Southwest Gas (NYSE:SWX) Releases Earnings Results, Misses Expectations By $0.04 EPS

Southwest Gas (NYSE:SWX) announced its earnings results on Wednesday. The utilities provider reported $1.36 EPS for the quarter, missing the consensus estimate of $1.40 by ($0.04), FiscalAI reports. The company had revenue of $480.74 million for the quarter, compared to analysts’ expectations of $587.01 million. Southwest Gas had a net margin of 14.77% and a return on equity of 6.62%. The company’s revenue for the quarter was down 13.1% on a year-over-year basis. During the same period in the prior year, the company earned $1.39 earnings per share. Southwest Gas updated its FY 2026 guidance to 4.170-4.320 EPS.

Here are the key takeaways from Southwest Gas’ conference call:

• CEO succession — Karen Haller will retire after nearly 30 years and Justin Brown will become CEO effective May 8, with Haller staying on as an advisor through year‑end to support the transition.
• The completed Centuri sale funded full holding‑company debt repayment, left nearly $600 million of cash (and ~$1.3 billion total liquidity), and prompted S&P upgrades to BBB+ — improving the balance sheet to fund dividends and redeploy capital into the utility.
• Financial outlook — the company is initiating 2026 adjusted EPS guidance of $4.17–$4.32 and targets a 12%–14% adjusted EPS CAGR through 2030 (with 15%–17% front‑loaded growth into 2028–29), assuming regulatory improvements and the Great Basin contribution.
• Great Basin expansion (target in‑service late 2028) has binding precedent agreements for ~800 MMcf/d, an estimated ~$1.7 billion capex opportunity, and projected incremental annual margin of $215M–$245M, though timing, costs and approvals remain subject to FERC, permitting and execution risk.
• Regulatory progress — Arizona and Nevada rate cases (Arizona filing this week; Nevada next month) include proposals for formula/alternative ratemaking and a >$100M Arizona revenue request (10.25% ROE request), which management expects will reduce regulatory lag (target ~100 bps) and improve capital recovery.

Southwest Gas Stock Up 1.6%

SWX stock traded up $1.43 during midday trading on Thursday, reaching $88.50. The company had a trading volume of 874,305 shares, compared to its average volume of 920,997. The company has a 50 day moving average of $83.52 and a two-hundred day moving average of $80.85. The company has a market capitalization of $6.39 billion, a P/E ratio of 13.47, a PEG ratio of 2.30 and a beta of 0.65. Southwest Gas has a 1 year low of $64.69 and a 1 year high of $88.78. The company has a current ratio of 1.28, a quick ratio of 1.43 and a debt-to-equity ratio of 0.87.

Institutional Trading of Southwest Gas

A number of institutional investors have recently bought and sold shares of SWX. EverSource Wealth Advisors LLC grew its stake in Southwest Gas by 223.5% in the second quarter. EverSource Wealth Advisors LLC now owns 440 shares of the utilities provider’s stock valued at $33,000 after purchasing an additional 304 shares in the last quarter. Daiwa Securities Group Inc. lifted its holdings in shares of Southwest Gas by 21.3% during the 2nd quarter. Daiwa Securities Group Inc. now owns 939 shares of the utilities provider’s stock valued at $70,000 after buying an additional 165 shares during the last quarter. Advisory Services Network LLC bought a new stake in shares of Southwest Gas in the 3rd quarter valued at approximately $72,000. Danske Bank A S acquired a new position in Southwest Gas in the third quarter worth approximately $94,000. Finally, Kestra Advisory Services LLC acquired a new position in Southwest Gas in the fourth quarter worth approximately $99,000. Institutional investors and hedge funds own 92.77% of the company’s stock.

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on SWX. Mizuho set a $96.00 price target on shares of Southwest Gas in a report on Wednesday, February 11th. Weiss Ratings reissued a “buy (b)” rating on shares of Southwest Gas in a research note on Monday, December 29th. Finally, Citigroup upgraded Southwest Gas from a “neutral” rating to a “buy” rating and increased their target price for the company from $82.00 to $99.00 in a report on Thursday, January 15th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat, Southwest Gas presently has an average rating of “Moderate Buy” and a consensus price target of $88.40.

More Southwest Gas News

Here are the key news stories impacting Southwest Gas this week:

• Positive Sentiment: Company raised FY‑2026 guidance (EPS 4.170–4.320), above prior consensus, signalling stronger forward earnings visibility and supporting valuation. Southwest Gas Holdings, Inc. Reports Fourth Quarter and Full-Year 2025 Financial Results
• Positive Sentiment: Management set a long‑term growth ambition (~14% annual growth through 2030), which anchors investor expectations for rate base and earnings expansion. Southwest Gas Has a 14% Annual Growth Target Through 2030 Despite Earnings Miss
• Positive Sentiment: Board approved a 4% increase to the regular quarterly dividend and the company reported an S&P upgrade to BBB+, both supportive of income investors and credit stability. Southwest Gas Holdings, Inc. Reports Fourth Quarter and Full-Year 2025 Financial Results
• Neutral Sentiment: CEO succession announced: Justin Brown will succeed Karen Haller as CEO effective May 8, 2026 — a planned transition that reduces uncertainty but merits watching for any strategic shifts. Southwest Gas names Justin Brown as CEO
• Neutral Sentiment: Management outlined ~ $1.25 billion of capital spending for 2026 — supports growth/rate‑base expansion but increases near‑term funding needs and execution risk. Southwest Gas’ Fourth-Quarter Earnings & Revenues Miss Estimates
• Neutral Sentiment: Earnings call transcript and slide deck are available for detail on rate cases, capital allocation and outlook — useful for investors wanting the management commentary behind guidance. Southwest Gas Holdings, Inc. (SWX) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Q4 results missed expectations: EPS $1.36 vs. $1.40 consensus and revenue $480.7M vs. $587M expected; revenue fell ~13% y/y, highlighting near‑term demand/revenue pressure. Southwest Gas (SWX) Lags Q4 Earnings and Revenue Estimates

Southwest Gas Company Profile

Southwest Gas Corporation (NYSE: SWX) is a publicly traded natural gas utility that provides regulated gas distribution services to residential, commercial, industrial and electric generation customers. The company’s core activities include the transportation, distribution and sale of natural gas through an extensive network of pipelines, service lines and metering facilities. Southwest Gas also offers related services such as system maintenance, pipeline safety inspections, emergency response and line extensions to support customer growth and ensure reliable gas delivery.

Founded in 1931 in southern Nevada, Southwest Gas has grown through strategic acquisitions and organic expansion to become one of the nation’s larger natural gas utilities by customer count.