Southwest Gas (NYSE:SWX) Announces Earnings Results

Key Points

• Southwest Gas met quarterly expectations with EPS of $0.45, up from $0.37 a year earlier, despite a 9.6% year-over-year revenue decline. The company updated its fiscal 2026 EPS guidance to $4.17–$4.32.
• Regulatory progress and customer growth supported the outlook, including approximately $40 million in incremental annual California revenue. Great Basin expansion reached about 1 Bcf per day of contracted demand, with projected annual margin of $270 million–$300 million upon completion.
• The expanded Great Basin pipeline design raised estimated project spending to $2.3 billion, increasing potential future financing and equity needs. Analysts nevertheless maintained a bullish view, with a consensus “Buy” rating and a $97.29 target price; the company also declared a quarterly dividend of $0.645 per share.

Southwest Gas (NYSE:SWX - Get Free Report) posted its quarterly earnings results on Wednesday. The utilities provider reported $0.45 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.45, Briefing.com reports. Southwest Gas had a net margin of 19.95% and a return on equity of 6.95%. During the same period last year, the business posted ($0.18) EPS. The firm's revenue for the quarter was down 9.6% on a year-over-year basis. Southwest Gas updated its FY 2026 guidance to 4.170-4.320 EPS.

Here are the key takeaways from Southwest Gas' conference call:

• Adjusted EPS rose to $0.45 from $0.37 year over year, supported by lower HoldCo interest expense after debt repayment, higher interest income, rate relief, customer growth, and lower operating costs.
• Regulatory progress continued across all three jurisdictions, including approximately $40 million of incremental annual California revenue, a Nevada rate case moving toward an October 2026 effective date, and Arizona’s case remaining on track for April 2027.
• Great Basin’s 2028 expansion reached approximately 1 Bcf per day of contracted demand, while broader expressions of interest increased to 1.8 Bcf per day; the company now expects approximately $270 million-$300 million of annual margin upon completion.
• The larger 48-inch Great Basin pipeline design increased estimated project capital spending to $2.3 billion, up roughly $600 million from prior expectations, potentially creating future financing and equity needs despite management’s confidence in holding-company leverage capacity.
• Southwest Gas reaffirmed its 2026 and long-term guidance, including approximately $1.25 billion of 2026 capital expenditures and a projected 9.5%-11.5% rate-base CAGR through 2030; the expanded Great Basin project is expected to be incorporated into the long-term plan in February.

Southwest Gas Trading Up 0.7%

NYSE:SWX traded up $0.63 during trading hours on Wednesday, hitting $89.68. 431,242 shares of the stock were exchanged, compared to its average volume of 578,900. The company's 50 day moving average is $89.62 and its two-hundred day moving average is $88.40. Southwest Gas has a twelve month low of $75.75 and a twelve month high of $94.46. The company has a quick ratio of 1.32, a current ratio of 1.45 and a debt-to-equity ratio of 0.84. The company has a market capitalization of $6.49 billion, a P/E ratio of 12.99, a price-to-earnings-growth ratio of 2.13 and a beta of 0.57.

Southwest Gas Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Monday, August 17th will be given a $0.645 dividend. This represents a $2.58 annualized dividend and a yield of 2.9%. The ex-dividend date is Monday, August 17th. Southwest Gas's payout ratio is 37.39%.

Analysts Set New Price Targets

A number of research firms recently weighed in on SWX. JPMorgan Chase & Co. raised Southwest Gas from a "neutral" rating to an "overweight" rating and set a $100.00 target price on the stock in a research report on Thursday, May 7th. Mizuho raised their price objective on shares of Southwest Gas from $96.00 to $98.00 and gave the stock an "outperform" rating in a report on Tuesday, June 9th. UBS Group set a $100.00 price objective on Southwest Gas in a report on Thursday, May 7th. Wall Street Zen raised Southwest Gas from a "sell" rating to a "hold" rating in a research note on Sunday, July 12th. Finally, Wells Fargo & Company started coverage on Southwest Gas in a research note on Monday, May 11th. They set an "overweight" rating and a $105.00 price objective for the company. Two research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Buy" and a consensus target price of $97.29.

Hedge Funds Weigh In On Southwest Gas

Large investors have recently made changes to their positions in the company. BROOKFIELD Corp ON bought a new position in Southwest Gas in the fourth quarter valued at about $27,052,000. Adage Capital Partners GP L.L.C. raised its holdings in Southwest Gas by 16.1% during the 4th quarter. Adage Capital Partners GP L.L.C. now owns 1,648,496 shares of the utilities provider's stock worth $131,913,000 after purchasing an additional 228,496 shares during the last quarter. Wellington Management Group LLP bought a new stake in Southwest Gas during the 3rd quarter worth about $16,200,000. AQR Capital Management LLC lifted its position in Southwest Gas by 50.1% during the 4th quarter. AQR Capital Management LLC now owns 604,268 shares of the utilities provider's stock valued at $48,353,000 after purchasing an additional 201,560 shares during the period. Finally, Goldman Sachs Group Inc. lifted its position in Southwest Gas by 35.4% during the 4th quarter. Goldman Sachs Group Inc. now owns 466,572 shares of the utilities provider's stock valued at $37,335,000 after purchasing an additional 121,947 shares during the period. Institutional investors and hedge funds own 92.77% of the company's stock.

Southwest Gas Company Profile

Southwest Gas Corporation NYSE: SWX is a publicly traded natural gas utility that provides regulated gas distribution services to residential, commercial, industrial and electric generation customers. The company's core activities include the transportation, distribution and sale of natural gas through an extensive network of pipelines, service lines and metering facilities. Southwest Gas also offers related services such as system maintenance, pipeline safety inspections, emergency response and line extensions to support customer growth and ensure reliable gas delivery.

Founded in 1931 in southern Nevada, Southwest Gas has grown through strategic acquisitions and organic expansion to become one of the nation's larger natural gas utilities by customer count.

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