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LAS VEGAS - Southwest Gas Holdings, Inc. (NYSE:SWX) reported second-quarter adjusted earnings that beat analyst expectations, but shares fell 3.2% after revenue fell short of estimates amid the company’s ongoing transformation into a pure-play natural gas utility.
The natural gas distributor posted adjusted earnings per share of $0.53 for the second quarter, exceeding analyst estimates of $0.39. However, revenue came in at $1.12 billion, below the consensus forecast of $1.17 billion. The company’s natural gas distribution segment saw a 22% increase in earnings compared to the same period last year.
Southwest Gas shares declined following the results as investors reacted to the revenue miss. The company has been working to strengthen its balance sheet, using proceeds from two follow-on offerings of Centuri Holdings to reduce debt by over $470 million. Southwest Gas has reduced its ownership of Centuri to approximately 52% as it continues its transformation into a regulated natural gas business.
"This quarter we continued to improve operational and financial performance at Southwest Gas Corporation, and we saw constructive regulatory developments in both Arizona and Nevada," said Karen Haller, President and Chief Executive Officer at Southwest Gas Holdings.
The company added approximately 40,000 new meter sets during the 12 months ended June 30, 2025, resulting in a 1.8% customer growth rate. Southwest Gas also reported improvement in its trailing 12-month utility return on equity to 8.3%.
Southwest Gas reaffirmed its 2025 net income guidance of $265-$275 million for its natural gas distribution segment, with projected capital expenditures of approximately $880 million to support customer growth and system improvements.
The company remains committed to fully separating from Centuri, stating it is "evaluating the timing of further separation transactions with the objectives of optimizing value and limiting execution risk."
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