Northwestern Energy Group, Inc. · NASDAQ:NWE
Northwestern Energy — Q1 2026 Earnings Presentation
40 slides from Northwestern Energy's earnings presentation, Apr 30, 2026
Slide 1: First Quarter Earnings Webinar
First Quarter Earnings Webinar April 30, 2026 8-K Date: April 30, 2026
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 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
Slide 3: NorthWestern Energy
NorthWestern Energy 3 NorthWestern Energy Group, Inc. dba: NorthWestern Energy Ticker: NWE (Nasdaq) www.northwesternenergy.com Corporate Support Office 3010 West 69th Street Sioux Falls, SD 57108 (605) 978-2900 Director - Corporate Development & Investor Relations Officer Travis Meyer 605-978-2967 t
Slide 4: Recent Highlights
Recent Highlights ✓ Reported GAAP diluted EPS of $1.03 o Non-GAAP diluted EPS of $1.311 o Affirming 2026 earnings guidance range of $3.68 - $3.832 o Affirming long-term rate base and EPS growth rates targets of 4% - 6%3 ✓ Merger Progress o Received shareholder approval of NWE-BKH merger proposals o
Slide 5: First Quarter Financial Review
Thank youFirst Quarter Financial Review 5
Slide 6: First Quarter 2026 Financial Results
First Quarter 2026 Financial Results 6 (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.
Slide 7: First Quarter EPS vs Prior Period
First Quarter EPS vs Prior Period • GAAP: $0.22 or (17.6)% • Non-GAAP1: $0.09 or 7.4% First Quarter Net Income vs Prior Period • GAAP: $13.4 or (17.4)% • Non-GAAP1: $5.3 or 7.0% First Quarter 2026 Financial Results 7 (1) See “First Quarter 2026 Non-GAAP Earnings” and “Non-GAAP Financial Measures” sl
Slide 8: First Quarter 2026 Earnings Drivers
First Quarter 2026 Earnings Drivers 8 (1) Utility Margin is a non-GAAP measure. See appendix slide titled “Reconciling Gross Margin to Utility Margin” for additional disclosure. (2) See “First Quarter 2026 Non-GAAP Earnings” and “Non-GAAP Financial Measures” slides that follow. After-Tax EPS vs Prio
Slide 9: First Quarter 2026 Utility Margin Bridge
First Quarter 2026 Utility Margin Bridge 9 Pre-Tax Millions vs Prior Year Note: Utility Margin is a non-GAAP measure. See appendix slide titled “Reconciling Gross Margin to Utility Margin” for additional disclosure. (1) Including a $3.2 million increase due to acquisition of Energy West Operations.
Slide 10: First Quarter 2026 Non-GAAP Earnings
We estimate weather to be a $14.4 million pre-tax detriment as compared to normal, and a $16.6 million detriment as compared to first quarter 2025. (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
Slide 11: Strong Growth Outlook
11 Affirming 2026 Non-GAAP EPS Guidance of $3.68 - $3.83 per diluted share ✓ Affirming long-term growth rate from 2024 base1 • EPS growth of 4% to 6% • Rate base growth of 4% to 6% • Continued focus on closing the gap between earned & authorized returns ✓ $3.2 billion 5-year capital plan including a
Slide 12: Regulated Utility Five-Year Capital Plan
Highly diversified, executable, and low-risk critical capital investment plan. Regulated Utility Five-Year Capital Plan (millions) 12
Slide 13: Business Updates
Thank youBusiness Updates 13
Slide 14: South Dakota Wildfire Bill
14 South Dakota Wildfire Bill No Strict Liability: • Strict liability cannot be applied to utility operations alleged to have caused wildfire-related damages Legal Protections for Providers: • Rebuttable presumption that a valid and current wildfire mitigation plan is reasonable preparation for, and
Slide 15: Merger with Black Hills Benefits Stakeholders
15 Merger with Black Hills Benefits Stakeholders Strategic combination represents a highly attractive value creation opportunity for both companies. Increases Scale Position and Growth Increases the combined company target EPS growth rate to 5-7%, supported by the doubling of each company’s rate bas
Slide 16: Merger with Black Hills Timeline
Merger with Black Hills Timeline 16 ✓ Filed joint applications for approval in Montana, Nebraska, and South Dakota in Q4 2025 ✓ Nebraska hearing held on April 7, 2026; final order anticipated in Q2 2026 ✓ Settlements reached with certain key intervenors in Montana, Nebraska, and South Dakota o Monta
Slide 17: Data Center Process (Montana & South Dakota)
17 Data Center Process (Montana & South Dakota) Data Center Request • Load & Location • Supply Potential • Customer/Developer Required Timing Queue Count: 8 High-Level Assessment • Viability Assessment • Southwest Power Pool Screening • High Level Cost Estimate Queue Count: 4 Energy Service Agreemen
Slide 18: Large-Load Customers
✓ Montana ▪ Expected to be served by overall utility portfolio, which is long capacity beginning in 2026 ▪ Diversified and highly carbon-free generating portfolio ▪ Submitted a Large New Load tariff rule proposal with the MPSC in March 2026 ✓ South Dakota ▪ Significant indications of interest ▪ Any
Slide 19: Colstrip Transaction Overview
Colstrip Transaction Overview 19 Announcement: Effective Date: Capacity: Acquisition Price: Status Update: Puget July 2024 December 31, 2025 370 MW (185 MW each of units 3 & 4) $0.0 Signed contract in October 2025 to sell the dispatchable capacity and associated energy through late 2027. Revenue fro
Slide 20: The NorthWestern Value Proposition
8% to 10% Total Return >10% Total Return Incremental Opportunities: > 6% EPS Growth Approximately 4% Dividend Yield Base Capital Plan: 4% to 6% EPS Growth ✓ Data centers & new large- load opportunities ✓ FERC Regional Transmission ✓ Incremental generating capacity (subject to successful resource pro
Slide 21: Conclusion
Conclusion Pure Electric & Gas Utility Solid Utility Foundation Best Practices Corporate Governance Attractive Future Growth Prospects Strong Earnings & Cash Flows 21 The pending merger with Black Hills Corporation will combine the strengths of both companies, resulting in an organization with great
Slide 22: Appendix
Thank youAppendix: 22
Slide 23: Rate base and authorized returns by jurisdiction
(1) The revenue requirement associated with the FERC regulated portion of Montana electric transmission and ancillary services are included as revenue credits to our MPSC jurisdictional customers. Therefore, we do not separately reflect FERC authorized rate base or authorized returns. (2) The Montan
Slide 24: First Quarter 2026 Financial Results
First Quarter 2026 Financial Results 24 (1) Utility Margin is a non- GAAP Measure. See appendix slide titled “Reconciling Gross Margin to Utility Margin” for additional disclosure. Note: Subtotal variances may exist due to rounding. Appendix
Slide 25: Utility Margin (Q1)
Utility Margin (Q1) ($ in millions) Three Months Ended March 31, 2026 2025 Variance Electric $ 271.8 $ 242.7 $ 29.1 12.0% Natural Gas 80.2 85.7 (5.5) (6.4%) Total Utility Margin1 $ 352.0 $ 328.4 $ 23.6 7.2% (1) Utility Margin is a non-GAAP Measure. See appendix slide titled “Reconciling Gross Margin
Slide 26: Operating Expenses (Q1)
Operating Expenses (Q1) Increase in operating expenses due to the following factors: $ 10.1 Electric generation maintenance (Including $6.4 million and $3.9 million due to the acquisition of the Puget Interests and Avista Interests, respectively) 4.4 Depreciation expense due to plant additions and h
Slide 27: Operating to Net Income (Q1)
Operating to Net Income (Q1) ($ in millions) Three Months Ended March 31, 2026 2025 Variance Operating Income $ 114.1 $ 124.7 ($10.6) (8.5%) Interest expense, net (39.9) (36.5) 3.4 9.3% Other income, net 3.1 3.9 (0.8) (20.5%) Income Before Income Taxes 77.3 92.1 (14.8) (16.1%) Income tax expense (13
Slide 28: Tax Reconciliation (Q1)
Tax Reconciliation (Q1) 28 Appendix
Slide 29: Segment Results (Q1)
Segment Results (Q1) 29 Appendix *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 merger
Slide 30: Electric Segment (Q1)
Electric Segment (Q1) (1) Utility Margin is a non-GAAP Measure. See appendix slide titled “Reconciling Gross Margin to Utility Margin” for additional disclosure. 30 Appendix
Slide 31: Natural Gas Segment (Q1)
Natural Gas Segment (Q1) 31 Appendix (1) Utility Margin is a non-GAAP Measure. See appendix slide titled “Reconciling Gross Margin to Utility Margin” for additional disclosure.
Slide 32: First Quarter 2026 Cash Flow
Cash from Operating Activities increased by $6.0 million. The increase in cash provided by working capital is primarily due to a decrease in our net cash outflows for energy supply costs, as shown in the table below. Funds from Operations decreased by $15.1 million over prior period. Net Under-Colle
Slide 33: Balance Sheet
Balance Sheet 33 Appendix Debt to Total Capitalization slightly down from last quarter and inside our targeted 50% - 55% range.
Slide 34: Reconciling Gross Margin to Utility Margin
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 associated reg
Slide 35: PCCAM Impact by Quarter
PCCAM Impact by Quarter 35 Appendix Pre-Tax $ Millions – Shareholder (Detriment) Benefit Note: Subtotal variances may exist due to rounding.
Slide 36: Qualified Facility Earnings Adjustment
Qualified Facility Earnings Adjustment 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 / losses associated with these contracts are born by shareholders, not customers.
Slide 37: Non-GAAP Financial Measures
Non-GAAP Financial Measures 37 Appendix 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) 9.8 1.1
Slide 38: Non-GAAP Financial Measures
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 “non-GAAP fi
Slide 39: Additional Merger Related Disclosures
Additional Merger Related Disclosures 39 Appendix 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
Slide 40: Thank you
Thank youDelivering a bright future 40
NorthWestern Energy Group — Q1 2026 Earnings Presentation on 6ix