NW Natural Holdings reported a third‑quarter 2025 net loss of $29.9 million, or $0.73 per share, and an adjusted net loss of the same amount. Year‑to‑date, the company earned $55.5 million, or $1.36 per share, a sharp improvement over the $0.88 per share earned in the first nine months of 2024. The loss per share beat the consensus estimate of a $0.82 loss, a $0.09 improvement that reflects tighter cost control and a more favorable mix of revenue streams.
Revenue for the quarter was $164.73 million, falling short of the consensus range of $170.28 million to $176.74 million. The miss is largely attributable to softer demand in the gas utility segment and increased competitive pricing pressure, which limited the company’s ability to pass on higher fuel costs to customers. Despite the revenue shortfall, the company’s operating margin remained stable, indicating that cost discipline offset the decline in top‑line growth.
The quarter’s performance was buoyed by the continued integration of the SiEnergy and Pines acquisitions, which added 95,000 new gas and water utility connections and drove a 10.9% growth rate in customer base. New Oregon rates, effective October 31, 2025, also contributed to revenue, while the company’s expansion into Texas gas and water utilities and its renewable natural gas initiatives positioned it for long‑term growth.
Management reaffirmed its adjusted earnings‑per‑share guidance of $2.75 to $2.95 for 2025 and stated that it expects the year’s results to exceed the midpoint of its GAAP EPS guidance range of $2.59 to $2.79. Capital expenditures are projected at $450 million to $500 million, supporting the company’s Texas expansion and renewable natural gas projects. The guidance signals confidence in the company’s ability to generate earnings growth despite the revenue miss.
President and CEO Justin B. Palfreyman emphasized that the company’s “strong execution of the 2025 plan” has delivered the EPS beat and that it remains focused on operational excellence, system improvements, and affordability for customers. He highlighted the benefits of the Texas acquisitions and the continued customer growth in that market as key drivers of future performance.
Investor reaction was mixed: the EPS beat and reaffirmed guidance generated cautious optimism, while the revenue miss tempered enthusiasm. The market’s focus on the company’s ability to manage costs and maintain earnings momentum reflects confidence in its strategic initiatives, even as it navigates pricing pressure and competitive dynamics in the utility sector.
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