SWX · Southwest Gas Holdings, Inc.

Southwest Gas Holdings reported first quarter 2026 earnings with diluted EPS from continuing operations of $1.91, a 2.7% increase from $1.86 in the prior year quarter, and above the consensus estimate of $1.36. Net income from continuing operations rose $4.1 million to $138.4 million, driven by a $9.3 million improvement in corporate and administrative results (primarily lower interest expense from debt repayment) and a $20.4 million decrease in loss from discontinued operations (due to the Centuri disposition). However, the natural gas distribution segment saw net income decline $5.2 million to $137.8 million, as higher operating margin ($15.1 million) from rate increases and customer growth was more than offset by higher depreciation, operations and maintenance expenses, lower other income, and higher taxes. The delayed California rate case decision negatively impacted first quarter results, but management affirmed full-year 2026 EPS guidance of $4.17-$4.32, citing the memorandum account that tracks the impact. The company filed rate cases in Arizona ($101 million) and Nevada ($71 million) and reported strong shipper interest in Great Basin's expansion, with bids totaling 2.5 Bcf/d, supporting potential phased growth beyond the 2028 project. Capital expenditures were $186.3 million in the quarter, and the company increased its quarterly dividend by 4% to $0.645 per share.