Southwest Gas Bets on Insider CFO for Its Regulated Future

LAS VEGAS, NV – November 26, 2025 – In a move that speaks volumes about its strategic direction, Southwest Gas Holdings, Inc. (NYSE: SWX) has named Justin S. Forsberg its new Senior Vice President and Chief Financial Officer. The internal promotion, effective December 1, 2025, is far more than a simple line-item change on the executive roster. It is a clear affirmation of the company’s recent, transformative pivot to a pure-play regulated natural gas utility and a vote of confidence in the leadership that helped engineer it.

Forsberg, who currently serves as Vice President of Investor Relations and Treasurer, will succeed Robert J. Stefani. His appointment signals a focus on continuity, strategic execution, and deep-seated expertise in the very business model that now defines Southwest Gas's future. For investors and analysts watching the utility sector, this move provides a crucial insight into how the company intends to navigate its next chapter: with a steady hand on the financial tiller, guided by a leader who was instrumental in charting the new course.

A Deliberate Pivot to Pure-Play Utility

To fully appreciate the significance of Forsberg's appointment, one must understand the profound strategic shift Southwest Gas has just completed. Over the past year, the company has methodically exited its unregulated construction services business, Centuri, culminating in a full divestiture that generated over $524 million and fundamentally reshaped its corporate identity. This wasn't just a sale; it was a strategic rebirth.

By shedding its more volatile, market-dependent construction arm, Southwest Gas has transformed into a pure-play regulated utility. This move drastically de-risks the company's profile, offering investors a more stable and predictable earnings stream tied to its core business of distributing natural gas to over two million customers in Arizona, Nevada, and California. The financial markets have already validated this strategy. Following the Centuri exit, S&P Global Ratings upgraded Southwest Gas Holdings to 'BBB+' with a stable outlook, explicitly citing the successful transformation.

This new identity requires a specific type of financial leadership—one grounded in the nuances of regulatory frameworks, long-term capital planning, and disciplined investor communications. The promotion of an insider who was deeply involved in this transition underscores the board's commitment to seeing this strategy through.

A Smooth and Planned Leadership Transition

Executive changes, especially at the CFO level, can often spook the market. However, the departure of outgoing CFO Robert J. Stefani appears to be a well-managed and planned succession. The company first announced on November 5 that Stefani would be leaving by mutual agreement to pursue other opportunities, providing a clear runway for the transition. Importantly, the company confirmed his departure was not related to any disagreements over accounting or financial disclosure.

Stefani, who joined in 2022 from Exelon, was praised for his role in executing the very strategy that led to the pure-play model. His separation agreement, which includes cash payments and prorated vesting of stock units, points to a managed exit rather than an abrupt departure. By launching an internal and external search before ultimately promoting from within, Southwest Gas projected an image of methodical governance. This smooth handover ensures that financial leadership remains stable as the company enters a critical execution phase, preventing the disruption that could have accompanied a more sudden change.

The Right Leader for a New Era

Justin Forsberg's resume reads like a blueprint for a modern utility CFO. His promotion is a testament to his direct contributions, with President and CEO Karen S. Haller stating he has been "instrumental in our transition to a fully regulated natural gas business." This endorsement from the top signals that Forsberg is not just a qualified candidate but a key architect of the very strategy he will now be tasked with financing.

His career path provides a compelling narrative. Forsberg built a strong foundation in public accounting as a Manager at Deloitte & Touche LLP before spending nearly 13 years at IDACORP, Inc., and its regulated subsidiary, Idaho Power Company. This extensive experience within a regulated electric utility has imbued him with a deep understanding of the unique financial ecosystem of utilities—from navigating complex rate cases to managing large-scale, long-term capital projects.

His most recent roles are particularly telling. As Director of Investor Relations & Treasury at IDACORP and subsequently as VP of Investor Relations and Treasurer at Southwest Gas, Forsberg has been at the nexus of corporate finance and market communication. In an era where a company's story is as important as its balance sheet, his expertise in engaging with capital markets, credit rating agencies, and the investment community is a critical asset. He is uniquely positioned to articulate Southwest Gas's new, focused value proposition to a market that prizes stability and predictable returns.

"I am honored by the trust Karen and the Board of Directors have placed in me," Forsberg stated in the announcement. "Together, we'll continue to execute our strategic priorities and deliver value for our stockholders." This alignment is precisely what investors look for in a new financial chief.

Financing Growth and Sustainability

Forsberg inherits a clear, albeit challenging, mandate. With its strategic direction set, Southwest Gas is embarking on a period of significant investment. The company has reaffirmed its 2025 utility net income guidance of $265 million to $275 million and laid out an ambitious capital expenditure plan totaling $880 million for 2025 and a staggering $4.3 billion through 2029. These funds are earmarked for supporting robust customer growth—currently at a 1.8% annual rate—as well as critical system enhancements and pipeline replacements.

The primary task for the new CFO will be to finance this growth prudently while delivering on a projected 6% to 8% compound annual growth rate for the company's rate base. This will require skillfully navigating the regulatory landscapes in its service territories, with new rates pending in California and efforts underway to secure alternative rate-making mechanisms in Arizona and Nevada. Forsberg's ability to manage these processes will directly impact the company's ability to earn a fair return on its massive investments.

Furthermore, he must balance these capital demands with the company’s commitment to a competitive dividend and its pledge to innovate “sustainable energy solutions.” This dual objective is the central challenge for today's utility CFOs: funding the infrastructure of today while investing in the cleaner energy of tomorrow, all while keeping shareholders satisfied. Forsberg’s leadership in capital allocation will determine how effectively Southwest Gas can integrate sustainability initiatives into its regulated financial framework, turning ESG goals into tangible, rate-supported projects. His appointment solidifies a leadership team poised to execute a focused, long-term strategy built on the bedrock of a pure-play regulated utility model.