Southwest Gas Q2 Earnings Miss Estimates, Revenues Decline Y/Y

Southwest Gas Holdings Inc. SWX reported second-quarter 2026 adjusted earnings of 45 cents per share, which missed the Zacks Consensus Estimate of 47 cents by 4.3%. The bottom line increased 21.6% from the year-ago quarter.

SWX’s Total Revenues

Operating revenues totaled $358.2 million, which lagged the Zacks Consensus Estimate of $407 million by 12%. The top line also decreased 9.6% from $396.3 million in the prior-year quarter.

SWX’s Operating Highlights

Total operating expenses declined 17.5% year over year to $273.8 million. This was primarily due to the lower net cost of gas sold and reduced operations and maintenance expenses.

Total operating income was $84.3 million, up 30.8% from $64.5 million in the year-ago quarter.

Arizona System Integrity Mechanism rates became effective on April 1, supporting the recovery of eligible safety and reliability investments. In Nevada, SWX increased its requested annual revenues to roughly $74 million after incorporating additional plant investments.

Total system throughput in the first six months of 2026 was 106.05 million dekatherms, down 9.1% from 116.61 million dekatherms in the year-ago period.

Southwest Gas’ Balance Sheet & Cash Flow

Cash and cash equivalents amounted to $270.5 million as of June 30, 2026, compared with $576.6 million as of Dec. 31, 2025.

As of June 30, 2026, long-term debt, less current maturities, amounted to $3.41 billion compared with $3.43 billion as of Dec. 31, 2025.

Net cash provided by operating activities totaled $308.2 million in the first six months of 2026, compared with $417.6 million a year earlier. Capital expenditures and property additions increased to $529.1 million from $362.5 million, reflecting continued infrastructure investment.

SWX Advances Great Basin Expansion

Great Basin secured binding precedent agreements for about 1 billion cubic feet (Bcf) per day of demand for its 2028 expansion. The project is now expected to require approximately $2.3 billion in capital investment and generate an annual incremental margin of $270-$300 million after it enters service.

The company also has expressions of interest for an additional 1.8 Bcf, with requested in-service dates from 2029 through 2035. Southwest Gas plans to file its Federal Energy Regulatory Commission certificate application later in 2026 and expects the higher contracted demand not to delay the filing schedule

Southwest Gas Reaffirms 2026 & Long-Term Outlook

Southwest Gas expects its 2026 earnings per share (EPS) in the range of $4.17-$4.32. The Zacks Consensus Estimate for EPS is pegged at $4.27, higher than the mid-point of the company’s guided range.

The company expects a rate base compound annual growth rate of 9.5-11.5% in the 2026-2030 period. 

The capital expenditure is projected at $1.25 billion for 2026, while total capital expenditure for 2026-2030 is expected to reach $6.3 billion.

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

Consolidated Edison ED is slated to report second-quarter 2026 results on Aug. 6, after market close. The Zacks Consensus Estimate for earnings is pegged at 74 cents per share, which implies a year-over-year increase of 10.45%.

ED’s long-term (three to five years) earnings growth rate is 6.32%. The Zacks Consensus Estimate for second-quarter sales is pinned at $3.74 billion, which suggests year-over-year growth of 4.17%.

MDU Resources Group, Inc. MDU is scheduled to report second-quarter 2026 results on Aug. 6. The Zacks Consensus Estimate for EPS is pegged at 8 cents, reflecting an increase of 14.29% from the prior-year figure.

MDU’s long-term earnings growth rate is 5.54%. The Zacks Consensus Estimate for second-quarter sales is pinned at $398 million, which suggests year-over-year growth of 13.32%.

PPL Corporation PPL is scheduled to report second-quarter results on Aug. 7, before the market opens. The Zacks Consensus Estimate for earnings is pegged at 35 cents per share, which implies year-over-year growth of 9.38%.

PPL’s long-term earnings growth rate is 7.52%. The Zacks Consensus Estimate for second-quarter sales is pinned at $2.18 billion, which suggests year-over-year growth of 7.50%.

 

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