Southwest Gas Holdings, Inc. (SWX) reported first‑quarter 2026 results on May 5, 2026, with net income of $138.4 million and earnings per share of $1.91. Revenue fell to $585.1 million, down from $746.4 million in Q1 2025, a decline driven in part by the divestiture of its Centuri unit and a shift toward lower‑margin gas distribution services.
The $150 million revenue shortfall relative to the $737.0 million consensus estimate reflects a 20.6% miss. Management attributed the gap to the timing of the Centuri sale and a lower mix of higher‑margin business, which reduced top‑line growth even as the company continued to grow its customer base.
Earnings per share of $1.91 fell short of the $2.04 consensus estimate, a miss of $0.13 or 6.4%. The company cited disciplined cost management and lower interest expense from debt repayment as factors that helped keep the miss modest, but the delayed California rate‑case decision and the lack of revenue benefit from that case weighed on the quarter’s earnings.
SWX reaffirmed its full‑year 2026 guidance, maintaining an EPS range of $4.17 to $4.32 and a capital‑expenditure target of approximately $1.25 billion. The company also highlighted progress on the Great Basin Expansion Project, noting an oversubscribed open season that attracted $2.5 billion in expressions of interest for additional capacity beyond the 1.0 billion‑cubic‑feet‑per‑day target for the 2028 service date. Dividend policy was also updated, with the quarterly common‑stock dividend increased 4% to $0.645 per share.
In a statement, President and CEO Karen Haller said, “Today, we reported solid first quarter results, driven by continued growth and last year's constructive rate case outcome authorizing recovery of the investments we made in Arizona to serve our customers, and significantly lower interest expense due to the payoff of previously outstanding corporate and administrative debt.” CFO Justin Forsberg added, “Slide 13 shows our progression from earnings per share from continuing operations of $1.86 in the first quarter of 2025 to $1.91 in the first quarter of 2026. At the utility, we delivered solid underlying performance, driven primarily by rate increases in Arizona and continued customer growth. While our first quarter results do not yet reflect the expected revenue benefit from the pending California rate case, our overall utility performance was strong.”
Investors reacted cautiously, focusing on the revenue miss and the EPS shortfall relative to consensus, while noting the company’s continued confidence in its long‑term strategy and capital plan.
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