Southwest Gas Holdings reported third‑quarter 2025 results for the period ended September 30, 2025, posting revenue of $316.9 million and a diluted earnings per share of $0.06—an $0.01 beat over the consensus estimate of $0.05. Net income for the quarter was $265 million, comfortably within the company’s guidance range of $265 million to $275 million for the full year. The company reaffirmed its 2025 guidance, indicating confidence in maintaining profitability as it completes its separation from Centuri and strengthens its balance sheet.
Operating margin rose to $274.2 million, up from $247.4 million in Q3 2024, reflecting disciplined cost management and a favorable mix of higher‑margin regulated gas service revenue. The margin expansion was driven by increased customer growth—about 40,000 new meter sets, a 1.8% rise in the customer base—alongside modest price adjustments in core markets. The company’s focus on operational leverage and efficient capital deployment helped offset any headwinds from regional rate‑case uncertainties.
The quarter marked the culmination of Southwest Gas’s separation from Centuri Holdings, which generated approximately $879 million in net proceeds. Those proceeds were used to repay debt, enabling the company to secure a BBB+ credit rating from S&P with a stable outlook. The upgrade underscores the improved financial profile and reduced leverage that result from the divestiture, positioning the company for future rate‑case negotiations and infrastructure investments.
CEO Karen Haller highlighted the company’s strong performance, noting that “Southwest Gas delivered higher net income from continuing operations year‑over‑year and is well‑positioned with a strong balance sheet to address the energy needs of its growing, high‑demand service territories.” She also referenced upcoming regulatory developments, including rate‑case filings in Arizona, Nevada, and California, which are expected to support continued revenue growth.
Senior Vice President and Chief Financial Officer Robert J. Stefani announced his departure, effective December 1, 2025. The board has begun an internal and external search for a replacement, and Stefani expressed gratitude for the opportunity to lead the company through its strategic transition. His leadership has been credited with steering the successful Centuri separation and maintaining financial discipline during a period of regulatory change.
The market reaction to the earnings was largely positive, driven by the EPS beat, the credit rating upgrade, and the successful completion of the Centuri separation. Investors viewed the company’s improved balance sheet and continued customer growth as evidence of a resilient business model, while the reaffirmed guidance signaled management’s confidence in sustaining profitability amid ongoing regulatory and market dynamics.
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