Black Hills Q2 Earnings Call Highlights

Black Hills reaffirmed its 2026 adjusted EPS guidance of $4.25–$4.45 after second-quarter adjusted earnings rose to $0.54 per share from $0.38 a year earlier, supported by rate recovery, cost reductions and capital investments. The company’s Wyoming data-center pipeline exceeds 3 gigawatts, including 600 megawatts incorporated into its plan through 2030 for Microsoft and Meta. Black Hills is also negotiating more than 2.5 gigawatts of additional large-load opportunities, including a potential 1.8-gigawatt project. Black Hills has secured six of seven approvals for its planned NorthWestern Energy merger, with Montana approval remaining; a decision is expected around mid-October or mid-November if the review is extended.

Black Hills NYSE: BKH said it remains on track to meet its 2026 earnings guidance as new rates and rider recovery, large-load demand growth and ongoing capital investments supported second-quarter results. The utility reported second-quarter GAAP earnings per share of $0.50, including $0.04 per share of merger-related transaction costs. Adjusted earnings were $0.54 per share, compared with $0.38 per share in the second quarter of 2025. For the first six months of 2026, GAAP earnings were $2.23 per share, including $0.10 per share of merger-related costs. Adjusted earnings totaled $2.33 per share, up from $2.24 per share in the prior-year period.

Chief Financial Officer Kimberly Nooney said the company benefited from $0.21 per share of new rates and rider recovery in the second quarter, which more than offset higher financing and depreciation expenses. The company also held operating and maintenance expenses flat for the quarter after excluding merger costs, while employee-cost reductions contributed $0.04 per share versus the prior year. Black Hills reaffirmed adjusted EPS guidance of $4.25 to $4.45 for 2026, representing 6% growth at the midpoint compared with 2025. Nooney said the company expects new rates, capital-project recovery, large-load demand and its financial position to support performance in the upper half of its long-term 4% to 6% growth target.

President and Chief Executive Officer Linn Evans highlighted growing electricity demand in Wyoming, where the company has recorded 20 consecutive years of rising peak system loads. Wyoming Electric’s July peak load reached 439 megawatts, up 16% from the prior-year peak and 183% above the level when Black Hills acquired the utility in 2005. The company said its data-center opportunity pipeline exceeds 3 gigawatts. About 600 megawatts of that potential demand is included in its financial plan through 2030, primarily tied to Microsoft’s expansion and Meta’s planned artificial-intelligence data center in Cheyenne. Black Hills expects Meta’s customer load to begin ramping later this year.

Marne Jones, senior vice president and chief utility officer, said the company has served Microsoft’s hyperscale data-center growth for more than a decade, primarily through market-energy procurement. Black Hills expects to serve the demand currently included in its plan through a combination of market energy and contracted resources, with minimal incremental capital investment. Beyond the 600 megawatts included in the plan, the company is negotiating more than 2.5 gigawatts of additional large-load opportunities in Wyoming. That pipeline includes a previously disclosed 1.8-gigawatt project. Jones said Black Hills is in advanced negotiations for commercial agreements supp.