Northwest Natural Company (NWN) Q1 2026 earnings summary

Executive summary

• Q1 2026 EPS rose to $2.33, up from $2.18 (GAAP) and $2.28 (adjusted) in Q1 2025, reflecting strong operational performance, disciplined execution, and robust customer growth across all regulated utility businesses.

• Net income increased to $97.5 million, up $9.6 million year-over-year, driven by new rates, organic growth at SiEnergy, and acquisitions.

• Over 26,000 utility connections were added in the past 12 months, a 2.8% growth rate, with 1.8% organic growth.

• Regulatory progress included multi-year rate case settlements and filings in Washington, Oregon, and Texas, with strategic focus on regulatory outcomes and the MX3 gas storage project.

• Capital expenditures totaled $113.7–$114 million in Q1 2026, reflecting ongoing investment in utility systems for safety and reliability.

Financial highlights

• Adjusted EPS for Q1 2026 was $2.33, up from $2.28 in Q1 2025.

• Net income increased to $97.5 million from $87.9 million year-over-year.

• Operating revenues for Q1 2026 were $490.4 million, slightly down from $494.3 million in Q1 2025.

• Dividend per share increased to $0.4925, annualized at $1.97.

• Cash provided by operating activities was $116.1 million, down from $179.6 million year-over-year.

Outlook and guidance

• 2026 EPS guidance reaffirmed at $2.95–$3.15, with a long-term annual EPS growth target of 4%–6%, rising to 5%–7% with the MX3 project.

• Capital expenditures projected at $500–$550 million for 2026 and $2.6–$2.9 billion from 2026–2030.

• Average rate base expected to grow at 6%–8% annually through 2030.

• Dividend payout ratio targeted at 55%–65%, with ongoing increases expected.

• SiEnergy and Water segments each expected to contribute 10%–15% of consolidated EPS in 2026.