Why Is Southwest Gas (SWX) Down 2.1% Since Last Earnings Report?

It has been about a month since the last earnings report for Southwest Gas (SWX). Shares have lost about 2.1% in that time frame, outperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Southwest Gas due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Southwest Gas Corporation before we dive into how investors and analysts have reacted as of late.

Southwest Gas' Fourth-Quarter Earnings & Revenues Miss Estimates

Southwest Gas Holdings Inc. recorded fourth-quarter 2025 operating earnings of $1.36 per share, which missed the Zacks Consensus Estimate of $1.40 by 2.9%. The bottom line also decreased from the year-ago quarter’s figure of $1.39.

SWX reported earnings of $3.65 per share for 2025 compared with $3.16 per share in 2024, which reflects a year-over-year increase of 15.5%.

SWX’s Total Revenues

Operating revenues totaled $0.48 billion, which lagged the Zacks Consensus Estimate of $0.58 billion by 17.7%. The top line also declined 62.2% from $1.27 billion reported in the prior-year quarter.

SWX reported total revenues of $1.94 billion for 2025 compared with $5.11 billion in 2024, which reflects a year-over-year decrease of 62%.

Highlights of SWX’s Earnings Release

Operations and maintenance expenses in 2025 totaled $544.1 million, up 3.3% from the year-ago figure of $526.7 million.

The total operating income in 2025 was $473.9 million, up 16.6% year over year.

Total system throughput in 2025 was 204.69 million dekatherms, down 6.7% from 219.43 million dekatherms reported in 2024.

Southwest Gas’ Financial Highlights

Cash and cash equivalents, as of Dec. 31, 2025, were $576.6 million compared with $314.8 million as of Dec. 31, 2024.

The long-term debt, less current maturities, amounted to $3.43 billion as of Dec. 31, 2025, compared with $3.50 billion as of Dec. 31, 2024.

Southwest Gas’ net cash provided by operating activities for the year ended Dec. 31, 2025, was $0.56 billion compared with $1.36 billion in the year-ago period.

SWX’s 2026 Guidance

Southwest Gas expects its 2026 earnings per share to be in the range of $4.17-$4.32. The Zacks Consensus Estimate is pegged at $4.13, lower than the company’s guided range.

The company expects a rate base compound annual growth rate of 9.5-11.5% in the 2026-2030 period.

The capital expenditure is projected at $1.25 billion for 2026, while total capital expenditure for the 2026-2030 timeframe is expected to reach $6.3 billion.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

VGM Scores

At this time, Southwest Gas has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Southwest Gas has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

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This article originally published on Zacks Investment Research (zacks.com).

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