Northwest Natural Company (NWN) Q4 2024 earnings summary

Executive summary

• Achieved 2024 adjusted earnings at the upper end of guidance, with adjusted EPS of $2.33, down from $2.59 in 2023, mainly due to regulatory lag and inflation until new Oregon rates took effect.

• Expanded from one utility to four businesses, serving nearly 1 million customers across seven states.

• Closed the acquisition of SiEnergy, a high-growth Texas gas utility, in January 2025; Puttman/ICH water acquisition completed in September 2024.

• CEO David Anderson announced retirement, with Justin Palfreyman to succeed.

• Increased annual dividend for the 69th consecutive year to $1.96 per share.

Financial highlights

• 2024 adjusted net income was $90.6 million ($2.33/share), down from $93.9 million ($2.59/share) in 2023, mainly due to regulatory lag and increased share count.

• Utility margin increased $26.3 million, driven by new Oregon rates and customer growth; O&M decreased $2.1 million (excluding regulatory disallowance).

• Utility depreciation and taxes rose $12.1 million due to capital investments; interest expense up $2.8 million.

• Cash from operations was $200 million; $394 million invested in systems, with $29.8 million in water/wastewater acquisitions.

• Net cash provided by financing activities was $227.1 million in 2024, driven by new debt and equity issuances.

Outlook and guidance

• 2025 adjusted EPS guidance set at $2.75–$2.95, with GAAP EPS guidance at $2.66–$2.86, excluding $0.09/share SiEnergy transaction costs.

• Long-term EPS growth targeted at 4–6% compounded annually from 2025.

• 2025 consolidated CapEx expected at $450–$500 million; $2.5–$2.7 billion through 2030, a 40% increase from prior trajectory.

• Projected 2025 customer growth of 2–2.5%, with SiEnergy expected to drive 20%+ growth.