NorthWestern Energy — Q3 2026 Earnings Summary

Financial Performance:

• Reported third quarter 2026 diluted GAAP EPS of $0.50, down from $0.62 in the same period in 2025.
• Reported third quarter 2026 adjusted diluted non-GAAP EPS of $0.58, down from $0.79 in the same period 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 for the quarter were $423.8 million, up from $387.0 million in 2025.
• Electric revenues were $373.6 million, up from $339.8 million in 2025; gas revenues were $50.1 million, up from $47.2 million in 2025.
• Consolidated utility margin was $316.5 million, an increase of 5.5% from $300.0 million in 2025.
• Consolidated operating income was $74.6 million, down from $80.3 million in 2025.
• Consolidated interest expense was $42.2 million, up from $38.4 million in 2025.
• Consolidated income tax expense was $4.7 million, with an effective tax rate of 13.2% compared to 18.7% in 2025.
• Total net liquidity was approximately $349.5 million as of September 30, 2026, including $6.5 million in cash and $343.0 million in revolving credit facility availability.

Guidance and Future Outlook:

• 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 funding capital expenditures through cash flows from operations, available credit sources, debt issuances, and future rate increases.
• Expects equity issuances to begin in 2027 to fund South Dakota generation investment.
• Anticipates completing the merger with Black Hills by year-end 2026, subject to regulatory approval.

Business Segments and Product Lines:

• Acquired Avista's 222 megawatts and Puget's 370 megawatts of generation capacity from Colstrip Units 3 and 4 on January 1, 2026, for $0.
• Operating costs associated with the Avista Interests are not currently reflected in utility customer rates; a temporary PCCAM tariff waiver was approved in January 2026 to recover a portion of approximately $18.0 million in annual incremental operating and maintenance costs.
• Power prices associated with the Avista Interests' designated power sales contracts were insufficient to recover operating and maintenance expenses during the quarter.
• The Puget Interests (increasing ownership share to 55%) are held by a FERC-regulated subsidiary; a contract to sell dispatchable capacity and energy from these interests was signed in October 2025 to offset estimated $30.0 million in annual incremental costs.
• Signed development agreements with Atlas Power Holdings LLC and Quantica Infrastructure to provide electric supply for data centers in Montana, with combined requirements expected to be 75 megawatts starting late 2027 and growing to up to 1,250 megawatts by 2030.
• Submitted a project to the Southwest Power Pool (SPP) for a 131 MW natural gas generating facility (Hub City Energy Park) in Aberdeen, South Dakota, with anticipated costs of approximately $470.0 million.
• Recorded $42.6 million in non-refundable milestone payments for turbines for the Hub City Energy Park as of September 30, 2026.
• Filed a Phase In Rate Plan Rider (PIRP) update with the SDPUC requesting $11.8 million in revenue for the July 2026 through June 2027 period, a $7.4 million increase from the prior period.

Market and Competitive Landscape:

• SPP updated resource accreditation and planning reserve margin requirements in response to growing reliability concerns, necessitating additional accredited capacity by 2030.
• Signed a nonbinding MOU to own 10% (300 MW) of the North Plains Connector Consortium project, with construction planned to commence in 2028 and operational by 2032.
• Entered a nonbinding letter of intent with Grid United to expand transmission development in the southwest corridor of Montana.
• South Dakota Legislature approved Senate Bill 36 in March 2026, establishing a statutory standard of care for wildfire-related damages and precluding common law strict liability claims for qualified utilities.

Risks and Challenges:

• Incurred $6.1 million of net loss associated with additional ownership interests in Colstrip Units 3 and 4, contributing to the decrease in GAAP EPS.
• A $30.9 million non-cash regulatory disallowance charge was recorded in Q4 2025 regarding capital costs for the Yellowstone County Generating Station (YCGS); a Motion for Reconsideration was filed in January 2026.
• The MPSC suspended the 90/10 cost-sharing mechanism of the PCCAM on an interim basis pending further review, with resolution anticipated in the first half of 2027.
• Two MPSC commissioners filed a motion with FERC requesting a rehearing on cost-based rates for the Puget Interests; the motion was denied by operation of law, and the decision is currently on appeal to the Ninth Circuit, which granted FERC's motion to hold the case in abeyance until December 11, 2026.
• The merger with Black Hills is subject to final approval from the Montana Public Service Commission, which is expected to consider the merger prior to November 12, 2026.
• Forward-looking statements note risks related to regulatory approvals, merger termination, cost overruns, and potential disruption to business operations.

Management Commentary and Tone:

• President and CEO Brian Bird described the quarter as "busy and productive," emphasizing the execution of core business and delivery of long-term value.
• Management characterized the Colstrip ownership costs as a "temporary earnings headwind" that ensures reliable energy and supports economic development in Montana.
• Management expressed excitement about completing the merger with Black Hills and beginning the next chapter for the combined company, Bright Horizon Energy Corporation.
• The tone remains focused on strategic execution despite temporary financial headwinds from acquisitions and regulatory proceedings.

Other Key Points:

• Declared a quarterly common stock dividend of $0.67 per share, payable December 1, 2026, to shareholders of record as of November 17, 2026.
• If the merger is completed before the November 17, 2026 record date, NorthWestern shares will convert into 0.98 shares of Black Hills common stock (to be renamed Bright Horizon Energy Corporation), and shareholders may become eligible for a $0.703 per share dividend declared by Black Hills.
• The merger agreement provides for an all-stock merger of equals between NorthWestern and Black Hills, with the new parent company named Bright Horizon Energy Corporation.
• 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, and NWE Public Service increased capacity to $250.0 million, effective August 20, 2026.
• Repaid $45.0 million of 2.66 percent South Dakota First Mortgage Bonds at maturity on September 30, 2026.
• Targeted dividend payout ratio remains 60% to 70% over the long term for the standalone entity through merger completion.
• The Sabey Data Centers development agreement has been terminated; agreements remain with Atlas Power Holdings LLC and Quantica Infrastructure.