Nov 5, 2026, 9:58 AM ETUtilities

NorthWestern Energy Group, Inc. — Third Quarter 2026 Earnings Summary

NWENORTHWESTERN ENERGY GROUP INC

Financial Performance

Third Quarter 2026 diluted GAAP EPS was $0.50, down from $0.62 in the same period in 2025.
Third Quarter 2026 adjusted diluted non-GAAP EPS was $0.58, down from $0.79 in 2025.
Net income for the quarter was $30.7 million, compared to $38.2 million in 2025.
Adjusted non-GAAP net income was $35.6 million, compared to $48.4 million in 2025.
Total revenues were $423.8 million for the quarter, up from $387.0 million in 2025; for the nine months ended September 30, 2026, total revenues were $1,313.9 million versus $1,196.3 million in 2025.
Electric revenues were $373.6 million for the quarter (up from $339.8 million in 2025); Gas revenues were $50.1 million (up from $47.2 million in 2025).
Operating expenses were $349.1 million for the quarter, up from $306.7 million in 2025.
Operating income was $74.6 million for the quarter, down from $80.3 million in 2025.
Interest expense was $42.2 million for the quarter, up from $38.4 million in 2025.
Income tax expense was $4.7 million for the quarter, with an effective tax rate of 13.2% compared to 18.7% in 2025.
Utility margin was $316.5 million for the quarter, an increase of 5.5% from $300.0 million in 2025.
Total net liquidity as of September 30, 2026, was approximately $349.5 million, including $6.5 million in cash and $343.0 million in revolving credit facility availability.

Affirmed 2026 non-GAAP earnings guidance range of $3.68 to $3.83 per diluted share.
Affirmed long-term diluted earnings per share growth guidance of 4% to 6%, based on a 2024 adjusted diluted non-GAAP EPS baseline of $3.40.
Affirmed a $3.2 billion capital investment plan for 2026-2030, expected to support rate base growth of 4% to 6% from a 2024 base of approximately $5.4 billion.
Anticipates completing the merger with Black Hills by year-end 2026, subject to regulatory approval.
Guidance assumptions include normal weather, exclusion of merger-related costs, approval of the PCCAM waiver, an effective income tax rate of 14% to 18%, and diluted average shares outstanding of approximately 61.8 million.
Equity issuances are expected to begin in 2027 to fund South Dakota generation investment.

Colstrip Units 3 and 4: Acquired Avista and Puget interests on January 1, 2026, for $0; incurred a $6.1 million net loss associated with these interests in Q3 2026.
Avista Interests: 222 MW capacity; operating costs of approximately $18.0 million annually are not yet reflected in utility base rates; power prices in designated contracts were insufficient to recover O&M expenses in Q3 2026.
Puget Interests: 370 MW capacity; 55% ownership share; costs isolated in a FERC-regulated subsidiary; signed a contract to sell dispatchable capacity and energy through late 2027 to offset estimated $30.0 million in annual O&M costs.
Data Center Development: Signed agreements with Atlas Power Holdings LLC and Quantica Infrastructure for 75 MW starting late 2027, with potential growth to 1,250 MW by 2030; terminated agreement with Sabey Data Centers.
South Dakota Generation: Filed for approval of the Hub City Energy Park (131 MW natural gas facility) to meet SPP capacity needs by 2030; recorded $42.6 million in non-refundable milestone payments as of September 30, 2026.
Transmission: Signed MOU to own 10% (300 MW) of the North Plains Connector LLC project, with construction planned to commence in 2028.

Serving approximately 850,300 customers in Montana, South Dakota, Nebraska, and Yellowstone National Park.
Montana Public Service Commission (MPSC) suspended the 90/10 PCCAM cost-sharing mechanism on an interim basis pending further review.
Filed application for a Large New Load (LNL) tariff rule to govern service for customers with loads of 5 MW or greater.
South Dakota Legislature passed Senate Bill 36, precluding common law strict liability claims for wildfire damages and establishing a statutory standard of care.
SPP updated resource accreditation requirements, necessitating additional accredited capacity by 2030.

Pending merger with Black Hills is subject to final approval by the Montana Public Service Commission, expected prior to November 12, 2026.
Costs associated with incremental ownership in Colstrip Units 3 and 4 created a temporary earnings headwind.
Regulatory disallowance of $30.9 million in capital costs for the Yellowstone County Generating Station recorded in Q4 2025.
Power prices in the Pacific Northwest were insufficient to recover operating expenses for Avista Interests under the PCCAM waiver.
Potential adverse regulatory outcomes regarding rate approvals, cost recovery for Colstrip interests, and environmental compliance.
Risks related to merger termination, delays, integration disruption, and reputational impact.

President and CEO Brian Bird described the quarter as "busy and productive," emphasizing execution on core business and long-term value delivery.
Management noted that Colstrip costs are a strategic decision to ensure reliable energy and support Montana economic development.
Expressed excitement about completing the merger with Black Hills to begin a new chapter for the combined company.
Confirmed commitment to a targeted dividend payout ratio of 60% to 70% over the long term on a standalone basis.

No specific analyst questions and answers were included in the provided press release text.

Announced a quarterly common stock dividend of $0.67 per share, payable December 1, 2026, to shareholders of record as of November 17, 2026.
Merger terms: Each NorthWestern share will convert into 0.98 shares of Black Hills common stock (to be renamed Bright Horizon Energy Corporation) if the merger closes before the November 17, 2026 record date.
Incurred $3.2 million in merger-related costs during the three months ended September 30, 2026, and $9.9 million for the nine months ended September 30, 2026.
Expanded revolving credit facilities: NW Corp increased capacity to $500.0 million; NWE Public Service increased capacity to $250.0 million.
Repaid $45.0 million of 2.66% South Dakota First Mortgage Bonds at maturity on September 30, 2026.
FERC approved cost-based rates for the subsidiary owning Puget Interests retroactive to January 1, 2026; an appeal by two MPSC commissioners to the Ninth Circuit was granted in abeyance until December 11, 2026.