Southwest Gas Beats Q2 EPS, Lifts Great Basin Capex to $2.3B, and Reaffirms 2026 Outlook
SWX sits 18% above its 52-week low of $75.75.
Summary
Southwest Gas posted Q2 adjusted EPS of $0.45, up from $0.37, reaffirmed 2026 guidance, and raised the Great Basin 2028 expansion capex estimate to ~$2.3 billion with an annual margin of $270–$300 million.
Key Events · Earnings and Guidance · SWX
-
Q2 Adjusted EPS Rises to $0.45
Driven by higher operating margin and lower corporate costs, adjusted EPS from continuing operations reached $0.45, up from $0.37 a year ago.
-
Great Basin Capex Raised to ~$2.3B
With contracted demand for the 2028 expansion hitting roughly 1 Bcf/day, the estimated capital investment has been increased from $1.7 billion to ~$2.3 billion, and the annual margin expectation now stands at $270–$300 million.
-
California Rate Case Adds ~$40M Revenue
A constructive CPUC decision on non-cost-of-capital items provides ~$40 million in incremental annual revenue; the final cost-of-capital ruling is expected in August.
-
2026 EPS Guidance Reaffirmed at $4.17–$4.32
Full-year 2026 EPS guidance remains unchanged. The long-term 12–14% adjusted EPS CAGR and the $6.3 billion five-year capex plan were also reiterated, excluding the updated Great Basin estimate.
Analysis · SWX · Energy & Transportation
Adjusted EPS came in at $0.45, surpassing the prior-year $0.37, while full-year 2026 EPS guidance was reaffirmed at $4.17–$4.32. The standout development, however, is the Great Basin 2028 expansion: contracted demand has climbed to roughly 1 Bcf/day, pushing the estimated capital investment to ~$2.3 billion (up from $1.7 billion) and lifting annual margin expectations to $270–$300 million once the project enters service. A constructive California rate case decision added ~$40 million in annual revenue, with a final cost-of-capital ruling expected in August. For a $6.4 billion utility, the combination of solid earnings delivery, regulatory progress, and a materially larger growth project makes this a notable update.
At the time of this filing, SWX was trading at $89.76 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $6.4B. The 52-week trading range was $75.75 to $94.47. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.