Southwest Gas(NYSE) SWX

Southwest Gas helps millions of people heat their homes and cook food. It delivers natural gas through pipes to families and businesses in the desert. The company makes sure energy flows safely and reliably to growing communities.

Fueling the Desert Southwest

• Natural Gas Distribution: Buying and moving natural gas to over 2 million customers; this segment provided 100% of operating margin after August 2025.
• Utility Infrastructure Services: Building and maintaining energy systems for others; this business was separated through the Centuri initial public offering in April 2024.
• Pipeline and Storage: Moving gas over long distances and holding it in large tanks for later use.

Moving Toward Independence

• Separated the Centuri infrastructure business through an initial public offering on April 22, 2024, to focus on gas utility operations.
• Deconsolidated Centuri in August 2025, leaving the company focused entirely on the Natural Gas Distribution segment.
• Submitted the first Nevada Triennial Resource Plan in September 2025 to gain regulatory approval for long-term energy investments.
• Announced plans for the Great Basin 2028 expansion project to increase pipeline capacity and meet rising customer demand.

What Makes Southwest Gas Different

The company uses decoupled rate structures that separate its profits from how much gas customers actually use. This system helps keep earnings steady even when weather or conservation efforts change the amount of gas sold.

The Recent Numbers

• Revenue was $480.7 million in Q4 2025, down 62.2% from $1.3 billion in Q4 2024.
• Operating income reached $158.7 million in Q4 2025, a 12.3% decrease from the previous year.
• Net income hit $68.4 million in Q4 2025, down 26.1% year-over-year.
• The company added 37,000 first-time meter sets during 2025 to support population growth.
• Free cash flow fell to negative $502.7 million in Q4 2025, compared to negative $34.7 million in Q4 2024.

Bottom Line

Southwest Gas has transitioned from a multi-service energy holding company to a pure-play regulated natural gas utility. This evolution simplifies its business model to focus on providing essential energy services to the growing Arizona and Nevada markets.