Black Hills (BKH) Q2 2025 earnings summary

Executive summary

• Achieved strong Q2 2025 results with year-over-year EPS and revenue growth, driven by new rates, regulatory progress, and robust demand from data centers and blockchain customers, especially in Wyoming.

• Reaffirmed 2025 EPS guidance of $4.00–$4.20, targeting 5% growth at midpoint, and maintained a strong balance sheet to support major capital projects and long-term growth.

• Advanced major capital projects, including Ready Wyoming transmission and Lange II generation, and launched an Emergency Public Safety Power Shutoff program to mitigate wildfire risk.

• Gas Utilities delivered strong operating income growth, benefiting from rate reviews and favorable weather.

• Corporate and Other segment losses increased due to the absence of a prior year asset sale gain and higher unallocated expenses.

Financial highlights

• Q2 2025 revenue was $439.0M, up from $402.6M in Q2 2024; six-month revenue reached $1,244.2M, up from $1,129.0M.

• Q2 2025 EPS was $0.38, up from $0.33 in Q2 2024; YTD EPS rose to $2.24 from $2.19.

• Net income available for common stock was $27.5M for Q2 2025 and $161.7M for six months.

• New margins and rate recovery contributed to EPS growth, offsetting higher O&M, financing, and depreciation expenses.

• Interest expense increased to $48.9M in Q2 2025 and $100.3M for six months.

Outlook and guidance

• 2025 EPS guidance reaffirmed at $4.00–$4.20, assuming normal weather and constructive regulatory outcomes.

• Long-term EPS growth targeted at 4%–6% annually, aiming for the upper half of the range starting in 2026, with >10% EPS from data centers by 2028.

• Capital expenditures for 2025 forecasted at $1.0B, with $4.7B planned from 2025–2029.

• O&M expense CAGR expected at ~3.5% off 2023 base; effective tax rate ~13%.

• Dividend payout ratio targeted at 55%–65%, with 55 consecutive years of increases.