Southwest Gas Holdings Delivers Impressive Q4 and Full-Year 2024 Financial Performance
Southwest Gas Holdings Delivers Impressive Q4 and Full-Year 2024 Financial Performance
Southwest Gas Holdings, Inc. (NYSE: SWX) announced its fourth quarter and full-year 2024 financial results, showcasing remarkable growth and strategic advancements. The company reported a consolidated net income of $92.5 million for Q4 2024, translating into $1.28 per diluted share, with adjusted figures reaching $100.1 million or $1.39 per diluted share. Over the entirety of 2024, the company reported a consolidated net income of $198.8 million or $2.76 per diluted share, significantly improving from previous year figures.
Financial Highlights
This performance illustrates an impressive year-over-year consolidated net income growth from $72.9 million (or $1.01 per share) in Q4 2023. Full-year results also marked a considerable increase from the previous year’s earnings of $150.9 million for 2023. The utility sector, represented by Southwest Gas Corporation, demonstrated strong resilience with a reported net income of $97.2 million in Q4 2024, up from $91.7 million in the same period last year.
Karen Haller, President and CEO, commented on the promising trajectory of the company. “In 2024, we made remarkable headway in enhancing our strategic directives, which yielded positive outcomes for our stakeholders,” she said. Haller emphasized the company’s continuous transformation into a premier, dedicated natural gas utility underpinned by astute regulatory strategies and effective cost management. Notably, the 2024 full-year performance exceeded expected earnings projections by $18 million.
Operational Efficiency and Growth
The utility division’s performance was buoyed by successful regulatory strategies, enabling an 8.1% return on equity (ROE) and projected earnings growth of around 8% compared to the previous year. By managing operational costs effectively, Southwest Gas was able to sustain a flat year-over-year operational maintenance expense per customer, reflecting disciplined cost management practices.
Throughout the year, the utility added approximately 41,000 new meter sets, demonstrating a 1.8% growth rate contributing to an anticipated $265 - $275 million for 2025 net income guidance. The company’s forecast also reflects an ambitious 6-8% compound annual growth rate (CAGR) for both net income and rate base through 2029.
Capital Investments and Future Projections
In 2024, Southwest Gas made substantial capital investments of approximately $859 million, marking a 15% increase from the prior year. The utility finalized approvals for a revenue increase, which included significant enhancements in the rate structures in Nevada and plans to file rate cases in Arizona, California, and for Great Basin.
The successful IPO of Centuri Holdings, Inc. earlier this year, along with a strong cash position exceeding $360 million, indicates robustness in meeting upcoming capital expenditure needs. Moving ahead, the utility anticipates maintaining its commitment to a stable, reliable natural gas system, ensuring value delivery to customers while supporting local economic growth.
Conclusion
As Southwest Gas Holdings continues to advance in its operational and financial capabilities, stakeholders can expect to witness further improvements stemming from the company’s ongoing efforts to optimize utility services. With a focused strategy and solid financial footing, the outlook for the company's growth remains highly optimistic. The upcoming earnings conference call on February 26, 2025, will provide additional insights into the financial state and future direction of Southwest Gas Holdings.
Topics Financial Services & Investing）
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