Mon, May 12, 12:10 PM (42 days ago)
**Southwest Gas Holdings, Inc. (SWX) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Total operating revenues were $1.3 billion, down from $1.6 billion in Q1 2024, primarily due to lower natural gas prices and reduced customer usage. - **Profit Margins:** Operating income was $200.4 million, up from $158.1 million in Q1 2024, reflecting cost management and regulatory rate increases. - **Cash Flow:** Net cash provided by operating activities was $291.3 million, down from $543.7 million in Q1 2024, due to changes in working capital and reduced collections of deferred purchased gas costs. - **Earnings:** Net income attributable to Southwest Gas Holdings, Inc. was $113.9 million, or $1.58 per share, up from $87.7 million, or $1.22 per share, in Q1 2024. **Segment Performance:** - **Natural Gas Distribution (Southwest Gas):** Operating revenues were $746.4 million, down from $1.1 billion in Q1 2024. Operating income was $214.9 million, up from $184.3 million, driven by rate relief and customer growth. - **Utility Infrastructure Services (Centuri):** Revenues were $550.1 million, up 4% from Q1 2024, with improved seasonal results. However, the segment reported a loss of $19.9 million, compared to a loss of $36.2 million in Q1 2024. **Trends and Uncertainties:** - **Regulatory Environment:** Southwest Gas continues to navigate regulatory proceedings in Arizona, Nevada, and California, with rate relief and infrastructure programs impacting earnings. - **Weather and Seasonality:** Natural gas demand is seasonal, with higher usage in winter months. Centuri's revenues are also seasonal, with peak activity in summer and fall. - **Economic Factors:** Inflation, interest rates, and labor markets may impact operations and capital expenditures. **Future Operations and Impact:** - **Capital Expenditures:** Southwest Gas plans to invest approximately $2.6 billion over the next three years, with $880 million expected in 2025, focusing on system integrity and reliability. - **Liquidity and Financing:** The company maintains investment-grade credit ratings and has access to various financing sources, including credit facilities and equity contributions. - **Dividend Policy:** The board maintained the quarterly dividend at $0.62 per share, with plans to reevaluate post-Centuri separation. **Ticker:** SWX