Second Quarter 2026
Filed Aug 4, 2026NW Natural Holdings Reports Second Quarter 2026 Results and Expects 2026 EPS in the Upper Half of Guidance Range
Second-quarter GAAP EPS was $0.01 versus a net loss per share of $0.06 in the prior-year period, first-half GAAP EPS rose to $2.33 from $2.11, and the company expects full-year EPS in the upper half of its $2.95 – $3.15 guidance range. Growth at SiEnergy and lower acquisition and business development expenses supported results, while NW Natural and NWN Water faced higher O&M, depreciation, financing, payroll, benefits and technology costs.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Second-quarter net income (loss)GAAP | $600 | – | $3,100 |
| Second-quarter earnings (loss) per shareGAAP | $0.01 | – | $0.07 |
| Second-quarter adjusted net incomenon-GAAP | $600 | – | $285 |
| Second-quarter adjusted EPSnon-GAAP | $0.01 | – | — |
| Second-quarter diluted sharesother | 42,178 | – | 1,696 |
| First six months net incomeGAAP | $98,089 | – | $12,673 |
| First six months earnings per shareGAAP | $2.33 | – | $0.22 |
| First six months adjusted net incomenon-GAAP | $98,089 | – | $5,971 |
| First six months adjusted EPSnon-GAAP | $2.33 | – | $0.05 |
| First six months diluted sharesother | 42,014 | – | 1,585 |
| Second-quarter NW Natural net incomeGAAP | $3,933 | – | ($991) |
| Second-quarter SiEnergy net incomeGAAP | $2,056 | – | $1,042 |
| Second-quarter NWN Water net incomeGAAP | $2,272 | – | ($561) |
| Second-quarter Other net lossGAAP | ($7,661) | – | $3,610 |
| First six months NW Natural net incomeGAAP | $97,682 | – | $1,719 |
| First six months SiEnergy net incomeGAAP | $11,146 | – | $4,627 |
| First six months NWN Water net incomeGAAP | $3,703 | – | ($818) |
| First six months Other net lossGAAP | ($14,442) | – | $7,145 |
| Gas and water utility connections added over the 12 months ended June 30, 2026other | nearly 18,000 | – | 1.9% |
| Investment in gas and water systems in the first six months of 2026other | $235 million | – | – |
2026 outlook
- NoteEPS $2.95 – $3.15 (Expecting upper half)
- NoteCapital Expenditures $500 – $550 million
- NoteLong-term EPS Growth 4.0% – 6.0% for 2026 – 2030
- NoteLong-term EPS Growth including MX3 5.0% – 7.0% for 2026 – 2030
- NoteLong-term Capital Expenditures $2.6 – $2.9 billion for 2026 – 2030
- NoteLong-term Rate Base 6.0% – 8.0% for 2026 – 2030
- NoteLong-term Customer Growth 2.0% – 3.0% for 2026 – 2030
What drove it
- NW Natural's second-quarter net income declined as higher margin from Oregon rates effective Oct. 31, 2025 was more than offset by increased O&M expense and higher depreciation expense and financing costs.
- SiEnergy's second-quarter net income increased primarily due to customer growth, deferral of depreciation and interest costs on investments allowed by Texas House Bill 4384, and a full quarter of Pines earnings contribution.
- NWN Water's second-quarter higher operating revenues from rate increases and customer growth were more than offset by increased O&M expenses, including higher payroll and benefits and technology costs.
- Other's second-quarter net loss decreased primarily because of lower acquisition and business development expenses. On an adjusted basis, the decrease was primarily due to higher net income from NW Natural Renewables.
- The Washington order provides a $20.1 million revenue increase in the first year beginning Aug. 1, 2026, followed by increases of $7.5 million and $7.4 million in the following two years.
Concerns
- NW Natural faced increased O&M expense, depreciation expense and financing costs in the second quarter.
- NWN Water's higher operating revenues were more than offset by increased O&M expenses.
- The Oregon ARM settlement provides a $13.0 million annual revenue-requirement increase, compared to the original request of $15.6 million, and requires a Commission order.
- Guidance assumes continued customer growth, average weather conditions, and no significant changes in regulatory policies, mechanisms, assumed outcomes, or laws and regulations.
What to watch
- Washington rates became effective Aug. 1, 2026.
- A Commission order on the Oregon ARM settlement is expected later this year, with new rates expected to be effective on Oct. 31, 2026.
- Execution against 2026 EPS guidance of $2.95 – $3.15, for which the company expects the upper half of the range.
- Capital expenditures of $500 – $550 million in 2026 and planned capital expenditures of $2.6 – $2.9 billion from 2026 – 2030.
- Customer growth and the effect of Texas House Bill 4384 on SiEnergy depreciation and interest-cost deferrals.
Balance sheet and cash flow
- Invested $235 million in the first six months of 2026 in gas and water systems.
- Required funds for capital expenditures are expected to be internally generated or financed with long-term debt or equity, as appropriate.
Analysis
Northwest Natural Holdings reported second-quarter net income of $600 and GAAP EPS of $0.01, compared with a net loss of ($2,500) and a loss per share of ($0.06) in the same period in 2025. Adjusted net income was $600 and adjusted EPS was $0.01, versus $315 and $0.01, respectively. For the first six months, GAAP net income reached $98,089 and EPS was $2.33, compared with $85,416 and $2.11 in 2025. First-half adjusted net income was $98,089 and adjusted EPS was $2.33, versus $92,118 and $2.28.
Segment performance was uneven. NW Natural's second-quarter net income declined to $3,933 from $4,924 as increased O&M expense, depreciation expense and financing costs outweighed higher margin from Oregon rates. NWN Water net income declined to $2,272 from $2,833 as increased O&M expenses more than offset revenue benefits from rate increases and customer growth. SiEnergy was the principal operating growth contributor, with net income increasing to $2,056 from $1,014, supported by customer growth, the Texas House Bill 4384 cost deferrals and a full quarter of Pines earnings contribution.
The Other segment's net loss improved to ($7,661) from ($11,271), primarily because acquisition and business development expenses were lower than in the prior-year quarter. On an adjusted basis, Other's net loss was ($7,661), compared with ($8,456), with the company citing higher net income from NW Natural Renewables. The company also added nearly 18,000 gas and water utility connections over the 12 months ended June 30, 2026, representing a growth rate of 1.9%, and invested $235 million in gas and water systems during the first six months.
Regulatory outcomes improve visibility into future revenue requirements. The Washington order approved a $20.1 million first-year increase beginning Aug. 1, 2026, followed by $7.5 million and $7.4 million increases in the subsequent two years. In Oregon, the filed ARM settlement provides for a $13.0 million annual revenue-requirement increase, compared with the original $15.6 million request, pending an expected Commission order later this year.
Management expects 2026 EPS in the upper half of its $2.95 – $3.15 guidance range and retained capital-expenditure guidance of $500 – $550 million. The company also reaffirmed 2026 – 2030 targets for EPS growth of 4.0% – 6.0%, EPS growth including MX3 of 5.0% – 7.0%, capital expenditures of $2.6 – $2.9 billion, rate-base growth of 6.0% – 8.0%, and customer growth of 2.0% – 3.0%. Key execution issues are sustaining customer growth and regulatory recovery while managing the O&M, depreciation and financing-cost pressures identified in the reported period.
Management, verbatim
Our results exceeded our expectations and reflect strong execution across the business.
Justin Palfreyman, President and Chief Executive Officer
Our consistent performance and strong first-half results, combined with increased visibility into the balance of the year, support our expectation that 2026 EPS will be in the upper half of our guidance range.
Justin Palfreyman, President and Chief Executive Officer
Not in the filing
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- The filing text provided is truncated during the year-to-date narrative, so any financial tables or disclosures appearing after the supplied text are unavailable.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.