Southwest Gas Holdings, Inc. Reports Third Quarter 2026 Financial Results

Southwest Gas Holdings reported third-quarter income from continuing operations, net of taxes, of $ 12,783 thousand, compared with a loss of $ (3,667) thousand a year earlier. Adjusted consolidated earnings per diluted share from continuing operations were $ 0.20, compared with $ 0.06. Consolidated results were affected by the absence of prior-year discontinued-operation income associated with Centuri: net income attributable to Southwest Gas Holdings was $ 12,783 thousand, compared with $ 262,634 thousand in the prior-year quarter.

Natural Gas Distribution was the primary operating contributor. Its contribution to net income was $ 13,254 thousand in the quarter, compared with $ 6,343 thousand a year earlier. Utility gross margin was $ 115,106 thousand versus $ 118,141 thousand, while non-GAAP operating margin was $ 278,064 thousand versus $ 274,226 thousand. The Company attributed the operating-margin increase to updated California rates, regulatory-account-balance recovery, customer growth and Arizona SIM, partly offset by lower nondecoupled billed margin in Arizona and Nevada and a lower Southern Nevada VIER mechanism impact.

For the nine-month period, continuing operations income was $ 193,279 thousand, compared with $ 129,890 thousand, and adjusted continuing-operations net income was $ 195,358 thousand, compared with $ 165,003 thousand. Natural Gas Distribution contribution to net income was $ 191,782 thousand, compared with $ 194,931 thousand. The year-to-date utility result was pressured by $19.2 million higher income tax expense, $16.5 million higher depreciation and amortization, and $13.1 million lower other income, while $44.5 million higher operating margin and $4.6 million lower net interest deductions provided offsets.

Regulatory execution is central to the outlook. The completed Nevada case provides nearly $48 million of incremental annual revenue, and the California case resulted in $32.6 million of incremental annual revenue. The Arizona proceeding remains pending, with Commission Staff recommending $58 million of incremental annual revenue, a 9.75% return on equity and a formula-rate model. The Company reaffirmed 2026 adjusted earnings per share from continuing operations guidance of $4.17 - $4.32 / share and 2026 capital expenditures of ~$1.25 billion.

Capital deployment remains weighted toward utility infrastructure and the Great Basin 2028 expansion project. The Company invested nearly $806 million during the first nine months, including approximately $148 million for Great Basin. The project has 1 Bcf per day of contracted demand, an estimated $2.3 billion investment, and expected incremental annual margin of approximately $270 million to $300 million beginning at the expected fourth quarter 2028 in-service date. Investors should monitor the year-end CPCN filing, Arizona rate-case timing, the updated long-term plan expected in February 2027, and whether additional expressions of interest convert into binding contracted demand.