Northwest Natural Holding Company
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.84%.
Did NWN Beat Earnings? Q2 2025 Results
Northwest Natural Holdings delivered a mixed but broadly encouraging second quarter, posting a per-share loss of $0.06 that cleared the consensus estimate of $0.13 by 53.13%, even as revenue of $236.19 million fell short of the $252.69 million analysts had expected, a miss of 6.53%. Still, the top line reflected genuine momentum, rising 11.6% year-over-year, with the primary catalyst being new rates in Oregon that lifted NWN Gas Utility margins by $16.91 million, supplemented by early contributions from the SiEnergy acquisition in Texas. The quarter also absorbed meaningful headwinds, as interest expense nearly doubled to $30.49 million following junior subordinated notes issued in March 2025, which weighed on the Other segment. Management updated full-year 2025 GAAP EPS guidance to $2.60-$2.80 to reflect final transaction costs tied to the Pines acquisition, while reaffirming adjusted EPS guidance of $2.75-$2.95 and a 4%-6% long-term EPS growth target through 2030, underscoring confidence in the company's acquisition-fueled expansion strategy despite near-term financing costs.
- New rates in Oregon for NWN Gas Utility effective November 2024
- Acquisition of SiEnergy (January 2025) and Pines Holdings (June 2025) contributing revenue and customer growth
- New rates at largest Arizona water utility boosting NWN Water results
- Strong organic customer growth of 1.9% annualized in H1 2025
- Combined customer growth rate of 10.6% adding over 92,000 connections in trailing twelve months
“Our second quarter results extend our solid financial performance for 2025 and keep us on pace for the year. Our team continues to execute well on all of our strategic objectives, and I am particularly pleased with the strong customer growth we are seeing across our businesses.”
Northwest Natural CEO, on the earnings call
Forward Guidance & Outlook
NW Natural Holdings updated 2025 GAAP EPS guidance to $2.60-$2.80 (reflecting final Pines transaction costs) and reaffirmed adjusted EPS guidance of $2.75-$2.95 on a non-GAAP basis. The company reaffirmed its long-term EPS growth rate target of 4%-6% compounded annually from expected 2025 adjusted EPS through 2030. Capital expenditures for 2025 are expected in the $450-$500 million range. Guidance assumes continued customer growth, average weather conditions, and no significant changes in regulatory policies. New Oregon rates are expected to take effect October 31, 2025.
NWN YoY Financials
NWN Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.