Northwest Natural Company (NWN) investor relations material

Executive summary

• Q2 2026 delivered solid performance, with EPS for both the quarter and year-to-date surpassing expectations due to disciplined execution, operational excellence, and new rates, positioning for the upper half of 2026 EPS guidance.

• Consolidated net income for the quarter was $0.6 million, up $3.1 million year-over-year; six-month net income was $98.1 million, up $12.7 million year-over-year, driven by new rates, customer growth, and acquisitions, partially offset by higher expenses.

• Nearly 18,000 new gas and water utility connections added over the past 12 months, reflecting 1.9% customer growth, supported by organic growth and acquisitions in Texas and the Pacific Northwest.

• All business segments are in a strong financial position and poised for future growth, supported by regulatory progress and infrastructure investments.

• Focused on regulatory outcomes, gas storage expansion, and customer growth in Texas and water utilities.

Financial highlights

• Q2 2026 EPS was $0.01, up from a net loss per share of $0.06 in Q2 2025; year-to-date EPS was $2.33, up from $2.11 in 2025.

• Q2 2026 net income was $600,000, compared to a net loss of $2.5 million in Q2 2025; YTD net income reached $98.1 million, up from $85.4 million year-over-year.

• Operating revenues for Q2 2026 were $243.6 million, up from $236.2 million in Q2 2025; six-month revenues were $734.0 million, up from $730.5 million.

• SiEnergy Q2 EPS rose to $0.05 from $0.03 year-over-year, driven by over 15% customer growth and acquisition benefits.

• Full-year 2026 EPS is expected in the top half of the $2.95-$3.15 guidance range.

Outlook and guidance

• 2026 EPS guidance reaffirmed at $2.95-$3.15, with expectations to finish in the top half of the range.

• Long-term EPS growth target remains 4%-6% through 2030; could rise to 5%-7% after MX3 project proceeds.

• Five-year capital plan (2026–2030) projects $2.6–$2.9 billion in total investments, supporting 6–8% rate base growth.

• Customer growth in Texas projected at 15%-20% annually through 2030; overall customer growth target of 2–3% annually.

• Dividend payout ratio targeted at 55%-65%, with plans to increase dividends in line with earnings and cash flow.