Southwest Gas Holdings (SWX) Q4 2025 earnings summary

Executive summary

• Completed the full separation and sale of Centuri in September 2025, generating $1.35 billion in net proceeds, transitioning to a fully regulated natural gas business, and repaying all holding company debt.

• Achieved strong 2025 financial performance, with adjusted net income of $283.9 million and adjusted EPS of $3.65, both exceeding guidance.

• Board approved a 4% increase in annual dividend to $2.58 per share, effective with Q2 2026 payout.

• S&P upgraded issuer and senior unsecured debt ratings to BBB+ with stable outlooks after Centuri disposition.

• Announced CEO succession, with Justin Brown appointed as CEO effective May 8, 2026.

Financial highlights

• Adjusted earnings per diluted share from continuing operations rose 19% year-over-year to $3.65 in 2025.

• Adjusted net income increased 8.7% to $283.9 million in 2025, exceeding guidance by $9 million.

• Consolidated GAAP EPS for 2025 was $6.08, including $2.83 per share from discontinued Centuri operations.

• Operating margin improved by nearly $120 million, driven by $95.2 million in rate relief and $11.5 million from customer growth.

• Capital expenditures totaled $855 million in 2025 to support infrastructure and customer growth.

Outlook and guidance

• Initiated 2026 adjusted EPS guidance of $4.17–$4.32 per share from continuing operations.

• Targeting 12%-14% adjusted EPS CAGR from 2025–2030, with growth front-end loaded through 2028–2029.

• Five-year capital expenditure plan of $6.3 billion, with 73% for Southwest Gas and 27% for Great Basin.

• Projected five-year rate base CAGR of 9.5%-11.5%.

• Management expects continued annual dividend increases, with potential for larger increases post-2028.