Black Hills (BKH) Q1 2025 earnings summary

Executive summary

• Reaffirmed 2025 EPS guidance of $4.00–$4.20 and long-term EPS growth target of 4%–6%, with Q1 EPS at $1.87, supported by new rates, customer growth, and favorable weather offsetting higher costs.

• Achieved all regulatory approvals and land rights for the 260-mile Ready Wyoming transmission project, on track for year-end 2025 completion.

• Wyoming Electric set new all-time peak loads, up nearly 10% over 2024, driven by data center and blockchain demand, continuing 19 years of growth.

• Major capital projects advanced, including renewable generation in Colorado and a 99 MW gas-fired project in South Dakota.

• Wyoming enacted wildfire mitigation legislation, providing liability protection for utilities following approved plans.

Financial highlights

• Q1 2025 revenue was $805.2 million, up from $726.4 million; net income available for common stock was $134.3 million, with diluted EPS at $1.87.

• Operating income increased to $205.0 million from $193.3 million year-over-year.

• Interest expense rose to $51.3 million from $44.0 million due to higher rates and lower cash balances.

• Capital expenditures for Q1 2025 totaled $162 million, with a full-year forecast of $1.0 billion.

• Dividend increased for the 55th consecutive year, with a quarterly dividend at $0.676 per share and a payout target of 55%–65%.

Outlook and guidance

• 2025 EPS guidance reaffirmed at $4.00–$4.20, assuming normal weather, constructive regulatory outcomes, and no unplanned outages.

• Long-term EPS growth target of 4%–6% CAGR, with confidence in achieving the upper half starting 2026.

• Five-year capital plan of $4.7 billion through 2029, prioritizing safety, modernization, and expansion.

• By 2028, expects to serve 500 MW of data center demand, doubling earnings contribution to over 10%.

• Assumes $215 million–$235 million equity issuance and 13% effective tax rate for 2025.