Northwestern Energy Group, Inc. · NASDAQ:NWE
Northwestern Energy — Q2 2026 Earnings Presentation
50 slides from Northwestern Energy's earnings presentation, Jul 30, 2026
Slide 1: Second Quarter Earnings Webinar
Second Quarter Earnings Webinar July 30, 2026 8-K Date: July 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 $0.40 o Non-GAAP diluted EPS of $0.501 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 approvals from the Nebraska PSC, South Dakota PUC,
Slide 5: Second Quarter Financial Review
Thank youSecond Quarter Financial Review 5
Slide 6: Second Quarter 2026 Financial Results
Second 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: Second Quarter EPS vs Prior Period
Second Quarter EPS vs Prior Period • GAAP: $0.05 or 14.3% • Non-GAAP1: $0.10 or 25.0% Second Quarter Net Income vs Prior Period • GAAP: $3.8 or 17.9% • Non-GAAP1: $7.0 or 29.0% Second Quarter 2026 Financial Results 7 (1) See “Second Quarter 2026 Non-GAAP Earnings” and “Non-GAAP Financial Measures” s
Slide 8: Year-to-Date EPS vs Prior Period
Year-to-Date EPS vs Prior Period • GAAP: $0.17 or (10.6)% • Non-GAAP1: $0.19 or 11.7% Year-to-Date Net Income vs Prior Period • GAAP: $9.7 or (9.9)% • Non-GAAP1: $12.2 or 12.3% Year-to-Date 2026 Financial Results 8 (1) See “Year-to-Date 2026 Non-GAAP Earnings” and “Non-GAAP Financial Measures” slide
Slide 9: Second Quarter 2026 Earnings Drivers
Second Quarter 2026 Earnings Drivers 9 (1) Utility Margin is a non-GAAP measure. See appendix slide titled “Reconciling Gross Margin to Utility Margin” for additional disclosure. (2) See “Second Quarter 2026 Non-GAAP Earnings” and “Non-GAAP Financial Measures” slides that follow. After-Tax EPS vs Pr
Slide 10: Second Quarter 2026 Utility Margin Bridge
Second Quarter 2026 Utility Margin Bridge 10 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 $2.0 million increase due to acquisition of Energy West Operations
Slide 11: Second Quarter 2026 Non-GAAP Earnings
We estimate weather to be a $0.9 million pre-tax detriment as compared to normal, and a $1.6 million benefit as compared to second 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 the
Slide 12: Strong Growth Outlook
12 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 13: Regulated Utility Five-Year Capital Plan
Highly diversified, executable, and low-risk critical capital investment plan. Regulated Utility Five-Year Capital Plan (millions) 13
Slide 14: Business Updates
Thank youBusiness Updates 14
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 April 7, 2026; unanimous approval of settlements received May 19, 2026 ✓ South Dakota hearing held and unanimous approval of settlements received June
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: 6 (8 in Q1 2026) High-Level Assessment • Viability Assessment • Southwest Power Pool Screening • High Level Cost Estimate 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: 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 20: Conclusion
Conclusion Pure Electric & Gas Utility Solid Utility Foundation Best Practices Corporate Governance Attractive Future Growth Prospects Strong Earnings & Cash Flows 20 The pending merger with Black Hills Corporation will combine the strengths of both companies, resulting in an organization with great
Slide 21: Appendix
Thank youAppendix: 21
Slide 22: Colstrip Transaction Overview
Colstrip Transaction Overview 22 Announcement: Effective Date: Capacity: Acquisition Price: Status Update: Puget July 2024 December 31, 2025 370 MW (185 MW each of units 3 & 4) $0.0 Signed contract in October 2025 to sell the dispatchable capacity and associated energy through late 2027. Revenue fro
Slide 23: Rate Base and Authorized Returns by Jurisdiction
(1) The revenue requirement associated with the FERC regulated portion of Montana electric transmission and ancillary services are included as revenue credits to our MPSC jurisdictional customers. Therefore, we do not separately reflect FERC authorized rate base or authorized returns. (2) The Montan
Slide 24: Second Quarter Appendix
Thank youSecond Quarter Appendix 24
Slide 25: Second Quarter 2026 Financial Results
Second Quarter 2026 Financial Results 25 (1) Utility Margin is a non- GAAP Measure. See appendix slide titled “Reconciling Gross Margin to Utility Margin” for additional disclosure. Note: Subtotal variances may exist due to rounding. Appendix
Slide 26: Utility Margin (Q2)
Utility Margin (Q2) ($ in millions) Three Months Ended June 30, 2026 2025 Variance Electric $ 251.4 $ 219.8 $ 31.6 14.4% Natural Gas 51.4 47.6 3.8 8.0% Total Utility Margin1 $ 302.8 $ 267.4 $ 35.4 13.2% Increase in utility margin due to the following factors: $ 13.8 Base rates 7.3 Electric retail vo
Slide 27: Operating Expenses (Q2)
Operating Expenses (Q2) Increase in operating expenses due to the following factors: $ 9.0 Electric generation maintenance (Including $6.4 million and $3.7 million due to the acquisition of the Colstrip Puget Interests and Avista Interests, respectively) 4.6 Depreciation expense due to plant additio
Slide 28: Operating to Net Income (Q2)
Operating to Net Income (Q2) ($ in millions) Three Months Ended June 30, 2026 2025 Variance Operating Income $ 64.2 $ 60.8 $3.4 5.6% Interest Expense, net (40.3) (36.3) 4.0 11.0% Other Income, net 4.5 0.1 4.4 4400.0% Income Before Income Taxes 28.5 24.6 3.9 15.9% Income Tax Expense (3.5) (3.4) 0.1 2
Slide 29: Tax Reconciliation (Q2)
Tax Reconciliation (Q2) 29 Appendix
Slide 30: Segment Results (Q2)
Segment Results (Q2) 30 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 31: Electric Segment (Q2)
Electric Segment (Q2) (1) Utility Margin is a non-GAAP Measure. See appendix slide titled “Reconciling Gross Margin to Utility Margin” for additional disclosure. 31 Appendix
Slide 32: Natural Gas Segment (Q2)
Natural Gas Segment (Q2) 32 Appendix (1) Utility Margin is a non-GAAP Measure. See appendix slide titled “Reconciling Gross Margin to Utility Margin” for additional disclosure.
Slide 33: 2026 Year-to-Date Appendix
Thank you2026 Year-to-Date Appendix 33
Slide 34: Year-to-Date 2026 Non-GAAP Earnings
We estimate weather to be a $15.3 million pre-tax detriment as compared to normal, and a $15.0 million detriment as compared to second quarter 2025. Year-to-Date 2026 Non-GAAP Earnings 34 Note: Subtotal variances may exist due to rounding. Appendix (1) As a result of the adoption of Accounting Stand
Slide 35: Year-to-Date 2026 Financial Results
Year-to-Date 2026 Financial Results 35 (1) Utility Margin is a non- GAAP Measure. See appendix slide titled “Reconciling Gross Margin to Utility Margin” for additional disclosure. Note: Subtotal variances may exist due to rounding. Appendix
Slide 36: Utility Margin (YTD)
Utility Margin (YTD) ($ in millions) Six Months Ended June 30, 2026 2025 Variance Electric $ 523.2 $ 462.6 $ 60.6 13.1% Natural Gas 131.6 133.3 (1.7) (1.3%) Total Utility Margin1 $ 654.8 $ 595.9 $ 58.9 9.9% (1) Utility Margin is a non-GAAP Measure. See appendix slide titled “Reconciling Gross Margin
Slide 37: Operating Expenses (YTD)
Operating Expenses (YTD) Increase in operating expenses due to the following factors: $ 19.1 Electric generation maintenance (Including $12.7 million and $7.6 million due to the acquisition of the Colstrip Puget Interests and Avista Interests, respectively) 9.0 Depreciation expense due to plant addi
Slide 38: Operating to Net Income (YTD)
Operating to Net Income (YTD) ($ in millions) Six Months Ended June 30, 2026 2025 Variance Operating Income $ 178.4 $ 185.5 ($7.1) (3.8%) Interest Expense, net (80.2) (72.8) 7.4 10.2% Other Income, net 7.6 4.0 3.6 90.0% Income Before Income Taxes 105.7 116.8 (11.1) (9.5%) Income Tax Expense (17.3) (
Slide 39: Tax Reconciliation (YTD)
Tax Reconciliation (YTD) 39 Appendix
Slide 40: Segment Results (YTD)
Segment Results (YTD) 40 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 merge
Slide 41: Electric Segment (YTD)
Electric Segment (YTD) (1) Utility Margin is a non-GAAP Measure. See appendix slide titled “Reconciling Gross Margin to Utility Margin” for additional disclosure. 41 Appendix
Slide 42: Natural Gas Segment (YTD)
Natural Gas Segment (YTD) 42 Appendix (1) Utility Margin is a non-GAAP Measure. See appendix slide titled “Reconciling Gross Margin to Utility Margin” for additional disclosure.
Slide 43: Year-to-Date 2026 Cash Flow
Cash from Operating Activities increased by $21.6 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 $12.9 million over prior period. Net Under-Coll
Slide 44: Balance Sheet
Balance Sheet 44 Appendix Debt to Total Capitalization slightly up from last quarter and just above our targeted 50% - 55% range.
Slide 45: 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 46: PCCAM Impact by Quarter
PCCAM Impact by Quarter 46 Appendix Pre-Tax $ Millions – Shareholder (Detriment) Benefit Note: • Effective February 1, 2026 the cost sharing mechanism of the PCCAM was suspended on an interim basis pending further review by the MPSC. • Subtotal variances may exist due to rounding.
Slide 47: 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 48: Non-GAAP Financial Measures
Non-GAAP Financial Measures 48 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 49: 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 50: Thank you
Thank youDelivering a bright future 50
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