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 until new Oregon rates took effect in November 2024.

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

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

• Initiated 2025 adjusted earnings guidance of $2.75-$2.95 per share, reflecting strong contributions from new businesses.

• CEO David Anderson announced retirement, with Justin Palfreyman named as successor.

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; O&M decreased $2.1 million (excluding regulatory disallowance).

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

• Other businesses' net income rose $3.6 million, led by water/wastewater utilities; water/wastewater utilities contributed $4.4 million more in 2024.

• Cash from operations was $200 million; $394 million invested in systems, with 90% for gas utility and $29.8 million for water/wastewater acquisitions.

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.

• SiEnergy and Northwest Natural Water each expected to contribute $0.25-$0.30 EPS in 2025.

• Long-term EPS growth targeted at 4%-6% CAGR from 2025 base.

• 2025 consolidated CapEx expected at $450-$500 million; long-term CapEx through 2030 raised to $2.5-$2.7 billion.

• Projected customer growth of 2%-2.5% in 2025, with SiEnergy driving acceleration.