Southwest Gas Corp. (SWX)
NYSE:SWX
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Southwest Gas
(NYSE:SWX)
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Rating:70Outperform
Price Target:
$97.00
â–²(4.10% Upside)
Action:UpgradedDate:02/25/26
The score is driven primarily by a mixed financial backdrop (earnings recovery but high leverage, volatile cash flow, and a notable 2025 annual revenue/FCF step-down). Offsetting this, technicals show strong upward momentum, valuation appears reasonable with a supportive dividend, and the latest earnings call outlined positive guidance and a credible long-term growth plan tempered by execution/regulatory and funding risks.
Positive Factors
Balance Sheet Strengthening
The Centuri disposition materially improved liquidity and credit profile: ~$260M net gain, full HoldCo debt repayment, and ~ $600M cash plus >$1.3B total liquidity together with a BBB+ upgrade lower financing costs, expand capacity to fund capex plans and preserve dividend policy over the medium term.
Negative Factors
Elevated Leverage
Sustained high leverage limits financial flexibility for a capital-intensive utility: elevated debt-to-equity increases interest sensitivity, constrains ability to absorb project delays or higher costs, and reduces the room to fund incremental capex without additional external financing or pressure on credit metrics over the next 2–6 months.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strengthening
The Centuri disposition materially improved liquidity and credit profile: ~$260M net gain, full HoldCo debt repayment, and ~ $600M cash plus >$1.3B total liquidity together with a BBB+ upgrade lower financing costs, expand capacity to fund capex plans and preserve dividend policy over the medium term.
Read all positive factors
Southwest Gas (SWX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.74B
Dividend Yield3.07%
Average Volume (3M)509.99K
Price to Earnings (P/E)21.2
Beta (1Y)0.35
Revenue Growth-23.15%
EPS Growth157.45%
CountryUS
Employees11,122
SectorUtilities
Sector Strength65
IndustryRegulated Gas
Share Statistics
EPS (TTM)1.36
Shares Outstanding72,364,630
10 Day Avg. Volume411,078
30 Day Avg. Volume509,992
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)1.46
Price to Sales (P/S)2.98
P/FCF Ratio-22.93
Enterprise Value/Market Cap1.43
Enterprise Value/Revenue3.01
Enterprise Value/Gross Profit10.80
Enterprise Value/Ebitda10.18
Forecast
1Y Price Target
$101.33Price Target Upside8.75% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)4.32
Revenue Forecast (FY)$2.30B
Southwest Gas Business Overview & Revenue Model
Company Description
Southwest Gas Holdings, Inc., through its subsidiaries, distributes and transports natural gas in Arizona, Nevada, and California. The company operates through Natural Gas Distribution, Utility Infrastructure Services, and Pipeline and Storage seg...
How the Company Makes Money
Southwest Gas generates revenue primarily through the sale and distribution of natural gas to its customers. The revenue model is largely based on regulated rates set by state utility commissions, which determine how much the company can charge cu...
Southwest Gas Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive outlook anchored by successful strategic simplification (Centuri sale), strong 2025 utility performance (19% EPS increase from continuing operations and 8.7% adjusted net income growth), upgraded credit ratings, ample liquidity, constructive regulatory developments in Arizona and Nevada, and a material growth runway driven by the Great Basin expansion (800 MMcf/d commitments; $215M–$245M incremental margin). Risks were acknowledged but largely framed as manageable: higher O&M, increased D&A and interest costs, near-term earnings moderation during project construction, regulatory/permitting/legal timing uncertainty, and a planned use of HoldCo cash that will reduce year-end HoldCo balances. Overall, highlights substantially outweigh lowlights, supporting a positive sentiment for the company’s transition to a pure regulated utility and its forward-looking growth plan.Positive Updates
Strategic Simplification and Balance Sheet Strengthening
Completed full disposition of Centuri (Sept 2025) generating a ~$260M net gain, enabling full repayment of holding company debt, leaving nearly $600M cash on hand and >$1.3B total liquidity; S&P upgraded Southwest Gas Holdings and Southwest Gas Corp. to BBB+ (stable).
Negative Updates
Higher Operating and Non-Fuel Costs
O&M increased by $16.8M year-over-year; excluding above-target incentive compensation, O&M rose ~1.9%, driven by higher employee-related labor costs, cloud computing and outside services (partially offset by reductions in leak survey and line locating).
Read all updates
Q4-2025 Updates
Positive
Negative
Strategic Simplification and Balance Sheet Strengthening
Completed full disposition of Centuri (Sept 2025) generating a ~$260M net gain, enabling full repayment of holding company debt, leaving nearly $600M cash on hand and >$1.3B total liquidity; S&P upgraded Southwest Gas Holdings and Southwest Gas Corp. to BBB+ (stable).
Read all positive updates
Company Guidance
Management initiated 2026 adjusted EPS guidance of $4.17–$4.32 (versus a 2025 adjusted EPS base of $3.65) and targets 12%–14% adjusted EPS CAGR through 2030 (with front‑loaded 15%–17% growth through 2028–29), underpinned by a $1.25 billion 2026 capital plan ($925 million to distribution), a five‑year $6.3 billion capex program (73% Southwest Gas / 27% Great Basin), and a 5‑year rate base CAGR of 9.5%–11.5% from a ~ $6.7 billion 2025 base (utility run‑rate growth ~7% excluding Great Basin); the 2028 Great Basin expansion (subject to approvals) represents ~800 MMcf/d of committed capacity, an estimated ~$1.7 billion project cost and $215–$245 million of incremental annual margin when in service, with financing targeted at a 50/50 debt/equity mix. The plan assumes disciplined funding (~$325 million net Southwest Gas bond issuances in 2026), beginning consolidated cash of nearly $600 million and >$1.3 billion liquidity, no equity issuance expected in 2026 under the ATM, maintenance of BBB+ credit metrics with S&P‑adjusted FFO/debt ~19.7% (HoldCo) and 18.6% (utility) versus a 13% downgrade threshold (targeting >17% long‑term and >300 bps of cushion), and a 4% dividend increase to an annualized $2.58 in 2026.Southwest Gas Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
55
Neutral
Cash Flow
49
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.94B | 5.11B | 5.43B | 4.96B | 3.68B |
| Gross Profit | 567.96M | 1.01B | 1.02B | 994.87M | 820.93M |
| EBITDA | 864.68M | 976.78M | 930.54M | 439.87M | 737.09M |
| Net Income | 439.83M | 198.81M | 150.89M | -203.29M | 200.78M |
Balance Sheet | |||||
| Total Assets | 10.43B | 12.02B | 11.87B | 13.20B | 12.77B |
| Cash, Cash Equivalents and Short-Term Investments | 576.64M | 363.79M | 106.54M | 123.08M | 222.70M |
| Total Debt | 3.51B | 5.06B | 5.28B | 5.99B | 6.32B |
| Total Liabilities | 6.47B | 8.33B | 8.46B | 9.98B | 9.61B |
| Stockholders Equity | 3.96B | 3.50B | 3.31B | 3.06B | 2.95B |
Cash Flow | |||||
| Free Cash Flow | -251.79M | 409.86M | -363.31M | -451.96M | -604.24M |
| Operating Cash Flow | 556.08M | 1.36B | 509.21M | 407.46M | 111.38M |
| Investing Cash Flow | -24.81M | -921.57M | 150.97M | -838.90M | -3.04B |
| Financing Cash Flow | -318.28M | -176.34M | -700.79M | 356.48M | 3.06B |
Southwest Gas Technical Analysis
Positive
93.18
Price Trends
86.74
Positive
83.77
Positive
80.35
Positive
Market Momentum
1.32
Negative
73.31
Negative
98.81
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SWX, the sentiment is Positive. The current price of 93.18 is above the 20-day moving average (MA) of 87.82, above the 50-day MA of 86.74, and above the 200-day MA of 80.35, indicating a bullish trend. The MACD of 1.32 indicates Negative momentum. The RSI at 73.31 is Negative, neither overbought nor oversold. The STOCH value of 98.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SWX.
Southwest Gas Risk Analysis
Southwest Gas disclosed 29 risk factors in its most recent earnings report. Southwest Gas reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Southwest Gas Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $5.64B | 17.59 | 8.13% | 3.45% | 15.06% | 12.27% | |
70 Outperform | $6.74B | 21.17 | 11.62% | 3.07% | -23.15% | 157.45% | |
66 Neutral | $5.74B | 9.48 | 13.39% | 4.01% | 13.94% | 13.93% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
65 Neutral | $5.58B | 12.84 | 8.27% | 3.82% | -4.50% | 2.49% | |
65 Neutral | $8.14B | 6.77 | 12.21% | 3.92% | 1.10% | 140.04% | |
64 Neutral | $3.15B | 20.80 | 8.31% | 2.15% | 17.15% | 15.00% |
* Utilities Sector Average
SWX
Southwest Gas
93.18
23.35
33.44%
CPK
Chesapeake Utilities
131.60
0.28
0.21%
SR
Spire
94.38
21.08
28.76%
NJR
New Jersey Resources
56.96
10.14
21.67%
UGI
UGI
37.94
7.24
23.60%
OGS
ONE Gas
90.00
16.44
22.34%
Southwest Gas Corporate Events
Executive/Board Changes
Southwest Gas Announces CEO Transition and Leadership Changes
Neutral
Feb 25, 2026
On February 19, 2026, Southwest Gas Holdings announced that President, Chief Executive Officer and Director Karen S. Haller will resign as CEO of the holding company and Southwest Gas Corporation effective May 8, 2026, and as a director following ...
Business Operations and StrategyExecutive/Board Changes
Southwest Gas Ends Icahn Cooperation Agreement, Board Remains
Neutral
Feb 12, 2026
On February 11, 2026, Southwest Gas Holdings, Inc. and the Icahn Group mutually agreed to terminate their Amended and Restated Cooperation Agreement, originally dated October 14, 2025, ending all associated rights and obligations between the parti...
Executive/Board Changes
Southwest Gas Announces Planned Retirement of Long-Serving Director
Positive
Feb 11, 2026
On February 6, 2026, Southwest Gas Holdings, Inc. announced that long-serving director Anne L. Mariucci will retire from its Board of Directors at the conclusion of the 2026 Annual Meeting of Stockholders and will not stand for re-election. The co...
Business Operations and StrategyFinancial Disclosures
Southwest Gas Highlights Non-GAAP Measures and Centuri Impacts
Neutral
Jan 9, 2026
Southwest Gas Holdings detailed the use of non-GAAP financial measures for the periods ended June 30 and September 30, 2025, explaining adjustments made to arrive at adjusted net income and adjusted net income from continuing operations. For the t...
Business Operations and StrategyExecutive/Board Changes
Southwest Gas director resignation reshapes board composition
Neutral
Jan 2, 2026
On December 31, 2025, Southwest Gas Holdings director Andrew Teno resigned from the board, effective immediately, citing other time commitments and affirming he had no disagreements with the company’s financial reporting, operations, or gove...
Executive/Board ChangesRegulatory Filings and Compliance
Southwest Gas Enters Registration Rights Agreement
Neutral
Nov 26, 2025
On November 26, 2025, Southwest Gas Holdings, Inc. entered into a Registration Rights Agreement with the Icahn Group, granting them certain registration rights. Additionally, the company appointed Justin S. Forsberg as Senior Vice President/Chief ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.