Northwest Natural 2025 Q2 Earnings Narrowed Losses with 11.6% Revenue Growth

Northwest Natural (NWN) reported its fiscal 2025 Q2 earnings on Aug 05th, 2025. The company delivered better-than-expected results, with revenue up 11.6% year-over-year and losses significantly narrowed. Management raised its 2025 GAAP EPS guidance and reiterated long-term growth targets, signaling confidence in continued operational momentum.

Revenue
Northwest Natural's total revenue surged by 11.6% to $236.19 million in the second quarter of 2025, compared to $211.71 million in the same period of the previous year. This strong growth was driven by robust performance across its utility divisions. The NWN Gas Utility led the way with $194.29 million in revenue, followed by the NWN Water Utility, which generated $16.29 million. The SiEnergy Gas Utility contributed $11.50 million, while the NW Holdings Other segment added $14.11 million to the total. Collectively, these segments accounted for the $236.19 million in revenue under the NW Holdings umbrella.

Earnings/Net Income
Northwest Natural reduced its net loss to $-2.50 million in the second quarter of 2025, marking a 10.3% improvement from the $-2.79 million loss in the prior-year quarter. On a per-share basis, the company narrowed losses to $0.06 per share from $0.07, a 14.3% reduction. This improvement highlights the company’s long-term financial resilience, with the firm maintaining profitability for more than 20 years in the corresponding quarter.

Price Action
Following the earnings report, Northwest Natural’s stock experienced a downward trend. The shares fell 3.05% on the latest trading day, 2.81% over the past week, and 4.36% month-to-date. These figures suggest ongoing investor caution in the wake of the earnings announcement.

Post Earnings Price Action Review
The post-earnings performance of Northwest Natural has been notably underwhelming. A strategy of buying the stock on the day of the earnings report following a revenue decline quarter-over-quarter and holding for 30 days yielded a negative 20.27% return. This strategy significantly underperformed the benchmark, which remained flat at 0.00%. Over the longer term, the compound annual growth rate (CAGR) was -7.52%, with a Sharpe ratio of -0.35, indicating a high-risk investment with minimal reward potential and considerable volatility.

CEO Commentary
Justin B. Palfreyman, President and CEO of Northwest Natural Holdings, emphasized the company’s strong execution on strategic objectives in the second quarter, particularly highlighting the growth across all business lines. He expressed optimism for the remainder of the year, noting the team’s progress in executing key initiatives, including the recent acquisition of Pines, and the combined strength of both organic and acquisition-driven customer expansion.

Guidance
Northwest Natural has updated its 2025 GAAP EPS guidance to a range of $2.60 to $2.80 and reaffirmed its adjusted 2025 EPS guidance of $2.75 to $2.95. The company also reiterated its long-term adjusted EPS growth target of 4% to 6% annually, excluding transaction and business development costs related to the acquisitions of SiEnergy and Pines. New rates in Oregon are expected to go into effect on October 31, 2025, following the settlement of a general rate case.

Additional News
In the three weeks following the earnings report, Northwest Natural made several strategic moves that have garnered significant attention. The company completed the acquisition of Pines, a regional utility provider, enhancing its customer base and expanding its operational footprint. Management has also been focused on integrating SiEnergy Gas Utility, aligning it with its broader utility strategy. No major leadership changes have been reported during this period, and there has been no indication of new dividend or share repurchase initiatives at this time.