Northwest Natural Company (NWN) Q1 2025 earnings summary

Executive summary

• Q1 2025 adjusted EPS rose to $2.28, up from $1.69 in Q1 2024, driven by new rates, acquisitions, and strong segment performance.

• Net income increased to $87.9 million, with operating income at $154.4 million and operating revenues up 14% to $494.3 million.

• SiEnergy acquisition closed in January 2025, adding Texas operations and $5.5 million net income in Q1; agreement to acquire Hughes Gas Resources for $60 million expected to close Q2 2025.

• Customer growth rate reached 9.6% for the 12 months ended March 31, 2025, with nearly 84,000 new utility connections.

• All business segments are in a strong financial position and well poised for future growth.

Financial highlights

• Adjusted net income for Q1 2025 was $91.8 million ($2.28/share), up from $63.8 million ($1.69/share) in Q1 2024; net income rose $24.1 million year-over-year to $87.9 million.

• Operating revenues increased to $494.3 million from $433.5 million year-over-year.

• Margin increased $38.7 million, mainly from new Oregon gas rates effective November 2024.

• SiEnergy contributed $5.5 million net income ($0.14/share); water segment net income increased $2.4 million.

• Quarterly dividend raised to $0.49/share, annualized at $1.96/share.

Outlook and guidance

• Reaffirmed 2025 adjusted EPS guidance of $2.75–$2.95; GAAP EPS guidance updated to $2.65–$2.85 reflecting transaction costs.

• Long-term adjusted EPS growth rate expected at 4%–6% compounded annually from 2025 base.

• 2025 capital expenditures projected at $450–$500 million, with a six-year plan totaling $2.5–$2.7 billion.

• SiEnergy and Water expected to each contribute $0.25–$0.30 EPS in 2025.

• Projected organic customer growth of 2%–2.5% for 2025; SiEnergy expected to contribute 20%+ growth.