Fully Repaid SWX Term Loan and Bank Debt - SWX and SWG S&P Credit Ratings Each Upgraded to BBB+
Regulatory Progress and Cost Management Drive Trailing 12-Month Utility ROE of 8.3%
Year-to-Date Utility Net Income Improved by 11%
LAS VEGAS, Nov. 5, 2025 /PRNewswire/ -- Southwest Gas Holdings, Inc. (NYSE:SWX) ("Southwest Gas Holdings" or "Company") today reported results for its third quarter ended September 30, 2025. This earnings press release should be read in conjunction with the Form 10-Q and earnings slides, which are concurrently being posted at www.swgasholdings.com.
"Southwest Gas Holdings delivered higher net income from continuing operations year-over-year, while completing our full separation from Centuri. With our focus now fully on our regulated natural gas business we believe we are well positioned with a strong balance sheet to address the energy needs of our growing, high-demand service territories," said Karen Haller, President and CEO of Southwest Gas Holdings. "At Southwest Gas, we anticipate regulatory developments in the coming months that will better align investment recovery with the work we're doing in the communities we serve. We plan to file rate cases in Arizona and Nevada early next year seeking approval for new rates along with requests for alternative forms of ratemaking. Additionally, we expect updated rates to take effect in California this upcoming January," added Haller.
Summary Financial Results
Three Months EndedSeptember 30,
Nine Months EndedSeptember 30,
(In thousands, except per share items)
2025
2024
2025
2024
Results of Consolidated Operations
Contribution to net income - natural gas distribution
$ 5,520
$ 572
$ 182,139
$ 163,991
Contribution to net income - corporate and administrative
(1,345)
(9,799)
(17,136)
(29,849)
Income (loss) from continuing operations, net of taxes
4,175
(9,227)
165,003
134,142
Income (loss) from discontinued operations, net of taxes(1)
266,301
9,516
206,460
(27,783)
Net income attributable to Southwest Gas Holdings
$ 270,476
$ 289
$ 371,463
$ 106,359
Consolidated earnings per diluted share
$ 3.74
$ ,
$ 5.14
$ 1.48
Consolidated earnings (loss) per diluted share from continuing operations(2)
$ 0.06
$ (0.13)
$ 2.28
$ 1.87
Weighted average diluted shares(2)
72,405
72,086
72,265
71,994
(1) Including the impacts of noncontrolling interests. All items related to the disposition of Centuri are included in discontinued operations.
(2) For the three months ended September 30, 2024, consolidated loss per share contains no dilutive effect, as 206,000 shares of restricted stock units would have had an antidilutive effect for that period.
Recent Operational and Financial Highlights
Southwest Gas Holdings completed its full separation, including the deconsolidation, of Centuri Holdings, Inc. ("Centuri"), its former subsidiary, by closing on two additional sales offerings of Centuri common stock and one additional private placement, with net proceeds used to repay $225 million previously outstanding on the Term Loan and the remaining balance that had been outstanding on the revolving credit facility at Southwest Gas Holdings;
On September 22, 2025, Standard & Poor's ("S&P") upgraded Southwest Gas Holdings issuer and Southwest Gas Corporation ("Southwest Gas", "Utility", or "Natural Gas Distribution") senior unsecured long-term debt credit ratings each to BBB+ with stable outlooks (previously BBB- and BBB, respectively, each with positive outlooks);
Southwest Gas delivered Utility return on period-end equity of 8.3% over the 12 months ended September 30, 2025, and significant earnings growth over 3Q 2024, resulting from regulatory improvements and cost management;
Southwest Gas achieved gross margin of $118.1 million and $546.0 million and operating margin of $274.2 million and $1.0 billion for the respective three and nine months ended September 30, 2025;
Southwest Gas added approximately 40,000 new meter sets during the 12 months ended September 30, 2025, resulting in a 1.8% customer growth rate over the same period;
Great Basin Gas Transmission Company recently began executing precedent agreements with shippers for its potential 2028 expansion project and is actively working to finalize outstanding agreements; and
As of September 30, 2025, the Company had $779 million of cash on hand, and nearly $1.5 billion in available liquidity.
Earnings Reconciliation Table
The table below provides a reconciliation of net income attributable to Southwest Gas Holdings for the three and nine months ended September 30, 2025, from the same periods in 2024 (items are in millions and are before related income tax impact unless otherwise noted):
Three Months
Nine Months
Net income attributable to Southwest Gas Holdings, September 30, 2024
$ 0.3
$ 106.4
Increase (decrease) in Southwest Gas net income:
Operating Margin(1)
26.8
92.3
Operations and maintenance expenses
(4.1)
(9.6)
Depreciation and amortization
(4.9)
(21.0)
Other income and deductions, net
(3.4)
(8.6)
Interest expense, net
(3.8)
(16.9)
Other
(1.1)
(4.1)
Income tax expense
(4.6)
(14.0)
Total increase in Southwest Gas net income
4.9
18.1
Decrease in corporate and administrative net loss
8.5
12.8
Increase in income from continuing operations
13.4
30.9
Increase in discontinued operations(2)
256.8
234.2
Net income attributable to Southwest Gas Holdings, September 30, 2025
$ 270.5
$ 371.5
Net income attributable to Southwest Gas Holdings from continuing operations, September 30, 2025
$ 4.2
$ 165.0
(1) For a reconciliation of non-GAAP financial measures to their comparable GAAP measures, see the tables later in this press release.
(2) Including the impacts of noncontrolling interests. All items related to the disposition of Centuri are included in discontinued operations.
Southwest Gas Holdings' third quarter net income improved by $270.2 million compared to the same period in the prior year, primarily the net result of the impacts related to the Company's ...
