Northwest Natural Holding Company (NYSE:NWN) reported first-quarter results on Wednesday that fell short of Wall Street expectations on both earnings and revenue, although the company reaffirmed its full-year guidance.
The utility group posted adjusted earnings per share of $2.28, missing analyst estimates of $2.35 by $0.07.
Revenue totaled $490.4 million during the quarter, below consensus forecasts of $540.69 million, though still higher than the prior-year period.
Full-year earnings guidance unchanged
NW Natural maintained its fiscal 2026 earnings guidance range of $2.95 to $3.15 per share.
The midpoint of $3.05 matched analyst consensus expectations.
Customer growth and infrastructure investment continue
The company added more than 26,000 gas and water connections during the 12 months ended March 31, 2026, representing total growth of 2.8%.
Management said the increase was driven by acquisitions as well as organic customer growth of 1.8%.
NW Natural invested approximately $114 million in its gas and water infrastructure systems during the quarter.
“I’m pleased with our strong first-quarter results, which put us on solid footing for the year,” said Justin Palfreyman, president and chief executive officer of NW Natural Holding Company.
“These results reflect our continued focus on building a consistent track record of disciplined execution.”
Net income improves from prior year
The company reported GAAP net income of $97.5 million, or $2.33 per share, compared with $2.18 per share in the first quarter of 2025.
On an adjusted basis, earnings also came in at $2.33 per share, up from adjusted earnings of $2.28 per share a year earlier.
Washington rate case settlement finalized
NW Natural said it reached a settlement in its Washington general rate case that will provide revenue increases totaling $36.5 million over three years beginning August 1, 2026.
The settlement includes an approved return on equity of 9.5% and a first-year rate base of $328.0 million.
MX3 storage expansion project progresses
The company also reported continued progress on its MX3 gas storage expansion project.
The project is expected to add between 4 and 5 Bcf of storage capacity and involves estimated total capital expenditures of approximately $300 million.
NW Natural expects the project to enter service by the end of 2029.