Southwest Gas Holdings reports US$12.8M continuing-operations profit
Available liquidity stood near US$700M at Sept. 30 as the company advanced a US$2.3B Great Basin expansion targeting service in late 2028.
Ines Halvorsen
For the quarter ended Sept. 30, continuing-operations profit reached US$12.8 million at Southwest Gas Holdings, Inc. NYSESWX, which reported results on Wednesday. Available liquidity stood at nearly US$700 million at the quarter-end, supporting infrastructure investment and other growth initiatives.
For the third quarter of 2026, adjusted continuing-operations earnings rose to US$0.20 per diluted share from US$0.06 a year earlier. That compares with the US$0.17 consensus estimate published by Zacks Investment Research on Nov. 3.
Shares closed at US$93.13 in New York at 4 p.m. EST on Nov. 3, down 0.69 per cent, according to NYSESWX. That close preceded Wednesday's earnings release.
Infrastructure investment reached nearly US$806 million on an accrual basis in the first nine months of 2026, including about US$148 million for the Great Basin expansion. The company reaffirmed its full-year guidance as it prepares for heavier construction spending later in the expansion's schedule.
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The company attributed the third-quarter improvement in continuing operations to lower interest expense, regulatory outcomes and infrastructure-cost recovery, among other factors.
The holding company's natural gas distribution business contributed US$13.3 million to third-quarter net income, more than double the year-earlier contribution. Continuing operations had recorded a US$3.7 million loss in the comparable 2025 quarter.
The utility earned an 8.0 per cent return on period-end equity over the 12 months ended Sept. 30, according to the release.
Consolidated net income was also US$12.8 million, down from US$262.6 million in the third quarter of 2025. That earlier result included US$266.3 million of income from discontinued operations, so the consolidated comparison differs sharply from the improvement in continuing operations.
Great Basin Filing Remains Due By Year-End
For Great Basin's expected fourth-quarter 2028 start, shippers have signed binding precedent agreements and posted surety supporting 1 billion cubic feet of daily contracted demand. The company's Nov. 4 project update says those shippers must execute transportation service agreements lasting at least 20 years upon federal certificate approval.
The estimated investment is US$2.3 billion, with expected incremental annual margin of US$270 million to US$300 million beginning at the targeted 2028 in-service date. Southwest Gas expects 60 per cent of capital spending in 2028, following 25 per cent in 2027.
The company says the updated estimate should not materially affect its 2026 capital-expenditure guidance. It plans to update its long-term outlook with an annual five-year plan in February 2027.
Rate decisions also change the utility's revenue recovery. Nevada rates effective in October 2026 provide nearly US$48 million in additional annual revenue, the release says. California rates effective Jan. 1, 2026 provide another US$32.6 million under the California Public Utilities Commission's decision.
For Arizona, the Nov. 4 release says commission staff recommended US$58 million in incremental annual revenue and a transition to a formula-rate model.
"The hearing is scheduled for December and we continue to anticipate new rates becoming effective in April 2027," chief executive Justin Brown said in the release.
Its nearer Great Basin milestone is filing an application for a certificate of public convenience and necessity with the Federal Energy Regulatory Commission by the end of 2026.
