Southwest Gas Holdings, Inc. Reports Third Quarter 2024 Financial Results; Expects Utility Net Income Within Top Half of Guidance Range

Core Viewpoint - Southwest Gas Holdings, Inc. reported strong utility earnings with a 9% year-to-date earnings growth year-over-year, driven by regulatory priorities and disciplined business management efforts [2][4]. Financial Performance - The company reported third quarter 2024 consolidated net income of $0.3 million, or less than one cent per diluted share, compared to $3.2 million, or $0.04 per diluted share, in the third quarter of 2023 [1]. - Adjusted consolidated net income for the third quarter of 2024 was $6.8 million, or $0.09 per diluted share, down from $12.6 million, or $0.17 per diluted share, in the same period last year [1][25]. - The natural gas distribution segment recorded a net income of $0.6 million in Q3 2024, a significant improvement from a net loss of $3.3 million in Q3 2023 [10][12]. Operational Highlights - The utility achieved a twelve-month utility gross margin of $0.7 billion and a record utility operating margin of $1.3 billion [8]. - Approximately 41,000 new meter sets were added to the customer count over the last 12 months, representing a 1.9% increase [8]. - The company made a capital investment of $644 million year-to-date to enhance safety and reliability of the distribution infrastructure [8]. Regulatory Developments - Southwest Gas filed a rate case in California and is advancing its Arizona general rate case, reflecting significant investments made on behalf of customers [3][4]. - The company continues to see positive impacts from the recovery of investments in Nevada, enhancing safety and reliability for its growing customer base [3]. Segment Performance - The utility infrastructure services segment recorded a net income of $10 million and adjusted net income of $16 million in Q3 2024, compared to $18 million and $23.4 million in Q3 2023, respectively [15]. - Year-to-date 2024, the utility infrastructure services segment reported a net loss of $21.2 million, a decline from a net income of $24.9 million in the same period of 2023 [17]. Future Outlook - The company expects 2024 utility net income to finish within the top half of its guidance range of $233 million to $243 million [14]. - Capital expenditures for 2024 are projected to be approximately $830 million, supporting customer growth and system improvements [14].