Southwest Gas Q1 Earnings Surpass Estimates, Revenues Fall Y/Y

Core Insights - Southwest Gas Holdings Inc. (SWX) reported first-quarter 2025 operating earnings of $1.65 per share, exceeding the Zacks Consensus Estimate of$1.61 by 2.5% and increasing 20.4% from $1.37 in the same quarter last year [1] - Total operating revenues were$1.30 billion, falling short of the Zacks Consensus Estimate of $1.70 billion by 23.5$1.58 billion in the prior-year quarter [1] Financial Performance - Utility infrastructure service expenses reached $528.6 million, up 2.5$515.6 million in the year-ago quarter [2] - Total operating income was $200.4 million, reflecting a 26.7$158.1 million in the same quarter last year [2] - Total system throughput for the first three months of 2025 was 73.12 million dekatherms, down 4.8% from 76.81 million dekatherms in the first three months of 2024 [2] Cash Flow and Debt - Cash and cash equivalents as of March 31, 2025, were $406.3 million, compared to$363.8 million as of December 31, 2024 [3] - Long-term debt, less current maturities, was $4.33 billion as of March 31, 2025, slightly down from$4.35 billion as of December 31, 2024 [3] - Net cash provided by operating activities in the first three months of 2025 was $291.3 million, down from$543.7 million in the year-ago period [3] Future Guidance - Southwest Gas anticipates the Natural Gas Distribution segment's net income for 2025 to be in the range of $265-$275 million [4] - Capital expenditures are expected to be $880 million for 2025, aimed at supporting customer growth, system improvements, and pipe replacement programs [4] - Projected capital expenditures for the 2025-2029 period are$4.3 billion, with a utility rate base CAGR of 6-8% [4] Market Position - Southwest Gas currently holds a Zacks Rank 1 (Strong Buy) [5]