Northwestern Energy Group, Inc. · NASDAQ:NWE
Northwestern Energy — Q4 2025 Earnings Presentation
52 slides from Northwestern Energy's earnings presentation, Feb 12, 2026
Slide 1: 2025 Year-End Earnings Webinar
2025 Year-End Earnings Webinar February 12, 2026 8-K Date: February 12, 2026
Slide 2: Forward-Looking Statements
Forward-Looking Statements Information in this communication, other than statements of historical facts, may constitute forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These s
Slide 3: NorthWestern Energy
NorthWestern Energy NorthWestern Energy Group, Inc. Corporate Support Office Director - Corporate Development dba: NorthWestern Energy 3010 West 69th Street & Investor Relations Officer Ticker: NWE (Nasdaq) Sioux Falls, SD 57108 Travis Meyer 3 www.northwesternenergy.com (605) 978-2900 605-978-2967 t
Slide 4: 2025 In Review
Powerhouse at Hauser Dam on the Missouri 2025 In Review River (near Helena, Montana) Missoula, Montana Executing on Strategic Initiatives • Announced agreement with Black Hills Corporation for an all-stock Merger of Equals o To create a premier regional regulated electric and natural gas utility com
Slide 5: Recent Highlights
Powerhouse at Hauser Dam on the Missouri Recent Highlights River (near Helena, Montana) Missoula, Montana Financial Results ✓ Reported GAAP diluted EPS of $2.94 o Non-GAAP diluted EPS of $3.581 ✓ Increasing quarterly dividend by 1.5% - to $0.67 per share2 ✓ Initiating 2026 earnings guidance range of
Slide 6: Financial Results
Thank you Financial Results 6
Slide 7: 2025 Financial Results
2025 Financial Results Fourth Quarter EPS vs Prior Period (unaudited) • GAAP: $0.59 or (45.0)% • Non-GAAP1: $0.04 or 3.5% Full-Year EPS vs Prior Period • GAAP: $0.71 or (19.5)% • Non-GAAP1: $0.18 or 5.3% 7 1.) See “2025 Non-GAAP Earnings” and “Non-GAAP Financial Measures” slides that follow.
Slide 8: Fourth Quarter 2025 Earnings Drivers (Unaudited)
Fourth Quarter 2025 Earnings Drivers (Unaudited) After-Tax EPS vs Prior Year 1.) Utility Margin is a non- GAAP measure. See appendix slide titled “Reconciling Gross Margin to Utility Margin” for additional disclosure. 2.) Release of a $7.4 million Unrecognized Tax Benefit in 2025 as compared to a $1
Slide 9: Fourth Quarter 2025 Non-GAAP Earnings
Fourth Quarter 2025 Non-GAAP Earnings We estimate weather to be a $10.6 million pre-tax detriment as compared to normal and a $2.3 million detriment as compared to fourth quarter 2024. Note: Subtotal variances may exist due to rounding. (1) As a result of the adoption of Accounting Standard Update 2
Slide 10: 2025 Year-Over-Year Earnings Drivers
2025 Year-Over-Year Earnings Drivers After-Tax EPS vs Prior Year 1.) Utility Margin is a non-GAAP measure. See appendix slide titled “Reconciling Gross Margin to Utility Margin” for additional disclosure. 2.) A $7.4 million benefit in 2025 (release of an Unrecognized Tax Benefit) as compared to a $2
Slide 11: 2025 Non-GAAP Earnings
2025 Non-GAAP Earnings (1) As a result of the adoption of Accounting Standard Update 2017- 07 in March 2018, pension and other employee benefit expense is now disaggregated on the GAAP income statement with portions now recorded in both OG&A expense and Other (Expense) Income lines. To facilitate be
Slide 12: Strong Growth Outlook
Strong Growth Outlook Initiating 2026 Non-GAAP EPS Guidance1 of $3.68 - $3.83 per diluted share ✓ Affirming long-term growth rate from 2024 base2 • EPS growth of 4% to 6% • Rate base growth of 4% to 6% ✓ $3.2 billion capital plan including approximately $300 million of increased investment for gener
Slide 13: Increasing Five-Year Capital Plan (millions)
Increasing Five-Year Capital Plan (millions) Reflects a 17% increase primarily due to the addition of a 131MW South Dakota generation 13 project. Highly executable and low-risk critical capital investment.
Slide 14: Credit, Cash Flow, and Financing Plans
Credit, Cash Flow, and Financing Plans FFO: Cash from Operations less Working Capital Adjustments. Debt: Long- & Short-term Debt (including unamortized debt issuance costs and pension liability). Targeting FFO-to-Debt above 14% to support credit ratings. No equity anticipated to fund 2026 capital pl
Slide 15: Business Updates
Thank you Business Updates 15
Slide 16: Merger with Black Hills Benefits Stakeholders
Merger with Black Hills Benefits Stakeholders Increases Scale Strengthens Position and Growth Balance Sheet Increases the combined company Substantial Long-Term Strong and predictable cash flows target EPS growth rate to 5-7%, support a customer-focused capital supported by the doubling of each Valu
Slide 17: Merger with Black Hills Timeline
Merger with Black Hills Timeline ✓ Filed joint applications for approval in Montana, Nebraska, and South Dakota in Q4 2025, with hearings expected in the second quarter of 2026 ✓ Filed joint application with FERC in Q4 2025 ✓ Filed S-4/Joint Proxy Statement on January 30, 2026 ✓ Shareholder votes sc
Slide 18: Large-Load Customers
Large-Load Customers Montana Large-Load Opportunities ✓ Montana ✓ Confidentially Announced: December 17, 2024 ▪ Expected to be served by overall utility portfolio, which is ▪ Company: Sabey Data Centers long capacity beginning in 2026 ▪ Load: 50 MW expected to grow to 200 MW ▪ Diversified and highly
Slide 19: Data Center Process (Montana & South Dakota)
Data Center Process (Montana & South Dakota) Letter of Intent (LOI) • Supply Development Estimates Energy Service Construction Data Center High-Level Request Assessment • Development Agreement Negotiations Agreement (ESA) • Project Management Assignment • Load & Location • Viability Assessment Queue
Slide 20: Colstrip Transaction Overview
Colstrip Transaction Overview Avista Puget Announcement: January 2023 July 2024 NorthWestern’s acquisition of Effective Date: December 31, 2025 December 31, 2025 Avista and Puget’s 592 MW of additional Colstrip capacity: Capacity: 222 MW 370 MW (111 MW each of units 3 & 4) (185 MW each of units 3 &
Slide 21: The NorthWestern Value Proposition
The NorthWestern Value Proposition Approximately 4% Dividend Yield + + Base Capital Plan: Incremental Opportunities: 4% to 6% EPS Growth > 6% EPS Growth 2026-2030 Capital Investment $3.21 billion ($ Millions) ✓ Data centers & new large- of highly executable and load opportunities low-risk capital in
Slide 22: Conclusion
Conclusion Best Practices Attractive Strong Pure Electric Solid Utility Corporate Future Growth Earnings & & Gas Utility Foundation Governance Prospects Cash Flows The pending merger with Black Hills Corporation will combine the strengths of both companies, resulting in an organization with greater
Slide 23: Appendix
Thank Appendix: you 23
Slide 24: 2026 Earnings Bridge
Appendix 2026 Earnings Bridge This guidance range is based upon, but not limited to, the following major assumptions: • Normal weather in our service territories; • Excludes costs related to the pending merger with Black Hills Corp.; • Approval of PCCAM waiver and power prices sufficient to recover
Slide 25: 2025 Year-Over-Year Utility Margin Bridge
Appendix 2025 Year-Over-Year Utility Margin Bridge Pre-Tax Millions vs Prior Year The $97.0 million or 9.0% increase in Utility Margin items that impact Net Income was primarily due to higher base rates and electric transmission revenues, partly offset by lower MT property tax tracker collections an
Slide 26: Rate Base & Authorized Return Summary
Appendix Rate Base & Authorized Return Summary (1) The revenue requirement associated with the FERC regulated portion of Montana electric transmission and ancillary services are included as revenue credits to our MPSC jurisdictional customers. Therefore, we do not separately reflect FERC authorized
Slide 27: Full-Year Appendix
Thank you Full-Year Appendix 27
Slide 28: Full-Year 2025 Financial Results
Appendix Full-Year 2025 Financial Results 1.) Utility Margin is a non- GAAP Measure. See appendix slide titled “Reconciling Gross Margin to Utility Margin” for additional disclosure. Note: Subtotal variances may exist due to rounding. 28
Slide 29: Utility Margin (Full Year)
Appendix Utility Margin (Full Year) ($ in millions) Twelve Months Ended December 31, 2025 2024 Variance Electric $ 963.4 $ 871.1 $ 92.3 10.6% Natural Gas 237.4 209.0 28.4 13.6% Total Utility Margin1 $ 1,200.8 $ 1,080.1 $ 120.7 11.2% Increase in utility margin due to the following factors: $ 93.3 Bas
Slide 30: Operating Expenses (Full Year)
Appendix Operating Expenses (Full Year) ($ in millions) Twelve Months Ended December 31, 2025 2024 Variance Operating & maintenance $ 284.9 $ 227.8 $ 57.1 25.1% Administrative & general 158.2 137.4 20.8 15.1% Property & other taxes 182.3 163.9 18.4 11.2% Depreciation & depletion 249.5 227.6 21.9 9.6
Slide 31: Operating to Net Income (Full Year)
Appendix Operating to Net Income (Full Year) ($ in millions) Twelve Months Ended December 31, 2025 2024 Variance Operating Income $ 325.8 $ 323.3 $ 2.5 0.8% Interest expense, net (150.4) (131.7) 18.7 14.2% Other income, net 12.1 23.0 (10.9) (47.4%) Income Before Income Taxes 187.6 214.7 (27.1) (12.6
Slide 32: Tax Reconciliation (Full Year)
Appendix Tax Reconciliation (Full Year) 32
Slide 33: Segment Results (Full Year)
Appendix Segment Results (Full Year) *Direct transmission expense excludes depreciation and depletion. (1) Utility Margin is a non-GAAP Measure. See appendix slide titled “Reconciling Gross Margin to Utility Margin” for additional disclosure. (2) Consists of unallocated corporate costs, including me
Slide 34: Electric Segment (Full Year)
Appendix Electric Segment (Full Year) (1) Included within this line is our lighting customer class, for which we have historically counted each lighting district as one customer. We have retroactively modified our customer counts to now reflect each lighting service as a customer as that better alig
Slide 35: Natural Gas Segment (Full Year)
Appendix Natural Gas Segment (Full Year) (1) Utility Margin is a non-GAAP Measure. See appendix slide titled “Reconciling Gross Margin to 35 Utility Margin” for additional disclosure.
Slide 36: Full-Year 2025 Cash Flow
Appendix Full-Year 2025 Cash Flow Cash from Operating Activities decreased by $12.3 million primarily due to merger transaction costs, lower collections of accounts receivable balances due to timing of colder weather, and an increase in our net cash outflows for energy supply costs, as shown in the
Slide 37: Balance Sheet
Appendix Balance Sheet Debt to Total Capitalization up from last quarter and inside our targeted 50% - 55% range. 37
Slide 38: Reconciling Gross Margin to Utility Margin
Appendix Reconciling Gross Margin to Utility Margin Management believes that Utility Margin provides a useful measure for investors and other financial statement users to analyze our financial performance in that it excludes the effect on total revenues caused by volatility in energy costs and assoc
Slide 39: PCCAM Impact by Quarter Qualified Facility Earnings Adjustment
Appendix PCCAM Impact by Quarter Qualified Facility Earnings Adjustment Pre-Tax $ Millions – Shareholder (Detriment) Benefit Note: Subtotal variances may exist due to Our electric QF liability consists of unrecoverable costs associated with rounding. contracts covered under PURPA that are part of a
Slide 40: Fourth Quarter Appendix
Thank you Fourth Quarter Appendix 40
Slide 41: Fourth Quarter Financial Results (Unaudited)
Appendix Fourth Quarter Financial Results (Unaudited) 1.) Utility Margin is a non- GAAP Measure. See appendix slide titled “Reconciling Gross Margin to Utility Margin” for additional disclosure. Note: Subtotal variances may exist due to rounding. 41
Slide 42: Utility Margin (Q4 Unaudited)
Appendix Utility Margin (Q4 Unaudited) ($ in millions) Three Months Ended December 31, 2025 2024 Variance Electric $ 238.2 $ 218.3 $ 19.9 9.1% Natural Gas 66.7 60.5 6.2 10.2% Total Utility Margin1 $ 304.9 $ 278.7 $ 26.2 9.4% Increase in utility margin due to the following factors: $ 28.1 Base rates
Slide 43: Operating Expenses (Q4 Unaudited)
Appendix Operating Expenses (Q4 Unaudited) ($ in millions) Three Months Ended December 31, 2025 2024 Variance Operating & maintenance $ 101.7 $ 60.4 $ 41.3 68.4% Administrative & general 36.4 30.8 5.6 18.2% Property & other taxes 44.8 38.8 6.0 15.5% Depreciation & depletion 61.9 57.0 4.9 8.6% Total
Slide 44: Operating to Net Income (Q4 Unaudited)
Appendix Operating to Net Income (Q4 Unaudited) ($ in millions) Three Months Ended December 31, 2025 2024 Variance Operating Income $ 60.0 $ 91.7 $ (31.7) (34.6%) Interest expense, net (39.2) (35.4) 3.8 10.7% Other income, net 3.0 3.4 (0.4) (11.8%) Income Before Income Taxes 23.8 59.7 (35.9) (60.1%)
Slide 45: Tax Reconciliation (Q4 Unaudited)
Appendix Tax Reconciliation (Q4 Unaudited) 45
Slide 46: Segment Results (Q4 Unaudited)
Appendix Segment Results (Q4 Unaudited) *Direct transmission expense excludes depreciation and depletion. (1) Utility Margin is a non-GAAP Measure. See appendix slide titled “Reconciling Gross Margin to Utility Margin” for additional disclosure. (1) Consists of unallocated corporate costs, including
Slide 47: Electric Segment (Q4 Unaudited)
Appendix Electric Segment (Q4 Unaudited) (1) Included within this line is our lighting customer class, for which we have historically counted each lighting district as one customer. We have retroactively modified our customer counts to now reflect each lighting service as a customer as that better a
Slide 48: Natural Gas Segment (Q4 Unaudited)
Appendix Natural Gas Segment (Q4 Unaudited) (1) Utility Margin is a non-GAAP Measure. See appendix slide titled “Reconciling Gross Margin 48 to Utility Margin” for additional disclosure.
Slide 49: Non-GAAP Financial Measures
Appendix Non-GAAP Financial Measures Pre-Tax Adjustments ($ Millions) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Reported GAAP Pre-Tax Income $ 156.5 $ 176.1 $ 178.3 $ 182.2 $ 144.2 $ 190.2 $ 182.4 $ 201.6 $ 214.7 $ 187.6 Non-GAAP Adjustments to Pre-Tax Income: Weather 15.2 (3.4) (1.3) (7.3)
Slide 50: Non-GAAP Financial Measures
Appendix Non-GAAP Financial Measures This presentation includes financial information prepared in accordance with GAAP, as well as other financial measures, such as Utility Margin, Adjusted Non-GAAP pretax income, Adjusted Non-GAAP net income and Adjusted Non-GAAP Diluted EPS that are considered “no
Slide 51: Additional Merger Related Disclosures
Appendix Additional Merger Related Disclosures No Offer or Solicitation This document is for informational purposes only and is not intended to and shall not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities, or a solicitation of any vote or approval, n
Slide 52: Thank you
Thank you Delivering a bright future 52
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