Northwest Natural Holdings (NYSE: NWN) reported fourth‑quarter 2025 results that included a quarterly earnings per share of $1.39, beating the consensus estimate of $1.36 by $0.03. The company’s full‑year adjusted earnings per share reached $2.93, up from $2.33 in 2024, reflecting strong profitability and disciplined cost management.
Operating revenue for the quarter totaled $394.16 million, falling short of the consensus estimate of approximately $432.5 million. The miss was driven by weaker demand in the company’s core natural‑gas distribution segment, which saw a decline in volume as customers shifted to alternative energy sources. In contrast, the company’s water and wastewater utilities segment posted a modest revenue increase, partially offsetting the gas‑segment shortfall.
Adjusted net income for the quarter was $57.79 million, matching GAAP net income and underscoring the company’s ability to maintain margins despite the revenue shortfall. Operating margin slipped to 9.9% from 10.2% in the prior year, a compression largely attributable to the gas‑segment revenue decline and higher operating costs associated with infrastructure upgrades.
Management reiterated its 2026 guidance, projecting adjusted EPS in the range of $2.95 to $3.15, a lift from the previous consensus of $2.92. The guidance reflects confidence in continued demand for the company’s multi‑platform services, including the recently acquired SiEnergy assets and the MX3 gas‑storage expansion project, which are expected to drive long‑term growth.
The results highlight a key trade‑off: Northwest Natural has achieved record adjusted earnings and a record capital deployment of $467 million, yet it faced a revenue miss that signals headwinds in the natural‑gas market. The company’s focus on disciplined cost control and rate‑stability strategy has preserved profitability, while its strategic investments in water, renewable natural gas, and storage infrastructure position it for future resilience.
Investors view the EPS beat and robust guidance as positive signals, while the revenue miss underscores the need for continued monitoring of market demand in the gas segment. The company’s ability to maintain margins and invest in growth assets suggests a balanced approach to short‑term performance and long‑term value creation.
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