Southwest Gas Holdings (SWX) investor relations material

Executive summary

• Adjusted EPS from continuing operations was $0.45 for Q2 2026, with reported EPS at $0.58 due to California rate case revenue recognition; net income from continuing operations was $42.1 million, up from a loss of $40.2 million in Q2 2025.

• Regulatory strategy advanced with rate case progress in all jurisdictions, approval of Nevada Triennial Resource Plan, and constructive California outcome providing $40M incremental annual revenue.

• Great Basin 2028 Expansion Project advanced, securing 1 Bcf/day in contracted demand, project design upgraded to a 48-inch pipeline, and capital estimate increased to $2.3B.

• Completed transition to a pure-play natural gas distributor after Centuri divestiture, now serving 2.29 million customers across Arizona, Nevada, and California.

• Maintained strong liquidity with $270.5M cash and nearly $1B available liquidity at quarter-end.

Financial highlights

• Adjusted EPS rose to $0.45 in Q2 2026 from $0.37 in Q2 2025; reported EPS was $0.58, reflecting retroactive California rate case revenue.

• Net income from continuing operations was $42.1M for Q2 2026; adjusted net income was $32.4M.

• Operating margin increased by $12.7M year-over-year, driven by $6.7M from rate relief and $1.4M from customer growth.

• O&M expense declined by $3.7M (nearly 3%) year-over-year, with lower outside services, bad debt, and lease costs.

• Capital expenditures for the first half of 2026 were $520M, up from $362.5M year-over-year.

Outlook and guidance

• 2026 and long-term guidance reaffirmed; adjusted EPS guidance for 2026 is $4.17–$4.32 per share.

• 2026 CapEx on track at ~$1.25B; five-year capital plan totals $6.3B, with 73% allocated to Southwest Gas and 27% to Great Basin.

• Five-year adjusted EPS CAGR projected at 12–14% and rate base CAGR at 9.5–11.5%.

• Great Basin 2028 Expansion's $600M additional CapEx not yet included in current long-term outlook.

• No equity issuance expected in 2026 outside of DRIP; $200M–$400M utility-level bond issuance planned.