Southwest Gas Holdings (SWX) Q3 2026 earnings summary

Executive summary

• Q3 adjusted continuing-operations EPS was $0.20 vs. $0.06; adjusted net income was $14.7M vs. $4.1M.

• 9M adjusted EPS was $2.69 vs. $2.28; continuing-operations income was $193.3M vs. $129.9M.

• Reaffirmed 2026 adjusted EPS guidance of $4.17-$4.32 and 2026-2030 adjusted EPS growth guidance of 12%-14%.

• California and Nevada rate orders authorized nearly $80M of combined incremental annual revenue; Arizona proceedings continue.

• Great Basin 2028 expansion has 1 Bcf/day of contracted demand and an estimated $270M-$300M in incremental annual margin after service begins.

Financial highlights

• Q3 regulated revenue was $298.2M vs. $316.9M; operating margin rose to $278.1M from $274.2M.

• Q3 operating margin increased $3.8M YoY, driven by updated California rates, customer growth and Arizona SIM recovery; lower non-decoupled margin partly offset gains.

• 9M operating margin rose to $1.075B from $1.030B; continuing-operations income was $193.3M vs. $129.9M.

• YTD cash from continuing operations was $383.6M vs. $509.1M; capital expenditures and additions were $800.9M vs. $570.4M.

• Q3 results included a non-recurring regulatory-asset depreciation true-up and state tax benefit contributing about $0.12 to quarterly results.

Outlook and guidance

• 2026 adjusted EPS guidance remains $4.17-$4.32; 2026 capital expenditure guidance is ~$1.25B.

• 2026-2030 capital plan is $6.3B, with rate-base CAGR guidance of 9.5%-11.5% and adjusted EPS CAGR guidance of 12%-14%.

• Great Basin 2028 is expected to enter service in late 2028; estimated investment is $2.3B, including ~$0.6B above the prior $1.7B estimate.

• Arizona rates are anticipated in April 2027, subject to approval; Nevada alternative-ratemaking adjustments are targeted for 2028.

• Guidance assumes ~1.4% annual net customer growth, flat O&M per customer excluding non-service pension costs and a 7% AFUDC rate.