Northwest Natural Holding Co (NWN): NW Natural Holdings Reports Third Quarter 2026 Results and Raises 2026 EPS Guidance
Northwest Natural Holding Co (NWN) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 For Immediate Release Nov. 5, 2026 NW Natural Holdings Reports Third Quarter 2026 Results and Raises 2026 EPS Guidance PORTLAND, ORE. — Northwest Natural Holding Company (NYSE: NWN) (NW Natural Holdings or the Company) reported financial results and highlights includ
How this was made
The 30-second read
Why it matters
The raised EPS guidance and reaffirmed growth targets are the primary new information, likely prompting investors to reassess valuation.
Market read
Guidance raise is a material corporate event that can move the stock in the short term.
What to watch
Potential downside from higher capital expenditures and rate‑case uncertainties beyond 2026.
NW Natural Holdings Reports Third Quarter 2026 Results and Raises 2026 EPS Guidance
Third-quarter GAAP net loss was essentially unchanged year over year, while first-nine-month GAAP net income increased to $68,249 from $55,526 and the company raised its 2026 EPS guidance to $3.10 – $3.20. Regulatory rate outcomes, customer growth and lower operating expenses supported results, while continued system investment increased depreciation and financing costs.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Operating revenues, three months ended September 30, 2026GAAP | $178.0M | – | – |
| Operating revenues, nine months ended September 30, 2026GAAP | $911.9M | – | – |
| Cost of gas, three months ended September 30, 2026GAAP | 44,149 | – | – |
| Cost of gas, nine months ended September 30, 2026GAAP | 264,051 | – | – |
| Operations and maintenance, three months ended September 30, 2026GAAP | 74,585 | – | – |
| Operations and maintenance, nine months ended September 30, 2026GAAP | 238,048 | – | – |
| Environmental remediation expense, three months ended September 30, 2026GAAP | 1,430 | – | – |
| Environmental remediation expense, nine months ended September 30, 2026GAAP | 10,186 | – | – |
| General taxes, three months ended September 30, 2026GAAP | 14,148 | – | – |
| General taxes, nine months ended September 30, 2026GAAP | 42,707 | – | – |
| Revenue taxes, three months ended September 30, 2026GAAP | 5,917 | – | – |
| Revenue taxes, nine months ended September 30, 2026GAAP | 32,417 | – | – |
| Depreciation, three months ended September 30, 2026GAAP | 44,956 | – | – |
| Depreciation, nine months ended September 30, 2026GAAP | 133,302 | – | – |
| Other operating expenses, three months ended September 30, 2026GAAP | 1,498 | – | – |
| Other operating expenses, nine months ended September 30, 2026GAAP | 3,902 | – | – |
| Total operating expenses, three months ended September 30, 2026GAAP | 186,683 | – | – |
| Total operating expenses, nine months ended September 30, 2026GAAP | 724,613 | – | – |
| (Loss) income from operations, three months ended September 30, 2026GAAP | (8,711) | – | – |
| (Loss) income from operations, nine months ended September 30, 2026GAAP | 187,314 | – | – |
| Interest expense, net, three months ended September 30, 2026GAAP | 34,481 | – | – |
| Interest expense, net, nine months ended September 30, 2026GAAP | 101,185 | – | – |
| Net loss, three months ended September 30, 2026GAAP | ($29,840) | – | $50 |
| Net income, nine months ended September 30, 2026GAAP | $68.25M | – | $12,723 |
| Diluted earnings (loss) per share, three months ended September 30, 2026GAAP | ($0.71) | – | 0.02 |
| Diluted earnings per share, nine months ended September 30, 2026GAAP | $1.62 | – | 0.26 |
| Adjusted net loss, three months ended September 30, 2026non-GAAP | ($29,840) | – | $75 |
| Adjusted net income, nine months ended September 30, 2026non-GAAP | $68.25M | – | $6,046 |
| Adjusted EPS, three months ended September 30, 2026non-GAAP | ($0.71) | – | 0.02 |
| Adjusted EPS, nine months ended September 30, 2026non-GAAP | $1.62 | – | 0.10 |
| Cash provided by operating activities, nine months ended September 30, 2026GAAP | 213,125 | – | – |
| Capital expenditures, nine months ended September 30, 2026GAAP | (373,449) | – | – |
| Cash and cash equivalents, September 30, 2026GAAP | $30.33M | – | – |
| Short-term debt, September 30, 2026GAAP | $146.0M | – | – |
| Current maturities of long-term debt, September 30, 2026GAAP | 100,675 | – | – |
| Long-term debt, September 30, 2026GAAP | 2,540,817 | – | – |
| Total meters - end of period, September 30, 2026other | 989,410 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| NW Natural, three months ended September 30, 2026Higher margin from new rates in Oregon and Washington and lower operations and maintenance expenses were offset by higher depreciation expense and financing costs. | $137.4M | – | – |
| SiEnergy, three months ended September 30, 2026Customer growth and the benefit of deferring depreciation and interest costs on investments allowed by Texas House Bill 4384 were more than offset by higher operations and maintenance expenses. | $12.81M | – | – |
| NW Natural, nine months ended September 30, 2026Higher margin from new rates in Oregon and Washington was partially offset by higher depreciation expense, financing costs, and operations and maintenance expenses. | $776.1M | – | – |
| SiEnergy, nine months ended September 30, 2026Customer growth, the benefit of deferring depreciation and interest costs, and a full period of net income for SiEnergy and Pines supported results. | $58.05M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
2026 outlook
- NoteEPS $3.10 – $3.20
- NoteCapital Expenditures $500 – $550 million
- NoteLong-term EPS Growth 4.0% – 6.0%
- NoteEPS Growth including MX3 5.0% – 7.0%
- NoteLong-term Capital Expenditures $2.6 – $2.9 billion
- NoteLong-term Rate Base 6.0% – 8.0%
- NoteLong-term Customer Growth 2.0% – 3.0%
Capital returns
- The board declared a quarterly dividend of $0.50 per share, payable on Nov. 13, 2026 to shareholders of record on Oct. 30, 2026.
- The current indicated annual dividend rate is $2.00 per share.
- Cash dividend payments on common stock were (59,987) for the nine months ended September 30, 2026, compared with (57,586) in 2025.
- Dividends paid per share were 0.4925 for the third quarter and 1.4775 for the first nine months of 2026.
- The company stated that this was its 71st consecutive year of increasing shareholder dividends and its largest declared increase since 2012.
What drove it
- The company added 17,000 gas and water utility connections over the 12 months ended Sept. 30, 2026, for a growth rate of 1.8%.
- Washington rates effective Aug. 1, 2026 included a $20.1 million revenue increase in the first year, followed by $7.5 million in the second year and $7.4 million in the third year.
- The Oregon ARM settlement provides an increase to annual revenue requirement of $13.0 million, with new rates effective Oct. 31, 2026.
- The SiEnergy settlement provides an $8.6 million revenue requirement increase, compared to the requested $12.0 million, if approved.
- SiEnergy nine-month results benefited from customer growth, deferred depreciation and interest costs under Texas House Bill 4384, and full-period contributions from SiEnergy and Pines.
Concerns
- Third-quarter consolidated operating expenses were 186,683, compared with 177,151 in 2025, while depreciation was 44,956 versus 40,510 and interest expense, net was 34,481 versus 30,435.
- NWN Water third-quarter net income decreased $0.9 million, or $0.02 per share, as higher operating revenues were more than offset by higher depreciation and general taxes.
- NWN Water nine-month net income decreased $1.7 million, or $0.04 per share, reflecting higher operations and maintenance expenses and depreciation expense due to growth and investment in the system.
- Cash provided by operating activities declined to 213,125 from 265,852 for the first nine months.
- Guidance assumes continued customer growth, average weather conditions, and no significant changes in prevailing regulatory policies, mechanisms, assumed outcomes, or significant laws and regulations.
What to watch
- Fourth-quarter execution against raised 2026 EPS guidance of $3.10 – $3.20.
- Washington, Oregon and Texas rate-case implementation, including the expected November 2026 effectiveness of new SiEnergy rates if approved.
- Capital spending relative to 2026 guidance of $500 – $550 million and the long-term $2.6 – $2.9 billion target for 2026 – 2030.
- Customer growth relative to the long-term target of 2.0% – 3.0%.
- Depreciation, financing costs and operations and maintenance expenses as investment in gas and water systems continues.
- Progress toward the stated rate-base growth expectation of 6.0% – 8.0% through 2030 and the potential MX3-related EPS growth target of 5.0% – 7.0%.
Balance sheet and cash flow
- Cash provided by operating activities was 213,125 for the nine months ended September 30, 2026, compared with 265,852 in 2025.
- Capital expenditures were (373,449) for the nine months ended September 30, 2026, compared with (332,652) in 2025.
- Cash used by investing activities was (363,808), compared with (667,480), with 2025 including acquisitions, net of cash acquired of (331,328).
- Long-term debt issued was 315,000 and long-term debt retired was (105,415) for the nine months ended September 30, 2026.
- Cash and cash equivalents were $30,329 at September 30, 2026, versus $32,203 at September 30, 2025.
- Long-term debt was 2,540,817 and short-term debt was $146,032 at September 30, 2026.
- Total assets were $6,576,834 and total equity was 1,514,270 at September 30, 2026.
Analysis
NW Natural Holdings reported a seasonally loss-making third quarter with GAAP net loss of ($29,840), compared with ($29,890) a year earlier. Diluted loss per share improved to ($0.71) from ($0.73). Operating revenues were $177,972 versus $164,728, but total operating expenses rose to 186,683 from 177,151. The principal reported cost pressures were depreciation of 44,956 versus 40,510 and net interest expense of 34,481 versus 30,435.
The first nine months showed stronger earnings momentum. GAAP net income was $68,249, compared with $55,526, and diluted EPS was $1.62, compared with $1.36. On an adjusted basis, nine-month net income was $68,249 and adjusted EPS was $1.62, versus adjusted net income of $62,203 and adjusted EPS of $1.52 in 2025. The improvement included $4.4 million of higher SiEnergy net income and an $8.5 million reduction in Other net loss, while NW Natural Water net income declined $1.7 million.
Regulatory outcomes are central to the earnings outlook. Washington rates became effective Aug. 1, 2026 and included a $20.1 million first-year annual revenue increase. Oregon's approved ARM provides a $13.0 million increase to annual revenue requirement, with rates effective Oct. 31, 2026. SiEnergy reached a settlement providing an $8.6 million revenue requirement increase, subject to approval. The company also reported 17,000 added gas and water utility connections over the 12 months ended Sept. 30, 2026.
Capital deployment remained substantial. The company invested (373,449) in capital expenditures during the first nine months, while cash provided by operating activities was 213,125. Financing included 315,000 of long-term debt issued, against (105,415) of long-term debt retired. At September 30, long-term debt was 2,540,817, compared with 2,128,101 a year earlier, and cash and cash equivalents were $30,329.
Management raised 2026 EPS guidance to $3.10 – $3.20 from $2.95 – $3.15, with the prior outlook described as expecting the upper half of that range. Capital-expenditure guidance remained $500 – $550 million. The company reaffirmed 2026 – 2030 targets of 4.0% – 6.0% EPS growth, 6.0% – 8.0% rate-base growth, $2.6 – $2.9 billion of capital expenditures, and 2.0% – 3.0% customer growth. The declared $0.50 quarterly dividend raises the indicated annual dividend rate to $2.00 per share.
Management, verbatim
We are delivering another strong year, and I am encouraged by the progress we are making across the Company.
Justin Palfreyman, president and chief executive officer
Our performance reflects disciplined cost management, constructive regulatory outcomes, and continued customer growth.
Justin Palfreyman, president and chief executive officer
Based on our results through the first nine months of 2026 and the momentum we see across the business, we are raising our earnings guidance and have declared the largest dividend increase since 2012.
Justin Palfreyman, president and chief executive officer
Not in the filing
stated, not guessed- Quarterly operating cash flow was not reported.
- Quarterly capital expenditures were not reported.
- Free cash flow was not reported.
- Share repurchases were not reported.
- Gross margin was not reported.
- A consolidated tax rate was not reported.
- Revenue for the NWN Water and Other segments was not reported.
- Segment operating income was not reported.
- Prior-quarter comparisons were not reported.
- No separate previous earnings release outlook was provided for a formal reported-results-versus-prior-guidance comparison.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
NW Natural Holdings filed a Form 8‑K reporting Q3 2026 results, a net loss per share of $0.71, and a dividend increase for the 71st year.
Ticker impact
NW Natural Holdings raised its 2026 EPS guidance to $3.10‑$3.20 and reaffirmed long‑term growth targets.
likely upward pressure as investors price in higher EPS expectations
The guidance increase reflects stronger operational performance and regulatory outcomes, which typically support a price rally.
Market effects
Utility sector may see modest uplift as regulatory wins and dividend increase signal sector strength.
Pacific Northwest utilities could benefit from similar rate case outcomes.
Limited to U.S. utility investors; no broad macro effect.
Counterpoint
If the raised guidance already priced in, the stock could face short‑term profit‑taking.
Key entities
- companyNorthwest Natural Holding Co.
U.S. utility company listed on NYSE under ticker NWN.
