Overview
Natural gas distributor announced 4% increase in common stock dividend
Company completed separation from Centuri Holdings, generating $1.35 bln net proceeds
Outlook
Southwest Gas expects 2026 EPS from continuing operations between $4.17 and $4.32
Company plans $1.25 bln in capital expenditures for 2026
Southwest Gas anticipates growth from Great Basin expansion starting in 2026
Result Drivers
OPERATING MARGIN - Higher operating margin driven by updated rates in Arizona and customer growth, adding $25.2 mln to Q4 margin
CENTURI SEPARATION - Completion of Centuri separation generated $1.35 bln net proceeds, strengthening financial position
CREDIT RATING UPGRADE - S&P credit ratings upgraded to BBB+ due to improved financial metrics and strategic initiatives
Company press release: ID:nPn2sbCTJa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 EPS | $1.43 | ||
Q4 Net Income | $103.48 mln |
Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the natural gas utilities peer group is "buy."
Wall Street's median 12-month price target for Southwest Gas Holdings Inc is $94.00, about 6.8% above its February 24 closing price of $88.00
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 20 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)