SOUTHWEST GAS HOLDINGS INC (NYSE:SWX) Reports Q3 2025 Revenue Miss and EPS Beat

SOUTHWEST GAS HOLDINGS INC (NYSE:SWX) has reported its financial results for the third quarter of 2025, delivering a performance that diverged significantly from analyst expectations on the top line while demonstrating operational progress in its bottom line and strategic initiatives.

Earnings Versus Estimates

The company's quarterly results presented a mixed picture when measured against Wall Street's forecasts. While the earnings per share figure surpassed expectations, the revenue number fell considerably short of projections.

• Revenue: The company reported revenue of $316.91 million for the third quarter. This fell substantially below the analyst consensus estimate of $936.2 million.
• Earnings Per Share (EPS): SOUTHWEST GAS HOLDINGS INC reported a non-GAAP EPS of $0.06. This exceeded the analyst estimate of $0.0495 for the quarter.

The stark difference between reported and estimated revenue is the most prominent feature of this earnings release and is a primary factor for investors to scrutinize. The beat on EPS, however, suggests the company managed its costs and operations effectively to remain profitable despite the lower-than-anticipated sales figure.

Market Reaction and Price Action

The market's initial reaction to these results appears cautiously positive. In pre-market trading, the stock has shown an uptick of approximately 0.8%. This positive movement following the earnings announcement suggests that investors may be focusing more on the earnings beat and the company's strategic updates than on the revenue miss. This near-term performance builds on a trend of modest gains over recent weeks, indicating a degree of investor confidence leading up to the report.

Strategic Developments from the Press Release

Beyond the raw financial numbers, the earnings press release highlighted several significant corporate actions that are reshaping the company's financial profile and strategic focus. The completion of the full separation of Centuri Holdings, Inc. (CTRI) stands as the most transformative event. The company executed two final sell-downs of its stake in Centuri, generating approximately $879 million in net proceeds.

This substantial influx of capital was used to decisively strengthen the company's balance sheet. Management announced the full repayment of the SWX term loan and other outstanding bank debt. As a direct result of these deleveraging actions, both Southwest Gas Holdings and its primary subsidiary, Southwest Gas Corporation, received credit rating upgrades from S&P Global Ratings to BBB+, moving them further into investment-grade territory. These developments signal a more focused company with a stronger financial foundation.

Looking Ahead

The company provided an outlook for the full 2025 fiscal year, expressing confidence that its net income is expected to come in toward the top end of its previously stated guidance range. This internal forecast can be compared to the external expectations of market analysts. For the full year 2025, analysts have estimated sales of $4.56 billion and a revenue of $3.69. For the upcoming fourth quarter, the consensus estimates point to sales of $1.20 billion and revenue of $1.34 billion. The company's positive guidance suggests management is optimistic about its ability to finish the year strongly, even as it works to align its operational performance with Wall Street's top-line expectations for the coming periods.

In a separate announcement, the company also noted the initiation of a Chief Financial Officer transition, indicating a forthcoming change in its financial leadership.

For a detailed breakdown of historical earnings, future estimates, and analyst projections, you can review the data available on the SOUTHWEST GAS HOLDINGS INC earnings and estimates page.

Disclaimer: This article is for informational purposes only and is not intended as investment advice. The author has no position in the stock mentioned. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.