Northwest Natural Holding Company (NWN) Earnings
Northwest Natural Holding Company is expected to report next earnings on November 4, 2026 (in NaN days), with a consensus EPS estimate of $-0.89. NWN has beaten EPS estimates in 8 of its last 12 reported quarters (average surprise +29.9% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 5, 2026 | $-0.08 | $0.01 | +112.2% | $244M | -10.4% |
| May 6, 2026 | $2.40 | $2.33 | -2.9% | $490M | -8.9% |
| Nov 5, 2025 | $-0.82 | $-0.73 | +11.0% | $165M | -60.7% |
| Feb 28, 2025 | $1.42 | $1.41 | -0.7% | $371M | -6.1% |
| Aug 2, 2024 | $-0.12 | $-0.07 | +41.7% | $212M | -8.7% |
| Feb 23, 2024 | $1.27 | $1.21 | -4.7% | $356M | -1.3% |
| Nov 3, 2023 | $-0.70 | $-0.65 | +7.1% | $141M | +5.0% |
| Aug 3, 2023 | $0.01 | $0.03 | +263.6% | $238M | +15.8% |
| May 4, 2023 | $1.90 | $2.01 | +5.8% | $462M | +27.3% |
| Feb 24, 2023 | $1.33 | $1.36 | +2.3% | $375M | +25.0% |
| Aug 4, 2022 | $0.02 | $0.05 | +225.1% | $195M | +26.0% |
| May 4, 2022 | $1.91 | $1.80 | -5.8% | $350M | +9.3% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2026 · August 5, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
### Regulatory Progress - A new ordered rate structure for Northwest Natural Gas was implemented on August 1st, preserving line extension allowances for prospective customers to support natural gas' role in the energy system and maintain customer affordability. - New gas rates have been implemented in Washington, and a settlement has been filed for the Oregon Alternative Rate Mechanism (ARM) which goes into effect October 31st 2026. - In Arizona, the company is advancing formula rates for its Foothills water operation to align cost recovery with ongoing infrastructure investment. ### Infrastructure and Growth Projects - In the first half of 2026, the company invested over $165 million in natural gas infrastructure to support customer growth, improve system reliability, and maintain a modern, resilient gas network. - The MX3 $300 million FERC-regulated gas storage expansion project made solid progress: the Columbia County Board of Commissioners unanimously approved the conditional use permit, as expected an appeal has been filed with the Land Use Board of Appeals, but the project timeline remains unchanged. The project will add 4-5 BCF of storage capacity, is fully contracted under 25-year agreements, has a 12.5% return on equity with a 50% equity capital structure. ### Water Business Strategy - The water business continues to grow and mature, with 3.4% total customer growth over the 12 months ending June 30 2026. - The company is progressing consolidation efforts across multiple jurisdictions to build a scaled, efficient water utility platform that delivers benefits to both customers and shareholders. - The company completed its inaugural $75 million water bond issuance in June 2026, receiving an investment-grade A- rating for water debt, reflecting the platform's mature position and strong financial standing. ### Capital Allocation and Financial Position - The company maintains $628 million in available liquidity as of quarter end, with strong financial flexibility. - The 2026 capital expenditure plan remains $500 million to $550 million, funded via operating cash flow, ~$150 million in net long-term debt issuance, and $40 million to $50 million in equity through the ATM program. - Over the 5-year planning horizon, capital expenditures will be primarily funded by operating cash flow, paired with a balanced mix of long-term debt and equity. Management expects all equity needs through 2030 can be met via disciplined use of the ATM program. - The company targets a 55% to 65% dividend payout ratio, and plans to increase dividends over time aligned with earnings and cash flow growth.
Guidance
- Full year 2026 EPS is expected to land in the top half of the existing guidance range of $2.95 to $3.15 per share, maintained from prior guidance. - The company's long-term baseline earnings growth target of 4-6% through 2030 is reaffirmed. - After MX3 receives notice to proceed (expected by the end of 2027), the long-term earnings growth target will be revised upward to 5-7%. - The 2026 capital expenditure budget is maintained at $500 million to $550 million. - Sea Energy and Northwest Natural Water are expected to maintain their combined 25% contribution to full year 2026 EPS, unchanged from prior projections. - MX3 is still expected to receive notice to proceed by the end of 2027, with an in-service date in 2029, maintaining the original timeline.
Segment performance
1. Northwest Natural Gas (Gas Utility): Reported earnings per share (EPS) of $0.09 in Q2 2026, down from $0.12 in Q2 2025. Higher margins from new Oregon rates were offset by increased operations and maintenance (O&M) expense, higher depreciation from continued system investment, and increased financing costs. Year-to-date, higher Oregon new rate margins contributed to overall company EPS growth. It is the company's core segment, generating the majority of annual earnings during the winter heating first and fourth quarters. 2. CNRG/Sea Energy: Reported EPS of $0.05 per share in Q2 2026, up from $0.03 in Q2 2025. The performance improvement was driven by over 15% customer growth, deferred depreciation/interest/general tax benefits, and a full quarter of earnings contribution from the acquired Pines asset. 3. Northwest Natural Water: Reported EPS of $0.05 in Q2 2026, down from $0.07 in Q2 2025. Higher operating revenue from organic customer growth and acquisitions was offset by elevated O&M costs related to platform integration and centralization. The segment grew its total customer base by 3.4% in the 12 months ended June 30, 2026. Combined, Sea Energy and Northwest Natural Water are expected to contribute approximately 25% of the company's full year 2026 EPS. Overall company year-to-date 2026 EPS is $2.33, up from adjusted 2025 year-to-date EPS of $2.28.
Risks & headwinds
- An appeal has been filed against the MX3 project's conditional use permit with the Land Use Board of Appeals, though management notes the existing timeline already accounts for potential additional regulatory process and remains unchanged. - Seasonal earnings volatility: the gas utility generates the majority of its revenue and earnings in the first and fourth winter heating quarters, while water utility earnings are concentrated in the third summer demand quarter, creating quarterly earnings fluctuations.