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Southwest Gas (SWX) Down 4% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Southwest Gas (SWX - Free Report) . Shares have lost about 4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Southwest Gas due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Southwest Gas Corporation before we dive into how investors and analysts have reacted as of late.
Southwest Gas Q2 Earnings Miss Estimates, Revenues Decline Y/Y
Southwest Gas Holdings Inc. reported second-quarter 2026 adjusted earnings of 45 cents per share, which missed the Zacks Consensus Estimate of 47 cents by 4.3%. The bottom line increased 21.6% from the year-ago quarter.
SWX’s Total Revenues
Operating revenues totaled $358.2 million, which lagged the Zacks Consensus Estimate of $407 million by 12%. The top line also decreased 9.6% from $396.3 million in the prior-year quarter.
SWX’s Operating Highlights
Total operating expenses declined 17.5% year over year to $273.8 million. This was primarily due to the lower net cost of gas sold and reduced operations and maintenance expenses.
Total operating income was $84.3 million, up 30.8% from $64.5 million in the year-ago quarter.
Arizona System Integrity Mechanism rates became effective on April 1, supporting the recovery of eligible safety and reliability investments. In Nevada, SWX increased its requested annual revenues to roughly $74 million after incorporating additional plant investments.
Total system throughput in the first six months of 2026 was 106.05 million dekatherms, down 9.1% from 116.61 million dekatherms in the year-ago period.
Southwest Gas’ Balance Sheet & Cash Flow
Cash and cash equivalents amounted to $270.5 million as of June 30, 2026, compared with $576.6 million as of Dec. 31, 2025.
As of June 30, 2026, long-term debt, less current maturities, amounted to $3.41 billion compared with $3.43 billion as of Dec. 31, 2025.
Net cash provided by operating activities totaled $308.2 million in the first six months of 2026, compared with $417.6 million a year earlier. Capital expenditures and property additions increased to $529.1 million from $362.5 million, reflecting continued infrastructure investment.
SWX Advances Great Basin Expansion
Great Basin secured binding precedent agreements for about 1 billion cubic feet (Bcf) per day of demand for its 2028 expansion. The project is now expected to require approximately $2.3 billion in capital investment and generate an annual incremental margin of $270-$300 million after it enters service.
The company also has expressions of interest for an additional 1.8 Bcf, with requested in-service dates from 2029 through 2035. Southwest Gas plans to file its Federal Energy Regulatory Commission certificate application later in 2026 and expects the higher contracted demand not to delay the filing schedule.
Southwest Gas Reaffirms 2026 & Long-Term Outlook
Southwest Gas expects its 2026 earnings per share (EPS) in the range of $4.17-$4.32. The Zacks Consensus Estimate for EPS is pegged at $4.27, higher than the mid-point of the company’s guided range.
The company expects a rate base compound annual growth rate of 9.5-11.5% in the 2026-2030 period.
The capital expenditure is projected at $1.25 billion for 2026, while total capital expenditure for 2026-2030 is expected to reach $6.3 billion.
How Have Estimates Been Moving Since Then?
Fresh estimates followed a upward path over the past two months.
The consensus estimate has shifted -5.88% due to these changes.
VGM Scores
At this time, Southwest Gas has a poor Growth Score of F, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Southwest Gas has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
View the Zacks #1 Rank List
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Southwest Gas (SWX) Down 4% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Southwest Gas (SWX - Free Report) . Shares have lost about 4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Southwest Gas due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Southwest Gas Corporation before we dive into how investors and analysts have reacted as of late.
Southwest Gas Q2 Earnings Miss Estimates, Revenues Decline Y/Y
Southwest Gas Holdings Inc. reported second-quarter 2026 adjusted earnings of 45 cents per share, which missed the Zacks Consensus Estimate of 47 cents by 4.3%. The bottom line increased 21.6% from the year-ago quarter.
SWX’s Total Revenues
Operating revenues totaled $358.2 million, which lagged the Zacks Consensus Estimate of $407 million by 12%. The top line also decreased 9.6% from $396.3 million in the prior-year quarter.
SWX’s Operating Highlights
Total operating expenses declined 17.5% year over year to $273.8 million. This was primarily due to the lower net cost of gas sold and reduced operations and maintenance expenses.
Total operating income was $84.3 million, up 30.8% from $64.5 million in the year-ago quarter.
Arizona System Integrity Mechanism rates became effective on April 1, supporting the recovery of eligible safety and reliability investments. In Nevada, SWX increased its requested annual revenues to roughly $74 million after incorporating additional plant investments.
Total system throughput in the first six months of 2026 was 106.05 million dekatherms, down 9.1% from 116.61 million dekatherms in the year-ago period.
Southwest Gas’ Balance Sheet & Cash Flow
Cash and cash equivalents amounted to $270.5 million as of June 30, 2026, compared with $576.6 million as of Dec. 31, 2025.
As of June 30, 2026, long-term debt, less current maturities, amounted to $3.41 billion compared with $3.43 billion as of Dec. 31, 2025.
Net cash provided by operating activities totaled $308.2 million in the first six months of 2026, compared with $417.6 million a year earlier. Capital expenditures and property additions increased to $529.1 million from $362.5 million, reflecting continued infrastructure investment.
SWX Advances Great Basin Expansion
Great Basin secured binding precedent agreements for about 1 billion cubic feet (Bcf) per day of demand for its 2028 expansion. The project is now expected to require approximately $2.3 billion in capital investment and generate an annual incremental margin of $270-$300 million after it enters service.
The company also has expressions of interest for an additional 1.8 Bcf, with requested in-service dates from 2029 through 2035. Southwest Gas plans to file its Federal Energy Regulatory Commission certificate application later in 2026 and expects the higher contracted demand not to delay the filing schedule.
Southwest Gas Reaffirms 2026 & Long-Term Outlook
Southwest Gas expects its 2026 earnings per share (EPS) in the range of $4.17-$4.32. The Zacks Consensus Estimate for EPS is pegged at $4.27, higher than the mid-point of the company’s guided range.
The company expects a rate base compound annual growth rate of 9.5-11.5% in the 2026-2030 period.
The capital expenditure is projected at $1.25 billion for 2026, while total capital expenditure for 2026-2030 is expected to reach $6.3 billion.
How Have Estimates Been Moving Since Then?
Fresh estimates followed a upward path over the past two months.
The consensus estimate has shifted -5.88% due to these changes.
VGM Scores
At this time, Southwest Gas has a poor Growth Score of F, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Southwest Gas has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.