Northwest Nat Gas | 10-K: FY2025 Revenue Misses Estimate at USD 1.289 B

Revenue: As of FY2025, the actual value is USD 1.289 B, missing the estimate of USD 1.315 B.EPS: As of FY2025, the actual value is USD 2.77, beating the estimate of USD 2.7333.EBIT: As of FY2025, the actual value is USD 277.19 M.Northwest Natural Holding Company (Consolidated)Net IncomeNet income was $113.3 million in 2025, an increase of $34.4 million compared to $78.9 million in 2024, which was a decrease from $93.9 million in 2023.Cash FlowCash provided by operating activities increased by $68.8 million from $200.3 million in 2024 to $269.1 million in 2025, following a decrease of $79.7 million from $279.9 million in 2023 to $200.3 million in 2024.Cash used in investing activities increased by $379.9 million, from - $429.0 million in 2024 to - $808.9 million in 2025.Cash provided by financing activities increased by $305.8 million, from $227.1 million in 2024 to $532.9 million in 2025.Capital Structure (excluding short-term debt)Common equity was 37.7% in 2025, down from 44.8% in 2024, while long-term debt increased to 62.3% in 2025 from 55.2% in 2024.Capital Structure (including short-term debt)Common equity was 36.2% in 2025, down from 42.4% in 2024, and long-term debt was 55.7% in 2025 compared to 51.4% in 2024.Short-term debt increased to 8.1% in 2025 from 6.2% in 2024.Short-Term Debt (Commercial Paper and Credit Agreement Loans)Total outstanding short-term debt was $172.0 million in 2025, a slight increase from $170.1 million in 2024.Long-Term Debt Maturities and InterestTotal long-term debt maturities from 2026-thereafter are $2,448.7 million, with total interest amounting to $2,214.6 million for the same period.Northwest Natural Gas Company (Consolidated)Net IncomeNet income for Northwest Natural Gas Company was $124.2 million in 2025, an increase of $35.2 million from $89.0 million in 2024, which had decreased from $104.7 million in 2023.Cash FlowCash provided by operating activities increased by $34.4 million to $265.2 million in 2025 from $230.7 million in 2024, after decreasing by $51.1 million from $281.9 million in 2023 to $230.7 million in 2024.Cash used in investing activities remained relatively stable at - $357.5 million in 2025, a slight decrease of $0.1 million from - $357.6 million in 2024.Cash provided by financing activities decreased by $23.2 million to $96.6 million in 2025 from $119.8 million in 2024.Capital Structure (excluding short-term debt)Common equity was 49.6% in 2025, slightly up from 49.2% in 2024, with long-term debt at 50.4% in 2025 compared to 50.8% in 2024.Capital Structure (including short-term debt)Common equity was 49.4% in 2025, an increase from 46.9% in 2024, and long-term debt was 48.5% in 2025 compared to 47.2% in 2024.Short-term debt decreased to 2.1% in 2025 from 5.9% in 2024.Long-Term Debt Maturities and InterestTotal long-term debt maturities from 2026-thereafter are $319.7 million, with total interest of $934.0 million for the same period.NWN Gas Utility SegmentMarginMargin increased by $78,871 thousand to $680,149 thousand in 2025 from $601,278 thousand in 2024, following an increase of $26,270 thousand from $575,008 thousand in 2023 to $601,278 thousand in 2024.Operating ExpensesTotal operating expenses for 2025 were $460,200 thousand, up from $428,056 thousand in 2024 and $404,417 thousand in 2023.Operations and maintenance expenses were $264,273 thousand in 2025, general taxes were $48,045 thousand, and depreciation was $147,882 thousand.Income from OperationsIncome from operations was $219,949 thousand in 2025, increasing from $173,222 thousand in 2024 and $170,591 thousand in 2023.Other Income (Expense), netOther income (expense), net, was - $6,535 thousand in 2025, compared to - $3,033 thousand in 2024 and $15,158 thousand in 2023.Interest Expense, netInterest expense, net, was $61,440 thousand in 2025, a slight decrease from $62,868 thousand in 2024.Income Before Income TaxesIncome before income taxes was $151,974 thousand in 2025, up from $107,321 thousand in 2024.Income Tax ExpenseIncome tax expense was $41,952 thousand in 2025, an increase from $30,195 thousand in 2024.Net IncomeNet income was $110,022 thousand in 2025, an increase from $77,126 thousand in 2024.Customer Growth (Meters - end of period)Total meters reached 809,597 in 2025, representing a 0.5% growth, following a 0.8% growth to 805,529 meters in 2024 from 799,250 in 2023.Natural Gas Volumes Sold and DeliveredNatural gas volumes sold and delivered decreased by 59,414 thousand therms to 1,111,425 thousand therms in 2025 from 1,170,839 thousand therms in 2024.Average Cost of GasThe average cost of gas decreased to $0.47 per therm in 2025 from $0.51 per therm in 2024.Gain from Gas Cost Incentive SharingGain from gas cost incentive sharing was $868 thousand in 2025, a decrease from $2,624 thousand in 2024.SiEnergy Gas Utility SegmentMarginMargin for 2025 was $44,216 thousand.Operating ExpensesTotal operating expenses were $17,658 thousand in 2025, including $8,642 thousand for operations and maintenance, $1,143 thousand for general taxes, and $7,873 thousand for depreciation.Income from OperationsIncome from operations was $26,558 thousand in 2025.Other Income, netOther income, net, was $657 thousand in 2025.Interest Expense, netInterest expense, net, was $9,608 thousand in 2025.Income Before Income TaxesIncome before income taxes was $17,607 thousand in 2025.Income Tax ExpenseIncome tax expense was $3,870 thousand in 2025.Net IncomeNet income was $13,737 thousand in 2025.Customer Connections (Meters - as of December 31, 2025)Total customer connections were 89,676, comprising 89,019 residential and 657 commercial connections.Natural Gas Volumes Sold and DeliveredNatural gas volumes sold and delivered were 35,879 thousand therms in 2025.Average Cost of GasThe average cost of gas was $0.63 per therm in 2025.NWN Water Utility SegmentOperating RevenuesOperating revenues increased by $13,610 thousand to $65,646 thousand in 2025 from $52,036 thousand in 2024, which had increased by $13,184 thousand from $38,852 thousand in 2023.Operating ExpensesTotal operating expenses were $46,740 thousand in 2025, up from $42,101 thousand in 2024 and $32,283 thousand in 2023.Operations and maintenance expenses were $33,139 thousand in 2025, general taxes were $2,042 thousand, and depreciation was $8,514 thousand.Income from OperationsIncome from operations was $18,906 thousand in 2025, an increase from $9,935 thousand in 2024 and $6,569 thousand in 2023.Other Income, netOther income, net, was $1,808 thousand in 2025, up from $1,415 thousand in 2024.Interest Expense, netInterest expense, net, was $3,048 thousand in 2025, decreasing from $3,815 thousand in 2024.Income Before Income TaxesIncome before income taxes was $17,666 thousand in 2025, increasing from $7,535 thousand in 2024.Income Tax ExpenseIncome tax expense was $3,511 thousand in 2025, up from $2,069 thousand in 2024.Net IncomeNet income was $14,155 thousand in 2025, an increase from $5,466 thousand in 2024.Connections (Water and Wastewater - end of period)Total connections reached 80,703 in 2025, representing 5.6% growth, following 4.6% growth to 76,401 connections in 2024 from 73,021 in 2023.NW Holdings Other SegmentOperating RevenuesOperating revenues increased by $35,678 thousand to $60,948 thousand in 2025 from $25,270 thousand in 2024, which had increased by $3,047 thousand from $22,223 thousand in 2023.Operating ExpensesTotal operating expenses were $45,470 thousand in 2025, significantly up from $17,285 thousand in 2024 and $14,442 thousand in 2023.Cost of gas was $19,558 thousand in 2025, operations and maintenance expenses were $21,311 thousand, and general taxes were $816 thousand.Income from OperationsIncome from operations was $15,478 thousand in 2025, an increase from $7,985 thousand in 2024.Other Income, netOther income, net, was $370 thousand in 2025, decreasing from $510 thousand in 2024.Interest Expense, netInterest expense, net, significantly increased to $48,417 thousand in 2025 from $13,409 thousand in 2024.Loss Before Income TaxesLoss before income taxes was - $32,569 thousand in 2025, widening from - $4,914 thousand in 2024 and - $1,054 thousand in 2023.Income Tax Expense (Benefit)Income tax benefit was - $7,974 thousand in 2025, compared to a benefit of - $1,193 thousand in 2024.Net LossNet loss was - $24,595 thousand in 2025, increasing from - $3,721 thousand in 2024 and - $1,278 thousand in 2023.Outlook / GuidanceNorthwest Natural Holding Company projects capital expenditures of $500 million to $550 million for 2026, with a five-year forecast (2026-2030) ranging from $2.6 billion to $2.9 billion, while Northwest Natural Gas Company expects 2026 capital expenditures of $340 million to $370 million and SiEnergy anticipates $110 million to $120 million for 2026. Northwest Natural Gas Company expects regulatory decisions on its 2025 Integrated Resource Plan in the first half of 2026 and foresees no customer credit adjustment for 2025 based on preliminary earnings test results. The planned 4-5 Bcf expansion of the North Mist gas storage facility is contingent on customer approval and permits, and its costs are not included in current capital expenditure plans.