Northwest Natural Reports 2024 Earnings Highlights and Forecast

Northwest Natural reports strong 2024 performance with adjusted EPS of $2.33, window for growth seen in SiEnergy acquisition and regulatory adjustments. Investors keeping an eye on future guidance.

Date: 01-03-2025

AI Rating: 6

Earnings Per Share (EPS)
For Q4 2024, Northwest Natural reported an adjusted EPS of $2.33, indicating a slight decline from $2.59 in 2023 due to regulatory lag. Despite this, the company is optimistic, providing guidance for 2025 adjusted EPS in the range of $2.75 to $2.95 per share, showing a general growth outlook.

Net Income
The company achieved a net income of $90.6 million, down from $93.9 million the previous year, mainly attributed to regulatory delays in rate changes.

Profit Margins
This year saw an increase in utility margin by $26.3 million, largely due to new rates implemented in Oregon. Operating and maintenance costs decreased slightly, indicating controlled expenditure amid rising revenue.

Return on Equity (ROE)
The company has mentioned a return on equity of 10.4%, reflecting their strong capital structure despite increased investments associated with growth and acquisitions.

Overall, the financial position shows resilience, with growth initiatives aligning with long-term strategies that includes the recent acquisitions and capital investments planned for 2025. The market's reaction may hinge on the successful implementation of the initiatives and the effective transition of ownership in leadership as the CEO prepares for retirement.

Stocks: NWN