NW Natural Holdings Q3 2026 Earnings: EPS Guidance Raised to $3.10–$3.20

NW Natural Holdings (NYSE: NWN) reported a Q3 2026 net loss of $29.84 million, or $0.71 per diluted share, for the quarter ended September 30, compared with a $29.89 million loss, or $0.73 per share, a year earlier. Benefits from new utility rates and lower costs in parts of the organization were largely offset by higher depreciation, financing costs, taxes, and operating expenses. Nine-month earnings improved, supporting an increase in the company’s full-year EPS guidance.

Core Financial Results

The quarterly net loss improved by only $50,000 year over year, while diluted loss per share narrowed by $0.02. Adjusted results were identical to GAAP results in Q3 2026; the prior-year adjusted figures excluded transaction and business development costs.

The number of diluted shares increased by 933,000, or approximately 2.3%, from the prior-year quarter.

The nine-month results were meaningfully stronger than the quarterly comparison. Net income for the first nine months rose to $68.249 million from $55.526 million, while diluted EPS increased to $1.62 from $1.36. On an adjusted basis, nine-month EPS increased to $1.62 from $1.52.

Business and Segment Performance

The $1.3 million improvement in the Other segment largely offset weaker quarterly results at SiEnergy and NWN Water, leaving the consolidated loss nearly unchanged.

At NW Natural, higher margin from new Oregon and Washington rates and lower operating and maintenance expenses were offset by higher depreciation and financing costs associated with continued system investment.

SiEnergy benefited from customer growth and the deferral of depreciation and interest costs permitted by Texas House Bill 4384. Those benefits were more than offset by higher operating and maintenance expenses during the quarter.

NWN Water generated higher operating revenue from rate increases and customer growth, but higher depreciation and general taxes reduced net income. The Other segment’s loss narrowed primarily because of lower operating and maintenance expenses at the holding company.

The year-to-date segment picture was more favorable. SiEnergy’s nine-month net income increased by $4.4 million, helped by customer growth, permitted cost deferrals, and full-period contributions from SiEnergy and Pines following their 2025 acquisitions. The Other segment’s reported loss improved by $8.5 million, largely because the prior-year period included more acquisition and business development expenses. NWN Water’s nine-month net income declined by $1.7 million.

Rate Relief Is Being Absorbed by Investment Costs

Regulatory outcomes are supporting revenue recovery, but the earnings benefit is being partly consumed by depreciation and financing expenses from the company’s capital program. This relationship was visible at both NW Natural and NWN Water during the quarter.

Washington regulators approved a three-year rate plan that adds $20.1 million to the annual revenue requirement in the first year beginning August 1, 2026, followed by increases of $7.5 million and $7.4 million in the next two years. The approved first-year rate base is $328 million, an increase of $81 million from the previous rate case.

In Oregon, regulators approved a $13.0 million annual revenue requirement increase under NW Natural’s alternative rate mechanism. Those rates took effect October 31, after the end of the third quarter, and cover qualifying safety and information technology investments.

SiEnergy also reached an $8.6 million revenue increase settlement with key parties in its Texas rate case. The settlement includes a $343 million rate base, up $177 million from the prior case. It still requires approval, with new rates expected to take effect in November 2026 if approved.

Capital Investment and Dividend

NW Natural Holdings invested $373 million in its gas and water systems during the first nine months of 2026. The company added 17,000 gas and water utility connections during the 12 months ended September 30, representing growth of 1.8%.

The board declared a quarterly dividend of $0.50 per share, equivalent to an indicated annual rate of $2.00 per share. This was the company’s 71st consecutive annual dividend increase and its largest declared increase since 2012.

Earnings Guidance

Management raised its 2026 EPS range based on nine-month performance, regulatory outcomes, and confidence in fourth-quarter execution. The new range raises the lower end by $0.15 and the upper end by $0.05, while capital spending and long-term targets remain unchanged.

The higher EPS growth target that includes MX3 assumes the gas storage project enters service before the end of 2029. The broader guidance assumes continued customer growth, average weather, and no significant changes in regulatory policies, laws, or expected rate-case outcomes.

Recent Insider Transactions

During the latest six-month period, insiders purchased 1,625 shares in two transactions and sold 7,500 shares in five transactions, resulting in net sales of 5,875 shares. The reported net sales represented 2.20% of total insider holdings, which stood at approximately 257,190 shares.

All seven transactions in the six-month summary were reported as direct transactions.

These transactions should be viewed as reported activity only; the disclosed information does not establish the individuals’ reasons for buying or selling.

Risks Investors Should Monitor

• Investment-related expense pressure: Higher depreciation and financing costs offset benefits from new rates at NW Natural, while depreciation and taxes reduced NWN Water’s quarterly profit.
• Regulatory execution: The earnings outlook depends partly on approved rate recovery. SiEnergy’s Texas settlement still requires approval, and company guidance assumes no significant change in regulatory policies or expected outcomes.
• Capital funding requirements: The company plans $500 million to $550 million of 2026 capital spending and $2.6 billion to $2.9 billion through 2030, financed through internally generated funds, debt, or equity as appropriate.
• Operating expense pressure: Higher operating and maintenance expenses outweighed customer growth and permitted cost deferrals at SiEnergy during Q3.
• Weather and fourth-quarter execution: Full-year guidance assumes average weather as the company enters the heating season, making fourth-quarter operating performance important to achieving the revised EPS range.

Summary

NW Natural Holdings’ Q3 loss was almost unchanged as new rates and selected cost reductions were offset by depreciation, financing costs, taxes, and operating expenses. Stronger nine-month earnings and favorable regulatory outcomes allowed management to raise 2026 EPS guidance, while maintaining its capital spending and long-term growth targets. The central issue ahead is whether additional rate recovery and customer growth can outpace the costs associated with the company’s continuing infrastructure investment program.