Southwest Gas Q1 net income rises, affirms 2026 outlook

Southwest Gas Holdings

05/05/2026 13:08

Overview

US natural gas distributor's Q1 net income and EPS rose yr/yr

Company says Q1 results driven by growth, Arizona rate case outcome and lower interest expense

Delayed California rate case temporarily impacted Q1, but full-year earnings guidance unchanged

Outlook

Company affirms 2026 EPS guidance of $4.17 to $4.32 per share

Company maintains 2026 capital expenditures guidance at ~$1.25 bln

Company expects 2026-2030 EPS CAGR of 12%-14% and rate base CAGR of 9.5%-11.5%

Result Drivers

OPERATING MARGIN - Higher operating margin was mainly driven by updated rates in Arizona and Nevada and customer growth, partially offset by the end of recovery under the Vintage Steel Pipeline Program

COST PRESSURES - Higher operations and maintenance, depreciation, and taxes offset margin gains, mainly due to increased insurance, outside services, incentive compensation, and infrastructure investments

LOWER INTEREST EXPENSE - Corporate and administrative results improved due to lower net interest deductions after debt repayment and higher interest income

Company press release: ID:nPnLNkBka

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 EPS
$1.91
Q1 Net Income
$138.37 mln


Analyst Coverage

The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the natural gas utilities peer group is "buy."

Wall Street's median 12-month price target for Southwest Gas Holdings Inc is $95.00, about 2.1% above its May 4 closing price of $93.07

The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 20 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)