Southwest Gas Reaffirms 2026 Guidance After Completing Nevada and California Rate Cases
Southwest Gas Holdings reaffirmed its 2026 guidance after completing rate cases in Nevada and California, according to its third-quarter 8-K released Wednesday, as the natural gas utility pushed ahead with its Great Basin pipeline expansion.
Net income attributable to the company was $12.8 million, or $0.18 per diluted share, compared with $262.6 million, or $3.63, a year earlier, when results included $266.3 million of income from discontinued operations. Income from continuing operations swung to $12.8 million from a loss of $3.7 million.
Adjusted EPS from continuing operations rose to $0.20 from $0.06. The natural gas distribution segment's adjusted net income rose to $15.2 million from $5.5 million.
Rate cases
The Nevada and California rate cases resulted in an estimated $80 million of combined annual revenue increases, the company said. The utility delivered an 8.0% trailing 12-month return on equity.
In Arizona, commission staff has recommended $58 million of incremental annual revenue, a 9.75% return on equity and a move to a formula-rate model. A hearing is scheduled for December, and the company expects new rates to take effect in April 2027.
"Our strong results give us confidence that we are on track to achieve our full-year guidance," said President and CEO Justin Brown.
Great Basin expansion
Southwest Gas said it filed key resource reports and a draft FAST-41 application for the Great Basin 2028 expansion project and remains on track for a fourth-quarter certificate filing, with delivery targeted for the fourth quarter of 2028. Its long-term guidance assumes $1.7 billion of project capital and does not reflect an updated $2.3 billion estimate.
Guidance
The company reaffirmed 2026 adjusted EPS from continuing operations of $4.17 to $4.32, 2026 to 2030 adjusted EPS compound annual growth of 12.0% to 14.0%, $6.3 billion of capital spending over that period and rate base growth of 9.5% to 11.5% a year.
By the numbers
- Q3 EPS: $0.18; adjusted EPS: $0.20
- Trailing 12-month utility ROE: 8.0%
- Arizona staff recommendation: $58 million
- 2026 adjusted EPS guidance: $4.17 to $4.32
- 2026-2030 capital plan: $6.3 billion
Sources
- Southwest Gas Holdings Form 8-K with third-quarter 2026 earnings release, filed Nov. 4, 2026 (accession 0001692115-26-000119)
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