Southwest Gas (NYSE:SWX) Announces Quarterly Earnings Results

Southwest Gas (NYSE:SWX) posted its quarterly earnings data on Wednesday. The utilities provider reported $1.36 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.40 by ($0.04), FiscalAI reports. Southwest Gas had a net margin of 11.59% and a return on equity of 6.78%. The firm had revenue of $480.74 million for the quarter, compared to analysts’ expectations of $587.01 million. During the same quarter in the prior year, the business earned $1.39 EPS. The company’s revenue for the quarter was down 13.1% on a year-over-year basis. 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 Performance

Shares of NYSE SWX traded up $1.43 during midday trading on Thursday, hitting $88.50. The company’s stock had a trading volume of 874,305 shares, compared to its average volume of 741,928. The firm has a market cap of $6.39 billion, a P/E ratio of 13.79, a P/E/G ratio of 2.32 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 firm’s fifty day moving average price is $83.39 and its 200-day moving average price is $80.79. The company has a debt-to-equity ratio of 0.89, a quick ratio of 1.43 and a current ratio of 1.55.

Hedge Funds Weigh In On Southwest Gas

Several hedge funds and other institutional investors have recently made changes to their positions in SWX. EverSource Wealth Advisors LLC increased its holdings in shares of Southwest Gas by 223.5% during 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 during the period. Advisory Services Network LLC purchased a new stake in Southwest Gas during the third quarter valued at about $72,000. Daiwa Securities Group Inc. raised its stake in 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 purchasing an additional 165 shares during the period. Danske Bank A S purchased a new stake in Southwest Gas in the 3rd quarter worth about $94,000. Finally, Kestra Advisory Services LLC acquired a new position in Southwest Gas in the 4th quarter valued at approximately $99,000. 92.77% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of brokerages have recently issued reports on SWX. Mizuho set a $96.00 target price on Southwest Gas in a research report on Wednesday, February 11th. 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 research note on Thursday, January 15th. Finally, Weiss Ratings reissued a “buy (b)” rating on shares of Southwest Gas in a research report on Monday, December 29th. One 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 stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $88.40.

More Southwest Gas News

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

• Positive Sentiment: Management raised FY‑2026 EPS guidance to a range of 4.17–4.32, well above street consensus (~3.95), signaling stronger forward earnings expectations that likely underpinned buying interest. Press Release / Slide Deck
• Positive Sentiment: The board approved a 4% increase to the regular quarterly dividend (to $0.645 per share beginning Q2 2026) and S&P upgraded SWX credit ratings to BBB+, supporting income investor appeal and balance‑sheet credibility. PR Newswire: Results
• Positive Sentiment: Board announced CEO succession: Justin Brown (current President) will become CEO effective May 8, 2026, providing an orderly leadership transition that reduces governance uncertainty. Reuters: CEO Succession
• Positive Sentiment: Management and coverage highlight an aggressive long‑term growth target (~14% annual through 2030), which frames the earnings miss as near‑term noise versus a multi‑year growth story. 247WallSt: Growth Target
• Neutral Sentiment: Full earnings materials (transcript, slide deck, presentation) and company commentary are available for investors to parse drivers of the quarter and the guidance assumptions. Seeking Alpha: Transcript
• Negative Sentiment: Q4 results missed consensus: EPS $1.36 vs. $1.40 expected and revenue $480.7M vs. ~$587M expected; revenue fell ~13% YoY — the top‑line shortfall and margin pressure are the immediate negative drivers of investor concern. Zacks: Q4 Miss
• Negative Sentiment: Management projects elevated capital spending (~$1.25B for 2026), which could pressure free cash flow and require continued balance‑sheet management despite the recent credit upgrade. Zacks: Capex Outlook

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.