Northwest Nat Gas | 8-K: FY2026 Q2 Revenue: USD 243.55 M

Revenue: As of FY2026 Q2, the actual value is USD 243.55 M.

EPS: As of FY2026 Q2, the actual value is USD 0.01, beating the estimate of USD -0.0925.

EBIT: As of FY2026 Q2, the actual value is USD 34.56 M.

Consolidated Financial Performance

Northwest Natural Holding Company reported a consolidated net income of $600 thousand for the second quarter of 2026, an increase from a net loss of - $2,500 thousand in the same period of 2025. For the first six months of 2026, consolidated net income was $98,089 thousand, up from $85,416 thousand in the first six months of 2025. Adjusted net income for the second quarter of 2026 was $600 thousand, compared to $315 thousand in the second quarter of 2025. For the first six months of 2026, adjusted net income reached $98,089 thousand, an increase from $92,118 thousand in the prior year period. Operating revenues for the second quarter of 2026 were $243,552 thousand, up from $236,194 thousand in 2025. For the first six months of 2026, operating revenues were $733,955 thousand, compared to $730,478 thousand in 2025. Total operating expenses for the second quarter of 2026 were $210,395 thousand, an increase from $208,983 thousand in the second quarter of 2025. For the first six months of 2026, total operating expenses were $537,930 thousand, down from $548,913 thousand in the first six months of 2025. Income from operations for the second quarter of 2026 was $33,157 thousand, up from $27,211 thousand in the second quarter of 2025. For the first six months of 2026, income from operations was $196,025 thousand, an increase from $181,565 thousand in the first six months of 2025. Interest expense, net, was $33,352 thousand for the second quarter of 2026 and $66,704 thousand for the first six months of 2026, compared to $30,491 thousand and $59,886 thousand, respectively, in 2025. Income tax expense for the second quarter of 2026 was $610 thousand, compared to - $940 thousand in 2025. For the first six months of 2026, income tax expense was $33,149 thousand, down from $33,587 thousand in 2025.

Cash Flow and Capital Structure

Cash provided by operating activities for the first six months of 2026 was $225,848 thousand, a decrease from $281,770 thousand in the same period of 2025. Capital expenditures for the first six months of 2026 totaled - $234,950 thousand, compared to - $222,664 thousand in the prior year period. Northwest Natural Holding Company’s common stock equity was 37.3% at the end of the period, while long-term debt (including junior subordinated notes) was 56.8%, and short-term debt (including current maturities of long-term debt) was 5.9%. Total assets amounted to $6,441,782 thousand at June 30, 2026, an increase from $5,786,563 thousand at June 30, 2025.

Dividends

Northwest Natural Holding Company’s board of directors declared a quarterly dividend of $0.4925 per share, resulting in a current indicated annual dividend rate of $1.97 per share.

Segment Performance

NW Natural

Net income for the NW Natural segment was $3,933 thousand in the second quarter of 2026, a decrease from $4,924 thousand in 2025. For the first six months of 2026, net income was $97,682 thousand, up from $95,963 thousand in 2025. The segment margin was $141,139 thousand for the second quarter of 2026 and $411,529 thousand for the first six months of 2026, compared to $133,740 thousand and $398,299 thousand, respectively, in 2025. The second quarter decrease in net income was attributed to increased operations and maintenance (O&M) expense and higher depreciation expense and financing costs, partially offset by higher margin from new rates in Oregon.

SiEnergy

Net income for the SiEnergy segment increased to $2,056 thousand in the second quarter of 2026 from $1,014 thousand in 2025. For the first six months of 2026, net income rose to $11,146 thousand from $6,519 thousand in 2025. SiEnergy margin was $9,787 thousand for the second quarter of 2026 and $28,242 thousand for the first six months of 2026, compared to $8,161 thousand and $21,745 thousand, respectively, in 2025. This growth was primarily driven by customer growth and benefits from deferring depreciation and interest costs.

NWN Water

Net income for the NWN Water segment decreased to $2,272 thousand in the second quarter of 2026 from $2,833 thousand in 2025. For the first six months of 2026, net income was $3,703 thousand, down from $4,521 thousand in 2025. The decline was mainly due to higher O&M expenses and depreciation, partially offset by rate increases and customer growth.

Other

The net loss for the ‘Other’ segment decreased to - $7,661 thousand in the second quarter of 2026 from - $11,271 thousand in 2025. For the first six months of 2026, the net loss decreased to - $14,442 thousand from - $21,587 thousand in 2025. On an adjusted basis, the net loss decreased to - $7,661 thousand in Q2 2026 from - $8,456 thousand in Q2 2025, and to - $14,442 thousand in H1 2026 from - $14,885 thousand in H1 2025, primarily due to lower acquisition and business development expenses.

Operational Metrics

Northwest Natural Holding Company added nearly 18,000 gas and water utility connections over the 12 months ended June 30, 2026, representing a growth rate of 1.9%. The company invested $235 million in its gas and water systems during the first six months of 2026. As of June 30, 2026, total meters were 987,115, up from 969,156 meters at June 30, 2025.

Regulatory Updates

Northwest Natural’s Washington general rate case received an order approving a multi-party settlement, resulting in a $20.1 million revenue increase in the first year starting August 1, 2026. This order included a capital structure of 50% common equity and 50% long-term debt, a 9.5% return on equity, and an overall cost of capital of 7.15% in the first year, increasing to 7.22% in the third year, with a rate base of $328.0 million in the first year. In Oregon, a multi-party settlement was filed concerning the alternative rate mechanism (ARM), which provides for an increase to the annual revenue requirement of $13.0 million.

Outlook and Guidance

Northwest Natural Holding Company expects its 2026 EPS to be in the upper half of its guidance range of $2.95 – $3.15. The company reaffirms its long-term targets, including rate base growth of 6% – 8% through 2030, supported by planned capital expenditures of $2.6 – $2.9 billion from 2026 – 2030. The long-term EPS growth rate target is 4% – 6%, with a potential increase to 5% – 7% with the MX3 gas storage project, and a customer growth target of 2.0% – 3.0%.