Growth Prospects Analysis of Southwest Gas and Spire
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: NASDAQ.COM
- Rising Natural Gas Demand: The increasing demand for natural gas in the U.S. due to its cleaner-burning characteristics is driving stable revenues for utilities like Southwest Gas and Spire, which are investing in infrastructure and customer growth.
- Financial Performance Comparison: Southwest Gas is projected to have an EPS of $4.27 in 2026 and $4.85 in 2027, indicating year-over-year growth rates of 16.99% and 13.63%, showcasing strong financial growth potential.
- Capital Investment Plans: Southwest Gas plans to invest $6.3 billion from 2026 to 2030, with 73% allocated to its operations and 27% to the Great Basin project, aimed at enhancing service reliability and supporting infrastructure development.
- Debt and Return on Equity: Southwest Gas has a debt-to-capital ratio of 46.11%, lower than Spire's 69.95%, while Spire's return on equity stands at 9.49%, outperforming Southwest Gas's 6.95%, highlighting differences in financial management between the two companies.
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Analyst Views on SWX
Wall Street analysts forecast SWX stock price to rise
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 87.100
Low
89.00
Averages
94.00
High
99.00
Current: 87.100
Low
89.00
Averages
94.00
High
99.00
About SWX
Southwest Gas Holdings, Inc., through its primary operating subsidiary Southwest Gas Corporation, engages in the business of purchasing, distributing and transporting natural gas for customers in portions of Arizona, Nevada, and California. The Company's business is solely comprised of its Natural Gas Distribution segment. Southwest Gas is a regulated distributor of natural gas in Arizona and Nevada and also distributes and transports natural gas for customers in portions of California. Additionally, through its subsidiaries, it operates two regulated interstate pipelines serving portions of Nevada and California.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Growth Prospects Analysis of Southwest Gas and Spire
- Rising Natural Gas Demand: The increasing demand for natural gas in the U.S. due to its cleaner-burning characteristics is driving stable revenues for utilities like Southwest Gas and Spire, which are investing in infrastructure and customer growth.
- Financial Performance Comparison: Southwest Gas is projected to have an EPS of $4.27 in 2026 and $4.85 in 2027, indicating year-over-year growth rates of 16.99% and 13.63%, showcasing strong financial growth potential.
- Capital Investment Plans: Southwest Gas plans to invest $6.3 billion from 2026 to 2030, with 73% allocated to its operations and 27% to the Great Basin project, aimed at enhancing service reliability and supporting infrastructure development.
- Debt and Return on Equity: Southwest Gas has a debt-to-capital ratio of 46.11%, lower than Spire's 69.95%, while Spire's return on equity stands at 9.49%, outperforming Southwest Gas's 6.95%, highlighting differences in financial management between the two companies.
See More
Southwest Gas Elects Two New Board Members
- New Board Members: Southwest Gas elected Molly R. Carson and Leezie Kim to its Board of Directors during the annual meeting on May 7, 2026, aiming to enhance the company's ability to deliver safe and reliable services through their leadership experience and deep ties to the Southwest region.
- Strategic Priorities: Board Chair E. Renae Conley stated that the addition of new members reflects the company's commitment to strong governance, and she looks forward to the fresh perspectives and experience they will bring to advance the company's strategic priorities.
- Customer Service Commitment: President Justin L. Brown emphasized that the insights from Carson and Kim will support Southwest Gas in providing safe, reliable, and affordable service to its nearly 2.3 million customers while creating lasting value for stockholders.
- Member Backgrounds: Carson brings over 20 years of large-scale real estate development and strategic planning experience, while Kim has three decades of leadership experience in legal, corporate finance, and government roles, with both backgrounds providing significant strategic support to the company.
See More
Southwest Gas Elects New Board Members
- New Board Members: Southwest Gas elected Molly R. Carson and Leezie Kim to its Board of Directors during the annual meeting on May 7, 2026, aiming to enhance governance through their leadership experience and deep ties to the Southwest region.
- Strategic Priorities: Board Chair E. Renae Conley noted that the addition of Carson and Kim will provide fresh perspectives to support the company's strategic goals of delivering safe, reliable, and affordable service while creating long-term value for its 2.3 million customers.
- Carson's Background: Molly R. Carson brings over 20 years of large-scale real estate development and strategic planning experience, having served as Vice Chair of Phoenix Children's Hospital's Board, showcasing her significant community contributions.
- Kim's Achievements: Leezie Kim has three decades of leadership experience in legal, corporate finance, and government roles, receiving the Meritorious Public Service Award from the U.S. Coast Guard, reflecting her outstanding contributions to public service.
See More
Southwest Gas Holdings Q1 2026 Earnings Call Highlights
- Solid Financial Performance: Southwest Gas reported Q1 2026 earnings per share of $1.91, driven by continued growth, positive regulatory outcomes, and significantly lower interest expenses following last summer's debt payoff, enhancing the company's financial stability.
- Regulatory Strategy Advancement: The company filed for a combined revenue increase of approximately $172 million in its two largest jurisdictions, indicating a proactive approach in the regulatory landscape aimed at reducing regulatory lag and boosting future earnings.
- Ambitious Capital Plan: Southwest Gas plans to execute a $6.3 billion capital plan over the next five years, supported by significant liquidity and a fortress balance sheet, which is expected to facilitate increased dividends while maintaining financial flexibility.
- Long-Term Growth Outlook: The company reaffirmed its 2026 adjusted EPS guidance of $4.17 to $4.32 and projected long-term growth of 12% to 14%, demonstrating confidence in future performance despite delays in California's final decision.
See More
Southwest Gas Q1 Earnings Report Analysis
- Disappointing Performance: Southwest Gas reported a Q1 GAAP EPS of $1.91, missing expectations by $0.09, indicating pressure on profitability that could affect investor confidence.
- Significant Revenue Decline: The company’s revenue of $585.12 million for Q1 fell 21.6% year-over-year and missed the expected $694.4 million, reflecting challenges from weak market demand and increased competition.
- Increased Capital Expenditures: Southwest Gas invested $186.3 million in capital expenditures during the quarter to modernize infrastructure to support customer demand, demonstrating a commitment to future growth, although it may increase short-term financial burdens.
- Dividend Growth: The company raised its quarterly common stock dividend to $0.645 per share, representing a 4% increase over the 2025 rate, aimed at attracting investors and enhancing shareholder returns despite the overall poor performance.
See More
Southwest Gas to Announce Q1 Earnings on May 5th
- Earnings Announcement: Southwest Gas (SWX) is set to release its Q1 earnings on May 5th before market open, with a consensus EPS estimate of $2.00, reflecting a 21.2% year-over-year increase, indicating steady improvement in profitability.
- Revenue Expectations: Despite the optimistic EPS outlook, the revenue estimate stands at $695.52 million, representing a significant 94.6% year-over-year decline, highlighting market challenges and revenue volatility faced by the company.
- Historical Performance: Over the past two years, Southwest Gas has beaten EPS estimates 50% of the time, while only achieving a 13% success rate in surpassing revenue estimates, showcasing uncertainty in revenue projections.
- Future Growth Plans: The company targets a 12%-14% CAGR for EPS through 2030 while advancing its $1.7 billion Great Basin project, demonstrating confidence in future growth and strategic planning.
See More
Growth Prospects Analysis of Southwest Gas and Spire
- Rising Natural Gas Demand: The increasing demand for natural gas in the U.S. due to its cleaner-burning characteristics is driving stable revenues for utilities like Southwest Gas and Spire, which are investing in infrastructure and customer growth.
- Financial Performance Comparison: Southwest Gas is projected to have an EPS of $4.27 in 2026 and $4.85 in 2027, indicating year-over-year growth rates of 16.99% and 13.63%, showcasing strong financial growth potential.
- Capital Investment Plans: Southwest Gas plans to invest $6.3 billion from 2026 to 2030, with 73% allocated to its operations and 27% to the Great Basin project, aimed at enhancing service reliability and supporting infrastructure development.
- Debt and Return on Equity: Southwest Gas has a debt-to-capital ratio of 46.11%, lower than Spire's 69.95%, while Spire's return on equity stands at 9.49%, outperforming Southwest Gas's 6.95%, highlighting differences in financial management between the two companies.
See More
Southwest Gas Elects Two New Board Members
- New Board Members: Southwest Gas elected Molly R. Carson and Leezie Kim to its Board of Directors during the annual meeting on May 7, 2026, aiming to enhance the company's ability to deliver safe and reliable services through their leadership experience and deep ties to the Southwest region.
- Strategic Priorities: Board Chair E. Renae Conley stated that the addition of new members reflects the company's commitment to strong governance, and she looks forward to the fresh perspectives and experience they will bring to advance the company's strategic priorities.
- Customer Service Commitment: President Justin L. Brown emphasized that the insights from Carson and Kim will support Southwest Gas in providing safe, reliable, and affordable service to its nearly 2.3 million customers while creating lasting value for stockholders.
- Member Backgrounds: Carson brings over 20 years of large-scale real estate development and strategic planning experience, while Kim has three decades of leadership experience in legal, corporate finance, and government roles, with both backgrounds providing significant strategic support to the company.
See More
Southwest Gas Elects New Board Members
- New Board Members: Southwest Gas elected Molly R. Carson and Leezie Kim to its Board of Directors during the annual meeting on May 7, 2026, aiming to enhance governance through their leadership experience and deep ties to the Southwest region.
- Strategic Priorities: Board Chair E. Renae Conley noted that the addition of Carson and Kim will provide fresh perspectives to support the company's strategic goals of delivering safe, reliable, and affordable service while creating long-term value for its 2.3 million customers.
- Carson's Background: Molly R. Carson brings over 20 years of large-scale real estate development and strategic planning experience, having served as Vice Chair of Phoenix Children's Hospital's Board, showcasing her significant community contributions.
- Kim's Achievements: Leezie Kim has three decades of leadership experience in legal, corporate finance, and government roles, receiving the Meritorious Public Service Award from the U.S. Coast Guard, reflecting her outstanding contributions to public service.
See More
Southwest Gas Holdings Q1 2026 Earnings Call Highlights
- Solid Financial Performance: Southwest Gas reported Q1 2026 earnings per share of $1.91, driven by continued growth, positive regulatory outcomes, and significantly lower interest expenses following last summer's debt payoff, enhancing the company's financial stability.
- Regulatory Strategy Advancement: The company filed for a combined revenue increase of approximately $172 million in its two largest jurisdictions, indicating a proactive approach in the regulatory landscape aimed at reducing regulatory lag and boosting future earnings.
- Ambitious Capital Plan: Southwest Gas plans to execute a $6.3 billion capital plan over the next five years, supported by significant liquidity and a fortress balance sheet, which is expected to facilitate increased dividends while maintaining financial flexibility.
- Long-Term Growth Outlook: The company reaffirmed its 2026 adjusted EPS guidance of $4.17 to $4.32 and projected long-term growth of 12% to 14%, demonstrating confidence in future performance despite delays in California's final decision.
See More
Southwest Gas Q1 Earnings Report Analysis
- Disappointing Performance: Southwest Gas reported a Q1 GAAP EPS of $1.91, missing expectations by $0.09, indicating pressure on profitability that could affect investor confidence.
- Significant Revenue Decline: The company’s revenue of $585.12 million for Q1 fell 21.6% year-over-year and missed the expected $694.4 million, reflecting challenges from weak market demand and increased competition.
- Increased Capital Expenditures: Southwest Gas invested $186.3 million in capital expenditures during the quarter to modernize infrastructure to support customer demand, demonstrating a commitment to future growth, although it may increase short-term financial burdens.
- Dividend Growth: The company raised its quarterly common stock dividend to $0.645 per share, representing a 4% increase over the 2025 rate, aimed at attracting investors and enhancing shareholder returns despite the overall poor performance.
See More
Southwest Gas to Announce Q1 Earnings on May 5th
- Earnings Announcement: Southwest Gas (SWX) is set to release its Q1 earnings on May 5th before market open, with a consensus EPS estimate of $2.00, reflecting a 21.2% year-over-year increase, indicating steady improvement in profitability.
- Revenue Expectations: Despite the optimistic EPS outlook, the revenue estimate stands at $695.52 million, representing a significant 94.6% year-over-year decline, highlighting market challenges and revenue volatility faced by the company.
- Historical Performance: Over the past two years, Southwest Gas has beaten EPS estimates 50% of the time, while only achieving a 13% success rate in surpassing revenue estimates, showcasing uncertainty in revenue projections.
- Future Growth Plans: The company targets a 12%-14% CAGR for EPS through 2030 while advancing its $1.7 billion Great Basin project, demonstrating confidence in future growth and strategic planning.
See More
