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Can Infrastructure Investments Drive SWX's Long-Term Growth?
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Key Takeaways
SWX plans $1.25B of 2026 investment, including $925M for Utility and $325M for Great Basin.
Great Basin agreements cover about 1 Bcf/d, with potential annual incremental margin of $270M-$300M.
SWX invested $520M in infrastructure in the first half of 2026 to modernize and expand its network.
Southwest Gas Holdings, Inc. (SWX - Free Report) is advancing infrastructure investments to enhance system safety, reliability and service quality across its regulated operations. These initiatives also help accommodate customer needs and improve the resilience of its natural gas distribution network.
SWX plans to invest approximately $1.25 billion in 2026, including $925 million in Utility expenditures and $325 million for the Great Basin 2028 Expansion Project, as part of its $6.3 billion capital investment plan for 2026 through 2030. It continues to target 9.5-11.5% annual rate-base growth and 12-14% annual adjusted earnings per share growth through 2030.
Southwest Gas is expanding and strengthening its infrastructure to meet rising demand, supporting rate-base growth and creating opportunities for timely regulatory recovery of investments. In the first half of 2026, SWX invested $520 million in infrastructure modernization and expansion.
The Great Basin 2028 Expansion Project provides another significant growth opportunity. Binding precedent agreements now cover approximately 1 billion cubic feet per day (Bcf/d) of contracted demand, while SWX has received expressions of interest for another 1.8 Bcf for potential projects serving 2029-2035 demand. The project’s estimated capital investment has increased to approximately $2.3 billion, with potential annual incremental margin of $270-$300 million after completion.
Overall, SWX’s infrastructure investments, regulatory recovery mechanisms and Great Basin expansion could support rate-base expansion and contribute to long-term growth.
Capital Investments Strengthening Utility Operations
Capital investments help gas distribution companies modernize pipelines, replace aging infrastructure and improve system reliability. These upgrades enhance safety, reduce leaks, support customer growth and strengthen long-term operating performance efficiency.
ONE Gas (OGS - Free Report) is investing approximately $4.3 billion through 2030 in system integrity, pipeline replacement and customer extensions, supporting annual rate-base growth of 7-9% and earnings expansion.
MDU Resources (MDU - Free Report) plans nearly $3.1 billion of capital investments through 2030 to modernize infrastructure, meet customer demand and support reliability, with 6-8% long-term earnings growth expected.
The Zacks Rundown on SWX
SWX’s Earnings Estimates
The Zacks Consensus Estimate for 2026 and 2027 EPS indicates a year-over-year increase of 16.99% and 15.64%, respectively.
Image Source: Zacks Investment Research
Debt to Capital
SWX's debt-to-capital ratio currently stands at 45.97%, lower than the Zacks Utility – Gas Distribution industry’s 54.43%.
Image Source: Zacks Investment Research
SWX’s Stock Price Performance
In the past year, the company’s shares have risen 3.9% against the industry’s 0.3% decline.
View the Zacks #1 Rank List
Image: Bigstock
Can Infrastructure Investments Drive SWX's Long-Term Growth?
Key Takeaways
Southwest Gas Holdings, Inc. (SWX - Free Report) is advancing infrastructure investments to enhance system safety, reliability and service quality across its regulated operations. These initiatives also help accommodate customer needs and improve the resilience of its natural gas distribution network.
SWX plans to invest approximately $1.25 billion in 2026, including $925 million in Utility expenditures and $325 million for the Great Basin 2028 Expansion Project, as part of its $6.3 billion capital investment plan for 2026 through 2030. It continues to target 9.5-11.5% annual rate-base growth and 12-14% annual adjusted earnings per share growth through 2030.
Southwest Gas is expanding and strengthening its infrastructure to meet rising demand, supporting rate-base growth and creating opportunities for timely regulatory recovery of investments. In the first half of 2026, SWX invested $520 million in infrastructure modernization and expansion.
The Great Basin 2028 Expansion Project provides another significant growth opportunity. Binding precedent agreements now cover approximately 1 billion cubic feet per day (Bcf/d) of contracted demand, while SWX has received expressions of interest for another 1.8 Bcf for potential projects serving 2029-2035 demand. The project’s estimated capital investment has increased to approximately $2.3 billion, with potential annual incremental margin of $270-$300 million after completion.
Overall, SWX’s infrastructure investments, regulatory recovery mechanisms and Great Basin expansion could support rate-base expansion and contribute to long-term growth.
Capital Investments Strengthening Utility Operations
Capital investments help gas distribution companies modernize pipelines, replace aging infrastructure and improve system reliability. These upgrades enhance safety, reduce leaks, support customer growth and strengthen long-term operating performance efficiency.
ONE Gas (OGS - Free Report) is investing approximately $4.3 billion through 2030 in system integrity, pipeline replacement and customer extensions, supporting annual rate-base growth of 7-9% and earnings expansion.
MDU Resources (MDU - Free Report) plans nearly $3.1 billion of capital investments through 2030 to modernize infrastructure, meet customer demand and support reliability, with 6-8% long-term earnings growth expected.
The Zacks Rundown on SWX
SWX’s Earnings Estimates
The Zacks Consensus Estimate for 2026 and 2027 EPS indicates a year-over-year increase of 16.99% and 15.64%, respectively.
Image Source: Zacks Investment Research
Debt to Capital
SWX's debt-to-capital ratio currently stands at 45.97%, lower than the Zacks Utility – Gas Distribution industry’s 54.43%.
Image Source: Zacks Investment Research
SWX’s Stock Price Performance
In the past year, the company’s shares have risen 3.9% against the industry’s 0.3% decline.
Image Source: Zacks Investment Research
SWX’s Zacks Rank
SWX currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.