NW Natural Raises 2026 EPS Guidance as SiEnergy Supports Growth

NW Natural Holdings (NYSE: NWN) raised its 2026 earnings guidance after stronger year-to-date contributions from its SiEnergy gas utility and corporate activities helped offset lower results from NW Natural and the water business. The company now expects diluted earnings per share of $3.10 to $3.20, compared with its previous expectation of finishing in the upper half of a $2.95-to-$3.15 range.

For the third quarter, NW Natural Holdings reported a GAAP loss of $0.71 per share, narrowing from a loss of $0.73 per share a year earlier. Results reflected the seasonal nature of its utility operations. For the first nine months of 2026, GAAP EPS rose to $1.62 from adjusted EPS of $1.52 in the comparable 2025 period, an increase of about 7%. The prior-year adjusted figure excluded transaction and business-development costs; GAAP EPS for the first nine months of 2025 was $1.36.

The company ended the period with 989,000 meters, up 2% from a year earlier. Capital expenditures increased 12% to $373 million during the first nine months.

SiEnergy supports year-to-date earnings growth

On a non-GAAP segment basis, SiEnergy contributed $0.30 per share during the first nine months, up $0.10 from the prior-year period. The company’s “Other” category reduced its loss by $0.06 per share to $0.53.

Those gains more than offset weaker contributions from the other utility operations. NW Natural segment EPS declined by $0.02 to $1.67, while NW Natural Water fell by $0.04 to $0.18. In the third quarter alone, NW Natural improved by $0.01 per share and the Other category improved by $0.04, while SiEnergy and NW Natural Water declined by $0.01 and $0.02, respectively.

Management expects SiEnergy to provide 10% to 15% of consolidated EPS in 2026 and the water business to contribute 7% to 12%. Through 2030, the company projects SiEnergy net income growth of 28% to 32% annually, supported by expected customer growth of 15% to 20% and rate-base growth of 20% to 25%. NW Natural Water is expected to deliver annual net income growth of 7% to 10%, with organic customer growth of 2% to 3% and rate-base growth of 10% to 15%.

Regulatory decisions and investment plans

New rates for NW Natural’s Washington operations took effect Aug. 1, providing a first-year revenue increase of $20.1 million. The order included a 9.5% return on equity and a 50% equity ratio in the capital structure. Rates under Oregon’s Alternative Rate Mechanism took effect Oct. 31, while the second phase of rulemaking for Oregon multi-year rate cases is expected to conclude by the end of 2027.

SiEnergy reached a Texas general rate case settlement on Sept. 22. Subject to approval, new rates are expected in November 2026 and would increase the revenue requirement by $8.6 million, with a 9.8% return on equity and a 59.75% equity ratio. NW Natural Water has five rate cases underway, including proceedings for its three largest water utilities, with new rates expected in 2027.

NW Natural Holdings expects 2026 capital expenditures of $500 million to $550 million. Planned spending from 2026 through 2030 totals $2.6 billion to $2.9 billion. That includes $1.6 billion to $1.8 billion at NW Natural, $750 million to $800 million at SiEnergy and $250 million to $300 million at the water business.

The company maintained its long-term target for annual EPS growth of 4% to 6% from 2025 through 2030, using adjusted 2025 EPS of $2.93 as the base. The outlook excludes the proposed Mist Expansion, or MX3, gas-storage project.

MX3 is designed to add 4 billion to 5 billion cubic feet of storage capacity and would require approximately $300 million of capital. The company expects a notice to proceed by late 2027 and an in-service date by the end of 2029. Following that notice, prospective investment-grade utility and midstream customers have agreed to 25-year capacity contracts. If MX3 enters service before the end of 2029, management expects long-term EPS growth of 5% to 7%.

Liquidity and execution risks

NW Natural Holdings reported $609 million of available liquidity as of Sept. 30, including $30 million of cash and capacity under credit facilities. It expects to issue $40 million to $50 million of equity through its at-the-market program in 2026. The company has completed its planned 2026 debt offerings and expects a roughly $150 million net increase in long-term debt for the year.

The outlook remains subject to regulatory approvals, construction timing and costs, financing conditions, customer growth and the execution of planned acquisitions and infrastructure investments. The MX3 targets also depend on completing engineering, permitting and contracting work, receiving a notice to proceed and placing the project in service on schedule.