Northwest Natural Company (NWN) Q4 2024 earnings summary

Executive summary

• Achieved 2024 adjusted earnings at the upper end of guidance, with adjusted EPS of $2.33, down from $2.59 in 2023, mainly due to regulatory lag until new Oregon rates took effect in November 2024.

• Expanded from one utility to four businesses, now serving nearly 1 million customers across seven states.

• Closed the acquisition of SiEnergy, a high-growth Texas gas utility, in January 2025; Puttman/ICH water acquisition completed in September 2024.

• Initiated 2025 adjusted earnings guidance of $2.75-$2.95 per share, reflecting strong contributions from new businesses.

• CEO David Anderson announced retirement, with Justin Palfreyman to succeed.

Financial highlights

• 2024 adjusted net income was $90.6 million ($2.33/share), down from $93.9 million ($2.59/share) in 2023, mainly due to regulatory lag and increased share count.

• Operating revenues for 2024 were $1.15 billion, down 4% year-over-year; operating cash flow was $200.3 million.

• Utility margin increased $26.3 million, driven by new Oregon rates; O&M decreased $2.1 million (excluding regulatory disallowance).

• Other businesses' net income rose $3.6 million, led by $4.4 million growth in water/wastewater utilities.

• Cash from operations was $200 million; $394 million invested in systems, with 90% for gas utility.

Outlook and guidance

• 2025 adjusted EPS guidance set at $2.75-$2.95, excluding $0.09/share SiEnergy transaction costs.

• SiEnergy and Northwest Natural Water expected to contribute $0.25-$0.30 EPS each in 2025.

• Long-term EPS growth targeted at 4%-6% CAGR from 2025 base.

• 2025 consolidated CapEx expected at $450-$500 million; long-term CapEx through 2030 raised to $2.5-$2.7 billion, a 40% increase.

• Customer growth projected at 2%-2.5% in 2025, with SiEnergy driving acceleration.