Northwest Natural Holding Company
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.24%.
Did NWN Beat Earnings? Q1 2025 Results
Northwest Natural delivered a standout first quarter for 2025, posting adjusted earnings per share of $2.28 against a Wall Street consensus of $2.01, a beat of 13.43%, while revenue climbed to $494.28 million, up 14.0% year over year and ahead of the $464.97 million estimate by 6.30%. The primary engine behind the outperformance was a $42.60 million margin contribution from new Oregon gas utility rates that took effect November 1, 2024, amplified by the first-quarter addition of SiEnergy, a Texas gas utility acquired in January 2025 that immediately expanded the company's footprint and earnings base. NW Natural now serves nearly 960,000 meters across seven states, and the growth story is still developing; SiEnergy has already agreed to acquire Hughes Gas Resources for $60.00 million, adding roughly 6,900 connections in the Houston area, with the deal expected to close in Q2 2025. Management reaffirmed adjusted EPS guidance of $2.75 to $2.95 for the full year and maintained its long-term EPS growth target of 4% to 6% annually through 2030.
- New Oregon gas utility rates effective November 1, 2024, contributing $42.6 million margin increase
- SiEnergy acquisition completed January 7, 2025 contributing $5.5 million net income in first quarter
- NWN Water net income increased $2.4 million from new Arizona rates and Puttman acquisition
- NWN Renewables completed first full quarter of operations
- Strong consolidated organic customer growth of 2.2% annualized
- Nearly 84,000 gas and water utility connections added in last 12 months for 9.6% combined growth rate
“We are off to a good start in 2025 with solid first quarter financial results. Our gas utilities operated safely and reliably over the winter heating season, serving customers well and highlighting the value of our infrastructure. Our financial results reflect the strength of our collective utilities, including the SiEnergy acquisition that was completed in early January 2025. The SiEnergy integration has gone well, and they have met their growth targets for the first quarter of 2025. I'm excited to announce an additional bolt-on acquisition that further enhances the scale and growth of our Texas utilities. We are well-positioned to deliver on our 2025 guidance and focused on creating long-term shareholder value.”
Northwest Natural CEO, on the earnings call
Forward Guidance & Outlook
NW Natural Holdings updated 2025 GAAP EPS guidance to $2.65-$2.85 and reaffirmed adjusted EPS guidance of $2.75-$2.95 (non-GAAP, excluding ~$0.10/share in transaction costs from SiEnergy and Hughes acquisitions). The company expects SiEnergy and NWN Water to each contribute about $0.25-$0.30 in adjusted EPS for 2025. The long-term EPS growth rate target of 4%-6% CAGR from 2025 adjusted EPS through 2030 was reaffirmed. Capital expenditures are expected in the range of $450-$500 million for 2025. Consolidated customer growth of 2.0%-2.5% is expected in 2025, with SiEnergy projected to deliver 20%+ customer growth. Equity issuance of $65-$75 million is expected for the full year 2025. New Oregon gas customer rates are expected November 1, 2025, and the Hughes acquisition is expected to close in Q2 2025 and be accretive in its first full year.
NWN YoY Financials
NWN Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.