The Bull Case For Northwest Natural (NWN) Could Change Following Q3 Profit Beat Despite Revenue Miss

• Northwest Natural Holding recently reported third quarter 2025 earnings per share of US$0.73 lower than zero, surpassing expectations despite a revenue shortfall, and announced a director’s sale of 7,468 common shares under a Rule 10b5-1 plan.
• This outcome highlights the company’s ability to manage profitability better than forecasted even amid revenue pressure, drawing attention to its operational efficiency and leadership actions.
• We'll explore how Northwest Natural Holding’s profit beat, achieved despite lower revenue, might impact its longer-term investment narrative.

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Northwest Natural Holding Investment Narrative Recap

Being a shareholder in Northwest Natural Holding means believing in steady demand for natural gas and water utilities, resilient regulated earnings, and the long-term potential from urban growth, Texas expansion, and infrastructure modernization. The recent Q3 results, beating profit expectations despite missing on revenue, do not materially change the near-term focus on Texas customer growth as a catalyst or the ongoing risk from regulatory headwinds and energy transition trends in the Pacific Northwest.

Out of recent announcements, the company's updated 2025 EPS guidance, expecting earnings above the midpoint of US$2.59 to US$2.79, stands out. This reiteration, even after a revenue shortfall in Q3, may offer near-term confidence to investors watching how growth in Texas and utility modernization actions counterbalance margin and decarbonization risks.

In contrast, while growth opportunities remain, investors should stay alert to the mounting challenge from regulatory developments that could limit future returns, especially if...

Read the full narrative on Northwest Natural Holding (it's free!)

Northwest Natural Holding is projected to reach $1.6 billion in revenue and $153.7 million in earnings by 2028. This forecast assumes annual revenue growth of 8.5% and represents a $50.4 million increase in earnings from the current level of $103.3 million.

Uncover how Northwest Natural Holding's forecasts yield a $52.75 fair value, a 10% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members give fair value estimates between US$40.86 and US$52.75, based on two user analyses. Seen alongside regulatory uncertainty risking margin compression, these views show how expectations about the company's future can diverge widely.

Explore 2 other fair value estimates on Northwest Natural Holding - why the stock might be worth as much as 10% more than the current price!

Build Your Own Northwest Natural Holding Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Northwest Natural Holding research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Northwest Natural Holding research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Northwest Natural Holding's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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