Aug 5, 2026, 4:29 PM ETUtilities

Black Hills Corp. — Second Quarter 2026 Earnings Summary

BKHBLACK HILLS CORP

Source

Financial Performance

GAAP net income available for common stock was $38.2 million for the three months ended June 30, 2026, compared to $27.5 million in the same period in 2025.
GAAP diluted EPS was $0.50 for the three months ended June 30, 2026, compared to $0.38 in the same period in 2025.
Year-to-date GAAP net income available for common stock was $169.2 million for the six months ended June 30, 2026, compared to $161.7 million in the same period in 2025.
Year-to-date GAAP diluted EPS was $2.23 for the six months ended June 30, 2026, compared to $2.24 in the same period in 2025.
Adjusted earnings were $41.5 million for the three months ended June 30, 2026, compared to $27.5 million in the same period in 2025.
Adjusted diluted EPS was $0.54 for the three months ended June 30, 2026, compared to $0.38 in the same period in 2025.
Year-to-date adjusted earnings were $176.6 million for the six months ended June 30, 2026, compared to $161.7 million in the same period in 2025.
Year-to-date adjusted diluted EPS was $2.33 for the six months ended June 30, 2026, compared to $2.24 in the same period in 2025.
Consolidated revenue was $452.8 million for the three months ended June 30, 2026, compared to $439.0 million in the same period in 2025.
Consolidated revenue was $1,233.5 million for the six months ended June 30, 2026, compared to $1,244.2 million in the same period in 2025.
Operating expenses were $355.8 million for the three months ended June 30, 2026, compared to $356.5 million in the same period in 2025.
Operating expenses were $934.5 million for the six months ended June 30, 2026, compared to $956.8 million in the same period in 2025.
Net interest expense was $51.6 million for the three months ended June 30, 2026, compared to $48.9 million in the same period in 2025.
Net interest expense was $103.5 million for the six months ended June 30, 2026, compared to $100.3 million in the same period in 2025.
Electric Utilities operating income increased $12.1 million in the second quarter and $16.9 million year-to-date, primarily driven by new rates and rider recovery.
Gas Utilities operating income increased $7.6 million in the second quarter and $1.0 million year-to-date, primarily driven by new rates and rider recovery.
Corporate and Other operating loss increased $5.2 million in the second quarter and $6.3 million year-to-date, primarily due to costs related to the pending merger with NorthWestern.

Guidance and Future Outlook

Black Hills reaffirmed 2026 adjusted earnings guidance in the range of $4.25 to $4.45 per share, excluding merger-related costs.
Guidance assumptions include normal weather conditions, constructive regulatory outcomes, and an effective tax rate of approximately 14% for the full year.
Guidance assumes an increase in operations and maintenance expense of approximately 3.5% off 2025's $580 million.
Guidance assumes equity issuance between $50 million and $70 million.
Management expressed confidence in delivering in the upper half of the 4% to 6% long-term EPS growth target.
The company expects to close the merger with NorthWestern Energy by year-end 2026, pending final regulatory approval from the Montana Public Service Commission.
The company is progressing toward definitive agreements for a 1.8 GW data center project in Wyoming.
The company has a large-load demand pipeline of more than 3 GW in Wyoming, with a current financial plan including 600 MW by 2030 driven by Microsoft's expansion and Meta's new AI data center.

Business Segments and Product Lines

Electric Utilities:
- Wyoming Electric recorded four new all-time customer load peaks year-to-date, with the most recent peak of 439 MW on July 20, 2026, representing a 16% increase over the June 20, 2025 peak.
- The 99-MW Lange II generation facility in South Dakota is under construction and expected to be in service by year-end 2026.
- South Dakota Electric filed a rate review request with the SDPUC seeking $51 million of new annual revenue.
- Colorado Electric filed a rate review request with the Colorado PUC seeking $184 million of cost recovery and $27 million of new annual revenue.
- Wyoming Electric filed a request for a new Large Customer Transmission Cost Adjustment Mechanism (LCTCAM) tariff.
- Wyoming Electric submitted its 2026 Integrated Resource Plan identifying a 95 MW capacity shortfall beginning in 2027.
- Wyoming Electric entered into an agreement to procure generation equipment for a prospective 1.8 GW data center customer, receiving $285 million in refundable advances by June 30, 2026, later amended to $377 million.
Gas Utilities:
- Kansas Gas received approval for an abbreviated rate review seeking $2.4 million in new annual revenue.
- Arkansas Gas filed a rate review request seeking $147 million of cost recovery and $29 million of new annual revenue.
- South Dakota Electric filed a rate review request with the WPSC seeking $5 million of new annual revenue.
Corporate and Other:
- The company issued 0.1 million shares of new common stock for net proceeds of $9 million during the second quarter.
- Year-to-date, the company issued 0.7 million shares of new common stock for net proceeds of $50 million under its at-the-market equity offering program.

Market and Competitive Landscape

Wyoming Electric has a track record of 20 consecutive years of increasing electric demand in the Cheyenne, Wyoming region.
The company serves more than 1.37 million natural gas and electric utility customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming.
The company achieved a 43% reduction in emissions intensity for electric utilities compared to 2005, on pace to achieve a 70% reduction by 2040.
Natural gas utilities reduced emissions by 25% since 2022, reflecting progress toward a net-zero by 2035 goal.

Risks and Challenges

The merger with NorthWestern Energy remains pending final regulatory approval from the Montana Public Service Commission.
Financial results were impacted by mild weather and higher financing and depreciation costs driven by capital investment and new assets in service.
Forward-looking statements are subject to risks including inflation, interest rates, commodity prices, supply chain constraints, labor availability, severe weather, wildfire, and cybersecurity incidents.
The company faces risks related to the accuracy of assumptions underlying earnings guidance and the ability to obtain timely regulatory approvals.

Management Commentary and Tone

Linn Evans, President and CEO, stated, "I'm extremely proud of our team and all we've accomplished in the first half of the year, delivering strong financial results and meaningful progress on our strategic initiatives."
Management highlighted the advancement of regulatory requests and execution of the customer-focused capital plan.
Management expressed confidence in the company's ability to deliver in the upper half of its long-term EPS growth target and create compelling upside potential.
Management noted the company looks forward to a brighter energy future through the merger with NorthWestern Energy.

Other Key Points

The board of directors approved a quarterly dividend of $0.703 per share payable on Sept. 1, 2026.
The dividend represents 56 consecutive years of increases, the second-longest track record in the electric and natural gas industry.
The merger with NorthWestern Energy is a tax-free, all-stock transaction announced on Aug. 19, 2025.
All remaining closing conditions were satisfied except for the Montana Public Service Commission approval.
South Dakota Electric and Wyoming Electric completed regulatory requirements for wildfire liability protections in July 2026.
The company published its 2025 Corporate Sustainability Report highlighting emission reduction goals and infrastructure investments.