Southwest Gas Holdings (SWX) investor relations material

Executive summary

• Q1 2026 net income attributable to continuing operations was $138.4 million, with EPS from continuing operations of $1.91, reflecting growth, regulatory outcomes, and lower interest expense after paying off Holdco debt.

• Affirmed 2026 and long-term EPS guidance, targeting $4.17–$4.32 per share and 12–14% EPS CAGR through 2030, despite pending California rate case decision.

• Increased quarterly dividend by 4% to $0.645 per share, reflecting confidence in long-term cash generation.

• Maintained strong liquidity with nearly $500 million in cash and $1.2 billion in available liquidity; no equity issuance expected in 2026.

• Completed deconsolidation and sale of Centuri, resulting in a strategic shift to a single Natural Gas Distribution segment.

Financial highlights

• Q1 2026 EPS from continuing operations rose to $1.91 from $1.86 in Q1 2025.

• Operating margin increased to $477.0 million, up from $461.8 million year-over-year, driven by updated rates and customer growth.

• Net income from continuing operations was $138.4 million, up from $134.3 million year-over-year.

• Operations and maintenance expense increased by 1.6% year-over-year, below inflation.

• Depreciation and amortization expense rose by $5.9 million (6%) due to increased plant in service.

Outlook and guidance

• 2026 adjusted EPS guidance affirmed at $4.17–$4.32; long-term EPS CAGR projected at 12–14% through 2030.

• Five-year capital plan of $6.3 billion, supporting a projected rate base CAGR of 9.5%-11.5% through 2030.

• 2026 capital expenditures projected at $1.25–$1.3 billion.

• No equity issuances anticipated in 2026; funding to come from operating cash flow, holdings, and planned bond issuance.

• Guidance unchanged despite temporary Q1 impact from delayed California rate case decision.