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Southwest Gas Holdings, Inc. Financial Report Summary

Southwest Gas Holdings, Inc. (NYSE: SWX) recently disclosed its strong financial performance for both the fourth quarter and the full year of 2025, showcasing robust growth across its operations and a commitment to returning value to its shareholders.

Key Financial Highlights

For the fourth quarter of 2025, Southwest Gas Holdings reported a net income of $103.5 million, reflecting an increase from $92.5 million in the previous year. This upward trend was bolstered by a rise in adjusted net income from continuing operations to $98.7 million, compared to $86.8 million in Q4 2024. Full-year results revealed even more impressive figures, with net income soaring to $439.8 million, a stark contrast to $198.8 million in 2024. Adjusted net income for the full year also reflected significant growth, reaching $263.7 million from $220.9 million in the prior year.

The company's adjusted utility return on equity (ROE) for 2025 was robust, at 8.3%, with an earnings growth of approximately 9% year-over-year. These figures positioned the company firmly within its guidance range, exceeding expectations for net income and return metrics.

Increased Dividends and Strategic Initiatives

Amidst these strong financial results, Southwest Gas Holdings announced a 4% increase in its quarterly common stock dividend, raising it to $0.645 per share. This increase corresponds to an annual dividend of $2.58 per share, underscoring the board’s commitment to delivering shareholder value while maintaining a robust balance sheet for future capital investments.

Karen Haller, the President and CEO, emphasized the strategic framework which positioned the company as a fully regulated natural gas entity. "Our solid regulatory strategy and effective cost management have paved the way for future growth. We are focused on further enhancing our infrastructure to ensure reliable services while improving recovery processes," she stated. This includes plans to file rate cases in Arizona and Nevada aimed at improving customer rates and predictability.

Operational and Growth Drivers

In 2025, Southwest Gas achieved a notable 1.6% customer growth rate, adding approximately 37,000 new meter sets. This growth was complemented by a substantial $855 million in capital expenditures aimed at modernizing and strengthening its infrastructure, paving the way for sustained customer demand.

The company also reported an operating margin increase, with total earnings for the fourth quarter reaching $412.5 million, reflecting a successful adjustment in rates aligned with operational costs. Future capital expenditures are projected to reach around $1.25 billion in 2026, signifying the company's intent on maintaining a forward-looking growth trajectory.

In terms of liquidity, the company reported having $577 million in cash and cash equivalents, accompanied by nearly $1.3 billion in available liquidity, enabling it to support ongoing and planned expansion projects, including the anticipated 2028 Great Basin Gas Transmission Company expansion.

Conclusion

By prioritizing strategic investments and maintaining focus on customer satisfaction—recognized consistently by J.D. Power as the best in customer satisfaction in the West among large utilities—Southwest Gas Holdings stands at a pivotal position for continued success. The company's commitment to operational excellence and shareholder value, combined with a solid foundation for future growth, showcases its resilience and strategic vision in navigating the evolving energy landscape.

As Southwest Gas Holdings embarks on 2026, stakeholders can expect continued updates and an encouraging model of growth and profitability that highlights its leadership in the natural gas distribution sector.