Southwest Gas (US:SWX)2025-11-05 13:07Financial 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].