Southwest Gas Reports Strong Q1 2025 Results, Reaffirms Outlook Amid Regulatory Wins

Southwest Gas Holdings, Inc. (NYSE: SWX) announced first quarter 2025 financial results showing a 5.2% earnings increase year-over-year and reaffirmed its full-year guidance, supported by a significant rate case win in Arizona and continued growth across its utility operations.
Financial Highlights:
• Net income rose to $113.9 million, up from $87.7 million in Q1 2024.
• Adjusted net income grew to $119.4 million, or $1.65 per diluted share, compared to $98.5 million, or $1.37 per share, in the prior-year quarter.
• The utility segment delivered a return on equity of 8.2%, while total company ROE stood at 6.5%.
• Southwest Gas received $80.2 million in annual rate relief from the Arizona rate case, effective March 2025.
Segment Performance:
• Natural Gas Distribution contributed $142.9 million to net income, driven by a $38.9 million increase in operating margin, supported by rate hikes in Arizona, California, and Nevada, and 1.8% customer growth.
• Centuri Infrastructure Services posted a net loss of $20 million, improved from $36.2 million a year earlier, due to higher volume from master service agreements and storm recovery work.
• Corporate and administrative loss narrowed to $9.1 million, down from $11.9 million, as Centuri separation costs declined.
Liquidity & Capital:
• Cash on hand stood at $406 million, with over $1 billion in total liquidity.
• Q1 capital expenditures reached $880 million, aligned with plans to invest $4.3 billion through 2029 in system growth and modernization.
Strategic Outlook:
• The company reaffirmed 2025 net income guidance of $265–$275 million, with an adjusted net income CAGR of 6–8% through 2029.
• Southwest Gas remains focused on fully separating Centuri, its utility infrastructure services business, pending market conditions.
CEO Karen Haller emphasized continued regulatory momentum and strategic progress: “We are executing our plan, improving returns, and advancing our separation of Centuri to become a pure-play utility focused on long-term growth.”
Southwest Gas serves over 2 million customers across Arizona, Nevada, and California.

Southwest Gas Holdings Announces Retirement of Chief Accounting Officer Lori Colvin
March 12, 2025 – Southwest Gas Holdings, Inc. (NYSE: SWX) has announced that Lori Colvin, Vice President, Controller, and Chief Accounting Officer, will retire from her position effective June 1, 2025.

Ms. Colvin's decision to retire was voluntary and is not related to any disagreements regarding the company’s policies, operations, or procedures. She has played a significant role in financial leadership and reporting at Southwest Gas Holdings and Southwest Gas Corporation.

The company has initiated a search for her successor and will announce transition plans in due course.

Southwest Gas Holdings reported strong financial performance for 2024, with consolidated net income of $198.8 million ($2.76 per share) and adjusted net income of $227.9 million ($3.16 per share). This represents an increase from 2023, where net income was $150.9 million ($2.13 per share).

The company's natural gas distribution segment delivered a return on equity (ROE) of 8.1%, with net income reaching $261.2 million for the year. Key drivers included rate increases in Nevada and California, cost management, and continued customer growth, with approximately 41,000 new meter sets added.

Southwest Gas completed the initial public offering (IPO) of Centuri Holdings in April 2024, using proceeds to reduce Centuri's debt. The company remains committed to a full separation from Centuri, with updates on the remaining 81% stake expected in the future.

Looking ahead, Southwest Gas has set 2025 net income guidance between $265 million and $275 million, with planned capital expenditures of approximately $880 million. Over the 2025-2029 period, the company targets a net income compound annual growth rate (CAGR) of 6-8% and a similar rate base CAGR.

The company will host a conference call on February 26, 2025, at 11:00 a.m. ET to discuss results. Further details are available on the company’s investor relations website.