Southwest Gas Holdings, Inc. (NYSE:SWX) reported adjusted earnings for the second quarter that exceeded analyst expectations, but shares declined 3.2% after revenue missed estimates amid the company’s ongoing shift to become a pure-play natural gas utility.
The company posted adjusted EPS of $0.53, outperforming the $0.39 forecast, while revenue reached $1.12 billion, falling short of the $1.17 billion consensus. Earnings from its natural gas distribution segment grew 22% compared to the prior year.
Following the report, Southwest Gas stock dropped as investors reacted to the revenue shortfall. The company has been actively strengthening its balance sheet by using proceeds from two follow-on offerings of Centuri Holdings to reduce debt by over $470 million. Ownership in Centuri has decreased to about 52% as Southwest Gas advances 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.
Over the 12 months ended June 30, 2025, the company added approximately 40,000 new meter sets, reflecting a 1.8% growth in customers. Southwest Gas also reported a rise in its trailing 12-month utility return on equity to 8.3%.
The firm reaffirmed its 2025 net income guidance of $265-$275 million for its natural gas distribution business and projected capital expenditures around $880 million to support customer growth and system upgrades.
Southwest Gas reiterated its commitment to fully separate from Centuri, stating it is “evaluating the timing of further separation transactions with the objectives of optimizing value and limiting execution risk.”
Southwest Gas Holdings stock price
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