Southwest Gas (US:SWX) Prnewswire·2025-11-05 13:00Core 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]