Financial Performance & Guidance - Southwest Gas Holdings (SWX) expects 2025 Utility net income toward the top end of the $265 - $275 million guidance range[19] - The Utility is targeting 60% to 80% net income growth and 60% to 80% rate base growth from 2025-2029[19] - Q3 2025 net income was approximately $55 million, a significant improvement over Q3 2024, and year-to-date net income reached $1821 million, an 111% increase compared to the same period in 2024[26] - Capital expenditure for 2025 is projected to be around $880 million, supporting customer growth, system improvements, and pipe replacement programs[73] - The company reaffirms its forward-looking guidance for 2025-2029, with a capital expenditure plan of $43 billion[74] Strategic Initiatives & Regulatory Updates - SWX completed the full separation of Centuri (CTRI), generating approximately $135 billion of total net sales proceeds[19, 23] - The company expects no near-term equity needs through the end of 2025 and finished the quarter with approximately $779 million in consolidated cash and nearly $15 billion in available liquidity[27] - Great Basin is pursuing a potential expansion project in 2028, which could add up to approximately 176 BCF/day of incremental capacity, with a potential capital expenditure of approximately $12 billion - $16 billion[34] - The company anticipates rate case filings in the first half of 2026, requesting alternative forms of rate making in Arizona (AZ) and Nevada (NV)[26] Regulatory Outcomes - The Arizona Corporation Commission (ACC) approved an increase in rates effective in March 2025, resulting in an approximately $802 million revenue increase[108] - The Public Utilities Commission of Nevada authorized an approximately $59 million revenue increase, with rates effective in April 2024[117] - The Federal Energy Regulatory Commission (FERC) approved an increase in rates for Great Basin Gas Transmission Company (GBGTC) effective March 3, 2025, estimating an annual margin increase of approximately $96 million[120, 124]

Core Insights - Southwest Gas reported quarterly earnings of $0.06 per share, missing the Zacks Consensus Estimate of $0.09 per share, representing a -33.33% earnings surprise [1] - The company posted revenues of $316.91 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 14.52%, compared to year-ago revenues of $1.08 billion [2] - The stock has gained approximately 16.5% since the beginning of the year, outperforming the S&P 500's gain of 15.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.35 on revenues of $583.87 million, and for the current fiscal year, it is $3.63 on revenues of $3.37 billion [7] - The estimate revisions trend for Southwest Gas was favorable ahead of the earnings release, resulting in a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Utility - Gas Distribution industry is currently in the top 24% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [8] - Another company in the same industry, UGI, is expected to report a quarterly loss of $0.44 per share, reflecting a year-over-year change of -175%, with revenues projected at $1.72 billion, up 38.6% from the previous year [9][10]

Group 1 - Global CFO turnover reached a seven-year high in the first half of the year, influenced by increased retirement rates [3] - Robert Stefani, CFO of Southwest Gas Holdings, will leave the company on December 1 to pursue other opportunities after three years in the role [7] - The company has initiated an internal and external search for a successor, with no set timeline for the appointment [7] Group 2 - Stefani's departure was by mutual agreement and not due to any disagreements regarding accounting practices or internal controls [5] - In 2022, Stefani received total compensation of $2.56 million, which included a salary of $593,601, an increase from the previous year's $2.27 million [6] - The company expressed confidence in its finance and controllers group to manage duties during the transition period [7]

Financial Performance - For the three months ended September 30, 2025, operating revenues decreased to $316,911 thousand from $359,131 thousand in the same period of 2024, representing a decline of approximately 11.1%[20] - Net income for the nine months ended September 30, 2025, was $366,817 thousand, significantly higher than $110,435 thousand for the same period in 2024, marking an increase of approximately 231.5%[24] - The company reported an operating income of $37,008 thousand for Q3 2025, compared to $20,122 thousand in Q3 2024, reflecting a year-over-year increase of approximately 83.9%[20] - The basic earnings per share for continuing operations was $0.06 for Q3 2025, compared to a loss of $0.13 in Q3 2024, showing a turnaround in performance[20] - Net income for Q3 2025 was $5,520, compared to $572 in Q3 2024, representing a significant increase[34] - Net income for the three months ended September 30, 2025, was $5,520,000, compared to $135,825,000 for the same period in 2024, reflecting a significant decrease[51] - Net income attributable to Southwest Gas Holdings for the three months ended September 30, 2025, was $270.5 million, compared to $289,000 in the same period of 2024[98] - Net income attributable to Southwest Gas Holdings, Inc. for the nine months ended September 30, 2025, was $371,463,000, compared to $106,359,000 for the same period in 2024, indicating a significant increase[88][89] Cash Flow and Liquidity - Cash and cash equivalents at the end of the period increased to $778,631 thousand from $456,643 thousand year-over-year, representing a growth of approximately 70.5%[24] - The company reported net cash provided by operating activities of $474,508 thousand for the nine months ended September 30, 2025, compared to $1,154,336 thousand in 2024, a decrease of about 58.9%[24] - Cash and cash equivalents decreased to $181,996 at the end of Q3 2025 from $311,073 at the end of 2024, a decline of 41.5%[32] - Operating cash flows for Southwest Gas Holdings decreased by $553.3 million in the first nine months of 2025 compared to the same period in 2024, primarily due to reduced collection of previously deferred purchased gas costs[134] - Cash flows used in investing activities decreased by $66.5 million in the first nine months of 2025, driven by reduced capital expenditures and property additions[135] - Cash flows used in financing activities increased by $705.5 million in the first nine months of 2025, including a full payment of a $550 million term loan and a $130 million paydown on the revolving credit facility[136] Expenses and Liabilities - Total operating expenses for the nine months ended September 30, 2025, were $1,144,425 thousand, down from $1,666,222 thousand in 2024, indicating a reduction of about 31.2%[20] - The company incurred net interest deductions of $49,003 thousand for Q3 2025, down from $53,806 thousand in Q3 2024, reflecting a decrease of about 8.4%[20] - Total current liabilities decreased to $804,703 thousand as of September 30, 2025, from $1,831,967 thousand at the end of 2024, a reduction of approximately 56.1%[17] - The total capitalization and liabilities as of September 30, 2025, stood at $10,328,579 thousand, down from $12,072,906 thousand at the end of 2024, indicating a decrease of approximately 14.5%[17] - Interest expense for the nine months ended September 30, 2025, was $156,787,000, an increase from $152,452,000 for the same period in 2024[89] Equity and Shareholder Returns - As of September 30, 2025, total equity for Southwest Gas Holdings, Inc. was $3,928,679,000, reflecting an increase from $3,504,187,000 on December 31, 2024[28] - The balance of retained earnings increased to $999,399,000 as of September 30, 2025, up from $758,649,000 on March 31, 2025[28] - The balance of retained earnings as of September 30, 2025, was $1,233,196,000, up from $1,096,149,000 as of December 31, 2024[51] - Dividends declared remained consistent at $0.62 per share, totaling $45,016,000 for the quarter ending June 30, 2025[28] - The quarterly dividend was maintained at $0.62 per share, effective June 2025, reflecting the company's commitment to consistent dividend payments[145] Capital Expenditures and Investments - Capital expenditures for the nine months ended September 30, 2025, were $570,351, down from $643,720 in the same period of 2024[40] - Capital expenditures for the Natural Gas Distribution segment were $570.4 million during the nine-month period ended September 30, 2025, associated with new construction and pipeline replacements[143] - Management estimates capital expenditures will total approximately $2.6 billion over the three years ending December 31, 2027, with about $880 million expected in 2025[144] Strategic Operations and Changes - The Company completed the sale of its remaining shares of Centuri on September 5, 2025, marking a strategic shift in operations[45] - Following the deconsolidation of Centuri, the Company recognized a gain of $230.4 million, resulting in a net gain of $220.7 million related to the disposition of its retained interest in Centuri[74] - The Company completed a final public offering of Centuri common stock on September 5, 2025, generating net proceeds of approximately $524.0 million after deducting fees of about $900,000[75] - The Company completed the divestiture of its ownership in Centuri, utilizing $1.3 billion in proceeds for debt repayment and general corporate purposes[153] Regulatory and Tax Matters - The effective tax rate for the three months ended September 30, 2025, was (23.8)%, compared to 46.0% for the same period in 2024[54] - The Company recorded a tax expense of $14.4 million for the three-month period ended September 30, 2025, related to the recognition of outside basis differences[79] - For the nine months ended September 30, 2025, the effective tax rate was 18.4%, up from 14.2% in the same period of 2024[55] Customer and Market Insights - As of September 30, 2025, Southwest Gas had approximately 2,276,000 customers, with 54% of operating margin earned in Arizona, 34% in Nevada, and 12% in California[93] - The demand for natural gas is seasonal, with greater demand in colder months, and the company utilizes decoupled rate structures to mitigate weather impacts on revenue[95] - The company added approximately 40,000 first-time meter sets over the past twelve months, a slight decrease from 41,000 during the previous twelve months[93] - The company added approximately 40,000 first-time meter sets over the past twelve months, resulting in a 1.8% growth rate in customer base[103] Miscellaneous - The Company plans to adopt ASU 2023-09 for enhanced income tax disclosures starting Q4 2025, with no material impact expected on disclosures[57] - The company has a $400 million revolving credit facility expiring in August 2029, with no borrowings outstanding as of September 30, 2025[64] - The Arizona General Rate Case resulted in an authorized annual rate increase of approximately $80.2 million, effective March 2025[112] - The Nevada General Rate Case resulted in an approved annual revenue increase of $59 million, with a return on common equity set at 9.5%[119] - The California General Rate Case updated its revenue increase request to $43.7 million, with a return on common equity of 11.35%[125]

Financial Performance - Southwest Gas Holdings reported a net income of $270.5 million for Q3 2025, a significant increase of $270.2 million compared to the same period in 2024, primarily due to the sale of Centuri common stock[6]. - The company achieved a utility return on equity (ROE) of 8.3% for the trailing 12 months ended September 30, 2025, driven by regulatory improvements and cost management[7]. - Year-to-date utility net income improved by 11%, reaching $165.0 million for the nine months ended September 30, 2025, compared to $134.1 million in the same period in 2024[11]. - The net income from discontinued operations increased by $256.8 million, primarily due to a gain on the deconsolidation of Centuri[8]. - For the nine months ended September 30, 2025, net income increased by $234.2 million compared to the same period in 2024, primarily due to a $367.4 million gain from the deconsolidation of Centuri[19]. - The company expects 2025 net income to be in the range of $265 million to $275 million, with a capital expenditure of approximately $880 million to support customer growth and system improvements[20]. - The compound annual growth rate (CAGR) for net income from 2025 to 2029 is projected to be between 6.0% and 8.0%[20]. Revenue and Margins - Consolidated operating revenues for the nine months ended September 30, 2025, were $1,459.6 million, down from $1,922.2 million in the same period of 2024[28]. - The utility gross margin for the three months ended September 30, 2025, was $118.1 million, compared to $91.7 million in 2024[28]. - The operating margin for Q3 2025 increased by $26.8 million, primarily due to updated rates and customer growth, contributing $22.3 million and $1.6 million respectively[12]. Customer Growth and Operations - Southwest Gas added approximately 40,000 new meter sets, resulting in a 1.8% customer growth rate over the past 12 months[7]. - Total system throughput for the nine months ended September 30, 2025, was 159.8 million dekatherms, a decrease from 166.6 million dekatherms in 2024[31]. - The customer to employee ratio in the gas segment was 931 to 1 at quarter end[29]. Cash and Liquidity - As of September 30, 2025, the company had $779 million in cash and nearly $1.5 billion in available liquidity[7]. Future Plans - The company plans to file rate cases in Arizona and Nevada early next year to seek approval for new rates and alternative forms of ratemaking[3]. - The company will host a conference call on November 5, 2025, to discuss its third quarter 2025 results[21]. Share Performance - Consolidated earnings per diluted share for Q3 2025 were $3.74, compared to no earnings in the same period last year[4]. - Basic earnings per share for discontinued operations was $3.69 for the three months ended September 30, 2025, compared to $0.13 in 2024[28]. - The market value to book value per share at quarter end was 144%[29]. Separation from Centuri - The company completed the full separation from Centuri, generating approximately $879 million in net proceeds from the final sell-downs[1].

Core Insights - Southwest Gas Holdings announced the departure of its Senior Vice President/Chief Financial Officer, Robert J. Stefani, effective December 1, 2025, to pursue other opportunities [1][2] - The company is conducting an internal and external search for Mr. Stefani's successor [1][2] - The management expressed gratitude for Mr. Stefani's contributions over the past three years and confidence in the company's future growth [2] Company Overview - Southwest Gas Holdings operates through its subsidiary, Southwest Gas Corporation, focusing on the purchasing, distributing, and transporting of natural gas [4] - The company serves over 2 million customers across Arizona, Nevada, and California, emphasizing safe and reliable service while pursuing sustainable energy solutions [4] Financial Results - The company reported its third-quarter financial results for the period ending September 30, 2025, with a conference call scheduled for November 5, 2025, to discuss these results [3][7]

Core Insights - Southwest Gas Holdings reported a significant increase in net income for the third quarter of 2025, primarily due to the completion of its full separation from Centuri and improved performance in its regulated natural gas business [2][8][10] Financial Performance - The company achieved a net income of $270.5 million for the three months ended September 30, 2025, compared to $289 thousand in the same period of 2024, marking a substantial year-over-year improvement [3][26] - Net income from continuing operations was $4.2 million, reflecting a $13.4 million increase compared to the third quarter of 2024 [9][11] - For the nine months ended September 30, 2025, net income improved by $265.1 million compared to the same period in 2024, driven by the gain on the sale of Centuri shares [10][19] Operational Highlights - The utility return on equity (ROE) for the trailing 12 months was reported at 8.3% [6][26] - The company added approximately 40,000 new meter sets, resulting in a 1.8% customer growth rate over the past year [6][12] - Gross margin for the third quarter was $118.1 million, with an operating margin of $274.2 million [6][26] Debt and Credit Ratings - The company fully repaid its term loan and bank debt, leading to an upgrade in its credit ratings to BBB+ from S&P [6][26] - As of September 30, 2025, Southwest Gas Holdings had $779 million in cash and nearly $1.5 billion in available liquidity [6] Future Outlook - The company plans to file rate cases in Arizona and Nevada early next year, seeking approval for new rates and alternative forms of ratemaking [2] - The forward-looking guidance for 2025 net income is projected to be between $265 million and $275 million, with a compound annual growth rate (CAGR) of 6.0% to 8.0% expected from 2025 to 2029 [19]

Core Points - Southwest Gas Holdings, Inc. will host its third quarter earnings conference call on November 5, 2025, at 11:00 AM ET [1] - The earnings 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] Conference Call Details - Date: November 5, 2025 [2] - Time: 11:00 AM ET [2] - Telephone number for participation: (800) 836-8184; International number: (646) 357-8785 [2] - A digital replay of the call will be available starting one hour after the call ends, accessible by dialing (888) 660-6345 or (646) 517-4150 [2] - The replay code for the digital replay is 49907, available until 4:30 PM ET on November 12, 2025 [2]

Core Insights - The company emphasizes its commitment to safety, renewable energy investments, and emissions reduction in its 2024 Sustainability Report titled "Fueling a Sustainable Energy Future" [1][3] - The report highlights the company's operational excellence and strong safety culture, contributing to economic development through innovative energy solutions [1][4] Sustainability Commitment - The company focuses on creating a safe, inclusive, and sustainable workplace while positively impacting its service territories [2] - Key areas of focus include employee safety, respect for human rights, and fostering an inclusive workplace environment [2] Environmental, Social, and Governance (ESG) Achievements - The report outlines significant progress in reducing greenhouse gas emissions, investing in renewable energy technologies, and fostering resilient communities [3] - These efforts align with the company's broader commitment to a sustainable energy future and driving long-term stakeholder value [3] Leadership and Oversight - The company's ESG activities are overseen by the Nominating and Corporate Governance Committee of the Board of Directors, ensuring the adoption of ESG practices throughout the organization [6] Customer Satisfaction and Community Engagement - For the fifth consecutive year, the company ranked No. 1 in Customer Satisfaction with Residential Natural Gas Service in the West among large utilities according to J.D. Power [7] - In 2024, the Southwest Gas Foundation distributed $2.17 million across its service territory, and employees pledged $2.44 million to local nonprofit organizations [7] - The company allocated $408 million in utility capital expenditures for infrastructure modernization and pipeline replacement programs [7] Performance Metrics - The company maintained emergency response times, responding to 76.4% of emergencies within 30 minutes, exceeding the industry average and ranking in the top 25% [7] - Climate-related disclosures were expanded, including results from a climate risk assessment for Southwest Gas Corporation [7]

Group 1 - The Board of Directors for Southwest Gas Holdings, Inc. has declared a fourth quarter cash dividend of $0.62 per share, payable on December 1, 2025, with a record date of November 17, 2025 [1] - The annualized dividend equates to $2.48 per share, and the company has consistently paid quarterly dividends since going public in 1956 [1] Group 2 - Southwest Gas Holdings, Inc. is based in Las Vegas, Nevada, and operates through its primary subsidiary, Southwest Gas Corporation, which focuses on purchasing, distributing, and transporting natural gas [3] - The company serves over 2 million residential, commercial, and industrial customers across Arizona, Nevada, and California, emphasizing safe and reliable service while innovating sustainable energy solutions [3]