Southwest Gas says last year's Q2, Q3 reports 'should no longer be relied upon'

Southwest Gas (SWX) said post-market Friday that its financial statements for Q2 and Q3 2025 "should no longer be relied upon," after identifying errors related to estimated deferred income tax liabilities for state income taxes, according to an 8-K filing.

The company said the errors do not affect its previously communicated guidance metrics, and it reaffirms FY 2025 guidance for net income as well as expected compound annual growth rates for net income and rate base for the 2025-29 period, and it does not expect any impact on previously reported operating margin, cash flows, credit metrics, historical state income tax returns, cash income taxes paid, nor compliance with debt covenants for any previous interim periods or years related to the errors.

The errors date back to the formation of Southwest Gas Holdings (SWX) in 2017, when Southwest Gas Corp. and Centuri Holdings became wholly-owned subsidiaries, but were determined to be not material to any previously issued financial statements; the company said it neverthelss plans to revise the historical financial statements due to the cumulative effect of correcting the deferred income tax error in the 2025 Form 10-K.