Southwest Gas Q2 revenue falls and misses analyst expectations

Southwest Gas Holdings

05/08/2026 13:17

Overview
US natural gas distributor's Q2 revenue declined and missed analyst expectations
Adjusted EPS for Q2 met analyst expectations
Company reaffirmed full-year 2026 guidance and highlighted progress on Great Basin expansion

Outlook
Company reaffirms 2026 EPS guidance of $4.17-$4.32 from continuing operations
Company maintains 2026 capital expenditures guidance at ~$1.25 bln

Result Drivers
REGULATORY OUTCOMES - Updated rates, especially in California, drove higher operating margin and incremental revenue, per company
CUSTOMER GROWTH - Net customer growth contributed to increased margin across all territories
GREAT BASIN EXPANSION - Increased contracted demand for Great Basin 2028 project raised margin and capital investment expectations

Company press release: ID:nPn5X06tha

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$358.2 mln
$416.20 mln (4 Analysts)
Q2 Adjusted EPS
Meet
$0.45
$0.45 (6 Analysts)

Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 9 "strong buy" or "buy", no "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 $98.00, about 10.1% above its August 4 closing price of $89.05
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 21 three months ago

Reuters Recommended Reads
Aug 4 - ONE Gas beats Q2 revenue estimates on new rates and customer growth, raises 2026 earnings outlook
Aug 5 - NW Natural Q2 adjusted EPS flat yr/yr on technology costs
Aug 4 - Pinnacle West profit falls as higher interest, depreciation offset demand gains

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)