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SWX reaffirms 2026 EPS guidance of $4.17-$4.32 and advances its $2.3B Great Basin expansion project.
Southwest Gas Holdings, Inc. (SWX - Free Report) reported third-quarter 2026 adjusted earnings of 20 cents per share, which beat the Zacks Consensus Estimate of 17 cents by 17.65%. The bottom line surged 233.3% from 6 cents in the year-ago quarter, benefiting from lower interest expenses, improved regulatory recovery and favorable tax adjustments.
SWX’s Total Revenues
Operating revenues totaled $298.2 million, which missed the Zacks Consensus Estimate of $318 million by 6.23%. The top line declined 5.9% from $316.9 million in the prior-year quarter. Utility operating margin increased 1.4% year over year to $278.1 million.
Southwest Gas Corporation Price, Consensus and EPS Surprise
SWX's Operating Performance and Regulatory Updates
Total operating expenses declined 6.2% year over year to $262.6 million, primarily due to lower net cost of gas sold. The net cost of gas sold declined 52.9% year over year to $20.1 million.
Operations and maintenance expenses increased 1.5% to $136.8 million, reflecting higher employee-related costs and bad debt expenses.
Total operating income declined 3.9% year over year to $35.6 million from $37 million.
Net interest deductions decreased 15.7% to $41.3 million, supporting the improvement in profitability.
Southwest Gas completed its Nevada general rate case, securing approximately $47.8 million in incremental annual revenues. The new rates became effective in October 2026, with the authorized return on equity maintained at 9.5%.
The company also concluded its California rate case, resulting in $32.6 million of additional annual revenues. The regulator approved a 10% authorized return on equity and a balanced capital structure comprising 50% equity and 50% debt.
Southwest Gas Advances Great Basin Expansion
The company's Great Basin 2028 expansion project remains on track for the filing of an application for a Federal Energy Regulatory Commission certificate by the end of 2026. The project has secured binding agreements supporting natural gas transportation demand of 1 billion cubic feet per day.
The project requires an estimated $2.3 billion investment and is expected to generate approximately $270-$300 million in incremental annual margin after its anticipated commencement in fourth-quarter 2028.
The pipeline's 48-inch design can accommodate nearly 2 billion cubic feet per day with relatively modest additional investment, depending on customer requirements.
Southwest Gas has also received nonbinding expressions of interest for another 1.8 billion cubic feet per day, with requested service dates extending from 2029 through 2035.
SWX's Balance Sheet and Cash Flow
Cash and cash equivalents totaled $53.4 million as of Sept. 30, 2026 compared with $576.6 million as of Dec. 31, 2025.
As of Sept. 30, 2026, long-term debt, excluding current maturities, totaled $3.50 billion, up from $3.43 billion as of Dec. 31, 2025.
Net cash provided by operating activities totaled $383.6 million during the first nine months of 2026, down from $474.5 million in the year-ago period. Capital expenditures and property additions increased to $800.9 million from $570.4 million, reflecting continued infrastructure investments.
Southwest Gas Reaffirms 2026 and Long-Term Outlook
Southwest Gas reaffirmed its 2026 adjusted earnings guidance from continuing operations at $4.17-$4.32 per share. SWX anticipates adjusted earnings per share (EPS) from continuing operations to increase at a compound annual growth rate (CAGR) of 12-14% during 2026-2030. The Zacks Consensus Estimate for EPS is pegged at $4.27, higher than the midpoint of the company’s guided range.
The company continues to expect capital expenditures of approximately $1.25 billion in 2026 and $6.3 billion during the 2026-2030 period. The long-term outlook incorporates $1.7 billion of incremental capital investment related to the Great Basin expansion and does not reflect the project's updated capital estimate. The rate base is projected to expand at a CAGR of 9.5-11.5% over the same period.
Evergy (EVRG - Free Report) is set to report third-quarter 2026 results on Nov. 5, before the market opens. The Zacks Consensus Estimate for earnings is pegged at $2.30 per share, which implies year-over-year growth of 13.30%.
EVRG’s long-term earnings growth rate is 9.07%. The Zacks Consensus Estimate for third-quarter 2026 sales is pinned at $1.90 billion, which implies a year-over-year improvement of 4.71%.
PPL Corporation (PPL - Free Report) is scheduled to report third-quarter 2026 results on Nov. 6, before the market opens. The Zacks Consensus Estimate for earnings is pegged at 53 cents per share, which implies year-over-year growth of 10.42%.
PPL’s long-term earnings growth rate is 5.26%. The Zacks Consensus Estimate for third-quarter 2026 sales is pinned at $2.44 billion, which implies a year-over-year improvement of 8.91%.
Consolidated Water (CWCO - Free Report) is scheduled to report third-quarter 2026 results on Nov. 9, after market close. The Zacks Consensus Estimate for earnings is pegged at 24 cents per share, which implies a year-over-year decline of 29.41%.
CWCO’s dividend yield is 2.04%. The Zacks Consensus Estimate for third-quarter 2026 sales is pinned at $32.62 million, which implies a year-over-year decrease of 7.12%.
View the Zacks #1 Rank List
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SWX Q3 Earnings Beat on Lower Interest Cost, Sales Decline Y/Y
Key Takeaways
Southwest Gas Holdings, Inc. (SWX - Free Report) reported third-quarter 2026 adjusted earnings of 20 cents per share, which beat the Zacks Consensus Estimate of 17 cents by 17.65%. The bottom line surged 233.3% from 6 cents in the year-ago quarter, benefiting from lower interest expenses, improved regulatory recovery and favorable tax adjustments.
SWX’s Total Revenues
Operating revenues totaled $298.2 million, which missed the Zacks Consensus Estimate of $318 million by 6.23%. The top line declined 5.9% from $316.9 million in the prior-year quarter. Utility operating margin increased 1.4% year over year to $278.1 million.
Southwest Gas Corporation Price, Consensus and EPS Surprise
Southwest Gas Corporation price-consensus-eps-surprise-chart | Southwest Gas Corporation Quote
SWX's Operating Performance and Regulatory Updates
Total operating expenses declined 6.2% year over year to $262.6 million, primarily due to lower net cost of gas sold. The net cost of gas sold declined 52.9% year over year to $20.1 million.
Operations and maintenance expenses increased 1.5% to $136.8 million, reflecting higher employee-related costs and bad debt expenses.
Total operating income declined 3.9% year over year to $35.6 million from $37 million.
Net interest deductions decreased 15.7% to $41.3 million, supporting the improvement in profitability.
Southwest Gas completed its Nevada general rate case, securing approximately $47.8 million in incremental annual revenues. The new rates became effective in October 2026, with the authorized return on equity maintained at 9.5%.
The company also concluded its California rate case, resulting in $32.6 million of additional annual revenues. The regulator approved a 10% authorized return on equity and a balanced capital structure comprising 50% equity and 50% debt.
Southwest Gas Advances Great Basin Expansion
The company's Great Basin 2028 expansion project remains on track for the filing of an application for a Federal Energy Regulatory Commission certificate by the end of 2026. The project has secured binding agreements supporting natural gas transportation demand of 1 billion cubic feet per day.
The project requires an estimated $2.3 billion investment and is expected to generate approximately $270-$300 million in incremental annual margin after its anticipated commencement in fourth-quarter 2028.
The pipeline's 48-inch design can accommodate nearly 2 billion cubic feet per day with relatively modest additional investment, depending on customer requirements.
Southwest Gas has also received nonbinding expressions of interest for another 1.8 billion cubic feet per day, with requested service dates extending from 2029 through 2035.
SWX's Balance Sheet and Cash Flow
Cash and cash equivalents totaled $53.4 million as of Sept. 30, 2026 compared with $576.6 million as of Dec. 31, 2025.
As of Sept. 30, 2026, long-term debt, excluding current maturities, totaled $3.50 billion, up from $3.43 billion as of Dec. 31, 2025.
Net cash provided by operating activities totaled $383.6 million during the first nine months of 2026, down from $474.5 million in the year-ago period. Capital expenditures and property additions increased to $800.9 million from $570.4 million, reflecting continued infrastructure investments.
Southwest Gas Reaffirms 2026 and Long-Term Outlook
Southwest Gas reaffirmed its 2026 adjusted earnings guidance from continuing operations at $4.17-$4.32 per share. SWX anticipates adjusted earnings per share (EPS) from continuing operations to increase at a compound annual growth rate (CAGR) of 12-14% during 2026-2030. The Zacks Consensus Estimate for EPS is pegged at $4.27, higher than the midpoint of the company’s guided range.
The company continues to expect capital expenditures of approximately $1.25 billion in 2026 and $6.3 billion during the 2026-2030 period. The long-term outlook incorporates $1.7 billion of incremental capital investment related to the Great Basin expansion and does not reflect the project's updated capital estimate. The rate base is projected to expand at a CAGR of 9.5-11.5% over the same period.
SWX’s Zacks Rank
Southwest Gas currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Evergy (EVRG - Free Report) is set to report third-quarter 2026 results on Nov. 5, before the market opens. The Zacks Consensus Estimate for earnings is pegged at $2.30 per share, which implies year-over-year growth of 13.30%.
EVRG’s long-term earnings growth rate is 9.07%. The Zacks Consensus Estimate for third-quarter 2026 sales is pinned at $1.90 billion, which implies a year-over-year improvement of 4.71%.
PPL Corporation (PPL - Free Report) is scheduled to report third-quarter 2026 results on Nov. 6, before the market opens. The Zacks Consensus Estimate for earnings is pegged at 53 cents per share, which implies year-over-year growth of 10.42%.
PPL’s long-term earnings growth rate is 5.26%. The Zacks Consensus Estimate for third-quarter 2026 sales is pinned at $2.44 billion, which implies a year-over-year improvement of 8.91%.
Consolidated Water (CWCO - Free Report) is scheduled to report third-quarter 2026 results on Nov. 9, after market close. The Zacks Consensus Estimate for earnings is pegged at 24 cents per share, which implies a year-over-year decline of 29.41%.
CWCO’s dividend yield is 2.04%. The Zacks Consensus Estimate for third-quarter 2026 sales is pinned at $32.62 million, which implies a year-over-year decrease of 7.12%.