Southwest Gas Holdings, Inc.

Adjusted EPS from continuing operations was $0.45 in the second quarter of 2026 versus $0.37 in the second quarter of 2025. Reported EPS from continuing operations was $0.58, reflecting California rate case revenue recognized during the quarter. Operating margin increased by $12.7 million year over year, including $6.7 million of incremental margin from rate relief and $1.4 million from customer growth; O&M expense declined by $3.7 million, or nearly 3%. Other income declined by $9.4 million, while interest expense fell by approximately $8.6 million due to the payoff of all outstanding parent-level debt. The company ended the quarter with about $270 million of cash and nearly $1 billion of available liquidity. For Great Basin, the 2028 Expansion Project is now estimated at approximately $2.3 billion and is expected to generate approximately $270 million to $300 million of incremental annual margin upon completion. Management reaffirmed 2026 guidance, expects about $1.25 billion of CapEx in 2026, and said the current 5-year plan supports a rate base CAGR of 9.5% to 11.5% through 2030.

Justin Brown emphasized that the quarter reflected “strong momentum” from regulatory execution and lower financing costs, and he reiterated confidence in the company’s outlook. He framed the strategy as multiple credible paths across jurisdictions rather than dependence on any single case outcome, and said the company is focused on timely recovery of prudent investments, safe and reliable service, and disciplined capital deployment. On Great Basin, he sounded upbeat about demand, saying repeated open seasons continue to bring in more interest than expected.

Justin Forsberg said adjusted EPS rose to $0.45, driven by stronger HoldCo performance after the repayment of all outstanding parent debt and lower interest expense of about $8.6 million, partly offset by somewhat lower utility earnings. He cited several year-over-year drivers: operating margin up $12.7 million, O&M down $3.7 million, D&A up $8.7 million, and other income down $9.4 million, with the latter largely expected. On capital and financing, he said the company expects no equity issuances this year, plans a $400 million utility debt issuance, and does not expect to draw meaningfully on the ATM through 2030, while maintaining strong investment-grade ratings and a consolidated net debt of about $3.4 billion.

Analysts pressed management on how much incremental demand Great Basin can support beyond the current 2028 project and how much of that could be handled through compression versus new pipe; management said there are still about 1.8 Bcf of expressions of interest for 2029-2035 and that future demand can likely be accommodated through compression, though the exact capital will depend on binding agreements. They also asked how the higher project capex affects equity needs, and management said holding-company leverage capacity and future project cash flows should limit external equity needs. In Arizona, management said it is still early in the rate case and expects to look for areas of agreement as testimony comes in, while on SB 417 the Commission has not taken further action after May draft rules and comments.