Northwest Natural Raises 2026 Earnings Outlook After Rate Wins

The Tip Desk · November 11, 2026 · 4 min read

The utility lifted its 2026 EPS range to $3.10–$3.20 after nine-month earnings of $1.62 a share, approved Washington and Oregon rate outcomes and a pending Texas settlement.

Northwest Natural Holding Company (NWN) raised its 2026 earnings-per-share guidance to a range of $3.10 to $3.20, from the prior $2.95 to $3.15 range in which it had said it expected the upper half, citing year-to-date results, regulatory outcomes and confidence in fourth-quarter execution.

The Portland-based energy and water utility reported a net loss of $29.84 million, or $0.71 a share, for the three months ended Sept. 30, 2026, compared with a $29.89 million loss, or $0.73 a share, a year earlier. Adjusted results were the same on a per-share basis. Sequentially, the company swung from second-quarter net income of $0.60 million, or $0.01 a share, to that third-quarter loss.

For the first nine months of 2026, EPS was $1.62, versus $1.36 a year earlier; adjusted EPS was $1.62 versus $1.52. President and Chief Executive Officer Justin Palfreyman said the company was delivering another strong year and that performance reflected disciplined cost management, constructive regulatory outcomes and continued customer growth.

Regulatory orders were the quarter’s defining operating turn. On July 29, the Washington Utilities and Transportation Commission approved a multi-year general rate case for Northwest Natural Gas Company, increasing annual revenue requirement by $20.1 million in the first year beginning Aug. 1, 2026, then $7.5 million and $7.4 million in the next two years. The order set a 9.5% return on equity, a 7.15% first-year cost of capital and $328 million of first-year rate base. On Oct. 13, Oregon’s Public Utility Commission approved an alternative rate mechanism providing a $13.0 million annual revenue-requirement increase, versus a $15.6 million request, with new rates effective Oct. 31, 2026. SiEnergy filed a Texas Railroad Commission settlement on Sept. 22 that provides an $8.6 million revenue-requirement increase, versus a $12.0 million request, a 9.8% return on equity, an 8.0% cost of capital, a 59.75% equity layer and $343 million of rate base; if approved, new rates are expected in November 2026.

The NW Natural segment’s third-quarter net loss was $27.21 million, or $0.65 a share, versus $27.08 million, or $0.66 a share, a year earlier. The company said higher margin from new Oregon and Washington rates and lower operations and maintenance expenses were offset by higher depreciation and financing costs from continued system investment. SiEnergy net income was $1.30 million, or $0.03 a share, versus $1.57 million, or $0.04 a share, as customer growth and Texas House Bill 4384 deferral benefits were more than offset by higher O&M. NWN Water net income was $3.89 million, or $0.09 a share, versus $4.75 million, or $0.11 a share, as higher operating revenues from rates and customer growth were more than offset by higher depreciation and general taxes. Other net loss was $7.82 million, or $0.18 a share, versus $9.12 million, or $0.22 a share, primarily from lower O&M at NW Natural Holdings.

Over the nine months ended Sept. 30, SiEnergy net income was $12.44 million, or $0.30 a share, versus $8.08 million, or $0.20 a share, reflecting customer growth, HB 4384 deferral benefits and full periods for the SiEnergy and Pines acquisitions. NWN Water net income was $7.59 million, or $0.18 a share, versus $9.27 million, or $0.22 a share. Other net loss was $22.26 million, or $0.53 a share, versus $30.71 million, or $0.75 a share, primarily from lower acquisition and business development expenses.

The company added 17,000 gas and water utility connections over the 12 months ended Sept. 30, 2026, a 1.8% growth rate, down from nearly 18,000 connections and 1.9% growth over the 12 months ended June 30. It invested $373 million in gas and water systems in the first nine months of 2026. Full-year 2026 capital-expenditure guidance remained $500 million to $550 million, versus $467 million of 2025 actual spending. Long-term 2026–2030 targets of 4%–6% EPS growth (5%–7% with the MX3 gas storage project), $2.6 billion to $2.9 billion of capital expenditures, 6%–8% rate-base growth and 2%–3% customer growth were reaffirmed.

The board declared a quarterly dividend of $0.50 a share, lifting the indicated annual rate to $2.00, the 71st consecutive annual increase and the largest since 2012. Guidance assumes continued customer growth, average weather and no significant changes in prevailing regulatory policies.