Northwestern Energy Group, Inc. · NASDAQ:NWE
Northwestern Energy — Q2 2025 Earnings Presentation
53 slides from Northwestern Energy's earnings presentation, Jul 31, 2025
Slide 1: Second Quarter Earnings Webcast
Second Quarter Earnings Webcast July 31, 2025 8-K Date: July 31, 2025
Slide 2: Forward Looking Statements
NorthWestern Energy Forward Looking Statements During the course of this presentation, there will be forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements often address our expected future bus
Slide 3: Recent Highlights
Powerhouse at Hauser Dam on the Missouri Recent Highlights River (near Helena, Montana) ✓ Reported GAAP diluted EPS of $0.35 o Non-GAAP diluted EPS of $0.401 ✓ Initiating 2025 earnings guidance range of $3.53 - $3.652 ✓ Affirming long-term rate base and earnings per share growth rate targets of 4% -
Slide 4: The NorthWestern Value Proposition
The NorthWestern Value Proposition ~5% Dividend Yield + + Base Capital Plan: Incremental Opportunities: 4%-6% EPS Growth > 6% EPS Growth 2025-2029 Capital Investment $2.74 billion ($ Millions) of highly executable and ✓ Data centers & new large- low-risk capital load opportunities investment forecas
Slide 5: Second Quarter Financial Review
Thank you Second Quarter Financial Review 5
Slide 6: Second Quarter Financial Results
Second Quarter 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. 6
Slide 7: Second Quarter 2025 Financial Results
Second Quarter 2025 Financial Results Second Quarter Net Income vs Prior Period • GAAP: $10.5 million or -33.1% • Non-GAAP1: $8.1 million or -25.2% Second Quarter EPS vs Prior Period • GAAP: $0.17 or -32.7% • Non-GAAP1: $0.13 or -24.5% 7 1.) See “Second Quarter 2025 Non-GAAP Earnings” below and “Non
Slide 8: Year-to-Date 2025 Financial Results
Year-to-Date 2025 Financial Results Year-to-Date Net Income vs Prior Period • GAAP: $1.5 million or 1.6% • Non-GAAP1: $0.2 million or 0.2% Year-to-Date EPS vs Prior Period • GAAP: $0.02 or 1.3% • Non-GAAP1: No Change 8 1.) See “Year-to-Date 2025 Non-GAAP Earnings” below and “Non-GAAP Financial Measu
Slide 9: Second Quarter Earnings Drivers
Second Quarter Earnings Drivers After-Tax EPS vs Prior Year The decrease in diluted EPS during the quarter is primarily due to higher operating and other expenses partially offset by an improvement in Utility Margin. 9 1.) Utility Margin is a non-GAAP measure. See appendix slide titled “Reconciling
Slide 10: Second Quarter Utility Margin Bridge
Second Quarter Utility Margin Bridge Pre-Tax Millions vs. Prior Year $13.3 million or 5.5% increase in Utility Margin items that impact Net Income 10 Note: Utility Margin is a non-GAAP measure. See appendix slide titled “Reconciling Gross Margin to Utility Margin” for additional disclosure.
Slide 11: Second Quarter 2025 Non-GAAP Earnings
Second Quarter 2025 Non-GAAP Earnings We estimate weather to be a $2.5 million pre-tax detriment as compared to normal and a $1.8 million detriment as compared to second quarter 2024. (1) As a result of the adoption of Accounting Standard Update 2017-07 in March 2018, pension and other employee bene
Slide 12: 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). Stable Outlook at Moody’s, S&P, and Fitch. No equity expected to fund the current $2.74 billion 5-year c
Slide 13: Montana Electric Rate Review
Montana Electric Rate Review Key Dates MPSC approval of the partial Joint Party Settlement, along with • 6/9/25 - 6/18/25: MPSC Public Hearings NorthWestern’s proposals for YCGS and PCCAM, would allow for • 7/2/25: Implementation of revised interim rates recovery of increased operating costs and an
Slide 14: Montana Natural Gas Rate Review
Montana Natural Gas Rate Review Key Dates MPSC approval of the Joint Party Settlement would allow for • 6/9/25 - 6/18/25: MPSC Public Hearings recovery of increased operating costs and an opportunity to earn • 7/2/25: Interim rates remain in place as implemented Dec. 1, 2024 a fair return on the inv
Slide 15: Strong Growth Outlook
Strong Growth Outlook Initiating 2025 Non-GAAP EPS Guidance1 of $3.53 - $3.65 per diluted share ✓ Affirming long-term growth rates from 2024 base2 • EPS growth of 4% to 6% • Rate base growth of 4% to 6% • Continued focus on closing the gap between earned & authorized returns ✓ No equity expected to
Slide 16: 2025 Earnings Bridge
2025 Earnings Bridge This guidance range is based upon, but not limited to, the following major assumptions: • Final approval of all material aspects of NorthWestern's settlement position in the currently pending Montana general rate review; • Normal weather in our service territories; • An effectiv
Slide 17: Regulated Utility Five-Year Capital Forecast
Regulated Utility Five-Year Capital Forecast (millions) $2.74 billion of highly-executable and low-risk critical capital investment 17
Slide 18: Other Updates
Thank Other Updatesyou 18
Slide 19: Montana Wildfire Bill
Montana Wildfire Bill No Strict Liability: • Confirms strict liability cannot be applied to utility operations related to wildfire Legal Protections for Providers: • Negligence standard based on Montana specific circumstances • Rebuttable presumption utility acted reasonably if it substantially foll
Slide 20: Transmission Bill
Transmission Bill Allows Certificate of Public Convenience & Necessity (CPCN) for electric transmission to be issued by the Montana Public Service Commission (MPSC) • Greater confidence of fair and equitable return Bill allows greater confidence for investors providing the critical capital necessary
Slide 21: Large Load Customers
Large Load Customers ✓ Confidentially Announced: December 17, 2024 ▪ Company: Sabey Data Centers ▪ Load: 50 MW expected to grow to 250 MW ▪ Start Date: Mid-2027 ▪ Agreement Status: Letter of Intent ✓ Montana ✓ Announced: December 19, 2024 ▪ Expected to be served by overall utility portfolio, which ▪
Slide 22: Data Center Process (Montana & South Dakota)
Data Center Process (Montana & South Dakota) Data Center High-Level Letter of Intent (LOI) Energy Service Construction Request Assessment • Supply Development Agreement (ESA) • PM Assignment • Load & Location • Viability Assessment Estimates • Regulatory Approvals • Construction Kick-Off • Supply Po
Slide 23: Regional Transmission Opportunities
Regional Transmission Opportunities North Plains Connector North Plains Connector (NPC) Consortium Project • $3.6 billion, 415-mile, high-voltage direct-current transmission line connecting to Montana's Colstrip substation, bridging the eastern and western U.S. energy grids • Project awarded $700M G
Slide 24: Incremental Colstrip Capacity
Incremental Colstrip Capacity ✓ No cost acquisition of incremental Colstrip ownership allows us to reliably and affordably serve existing customers ▪ Provides energy independence & improves system reliability / integrity ▪ Moves portfolio from short capacity position to long capacity ▪ Maintains aff
Slide 25: Conclusion
Conclusion Best Attractive Pure Strong Solid Utility Practices Future Electric & Earnings & Foundation Corporate Growth Gas Utility Cash Flows Governance Prospects NorthWestern Energy Group, Inc. Corporate Support Office Investor Relations Officer dba: NorthWestern Energy 3010 West 69th Street Travi
Slide 26: Appendix
Thank Appendix: you 26
Slide 27: Rate Base & Authorized Return Summary
Appendix Rate Base & Authorized Return Summary (1) The revenue requirement associated with the FERC regulated portion of Montana electric transmission and ancillary services are included as revenue credits to our MPSC jurisdictional customers. Therefore, we do not separately reflect FERC authorized
Slide 28: Second Quarter Appendix
Thank you Second Quarter Appendix 28
Slide 29: Second Quarter Financial Results
Appendix Second Quarter Financial Results 1.) Utility Margin is a non- GAAP Measure. See appendix slide titled “Reconciling Gross Margin to Utility Margin” for additional disclosure. Note: Subtotal variances may exist due to rounding. 29
Slide 30: Utility Margin (Q2)
Appendix Utility Margin (Q2) ($ in millions) Three Months Ended June 30, 2025 2024 Variance Electric $ 219.8 $ 199.2 $ 20.6 10.3% Natural Gas 47.6 44.2 3.4 7.7% Total Utility Margin1 $ 267.4 $ 243.4 $ 24.0 9.9% Increase in utility margin due to the following factors: $ 17.9 Interim rates (subject to
Slide 31: Operating Expenses (Q2)
Appendix Operating Expenses (Q2) ($ in millions) Three Months Ended June 30, 2025 2024 Variance Operating & maintenance $ 62.3 $ 57.4 $ 4.9 8.5% Administrative & general 33.8 31.3 2.5 8.0% Property & other taxes 48.2 36.3 11.9 32.8% Depreciation & depletion 62.4 56.9 5.5 9.7% Operating Expenses $ 20
Slide 32: Operating to Net Income (Q2)
Appendix Operating to Net Income (Q2) ($ in millions) Three Months Ended June 30, 2025 2024 Variance Operating Income $ 60.8 $ 61.6 $ (0.8) (1.3%) Interest expense, net (36.3) (31.9) 4.4 13.8% Other income, net 0.1 6.2 (6.1) (98.4%) Income Before Taxes 24.6 35.9 (11.3) (31.5%) Income tax expense (3.
Slide 33: Tax Reconciliation (Q2)
Appendix Tax Reconciliation (Q2) 33
Slide 34: Segment Results (Q2)
Appendix Segment Results (Q2) *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 and some limited unr
Slide 35: Electric Segment (Q2)
Appendix Electric Segment (Q2) (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 aligns with
Slide 36: Natural Gas Segment (Q2)
Appendix Natural Gas Segment (Q2) (1) Utility Margin is a non-GAAP Measure. See appendix slide titled “Reconciling Gross Margin 36 to Utility Margin” for additional disclosure.
Slide 37: 2025 Year-to-Date Appendix
Thank you 2025 Year-to-Date Appendix 37
Slide 38: Year-to-Date 2025 Non-GAAP Earnings
Appendix Year-to-Date 2025 Non-GAAP Earnings We estimate weather to be a $0.3 million pre-tax detriment as compared to normal and a $1.6 million benefit as compared to the six months ending second quarter 2024. (1) As a result of the adoption of Accounting Standard Update 2017-07 in March 2018, pens
Slide 39: Year-to-Date Financial Results
Appendix Year-to-Date Financial Results 1.) Utility Margin is a non- GAAP Measure. See appendix slide titled “Reconciling Gross Margin to Utility Margin” for additional disclosure. Note: Subtotal variances may exist due to rounding. 39
Slide 40: Utility Margin (YTD)
Appendix Utility Margin (YTD) ($ in millions) Six Months Ended June 30, 2025 2024 Variance Electric $ 462.6 $ 427.1 $ 35.5 8.3% Natural Gas 133.3 117.0 16.3 13.9% Total Utility Margin1 $ 595.9 $ 544.1 $ 51.8 9.5% Increase in utility margin due to the following factors: $ 30.1 Interim rates (subject
Slide 41: Operating Expenses (YTD)
Appendix Operating Expenses (YTD) ($ in millions) Six Months Ended June 30, 2025 2024 Variance Operating & maintenance $ 119.0 $ 111.5 $ 7.5 6.7% Administrative & general 75.1 71.7 3.4 4.7% Property & other taxes 91.4 83.4 8.0 9.6% Depreciation & depletion 124.8 113.7 11.1 9.8% Operating Expenses $
Slide 42: Operating to Net Income (YTD)
Appendix Operating to Net Income (YTD) ($ in millions) Six Months Ended June 30, 2025 2024 Variance Operating Income $ 185.5 $ 163.7 $ 21.8 13.3% Interest expense, net (72.8) (62.9) 9.9 15.7% Other income, net 4.0 10.5 (6.5) (61.9%) Income Before Taxes 116.8 111.3 25.3 22.7% Income tax expense (18.6
Slide 43: Tax Reconciliation (YTD)
Appendix Tax Reconciliation (YTD) 43
Slide 44: Segment Results (YTD)
Appendix Segment Results (YTD) *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 and some limited un
Slide 45: Electric Segment (YTD)
Appendix Electric Segment (YTD) (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 aligns wit
Slide 46: Natural Gas Segment (YTD)
Appendix Natural Gas Segment (YTD) (1) Utility Margin is a non-GAAP Measure. See appendix slide titled “Reconciling Gross Margin to 46 Utility Margin” for additional disclosure.
Slide 47: Year-to-Date Cash Flow
Appendix Year-to-Date Cash Flow Cash from Operating Activities decreased by $12.3 million primarily due to lower collections of accounts receivable balances due to timing of colder weather and an increase in our net cash outflows for energy supply costs, as shown in the table below. Funds from Opera
Slide 48: Balance Sheet
Appendix Balance Sheet Debt to Total Capitalization up from last quarter and inside our targeted 50% - 55% range. 48
Slide 49: Reconciling Gross Margin to Utility Margin
Appendix Reconciling Gross Margin to Utility Margin Management believes that Utility Margin provides a useful measure for investors and other financial statement users to analyze our financial performance in that it excludes the effect on total revenues caused by volatility in energy costs and assoc
Slide 50: PCCAM Impact by Quarter Qualified Facility Earnings Adjustment
Appendix PCCAM Impact by Quarter Qualified Facility Earnings Adjustment Pretax millions – shareholder (detriment) benefit Our electric QF liability consists of unrecoverable costs associated with contracts covered under PURPA that are part of a 2002 stipulation with the MPSC and other parties. Risks
Slide 51: Non-GAAP Financial Measures
Appendix Non-GAAP Financial Measures Pre-Tax Adjustments ($ Millions) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Reported GAAP Pre-Tax Income $ 181.2 $ 156.5 $ 176.1 $ 178.3 $ 182.2 $ 144.2 $ 190.2 $ 182.4 $ 201.6 $ 214.7 Non-GAAP Adjustments to Pre-Tax Income: Weather 13.2 15.2 (3.4) (1.3) (
Slide 52: 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 53: Thank you
Thank you Delivering a bright future 53
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