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1. Company Snapshot

1.a. Company Description

Northwest Natural Holding Company, through its subsidiary, Northwest Natural Gas Company, provides regulated natural gas distribution services to residential, commercial, industrial, and transportation customers in Oregon and Southwest Washington.The company also operates 5.7 billion cubic feet of the Mist gas storage facility contracted to other utilities and third-party marketers; offers natural gas asset management services; and operates an appliance retail center.In addition, it engages in the gas storage, water, non-regulated renewable natural gas, and other investments and activities.


The company provides natural gas service through approximately 786,000 meters in Oregon and southwest Washington; and water services to a total of approximately 80,000 people through approximately 33,000 water and wastewater connections in the Pacific Northwest and Texas.Northwest Natural Holding Company was founded in 1859 and is headquartered in Portland, Oregon.

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1.b. Last Insights on NWN

Northwest Natural Holding Company's recent performance has been driven by several positive factors. The company's Q2 2025 earnings surpassed estimates, with a quarterly earnings of $0.01 per share, beating the Zacks Consensus Estimate of a loss of $0.07 per share. Additionally, the company has increased its dividend for the 70th consecutive year, with a quarterly dividend of 49.25 cents per share. This streak of dividend increases underscores the company's commitment to shareholder returns. Furthermore, Northwest Natural Holding Company's strong balance sheet, A- credit rating, and ample liquidity support its ongoing capital investment and dividend safety. Its recent acquisitions and organic growth, especially in Texas, drive robust customer growth.

1.c. Company Highlights

2. Northwest Natural Holdings: Steady Growth Amidst Regulatory Advancements

Northwest Natural Holdings reported a loss of $0.73 per share in the third quarter of 2025, relatively unchanged from the same period in 2024, but beating analyst estimates of a loss of $0.82 per share. Year-to-date adjusted earnings per share stood at $1.52, up from $0.88 in the same period of 2024. The company's investments in gas and water systems, totaling over $330 million through September 30, have supported customer growth and infrastructure resilience. Revenue growth is estimated at 6.1% next year, indicating a positive outlook.

Publication Date: Nov -30

📋 Highlights

Operational Highlights and Customer Growth

The combined utility customer growth rate was 10.9% for the 12 months ended September 30, driven largely by gas utility acquisitions in Texas. Northwest Natural Water's customer base grew 4.1%, with 3 small acquisitions contributing to the growth. SiEnergy in Texas posted a sizable increase in its customer backlog, with signed contracts representing over 240,000 future meters, indicating strong future growth prospects.

Regulatory Developments and Future Prospects

The company received a constructive order from the Oregon Public Utility Commission, approving a $20.7 million revenue requirement increase and $180 million rate base increase for Northwest Natural Gas. A Washington general rate case was filed, requesting a $42.4 million revenue requirement increase over current rates. As the company continues to invest in its infrastructure, it is well-positioned for long-term growth, with a projected 4% to 6% compounded annual earnings growth rate.

Valuation and Dividend Metrics

With a P/E Ratio of 20.27 and a Dividend Yield of 3.97%, Northwest Natural Holdings presents a relatively attractive investment opportunity, considering its growth prospects. The company's ROE stands at 7.01%, and its ROIC is 3.27%, indicating a decent return on its investments. The Net Debt / EBITDA ratio is 6.13, which may raise concerns about the company's leverage, but it is expected to be managed with its steady cash flows. As one of the executives mentioned, the company is also exploring new technologies, such as hydrogen production, which could potentially contribute to its future growth.

3. NewsRoom

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Northwest Natural Gas (NYSE:NWN) and MDU Resources Group (NYSE:MDU) Head to Head Contrast

Nov -25

Source: defenseworld.net

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Bank of Montreal Can Has $928,000 Stock Holdings in Northwest Natural Gas Company $NWN

Nov -16

Source: defenseworld.net

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Buy 3 Ideal Dividend Kings Of 24 'Safer' In November's 56

Nov -10

Source: seekingalpha.com

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Got $1,000? Here Are the Smartest Dividend Stocks to Start With.

Nov -10

Source: fool.com

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Northwest Natural Holding Company (NWN) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

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Northwest Natural (NWN) Reports Q3 Loss, Misses Revenue Estimates

Nov -05

Source: zacks.com

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Northwest Capital Management Inc Has $2.59 Million Stake in Amazon.com, Inc. $AMZN

Nov -05

Source: defenseworld.net

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NW Natural Holdings Reports Third Quarter 2025 Results

Nov -05

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.95%)

6. Segments

Natural Gas Distribution

Expected Growth: 4%

Northwest Natural Holding Company's 4% growth in Natural Gas Distribution is driven by increasing demand from residential and commercial customers, expansion into new markets, and investments in infrastructure upgrades and pipeline replacements. Additionally, favorable weather patterns and rising energy prices contribute to the growth.

Other (NW Holdings)

Expected Growth: 3%

NW Holdings, the 'Other' segment of Northwest Natural Holding Company, drives 3% growth through strategic investments in renewable natural gas, expansion of compressed natural gas fueling stations, and diversification into emerging energy markets, such as hydrogen and renewable energy solutions.

Other (NW Natural)

Expected Growth: 3%

NW Natural's 3% growth is driven by increasing customer base, rate relief, and infrastructure investments. The company's focus on safety, reliability, and customer satisfaction contributes to its steady growth. Additionally, NW Natural's expansion into new markets, such as renewable natural gas and energy efficiency services, provides further growth opportunities.

7. Detailed Products

Natural Gas Distribution

Northwest Natural Holding Company provides natural gas distribution services to residential, commercial, and industrial customers in Oregon and Southwest Washington.

Renewable Natural Gas

The company offers renewable natural gas (RNG) as a cleaner alternative to traditional fossil fuels, produced from organic waste and agricultural waste.

Water Distribution

Northwest Natural Holding Company provides water distribution services to residential and commercial customers in Oregon.

Wastewater Services

The company offers wastewater collection, treatment, and disposal services to residential, commercial, and industrial customers in Oregon.

Energy Efficiency Services

Northwest Natural Holding Company provides energy efficiency services, including energy audits, rebates, and incentives to help customers reduce energy consumption.

8. Northwest Natural Holding Company's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Northwest Natural Holding Company is moderate, as customers have limited alternatives for natural gas services.

Bargaining Power Of Customers

The bargaining power of customers is low, as Northwest Natural Holding Company is the primary provider of natural gas services in its operating regions.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate, as Northwest Natural Holding Company relies on a few large suppliers for its natural gas needs.

Threat Of New Entrants

The threat of new entrants is low, as entering the natural gas market requires significant capital investment and regulatory approvals.

Intensity Of Rivalry

The intensity of rivalry is moderate, as Northwest Natural Holding Company operates in a relatively stable market with few competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 56.51%
Debt Cost 5.90%
Equity Weight 43.49%
Equity Cost 6.61%
WACC 6.21%
Leverage 129.96%

11. Quality Control: Northwest Natural Holding Company passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Northwest Natural

A-Score: 6.5/10

Value: 6.5

Growth: 3.2

Quality: 4.0

Yield: 8.0

Momentum: 7.0

Volatility: 10.0

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NiSource

A-Score: 6.3/10

Value: 5.0

Growth: 3.3

Quality: 4.7

Yield: 6.0

Momentum: 8.5

Volatility: 10.0

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Suburban Propane

A-Score: 6.2/10

Value: 6.4

Growth: 2.4

Quality: 5.1

Yield: 10.0

Momentum: 4.5

Volatility: 8.7

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Aris Water Solutions

A-Score: 6.0/10

Value: 6.0

Growth: 8.6

Quality: 4.7

Yield: 5.0

Momentum: 8.5

Volatility: 3.3

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RGC Resources

A-Score: 5.6/10

Value: 4.7

Growth: 3.6

Quality: 4.9

Yield: 8.0

Momentum: 6.5

Volatility: 6.0

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OPAL Fuels

A-Score: 4.5/10

Value: 9.7

Growth: 8.6

Quality: 5.1

Yield: 0.0

Momentum: 1.0

Volatility: 2.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

46.24$

Current Price

46.24$

Potential

-0.00%

Expected Cash-Flows