Southwest Gas Holdings Inc (NYSE:SWX) Reports Mixed Q2 2025 Results with EPS Beat but Revenue Miss, Shares Drop 7.5% in Pre-Market

Southwest Gas Holdings Inc (NYSE:SWX) reported mixed second-quarter 2025 results, with earnings per share (EPS) surpassing analyst expectations while revenue fell short. The market reaction has been sharply negative in pre-market trading, with shares down approximately 7.5% following the release.

Key Earnings Highlights

• EPS Performance: The company reported Q2 2025 EPS of $0.53, beating the consensus estimate of $0.4402 by 20.4%.
• Revenue Miss: Quarterly revenue came in at $1.12 billion, below the estimated $1.18 billion, a shortfall of 5.3%.
• Full-Year Estimates: Analysts project full-year 2025 revenue at $5.17 billion and EPS at $3.72, though the company did not provide explicit guidance adjustments in its press release.

Market Reaction

Despite the earnings beat, the stock is facing significant pre-market selling pressure, likely due to the revenue miss and broader concerns about growth. The immediate reaction suggests investors are focusing on the top-line weakness rather than the bottom-line outperformance. Over the past month, shares had gained 6.5%, but today’s drop could erase some of those gains.

Press Release Takeaways

The company highlighted several operational and regulatory developments in its earnings announcement:

• Regulatory Progress: Southwest Gas noted improvements in its trailing 12-month utility return on equity (ROE), which rose to 8.3%, reflecting better cost management and regulatory outcomes.
• Nevada Legislation: A new law in Nevada enables alternative ratemaking for natural gas utilities, which could provide more flexibility in future pricing structures.
• Reaffirmed Guidance: Management reiterated its full-year outlook, signaling confidence in meeting financial targets despite the Q2 revenue miss.

Looking Ahead

Analysts expect Q3 2025 revenue of $1.12 billion and EPS of $0.0345, though these estimates may be revised following today’s results. The company’s ability to maintain profitability despite revenue pressures will be a key focus in upcoming quarters.

For more detailed earnings estimates and historical performance, visit Southwest Gas Holdings Inc Earnings & Estimates.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult a financial advisor before making any decisions.