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- **Strategic Restructuring Complete**: Centuri fully divested, $1.4 billion proceeds used to repay debt and reinvest in core utility.
- **Financial Strength**: BBB+ credit ratings, $780M cash, $3.0B net debt, 8.3% ROE.
- **Growth Catalysts**: 
  - Great Basin expansion (2028 in-service) with $1.2-1.6B capex.
  - Alternative ratemaking in NV (2028) and AZ (2028) to accelerate cost recovery.
- **2025 Outlook**: Net income $265-275M (targeting top end), 2.5% O&M growth vs. inflation.
- **CFO Transition**: Smooth handover planned; interim CFO to maintain continuity.

**【CEO Summary Section】**
- Completed disposition of Centuri, generating $1.4 billion in net proceeds to fully repay HoldCo debt and reinvest in core regulated business.
- Trailing 12-month ROE improved to 8.3%, with focus on rate case wins in California (2026), Arizona (2027), and Nevada (2026) under new alternative ratemaking frameworks.
- Reaffirmed 2025 net income guidance of $265-275 million, targeting top end of range. 
- Great Basin expansion project on track for 2028 in-service date, with $1.2-1.6 billion capital cost range and 1.76 BCF/day capacity.
- Nevada resource plan filed, outlining $225 million in investments for 2026-2028.

**【CFO Financial Commentary】**
- Q3 2025 net income: $265 million (year-to-date) vs. $255 million prior year, driven by rate relief and customer growth.
- Utility operating margin increased $26.8 million vs. prior year, with 90%+ rate case recovery in California.
- O&M expense growth of 2.5% YTD, below inflation, supported by cost optimization initiatives.
- Debt reduced to $3.0 billion (from $3.7 billion pre-Centuri sale), with $780 million cash balance and $1.5 billion liquidity.
- S&P upgraded credit ratings to BBB+ (HoldCo and utility) with stable outlooks.

**【Q&A Key Highlights】**
- **Great Basin Expansion**: 
  - Final Precedent Agreements expected by end of week; 1.76 BCF/day capacity at $18/MCF/month.
  - FERC filing targeted for Q4 2026, with construction to begin in 2027.
  - Potential supplemental open season to confirm 2028 expansion scope.
- **Alternative Ratemaking**: 
  - Nevada: Formula rate plan filing in Q1 2026, with true-up starting 2028.
  - Arizona: Formula rate plan proposed in 2026 rate case, with first true-up 2028.
- **CFO Transition**: 
  - Rob Stefani departing Dec 1; interim CFO to be named; search for permanent successor underway.
- **Cash Deployment**: 
  - $780 million cash on hand; construction spending for Great Basin to begin in 2027.
  - Dividend policy to be reviewed in Q1 2026, targeting competitive payout ratio.

Southwest Gas Holdings, Inc. (SWX) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

SWX

SWX fundamentals

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