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

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

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)