SWXHIGH SIGNALFINANCIAL10-K

Southwest Gas Holdings divested its utility infrastructure services segment, triggering a substantial contraction in total assets, accounts receivable, and operating cash flow relative to the prior period.

The removal of all references to the Utility Infrastructure Services segment (including NPL Construction, National Powerline, and related subsidiaries) and the restructuring of filing language to reflect SWX as a pure-play natural gas distribution company confirms a major business disposition occurred during the period. This fundamentally changes the company's revenue base, asset footprint, and cash generation profile, which investors must re-underwrite against a smaller, regulated-utility-only earnings model. The 20.4% increase in interest expense to $292.3M warrants close attention, as higher debt service costs weigh on a business now generating meaningfully less operating cash flow.

Comparing 2026-02-25 vs 2025-02-26View on EDGAR →
FINANCIAL ANALYSIS

The balance sheet contracted materially, with total assets declining 13.3% to $10.4B and accounts receivable falling sharply — consistent with the removal of a large, high-receivables infrastructure services business rather than organic deterioration. Cash and equivalents grew 58.5% to $576.6M, likely reflecting proceeds from the divestiture. Operating cash flow declined substantially — falling well below the prior period's $1.4B level — reflecting the loss of cash generation from the divested segment, and interest expense climbed 20.4% to $292.3M, compressing the financial cushion available to the remaining regulated utility. Taken together, the picture is one of a leaner, more regulated business with a stronger cash balance but a structurally lower and more predictable cash flow run-rate going forward.

FINANCIAL STATEMENT CHANGES
Accounts Receivable
Balance Sheet
-76.4%
$722.6M→$170.6M

Receivables declined — improved collection efficiency or conservative revenue recognition.

Operating Cash Flow
Cash Flow
-59%
$1.4B→$556.1M

Operating cash flow fell 59% — earnings quality concerns; investigate working capital changes and non-cash items.

Cash & Equivalents
Balance Sheet
+58.5%
$363.8M→$576.6M

Cash position surged 58.5% — strong cash generation or capital raise providing significant financial cushion.

Interest Expense
P&L
+20.4%
$242.8M→$292.3M

Interest costs rose 20.4% — monitor debt levels and coverage ratio in rising rate environment.

Current Assets
Balance Sheet
-18.6%
$1.5B→$1.2B

Current assets declined 18.6% — monitor working capital adequacy and short-term liquidity.

Total Assets
Balance Sheet
-13.3%
$12.0B→$10.4B

Total assets contracted 13.3% — asset sales, write-downs, or balance sheet optimization underway.

LANGUAGE CHANGES
NEW — 2026-02-25
PRIOR — 2025-02-26
ADDED
Common Stock, $1 par value SWX New York Stock Exchange Southwest Gas Corporation: None.
BUSINESS 7 NATURAL GAS DISTRIBUTION 7 General Description 8 Rates and Regulation 8 Competition 11 Environmental Matters 12 HUMAN CAPITAL 13 Item 1A.
Information contained herein relating to Southwest Gas Corporation is filed by Southwest Gas Holdings, Inc and Southwest Gas Corporation.
Southwest Gas Corporation makes no representation as to information relating to Southwest Gas Holdings, Inc.
or its subsidiaries except as it may relate to Southwest Gas Corporation and its subsidiaries.
Abbreviation or Acronym Definition Abbreviation or Acronym Definition ACC Arizona Corporation Commission Company Southwest Gas Holdings, Inc.
Audit Committee of the Board of Directors EADIT Excess accumulated deferred income taxes Board Board of Directors of Southwest Gas Holdings, Inc.
Icahn and the persons and entities listed in the cooperation agreement PUCN Public Utilities Commission of Nevada Icahn investment entities Icahn Partners LP and Icahn Partners Master Fund LP, investment entities associated with Carl C.
Securities and Exchange Commission LNG Liquefied natural gas Separation Agreement That certain Separation Agreement, dated as of April 11, 2024, by and between the Company and Centuri Moody s Moody s Investors Service, Inc.
Series A Preferred Series A Junior Participating Preferred Stock MountainWest, or Pipeline and Storage MountainWest Pipelines Holding Company SERP Supplemental executive retirement plan NAV Net asset value SIM System Integrity Mechanism NPRM Notice of proposed rulemaking SOFR Secured Overnight Financing Rate NSPS New Source Performance Standard Southwest Gas Holdings Southwest Gas Holdings, Inc.
REMOVED
BUSINESS 7 NATURAL GAS DISTRIBUTION 9 General Description 9 Rates and Regulation 9 Competition 12 Environmental Matters 12 UTILITY INFRASTRUCTURE SERVICES 14 HUMAN CAPITAL 15 Item 1A.
Information contained herein relating to any individual company is filed by such company on its own behalf.
Each company makes representations only as to itself and makes no other representation whatsoever as to any other company.
Abbreviation or Acronym Definition Abbreviation or Acronym Definition 2025 Annual Meeting 2025 Annual Meeting of Stockholders LNG Liquefied natural gas ACC Arizona Corporation Commission MSA Master services agreement AOCI Accumulated Other Comprehensive Income (Loss) Moody s Moody s Investors Service, Inc.
ARA Annual Rate Adjustment MountainWest, or Pipeline and Storage MountainWest Pipelines Holding Company ASU Accounting Standards Update National National Powerline LLC ATM Program At-the-market equity offering program NAV Net asset value AFUDC Allowance for Funds Used During Construction Neuco New England Utility Constructors, Inc.
NIST National Institute of Standards and Technology CARB California Air Resources Board NPL NPL Construction Co.
CARES Coronavirus Aid, Relief, and Economic Security Act NPL Canada NPL Canada Ltd.
CBA Collective bargaining agreement NPRM Notice of proposed rulemaking CEO Chief Executive Officer NWPL Northwest Pipeline Corporation Centuri, or Utility Infrastructure Services Centuri Group Inc, for periods prior to April 22, 2024, or subsequently, Centuri Holdings, Inc.
NYSE New York Stock Exchange Centuri IPO Centuri Initial Public Offering PBOP Postretirement benefits other than pensions CFO Chief Financial Officer PCAOB Public Company Accounting Oversight Board CNG Compressed natural gas PGA Purchased gas adjustment CODM Chief operating decision maker PHMSA Pipeline and Hazardous Materials Safety Administration COLI Company-owned life insurance PII Personal identifiable information Company Southwest Gas Holdings, Inc.
DCA Delivery Charge Adjustment RNG Renewable Natural Gas Drum Drum Parent, Inc.
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