Southwest Gas Holdings (SWX) Q1 2026 earnings summary

Executive summary

• Q1 2026 net income attributable to continuing operations was $138.4 million, with EPS of $1.91, reflecting growth from updated rates, customer expansion, and lower interest expense, despite the delayed California rate case decision.

• Affirmed 2026 and long-term EPS guidance of $4.17–$4.32 and 12–14% CAGR through 2030, supported by a $6.3 billion five-year capital plan and strong balance sheet.

• Increased quarterly dividend by 4% to $0.645 per share, reflecting confidence in long-term cash generation and sustainable growth.

• Completed deconsolidation and sale of Centuri, resulting in a strategic shift to a single Natural Gas Distribution segment.

• Maintained strong liquidity with nearly $500 million in cash and $1.2 billion in available liquidity; no equity issuance planned for 2026.

Financial highlights

• Q1 2026 EPS from continuing operations rose to $1.91 from $1.86 in Q1 2025, with net income up to $138.4 million.

• Operating margin increased by $15.1 million year-over-year, driven by updated rates and customer growth.

• Regulated operations revenues were $585.1 million, down from $746.4 million, mainly due to lower gas costs passed through to customers.

• Operations and maintenance expense increased by 1.6% year-over-year, below inflation.

• Depreciation and amortization rose $5.9 million (6%) due to increased plant in service.

Outlook and guidance

• 2026 adjusted EPS guidance affirmed at $4.17–$4.32; long-term EPS CAGR projected at 12–14% and rate base CAGR at 9.5–11.5% through 2030.

• Five-year capital plan totals $6.3 billion, with $1.25–$1.3 billion planned for 2026.

• No equity issuance anticipated in 2026; dividend policy remains focused on sustainable growth.

• Guidance unchanged despite temporary Q1 impact from delayed California rate case decision.