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Northwest Natural 2025 Q1 Earnings Strong Growth as Net Income Surges 37.7%
Generated by AI AgentAinvest Earnings Report Digest
Tuesday, May 6, 2025 11:54 pm ET2min read
Northwest Natural (NWN) reported its fiscal 2025 Q1 earnings on May 06th, 2025. The total revenue of increased by 14.0% to $494.28 million in 2025 Q1, up from $433.47 million in 2024 Q1. Northwest Natural's EPS rose 29.0% to $2.18 in 2025 Q1 from $1.69 in 2024 Q1, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $87.92 million in 2025 Q1, marking 37.7% growth from $63.82 million in 2024 Q1. The Company has sustained profitability for 19 years over the corresponding fiscal quarter, reflecting stable business performance.
The results exceeded analysts' expectations with the company's earnings coming in above the anticipated $2.01 per share. updated its 2025 GAAP EPS guidance to a range of $2.65 to $2.85 due to expected transaction costs from the Hughes acquisition. The company reaffirmed its adjusted EPS guidance of $2.75 to $2.95, aligning closely with analyst predictions.
Revenue
The total revenue of Northwest Natural increased by 14.0% to $494.28 million in 2025 Q1, up from $433.47 million in 2024 Q1.
Earnings/Net Income
Northwest Natural's EPS rose 29.0% to $2.18 in 2025 Q1 from $1.69 in 2024 Q1, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $87.92 million in 2025 Q1, marking 37.7% growth from $63.82 million in 2024 Q1. The Company has sustained profitability for 19 years over the corresponding fiscal quarter, reflecting stable business performance. The EPS growth indicates robust financial performance in the first quarter.
Post-Earnings Price Action Review
Over the past five years, the strategy of buying Northwest Natural shares after a revenue increase quarter-over-quarter and holding for 30 days has not performed well. The strategy resulted in a return of -13.57%, significantly lagging behind the benchmark return of 83.12%. The excess return was -96.69%, and the compound annual growth rate (CAGR) was -2.91%, reflecting substantial losses. Furthermore, the strategy experienced a high maximum drawdown of -16.33% and a Sharpe ratio of -0.39, highlighting considerable risk and negative returns. These metrics underscore the challenges of relying on short-term price action strategies in the context of NW Natural's stock performance.
CEO Commentary
"We are off to a good start in 2025 with solid first-quarter financial results," said Justin B. Palfreyman, President and CEO of NW Natural Holdings. He noted the safe and reliable operation of gas utilities over the winter heating season and highlighted the strength of their collective utilities, particularly following the SiEnergy acquisition. Palfreyman expressed excitement about an additional acquisition that enhances the scale and growth of Texas utilities. He emphasized their focus on delivering on 2025 guidance and creating long-term shareholder value.
Guidance
NW Natural Holdings updated its 2025 GAAP EPS guidance to a range of $2.65 to $2.85 due to expected transaction costs from the Hughes acquisition. The company reaffirmed its adjusted EPS guidance of $2.75 to $2.95, excluding approximately $5.8 million in pre-tax transaction costs related to the acquisitions of SiEnergy and Hughes. This guidance reflects the anticipated performance of their growing operations and strategic investments in the Texas market.
Additional News
Within the past few weeks, NW Natural Holdings has actively pursued expansion through acquisitions. In January 2025, the company completed the acquisition of SiEnergy, a high-growth gas utility in Texas, which added substantial scale and growth potential to NW Natural's portfolio. Further strengthening its presence in Texas, NW Natural signed an agreement to acquire Hughes Gas Resources, Inc., expected to finalize in the second quarter of 2025. This strategic move will enhance NW Natural's regulated gas utility business, serving approximately 6,900 residential and commercial customers in the Houston metropolitan area. Additionally, NW Natural Holdings declared a quarterly dividend of $0.49 per share, payable on May 15, 2025, maintaining its indicated annual dividend rate of $1.96 per share.
The results exceeded analysts' expectations with the company's earnings coming in above the anticipated $2.01 per share. updated its 2025 GAAP EPS guidance to a range of $2.65 to $2.85 due to expected transaction costs from the Hughes acquisition. The company reaffirmed its adjusted EPS guidance of $2.75 to $2.95, aligning closely with analyst predictions.
Revenue
The total revenue of Northwest Natural increased by 14.0% to $494.28 million in 2025 Q1, up from $433.47 million in 2024 Q1.
Earnings/Net Income
Northwest Natural's EPS rose 29.0% to $2.18 in 2025 Q1 from $1.69 in 2024 Q1, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $87.92 million in 2025 Q1, marking 37.7% growth from $63.82 million in 2024 Q1. The Company has sustained profitability for 19 years over the corresponding fiscal quarter, reflecting stable business performance. The EPS growth indicates robust financial performance in the first quarter.
Post-Earnings Price Action Review
Over the past five years, the strategy of buying Northwest Natural shares after a revenue increase quarter-over-quarter and holding for 30 days has not performed well. The strategy resulted in a return of -13.57%, significantly lagging behind the benchmark return of 83.12%. The excess return was -96.69%, and the compound annual growth rate (CAGR) was -2.91%, reflecting substantial losses. Furthermore, the strategy experienced a high maximum drawdown of -16.33% and a Sharpe ratio of -0.39, highlighting considerable risk and negative returns. These metrics underscore the challenges of relying on short-term price action strategies in the context of NW Natural's stock performance.
CEO Commentary
"We are off to a good start in 2025 with solid first-quarter financial results," said Justin B. Palfreyman, President and CEO of NW Natural Holdings. He noted the safe and reliable operation of gas utilities over the winter heating season and highlighted the strength of their collective utilities, particularly following the SiEnergy acquisition. Palfreyman expressed excitement about an additional acquisition that enhances the scale and growth of Texas utilities. He emphasized their focus on delivering on 2025 guidance and creating long-term shareholder value.
Guidance
NW Natural Holdings updated its 2025 GAAP EPS guidance to a range of $2.65 to $2.85 due to expected transaction costs from the Hughes acquisition. The company reaffirmed its adjusted EPS guidance of $2.75 to $2.95, excluding approximately $5.8 million in pre-tax transaction costs related to the acquisitions of SiEnergy and Hughes. This guidance reflects the anticipated performance of their growing operations and strategic investments in the Texas market.
Additional News
Within the past few weeks, NW Natural Holdings has actively pursued expansion through acquisitions. In January 2025, the company completed the acquisition of SiEnergy, a high-growth gas utility in Texas, which added substantial scale and growth potential to NW Natural's portfolio. Further strengthening its presence in Texas, NW Natural signed an agreement to acquire Hughes Gas Resources, Inc., expected to finalize in the second quarter of 2025. This strategic move will enhance NW Natural's regulated gas utility business, serving approximately 6,900 residential and commercial customers in the Houston metropolitan area. Additionally, NW Natural Holdings declared a quarterly dividend of $0.49 per share, payable on May 15, 2025, maintaining its indicated annual dividend rate of $1.96 per share.
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