Southwest Gas Holdings, Inc.

swgasholdings.com

What Do They Do?

Distributes and transports natural gas to residential, commercial, and industrial customers in Arizona, Nevada, and California.

How Do They Make Money?

Residential and small commercial customers pay regulated rates for gas and delivery through usage-based and monthly fixed charges as gas is delivered. Large transportation customers supply their own gas and pay volume-based and fixed charges for the delivery service.

FY2025 revenue

Who Are Their Customers?

Households and small businesses receive gas service directly through Southwest Gas’s network; commercial, industrial, and electric-generation customers also use its delivery or transportation services.

Do Revenues Turn Into Profits?

Yes. It kept 23 cents of every revenue dollar as net income in FY2025, but spent more cash than it brought in: free cash flow was −$251.8M.

Operating income, FY2025

24% of revenue

▲ +17% vs FY2024 ($406.5M, 16%)

Net income, FY2025

23% of revenue

▲ +121% vs FY2024 ($198.8M, 8%)

Free cash flow, FY2025

−13% of revenue

▼ Now a loss vs FY2024 ($509.2M, 21%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q2 FY2026, the three months to Jun 30, 2026

Net income: ▲ Now profitable; vs −$40.2M in Q2 FY2025

Aug 5, 2026 Raised estimates for the Great Basin expansion project Contracted demand has grown to roughly 1 billion cubic feet per day; the company estimates annual margin of $270 to $300 million and project investment of approximately $2.3 billion.

Shrinking. Revenue fell 47% in 4 years, from $3.7B in FY2021 to $1.9B in FY2025, about 15% a year.

Portfolio narrowed The earlier business included natural gas distribution and utility infrastructure services following the MountainWest sale; the latest is solely natural gas distribution after Centuri was deconsolidated and sold.

Who Do They Compete With?

Competes with El Paso, Kern River, Transwestern, Tuscarora, Ruby, Northwest Pipelines, Pinyon Pipeline, and Prospector Pipeline

Comments