Energy

Black Hills Corp. Reports 2026 Second-Quarter Results and Reaffirms 2026 Earnings Guidance

Reaffirms 2026 adjusted earnings guidance in the range of $4.25 to $4.45 per share, excluding merger-related costsServed new all-time peak load at Wyoming Electric driven primarily by growing large-load demandProgressing toward completion of multiple definitive agreements for a 1.8 GW data center project in WyomingCompleted regulatory requirements to receive new wildfire liability protections in South Dakota and WyomingOn track to close merger with NorthWestern Energy pending approval from Monta

Black Hills CorporationAugust 5, 202626 min read
Black Hills Corp. Reports 2026 Second-Quarter Results and Reaffirms 2026 Earnings Guidance

About this update from Black Hills Corporation

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(NYSE: BKH) today announced financial results for the second quarter ended June 30, 2026. Net income available for common stock and earnings per share, diluted (EPS) for the three and six months ended June 30, 2026, compared to the three and six months ended June 30, 2025, were: "},{"type":"table","items":[{"val":[{"val":[{"type":"text","tagName":"p","content":" "}]},{"val":[{"type":"text","tagName":"p","content":" Three Months Ended June 30, "}]},{"val":[{"type":"text","tagName":"p","content":" "}]},{"val":[{"type":"text","tagName":"p","content":" Six Months Ended June 30, "}]}]},{"val":[{"val":[{"type":"text","tagName":"p","content":" "}]},{"val":[{"type":"text","tagName":"p","content":" 2026 "}]},{"val":[{"type":"text","tagName":"p","content":" "}]},{"val":[{"type":"text","tagName":"p","content":" 2025 "}]},{"val":[{"type":"text","tagName":"p","content":" "}]},{"val":[{"type":"text","tagName":"p","content":" 2026 "}]},{"val":[{"type":"text","tagName":"p","content":" "}]},{"val":[{"type":"text","tagName":"p","content":" 2025 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See additional details in the GAAP-to-Non-GAAP reconciliation table in the Use of Non-GAAP Financial Measures section below. Minor differences may result due to rounding. "}]}]},{"val":[{"val":[{"type":"text","tagName":"p","content":" "}]},{"val":[{"type":"text","tagName":"p","content":" "}]}]}]},{"type":"text","tagName":"p","content":" Second-quarter GAAP EPS was $0.50 compared to $0.38 in the same period in 2025. Second-quarter adjusted EPS was $0.54, excluding $0.04 of after-tax merger-related costs, compared to $0.38 in the same period in 2025. Financial results benefited from new rates and rider recovery, which more than offset higher financing and depreciation costs driven by capital investment and new assets in service. "},{"type":"text","tagName":"p","content":" Year-to-date GAAP EPS was $2.23 compared to $2.24 in the same period in 2025. Year-to-date adjusted EPS was $2.33, excluding $0.10 of after-tax merger-related costs, compared to $2.24 in the same period in 2025. Financial results benefited from new rates and rider recovery and cost management activities. These benefits more than offset $0.18 per share of impacts from mild weather and the impacts of higher financing and depreciation costs driven by capital investment and new assets in service. "},{"type":"text","tagName":"p","content":" \"I'm extremely proud of our team and all we've accomplished in the first half of the year, delivering strong financial results and meaningful progress on our strategic initiatives,\" said Linn Evans, president and CEO of Black Hills Corp. \"We continued to advance our regulatory requests and execute our customer-focused capital plan, which includes our new 99-MW Lange II generation facility in South Dakota to be in service by year-end. "},{"type":"text","tagName":"p","content":" \"We are also focused on serving our large-load demand pipeline of more than 3 GW in Wyoming. Our current financial plan includes 600 MW by 2030 driven by Microsoft's expansion of existing operations and Meta's new AI data center. We continue to make progress toward definitive agreements to serve a 1.8 GW data center project in Cheyenne, and other large-load customers, which would be additive to our plan. "},{"type":"text","tagName":"p","content":" \"These significant large-load opportunities and the solid performance of our core businesses provide confidence in our ability to deliver in the upper half of our 4% to 6% long-term EPS growth target, and create compelling upside potential. We also look forward to a brighter energy future for all our stakeholders through our merger with NorthWestern Energy with only one regulatory approval remaining,\" concluded Evans. "},{"type":"text","tagName":"p","content":" Merger with NorthWestern Energy Group, Inc. "},{"type":"list","bulletedList":true,"items":[{"val":[{"type":"text","tagName":"p","content":" On Aug. 19, 2025, Black Hills Corp. and NorthWestern Energy announced a tax-free, all-stock merger. The transaction is expected to close by year-end 2026, subject to the satisfaction of certain closing conditions and remaining regulatory approval from the Montana Public Service Commission. All other remaining approvals and conditions for closing were received or satisfied, including approvals by shareholders of both companies, the completion of the waiting period on the Hart-Scott-Rodino Act, and approvals by the Federal Energy Regulatory Commission and regulatory commissions in Nebraska and South Dakota. "}]}]},{"type":"text","tagName":"p","content":" SECOND-QUARTER 2026 HIGHLIGHTS AND RECENT UPDATES "},{"type":"text","tagName":"p","content":" Electric Utilities "},{"type":"list","bulletedList":true,"items":[{"val":[{"type":"text","tagName":"p","content":" On Aug. 4, South Dakota Electric filed a request with the South Dakota Public Utilities Commission (SDPUC) for recovery of costs related to its 99 MW, $320 million Lange II gas-fired generation project through a rider mechanism available under state law. The new facility under construction in Rapid City, South Dakota, is expected to be completed and in service during the fourth quarter of 2026 to replace generation resources planned for retirement and support updated reserve margin requirements. "}]},{"val":[{"type":"text","tagName":"p","content":" Year to date, Wyoming Electric recorded four new all-time customer load peaks driven primarily by growth in large-load data center demand. The new peaks advance a track record of 20 consecutive years of increasing electric demand in the Cheyenne, Wyoming region. The most recent peak of 439 MW on July 20, 2026, represents an increase of 16% over the peak of 379 MW on June 20, 2025.  "}]},{"val":[{"type":"text","tagName":"p","content":" In July, South Dakota Electric and Wyoming Electric completed regulatory requirements for wildfire liability protections outlined in legislation enacted in 2025 and early 2026. On July 9, 2026, Wyoming Electric received approval from the Wyoming Public Service Commission (WPSC) of the company's Wildfire Mitigation Plan. On July 2, 2026, South Dakota Electric submitted the company's plan to the SDPUC in accordance with the legislation requirements. "}]},{"val":[{"type":"text","tagName":"p","content":" On June 30, Wyoming Electric submitted its 2026 Integrated Resource Plan to the WPSC based on a 20-year planning period, including a near-term period through 2033, which identified a near-term capacity shortfall of 95 MW beginning in 2027. Based on its forecasts and analysis, Wyoming Electric recommends the addition of 36 MW of new natural gas-fired reciprocating internal combustion engines (RICE), 50 MW of battery storage, and energy market purchases to meet the identified resource need. Wyoming Electric's IRP does not address Large Power Contract Service (LPCS) tariff capacity needs, which are handled separately under customer-specific agreements. "}]},{"val":[{"type":"text","tagName":"p","content":" On June 19, Wyoming Electric filed a request with the WPSC to establish a new Large Customer Transmission Cost Adjustment Mechanism (LCTCAM) tariff. The LCTCAM provides a framework to directly recover transmission investment costs from LPCS customers who are served by, and benefit from, the transmission facility. The proposed mechanism is designed to ensure that customers not directly served by those facilities are protected from bearing those costs. The filing requests WPSC approval of the tariff by Sept. 1, 2026, with an effective date of Jan. 1, 2027. "}]},{"val":[{"type":"text","tagName":"p","content":" On June 12, Colorado Electric filed a rate review request with the Colorado Public Utilities Commission seeking approval to recover approximately $184 million of critical investments since its last rate review in 2024. The rate review requested $27 million of new annual revenue based on a capital structure of 51% equity and 49% debt and a return on equity of 10.5%. The company is seeking new rates in the first quarter of 2027. "}]},{"val":[{"type":"text","tagName":"p","content":" On April 22, Wyoming Electric entered into an agreement to procure long lead-time generation equipment with a prospective data center customer seeking to construct a 1.8 GW data center to be served under Wyoming Electric's LPCS tariff. The customer provided $285 million in refundable advances through June 30, 2026, in support of milestone payments to secure generation equipment. In July, the parties amended this generation reservation agreement to increase the total refundable advances to $377 million with a new maturity date of Aug. 31, 2026. Wyoming Electric continues to negotiate definitive agreements with the prospective customer. "}]},{"val":[{"type":"text","tagName":"p","content":" On March 18, South Dakota Electric filed a rate review request with the WPSC seeking approval to recover critical investments since its last rate review in 2014. The rate review requested $5 million of new annual revenue based on a capital structure of 53% equity and 47% debt and a return on equity of 10.5%. The company is seeking new rates in the first quarter of 2027. "}]},{"val":[{"type":"text","tagName":"p","content":" On Feb. 19, South Dakota Electric filed a rate review request with the SDPUC seeking approval to recover critical investments since its last rate review in 2014. The rate review requested $51 million of new annual revenue based on a capital structure of 53% equity and 47% debt and a return on equity of 10.5%. The company is seeking interim rates to be effective 180 days after filing, with new rates to be finalized in the first quarter of 2027. "}]}]},{"type":"text","tagName":"p","content":" Gas Utilities "},{"type":"list","bulletedList":true,"items":[{"val":[{"type":"text","tagName":"p","content":" On June 25, Kansas Gas received approval from the Kansas Corporation Commission of an abbreviated rate review request seeking $2.4 million in new annual revenue for capital placed in service through Dec. 31, 2025, based on authorized returns and capital structure under a black box settlement agreement for the July 2025 rate review. New rates were effective July 1. "}]},{"val":[{"type":"text","tagName":"p","content":" On Dec. 5, 2025, Arkansas Gas filed a rate review request with the Arkansas Public Service Commission seeking approval to recover approximately $147 million of system investments for its natural gas pipeline infrastructure since its last general rate filing in 2023. The rate review requested $29 million of new annual revenue based on a capital structure of 50% equity and 50% debt and a return on equity of 10.5%. The company is seeking final rates in the second half of 2026. "}]}]},{"type":"text","tagName":"p","content":" Corporate and Other "},{"type":"list","bulletedList":true,"items":[{"val":[{"type":"text","tagName":"p","content":" On July 28, Black Hills' board of directors approved a quarterly dividend of $0.703 per share payable on Sept. 1, 2026, to common shareholders of record at the close of business on Aug. 17, 2026. On an annualized basis, the dividend represents 56 consecutive years of increases, the second-longest track record in the electric and natural gas industry. "}]},{"val":[{"type":"text","tagName":"p","content":" During the second quarter, the company issued a total of 0.1 million shares of new common stock for net proceeds of $9 million. Year to date, the company issued a total of 0.7 million shares of new common stock under its at-the-market equity offering program for net proceeds of $50 million. "}]},{"val":[{"type":"text","tagName":"p","content":" During the second quarter, Black Hills published its 2025 Corporate Sustainability Report, highlighting the company's continued progress toward emission reduction goals, strategic infrastructure investments and innovative solutions to deliver safe, reliable and cost-effective energy across the communities it serves. The company's electric utilities achieved a 43% reduction in emissions intensity compared to 2005, continuing on pace to achieve its 70% by 2040 target. The natural gas utility reduced emissions by 25% since 2022, reflecting strong progress toward its net-zero by 2035 goal. "}]}]},{"type":"text","tagName":"p","content":" 2026 ADJUSTED EARNINGS GUIDANCE REAFFIRMED "},{"type":"text","tagName":"p","content":" Black Hills reaffirms its guidance for 2026 adjusted EPS* to be in the range of $4.25 to $4.45, based on the following assumptions: "},{"type":"list","bulletedList":true,"items":[{"val":[{"type":"text","tagName":"p","content":" Normal weather conditions within our utility service territories; "}]},{"val":[{"type":"text","tagName":"p","content":" Constructive and timely outcomes of utility regulatory dockets; "}]},{"val":[{"type":"text","tagName":"p","content":" Excludes merger-related costs; "}]},{"val":[{"type":"text","tagName":"p","content":" Excludes mark-to-market adjustments; "}]},{"val":[{"type":"text","tagName":"p","content":" Increase in operations and maintenance expense (excludes merger-related costs, depreciation and amortization, and taxes other than income taxes) of approximately 3.5% off 2025 of $580 million; "}]},{"val":[{"type":"text","tagName":"p","content":" Equity issuance between $50 million and $70 million; and "}]},{"val":[{"type":"text","tagName":"p","content":" An effective tax rate of approximately 14% for the full year. "}]}]},{"type":"text","tagName":"p","content":" This guidance excludes the expected merger with NorthWestern Energy, which is expected to close in the second half of 2026. "},{"type":"text","tagName":"p","content":" * The 2026 Adjusted EPS guidance shown above is a forward-looking, non-GAAP financial measure. The company is not able to provide comparable GAAP EPS guidance due to items that are not considered representative of the company's underlying operating performance that cannot be reasonably quantified for the full-year period. These items include merger-related costs the company expects to incur in 2026, in addition to any other unplanned items that may affect GAAP results in 2026. "},{"type":"text","tagName":"p","content":" USE OF NON-GAAP FINANCIAL MEASURES "},{"type":"text","tagName":"p","content":" As noted in this earnings release, in addition to presenting its earnings information in conformity with Generally Accepted Accounting Principles (GAAP), the company has presented non-GAAP Adjusted earnings and Adjusted EPS, which reflect adjustments for expenses, gains and losses that the company believes do not reflect ongoing core operating performance, such as costs related to the pending merger with NorthWestern. The company's management uses non-GAAP measures for financial planning and analysis, for reporting of results to the Board of Directors, in determining performance-based compensation and communicating its earnings outlook to analysts and investors. Non-GAAP financial measures are intended to supplement investors' understanding of our performance and should not be considered alternatives for financial measures presented in accordance with GAAP. Our non-GAAP measures may not be comparable to those of other companies. "},{"type":"text","tagName":"p","content":" Reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures are included below. 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