NORTHWEST NATURAL HOLDING CO (NYSE:NWN) reported financial results for the third quarter of 2025, presenting a mixed performance against analyst expectations. The utility holding company fell short on revenue but delivered a narrower-than-expected loss, while simultaneously raising its full-year earnings guidance.
Earnings vs. Estimates
The company's Q3 2025 results showed a divergence between top-line performance and bottom-line execution when measured against Wall Street forecasts.
- Revenue: Reported revenue of $164.73 million missed the analyst consensus estimate of $176.74 million.
- Earnings Per Share: The company reported a net loss of $0.73 per share. This was a smaller loss than the $0.83 per share that analysts had projected.
- Year-to-Date Performance: For the first nine months of 2025, the picture is brighter. NW Natural reported net income of $1.36 per share and an adjusted net income of $1.52 per share, a significant increase from $0.88 per share in the same period last year.
Market Reaction and Price Action
The market's initial reaction to the earnings report appears cautiously optimistic, focusing on the earnings beat and improved guidance rather than the revenue miss. In pre-market trading, the stock was down approximately 0.94%, a relatively muted move that suggests investors are weighing the conflicting data points. This follows a period of stability and slight gains for the stock in recent weeks.
- Last Week Performance: -0.85%
- Last Month Performance: +6.04%
Key Highlights from the Quarter
Beyond the headline numbers, the earnings release highlighted several strategic and operational achievements.
- Strong Customer Growth: The company added over 95,000 new gas and water utility connections in the last 12 months, representing a combined growth rate of 10.9%. This was largely driven by the acquisition of SiEnergy.
- Increased Guidance: Management now expects full-year 2025 results to be above the midpoint of its updated GAAP EPS guidance range of $2.59 to $2.79. More notably, it reaffirmed its adjusted EPS guidance of $2.75 to $2.95, which excludes one-time transaction costs.
- Dividend Increase: The board of directors increased the quarterly dividend, marking the 70th consecutive year of dividend growth for the company. The new annual indicated dividend rate is $1.97 per share.
- Regulatory Progress: New rates went into effect in Oregon on October 31, 2025, and the company has filed a multi-year rate case in Washington, seeking increases over a three-year period beginning in August 2026.
- Segment Performance: The company's strategic acquisitions in Texas (SiEnergy) and its growing water utility business contributed positively to results, helping to offset the seasonal loss in its core gas utility segment, which is typical for the third quarter.
Outlook and Long-Term Targets
The company's forward-looking statements provide context for its performance relative to future analyst expectations. NW Natural Holdings reaffirmed its long-term EPS growth rate target of 4% to 6%. This outlook, combined with the raised 2025 guidance, suggests management confidence in the company's strategic trajectory. For comparison, analysts are currently estimating revenue of $1.36 billion and EPS of $2.94 for the full 2025 fiscal year, which aligns closely with the high end of the company's own adjusted EPS guidance range.
For a detailed breakdown of historical earnings and future analyst estimates for NORTHWEST NATURAL HOLDING CO (NYSE:NWN), you can view more information here.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial advice, or a recommendation to buy or sell any security. The performance data and estimates referenced are based on publicly available information and are subject to change. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
