NW Natural Q3 net loss per share narrows, raises 2026 EPS guidance

Overview

• U.S. natural gas and water utility's Q3 net loss per share narrowed slightly from prior year

• Company raised 2026 EPS guidance, citing strong performance and regulatory outcomes

• Company announced its largest dividend increase since 2012

Outlook

• Company raises 2026 EPS guidance to $3.10–$3.20 from $2.95–$3.15

• Company reaffirms 2026–2030 EPS growth target of 4%–6%, or 5%–7% with MX3 project

• Company expects capital expenditures of $2.6–$2.9 bln from 2026 to 2030

Result Drivers

• RATE INCREASES AND COST CONTROL - Co said higher margins from new rates in Oregon and Washington and lower O&M expenses were offset by higher depreciation and financing costs due to continued investment

• SIENERGY EXPENSES - Customer growth and deferred costs at SiEnergy were outweighed by higher O&M expenses

• WATER SEGMENT PRESSURE - Higher revenues from rate increases and customer growth at NWN Water were more than offset by increased depreciation and taxes

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the natural gas utilities peer group is "buy"

• Wall Street's median 12-month price target for Northwest Natural Holding Company is $56.50, about 10.1% above its November 4 closing price of $51.31

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 16 three months ago

Reuters Recommended Reads

• Nov 4 - Atmos Energy sets annual EPS guidance at $9.05-$9.25, above 2026 levels

• Nov 2 - ONE Gas Q3 revenue falls short of estimates; lifts adj EPS guidance for 2026

• Nov 4 - National Fuel Gas Q4 adjusted EPS flat year over year; completes Ohio gas utility acquisition

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)