Northwest Natural's Q1 2026: Solid Earnings & Growth

Northwest Natural Holding Companys first quarter earnings for 2026 are robust, with adjusted earnings per share increasing to $2.33 from $2.28 last year, aligning with expectations. The company reaffirmed full-year guidance at $2.95 to $3.15 per share, with C Energy and water utilities contributing around 25%. Long-term growth projections range from 4% to 6%, potentially rising to 5% to 7% with the MX3 storage projects approval. Regulatory actions are intensifying, with Washington approving a multi-year rate hike starting at $21 million on August 1, 2026. Oregon is pursuing alternative mechanisms for a 1.5% increase in October, while C Energy filed for $12 million more in Texas, aiming for a 10.75% return on equity. Water utilities are also active, with rate cases in multiple states and expansions in Arizona. Customer growth is driving progress, particularly in Texas where C Energy saw a 16% increase in organic additions, with a backlog of over 250,000 meters. Water utilities grew by 4.1% overall, with a 10,000-connection pipeline in greenfield areas. Gas operations maintained stability during the heating season, and a recent study supports natural gas as crucial for Pacific Northwest reliability amid a 14-gigawatt shortfall by 2035. Financials show adjusted net income up by $5.7 million, driven by new rates and growth, though offset by depreciation from investments. Capex guidance remains at $500 to $550 million this year, funded by cash flow, debt, and equity. Segments have been streamlined, combining gas and storage for clearer reporting. The company is well-positioned, with coordinated rate strategies reducing lag and ensuring steadier earnings. Analysts questioned growth and Oregon timelines, but executives remained optimistic about organic expansion and timely recoveries, setting the stage for sustained returns. Support the show:Get a discount at https://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/cdc6a79b8c3a6586