Southwest Gas Q3 net income jumps on Centuri sale

Southwest Gas Holdings

05/11/2025 13:11

Overview

Southwest Gas Q3 net income rises significantly due to Centuri sale proceeds

Company's Q3 net income from continuing operations up $13.4 mln yr/yr

Southwest Gas completes Centuri separation, repays term loan and bank debt

Outlook

Southwest Gas expects 2025 net income between $265 mln and $275 mln

Company plans $880 mln in 2025 capital expenditures for growth and improvements

Southwest Gas anticipates regulatory developments to align investment recovery with projects

Result Drivers

REGULATORY IMPROVEMENTS - Higher operating margin driven by updated rates aligning with cost of service and capital investments

CUSTOMER GROWTH - Addition of 40,000 new meter sets contributed to income increase

COST MANAGEMENT - Lower interest expenses improved corporate and administrative net loss

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 EPS
$3.74
Q3 Net Income
$270.47 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "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 $84.00, about 2% above its November 4 closing price of $82.34

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

Press Release: ID:nPnc7PVmZa

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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.)