NWN — Northwest Natural Holding Company

Summary of Northwest Natural Holdings Q2 2026 Earnings Call

1. Key Financial Results and Metrics

• Earnings Per Share (EPS): Q2 EPS was $0.01, flat compared to the prior year but above expectations. Year-to-date EPS was $2.33, slightly up from adjusted EPS of $2.28 in 2025.
• Segment Performance:
  • Northwest Natural Gas: Q2 EPS of $0.09, down from $0.12 year-over-year, impacted by increased operational expenses and depreciation.
  • SiEnergy: Q2 EPS increased to $0.05 from $0.03, driven by 15% customer growth and deferred costs.
  • Northwest Natural Water: Q2 EPS was $0.05, down from $0.07, due to higher operational costs despite revenue growth.

2. Strategic Updates and Business Highlights

• SiEnergy: Achieved over 15% organic customer growth and has a backlog of over 260,000 future meters. Progressing on a rate case with the Texas Railroad Commission.
• Northwest Natural Gas: Filed a multiparty settlement for a $13 million revenue requirement in Oregon, with new rates expected by October 31, 2026. Engaged in a multiyear rate plan rule-making process.
• Washington Operations: Received favorable outcomes from a multiyear rate case, implementing new rates effective August 1.
• Northwest Natural Water: Customer growth of 3.4% year-over-year, with ongoing regulatory proceedings in multiple states.
• MX3 Storage Project: A $300 million expansion project is progressing, with a conditional use permit received. Expected to enhance energy reliability and contribute to long-term earnings growth.

3. Forward Guidance and Outlook

• 2026 EPS Guidance: Expected to be in the top half of the range of $2.95 to $3.15 per share, supported by strong performance and regulatory clarity.
• Long-term Growth Target: Reaffirmed at 4% to 6% through 2030, potentially increasing to 5% to 7% following the MX3 project.
• Capital Expenditure Plan: Estimated between $500 million to $550 million, funded through operating cash flow, debt issuance, and equity.

4. Bad News, Challenges, or Points of Concern

• Operational Costs: Increased operations and maintenance expenses are impacting profitability, particularly in the gas utility segment.
• Water Segment Performance: Financial results were modestly below plan, with challenges in integrating acquisitions and managing operational costs.
• Regulatory Risks: Ongoing regulatory processes could introduce uncertainties, particularly in Oregon and Texas, where rate cases are still being finalized.

5. Notable Q&A Insights

• There were technical difficulties during the Q&A session, preventing questions from being addressed live. Management expressed confidence in the company’s performance and growth strategy but did not engage in further discussion during the call.

Overall, Northwest Natural Holdings reported solid financial performance in Q2 2026, with strategic initiatives in place to support growth, though challenges related to operational costs and regulatory processes remain. The company is optimistic about achieving its EPS targets for the year and maintaining a strong growth trajectory.