Southwest Gas ( (SWX) ) has released its Q3 earnings. Here is a breakdown of the information Southwest Gas presented to its investors.
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Southwest Gas Holdings, Inc. is a prominent energy company that focuses on the distribution and transportation of natural gas across Arizona, Nevada, and California, serving over two million customers with a commitment to safety and innovation in sustainable energy solutions.
In its third quarter of 2025, Southwest Gas Holdings reported a significant increase in net income, primarily driven by the successful separation from its former subsidiary, Centuri Holdings, Inc. The company also achieved a notable improvement in its credit ratings and demonstrated strong financial health by fully repaying its term loan and bank debt.
Key financial highlights include a year-to-date utility net income improvement of 11%, a trailing 12-month utility return on equity of 8.3%, and a gross margin of $118.1 million for the quarter. The company also experienced a customer growth rate of 1.8% with the addition of approximately 40,000 new meter sets. Furthermore, Southwest Gas Holdings completed the full separation from Centuri, generating approximately $879 million in net proceeds, which contributed to a substantial increase in net income from discontinued operations.
Looking ahead, Southwest Gas Holdings remains optimistic about its future, with expectations of its 2025 net income reaching the top end of its guidance range. The company plans to file rate cases in Arizona and Nevada and anticipates updated rates in California by January, positioning itself to continue addressing the energy needs of its expanding service territories.