Southwest Gas Holdings Inc

Latest Results (26.12.2024):

Net Income Overview

Southwest Gas Holdings Inc. reported a consolidated net income of $18.3 million, or $0.25 per diluted share, for the second quarter of 2024. This represents a decrease from the $28.9 million, or $0.40 per diluted share, reported in the second quarter of 2023. The adjusted consolidated net income for the same period was $22.5 million, or $0.31 per diluted share, compared to $38.8 million, or $0.54 per diluted share, in the previous year.

Utility Earnings Growth

The utility segment of Southwest Gas Holdings Inc. showed significant growth in the second quarter of 2024, with net income rising to $27.6 million from $19.1 million in the second quarter of 2023. This 44.5% increase was attributed to improvements in operating margin and the positive impact of regulatory outcomes, particularly from the Nevada rate case.

Centuri IPO and Debt Reduction

In the second quarter of 2024, Southwest Gas Holdings Inc. successfully executed an initial public offering (IPO) for Centuri Holdings, Inc., which resulted in net proceeds of approximately $328 million. These proceeds were primarily used to pay down $316 million of Centuri's debt, contributing to the company's financial stability and strategic goals.

Revenue and Operational Highlights

Southwest Gas Holdings Inc. reported a record twelve-month operating margin of $1.3 billion for its natural gas distribution segment. The company also added approximately 40,000 new meter sets over the past year, reflecting a 1.8% increase in customer count. Additionally, the company completed a $391 million capital investment year-to-date to support demand and enhance the safety and reliability of its distribution infrastructure.

Financial Outlook and Guidance

Southwest Gas Holdings Inc. raised its full-year 2024 utility net income guidance by $5 million, now expecting it to be in the range of $233 to $243 million. The company remains optimistic about its financial outlook, citing successful regulatory outcomes and utility optimization efforts as key factors in achieving its revised guidance.