs [32] - Other income increased by $3.6 million, driven by gains from COLI policies and a one-time nonoperating gain from an asset sale [33] Market Data and Key Metrics Changes - The company added approximately 40,000 new meter sets over the last twelve months, indicating robust growth driven by strong economic activity in its service area [14][27] - The Great Basin expansion project received significant interest, with potential shippers requesting approximately 1.76 billion cubic feet of capacity per day [16][18] Company Strategy and Development Direction - The company aims to position itself as a premier pure play, fully regulated natural gas business, focusing on operational and financial performance improvements [7] - The regulatory strategy includes pursuing alternative ratemaking in Nevada, which is expected to reduce regulatory lag and support price stability [8][11] - The company plans to invest approximately $4.3 billion over the next five years to support safety, reliability, and economic development across its service territories [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the regulatory strategy and the completion of the Arizona rate case, which is expected to positively impact future earnings [41] - The company anticipates that the regulatory cycle will result in nonlinear net income growth, with a focus on maintaining flat O&M per customer trends [41][42] - Management highlighted the importance of customer service and executing strategic priorities while delivering strong financial results [43] Other Important Information - The company successfully executed two secondary public offerings of Century shares, generating over $470 million in net proceeds, which were used to repay debt [10][34] - The company has no plans to issue new equity in 2025 following the Century sell-downs [13][36] Q&A Session Summary Question: Can you provide more granularity on the Great Basin expansion? - Management confirmed that the increase in the project cost range is purely volume-driven due to additional shippers requesting incremental capacity [46][47] Question: How should we think about the return profile of the Great Basin investment? - Management indicated that the return profile would be based on the FERC authorized rate of return and that AFUDC would apply to the project [48][51] Question: Will you consider delaying a traditional rate case filing in Nevada to help accelerate formula rates? - Management stated that they do not see an advantage in delaying the next rate case, as both processes can work complementarily [52][53] Question: How long do you think the Nevada Commission will take to sort out the SB 417 process? - Management anticipates that the rulemaking process could be completed within the next twelve months [58][60] Question: What are your thoughts on the cadence and duration of the Arizona rate case? - Management is evaluating whether to accelerate the timing of the next Arizona rate case, considering the preference for formula rates expressed by the commission [61][62] Question: Can we infer that you feel comfortable with the level of agreements signed for the Great Basin project if you make the CPCN filing? - Management confirmed that the CPCN filing would indicate confidence in the agreements signed to date [69][73]

Financial Performance & Strategic Focus - Southwest Gas Holdings (SWX) reported Q2 2025 net income of approximately $34 million, a 22% increase compared to Q2 2024, and year-to-date net income of approximately $177 million, an 8.1% increase compared to the same period in 2024[26] - SWX is committed to a pure-play, fully regulated natural gas business strategy through the disposition of its remaining interest in Centuri[22] - SWX expects 2025 Utility net income to fall within the $265 - $275 million guidance range[22] - The company is targeting 6% to 8% net income growth and 6% to 8% rate base growth from 2025-2029[22] Centuri Separation & Financing - Secondary offerings in Q2 2025 reduced SWX ownership in Centuri to approximately 52.1%[23] - Net proceeds of approximately $470 million from the Centuri secondary offerings were used to repay debt and strengthen the balance sheet[23] - SWX no longer expects to issue equity in 2025 due to proceeds from Centuri follow-on offerings[70] Regulatory & Operational Updates - Approximately 40,000 new meter sets were added during the last 12 months, leading to a 1.8% customer growth rate[26] - The company received approval to accelerate the return to Nevada customers of over-collected purchased gas costs, beginning July 1, 2025[26] - Great Basin successfully completed its binding open season, identifying potential incremental capacity of up to 1.76 billion cubic feet (Bcf)/day[26] - The potential incremental capital expenditure opportunity for the Great Basin expansion is approximately $1.2 - $1.6 billion[36]

Company Performance - Southwest Gas reported quarterly earnings of $0.53 per share, exceeding the Zacks Consensus Estimate of $0.42 per share, and up from $0.31 per share a year ago, representing an earnings surprise of +26.19% [1] - The company posted revenues of $1.12 billion for the quarter ended June 2025, which missed the Zacks Consensus Estimate by 7.3%, and compared to year-ago revenues of $1.18 billion [2] - Over the last four quarters, Southwest Gas has surpassed consensus EPS estimates four times but has not beaten consensus revenue estimates [2] Stock Performance - Southwest Gas shares have increased approximately 12.5% since the beginning of the year, outperforming the S&P 500's gain of 7.1% [3] - The current status of estimate revisions for Southwest Gas translates into a Zacks Rank 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the coming quarter is $0.08 on $1.12 billion in revenues, and for the current fiscal year, it is $3.73 on $4.84 billion in revenues [7] - The outlook for the Utility - Gas Distribution industry is positive, currently ranking in the top 25% of over 250 Zacks industries, suggesting that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8] Industry Comparison - Chesapeake Utilities, another company in the same industry, is expected to report quarterly earnings of $1.00 per share, reflecting a year-over-year change of +16.3%, with revenues anticipated to be $185.4 million, up 11.5% from the year-ago quarter [9][10]

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | Commission Exact name of registrant as specified in its charter and | | | State of | I.R.S. | | --- | --- | --- | --- | --- | | File Number principal of ice address and telephone number | | | Incorporation | Employer Identification No. | | 001-37976 Southwest Gas Holdings, Inc. | | | Delaware | 81-3881866 | | 8360 S. Durango Drive | | | | | | Las Vegas, | Nevada | 89113 | | | | (702) 876-7237 | | | | | | 1-7850 Sout ...

[Executive Summary and Key Highlights](index=1&type=section&id=Executive%20Summary%20and%20Key%20Highlights) Southwest Gas Holdings reported improved Q2 2025 operational and financial performance, reducing debt by over $470 million, strengthening its balance sheet, and advancing its pure-play natural gas utility transformation with positive regulatory developments - The company is transforming into a premier, pure-play, fully regulated natural gas business by reducing its ownership in Centuri to approximately 52%[2](index=2&type=chunk) - Proceeds from two Centuri follow-on offerings were used to reduce debt by over **$470 million**, significantly strengthening the balance sheet[2](index=2&type=chunk)[7](index=7&type=chunk) - Positive regulatory developments include the approval of a capital tracker program in Arizona and new legislation in Nevada (Senate Bill 417) allowing for alternative ratemaking[2](index=2&type=chunk)[7](index=7&type=chunk) - The Great Basin Gas Transmission Company's 2028 Expansion Project saw binding open season capacity demand increase to approximately **1.76 Bcf per day**, up from 1.25 Bcf[3](index=3&type=chunk)[7](index=7&type=chunk) - The Natural Gas Distribution utility achieved a return on period-end equity (ROE) of **8.3%** for the trailing 12 months ended June 30, 2025, and added approximately **40,000 new customers**, a **1.8% growth rate**[7](index=7&type=chunk) [Consolidated Financial Performance](index=1&type=section&id=Consolidated%20Financial%20Performance) Consolidated GAAP net loss of **$12.9 million** in Q2 2025 was driven by Centuri stock sale tax expenses, while adjusted non-GAAP net income increased **71%** to **$38.6 million** reflecting strong utility performance Consolidated Financial Results (Q2 & H1 2025 vs 2024) | (In thousands, except per share items) | Three Months Ended June 30, | Three Months Ended June 30, | Six Months Ended June 30, | Six Months Ended June 30, | | :--- | :--- | :--- | :--- | :--- | | | **2025** | **2024** | **2025** | **2024** | | **Net income (loss)** | **$ (12,883)** | **$ 18,333** | **$ 100,987** | **$ 106,070** | | **Adjusted net income** | **$ 38,588** | **$ 22,533** | **$ 157,959** | **$ 120,994** | | **Consolidated (loss) earnings per share** | **$ (0.18)** | **$ 0.25** | **$ 1.40** | **$ 1.47** | | **Adjusted consolidated earnings per diluted share** | **$ 0.53** | **$ 0.31** | **$ 2.19** | **$ 1.68** | Net Income Reconciliation (Q2 2024 to Q2 2025) | (In millions) | Three Months Ended | Six Months Ended | | :--- | :--- | :--- | | **Net income – June 30, 2024** | **$ 18.3** | **$ 106.1** | | Increase in Southwest Gas net income | 6.1 | 13.2 | | Improvement in Centuri net income/loss | 0.7 | 17.0 | | Increase in corporate and administrative net loss | (38.0) | (35.3) | | **Net (loss) income – June 30, 2025** | **$ (12.9)** | **$ 101.0** | - The Q2 2025 GAAP net loss was primarily due to tax expenses recognized on the company's investment in Centuri following stock sales, which eliminated the ability to include Centuri in consolidated tax returns[8](index=8&type=chunk)[14](index=14&type=chunk) [Segment Performance Analysis](index=5&type=section&id=Segment%20Performance%20Analysis) Natural Gas Distribution drove operational earnings growth, Centuri improved net income, while Corporate and Administrative reported a larger GAAP net loss due to Centuri divestiture tax impacts, though its adjusted net loss improved [Southwest Gas / Natural Gas Distribution](index=5&type=section&id=Southwest%20Gas%20%2F%20Natural%20Gas%20Distribution) Natural Gas Distribution's Q2 2025 net income increased by **$6.1 million**, driven by a **$26.6 million** operating margin increase from rate relief and customer growth, partially offset by higher expenses - **Q2 2025 Performance Drivers vs. Q2 2024:** * **Operating Margin:** Increased by **$26.6 million**, with **$23.7 million** from rate relief and **$2.5 million** from customer growth * **O&M Expense:** Increased by **$7.0 million**, mainly from higher employee-related costs * **Depreciation & Amortization:** Increased by **$9.3 million** due to a **7%** increase in average gas plant in service * **Interest Expense:** Increased by **$4.9 million**, primarily due to interest on over-collected PGA balances[10](index=10&type=chunk) - **Year-to-Date 2025 Performance Drivers vs. 2024:** * **Operating Margin:** Increased by **$65.5 million**, with **$51.1 million** from rate relief and **$7.6 million** from customer growth * **Depreciation & Amortization:** Increased by **$19.0 million**, driven by a **7%** increase in average gas plant in service * **Net Interest Deductions:** Increased by **$13.1 million**[13](index=13&type=chunk) [Centuri / Utility Infrastructure Services](index=7&type=section&id=Centuri%20%2F%20Utility%20Infrastructure%20Services) Centuri's Q2 2025 net income improved by **$0.7 million** due to lower interest expense, with year-to-date net loss improving by **$17.0 million** and a strong **2.3x** book-to-bill ratio - Q2 2025 net income improved by **$0.7 million** and adjusted net income improved by **$2.9 million** compared to Q2 2024, largely due to lower interest expense[11](index=11&type=chunk) - Year-to-date net loss improved by **$17.0 million**, driven by higher work volume and lower interest expense[12](index=12&type=chunk) - Achieved a strong book-to-bill ratio of **2.3x** in the first half of 2025, with customer awards totaling approximately **$3.0 billion**[12](index=12&type=chunk) [Corporate and Administrative](index=8&type=section&id=Corporate%20and%20Administrative) Corporate and Administrative's Q2 GAAP net loss increased by **$38.0 million** due to Centuri stock sale tax expenses, while its adjusted net loss decreased by **$7.0 million** from lower operating and interest expenses - Q2 GAAP net loss increased by **$38.0 million**, primarily due to tax expenses related to the sale of Centuri stock[14](index=14&type=chunk) - Q2 Adjusted net loss decreased by **$7.0 million** compared to the prior year, driven by lower operating and interest expenses[14](index=14&type=chunk) - Year-to-date GAAP net loss increased by **$35.3 million**, while adjusted net loss decreased by **$8.2 million** for similar reasons as the quarterly results[15](index=15&type=chunk) [Guidance and Strategic Updates](index=8&type=section&id=Guidance%20and%20Strategic%20Updates) The company reaffirmed 2025 guidance for Natural Gas Distribution, projecting **$265-$275 million** net income and **$880 million** capital expenditures, while reiterating commitment to Centuri's full separation Southwest Gas / Natural Gas Distribution Segment Guidance | Metric | 2025 Guidance (million USD) | 2025 - 2029 CAGR/Total | | :--- | :--- | :--- | | **Net Income** | $265 - $275 | 6.0% - 8.0% (Adjusted Net Income CAGR) | | **Capital Expenditures** | ~$880 | $4,300 (Total) | | **Rate Base CAGR** | N/A | 6.0% - 8.0% | - The company remains committed to pursuing a pure-play utility strategy through a complete disposition of its remaining interest in Centuri[17](index=17&type=chunk) [Appendix: Financial Tables and Statistics](index=13&type=section&id=Appendix%3A%20Financial%20Tables%20and%20Statistics) This appendix provides detailed financial data, including consolidated earnings, non-GAAP reconciliations, and key gas segment statistics, notably an **8.3%** gas segment ROE and **9.89%** authorized return on common equity [Consolidated Earnings Results](index=13&type=section&id=Consolidated%20Earnings%20Results) Consolidated operating revenues for Q2 2025 were **$1.12 billion**, down from **$1.18 billion** in Q2 2024, with year-to-date revenues at **$2.42 billion** Consolidated Operating Revenues and Net Income | Period | 2025 (thousands USD) | 2024 (thousands USD) | | :--- | :--- | :--- | | **Q2 Operating Revenues** | $1,120,370 | $1,182,168 | | **Q2 Net Income (Loss)** | $(12,883) | $18,333 | | **H1 Operating Revenues** | $2,416,867 | $2,763,124 | | **H1 Net Income** | $100,987 | $106,070 | [Non-GAAP Reconciliations](index=14&type=section&id=Non-GAAP%20Reconciliations) Detailed reconciliations adjust GAAP net income to non-GAAP adjusted net income, with Q2 2025 key adjustments including **$45.4 million** income tax effect, **$4.9 million** amortization, and **$2.3 million** separation costs Reconciliation of Q2 2025 Net Loss to Adjusted Net Income | (In thousands) | Amount | | :--- | :--- | | **Net loss applicable to Southwest Gas Holdings (GAAP)** | **$ (12,883)** | | Plus: Strategic review and Centuri separation | 2,273 | | Plus: Amortization of intangible assets | 4,932 | | Plus: Professional fees associated with one-time events | 834 | | Plus: Income tax effect on Centuri investment | 45,397 | | Less: Income tax effect of adjustments above | (1,965) | | **Adjusted net income applicable to Southwest Gas Holdings** | **$ 38,588** | [Financial and Operational Statistics](index=16&type=section&id=Financial%20and%20Operational%20Statistics) Key statistics include the gas segment's trailing twelve-month ROE of **8.3%**, an authorized return on common equity of **9.89%**, and total system throughput of **116.6 million dekatherms** for H1 2025 Key Financial Statistics (TTM) | Metric | Value (%) | | :--- | :--- | | Twelve months to date return on equity -- total company | 5.5 % | | Twelve months to date return on equity -- gas segment | 8.3 % | | Common stock dividend yield at quarter end | 3.3 % | System Throughput by Customer Class (Six Months Ended June 30) | (In dekatherms) | 2025 | 2024 | | :--- | :--- | :--- | | Residential | 49,061,612 | 52,060,127 | | Small commercial | 19,659,922 | 20,010,847 | | Transportation | 39,595,624 | 42,816,082 | | **Total system throughput** | **116,611,869** | **123,528,957** |

Core Insights - The company reported a trailing 12-month utility return on equity (ROE) of 8.3% as of June 30, 2025, reflecting improvements in regulatory progress and cost management [6][29] - The Arizona Corporation Commission approved a capital tracker program, and Nevada enacted Senate Bill 417, allowing for alternative ratemaking for natural gas utilities, which is expected to enhance price stability and consumer protection [2][6] - The company successfully reduced its debt by over $470 million through follow-on offerings of Centuri Holdings, strengthening its balance sheet and moving towards a pure-play regulated natural gas business [2][6] Financial Performance - For the second quarter ended June 30, 2025, the company reported a net loss of $12.9 million, a decline of $31.2 million compared to the same period in 2024, primarily due to tax impacts from the sale of Centuri stock [8][9] - Adjusted net income for the second quarter was $38.6 million, representing a 71% increase compared to the same quarter in 2024 [8][29] - Year-to-date net income for 2025 was $100.987 million, a decrease of $5.1 million compared to the previous year, while adjusted net income was $37 million higher than the same period in 2024 [9][29] Operational Highlights - The company added approximately 40,000 new meter sets over the 12 months ending June 30, 2025, resulting in a customer growth rate of 1.8% [6] - The Great Basin Gas Transmission Company's 2028 Expansion Project saw increased capacity demand, rising to about 1.76 billion cubic feet per day from 1.25 billion cubic feet previously announced [3][6] - The company had $356 million in cash and over $1 billion in available liquidity as of June 30, 2025 [6] Segment Performance - The natural gas distribution segment contributed $33.677 million to net income in Q2 2025, up from $27.594 million in Q2 2024, while utility infrastructure services contributed $5.771 million [4][6] - Corporate and administrative net loss increased to $52.331 million in Q2 2025, impacted by tax expenses related to the Centuri stock sale [15][16] - Centuri's net loss improved by $17 million year-to-date, driven by higher work volume under master services agreements [13][16] Future Outlook - The company reaffirmed its 2025 net income guidance of $265 million to $275 million and capital expenditures of approximately $880 million to support customer growth and system improvements [17][19] - The company anticipates a compound annual growth rate (CAGR) of 6.0% to 8.0% for adjusted net income from 2025 to 2029 [19]

Group 1 - The company, Southwest Gas Holdings, Inc., will host its second quarter earnings conference call on August 6, 2025, at 11:00 AM ET [1] - A news release will be issued before the markets open on the same day [1] - The conference call will be available via live webcast on the company's website [1] Group 2 - Participants can join the call using the telephone number (800) 836-8184 or the international number (646) 357-8785 [2] - If unable to attend live, a digital replay will be available starting one hour after the call, accessible by dialing (888) 660-6345 or (646) 517-4150 [2] - The digital replay will be available until 4:30 PM ET on August 13, 2025, with the replay code 15251 [2]

Core Viewpoint - Southwest Gas (SWX) has a strong track record of exceeding earnings estimates and is well-positioned for continued success in upcoming quarterly reports [1][5]. Earnings Performance - For the last reported quarter, Southwest Gas achieved earnings of $1.65 per share, surpassing the Zacks Consensus Estimate of $1.61 per share, resulting in a surprise of 2.48% [2]. - In the previous quarter, the company was expected to report earnings of $1.15 per share but delivered $1.39 per share, leading to a significant surprise of 20.87% [2]. Earnings Estimates and Predictions - Recent estimates for Southwest Gas have been trending upward, with a positive Zacks Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [5][8]. - The current Earnings ESP for Southwest Gas stands at +8.00%, reflecting increased analyst optimism regarding the company's earnings prospects [8]. Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [6]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, suggesting that last-minute analyst revisions may provide more accurate predictions [7].