Black Hills (BKH) Q4 2025 earnings summary

Executive summary

• Achieved midpoint of 2025 earnings guidance and long-term growth targets, with 2025 adjusted EPS of $4.10, a 5% increase year-over-year, and maintained a strong balance sheet and liquidity.

• Announced a pending tax-free, all-stock merger with NorthWestern Energy, with regulatory and shareholder approvals targeted for completion in the second half of 2026.

• Extended dividend increase streak to 56 consecutive years in 2026.

• Completed major rate reviews in Colorado, Kansas, and Nebraska, and energized the 260-mile Ready Wyoming transmission expansion.

• Commenced construction on the 99 MW Lange II generation project and obtained approval for a 50 MW battery project in Colorado.

Financial highlights

• 2025 adjusted EPS reached $4.10, up from $3.91 in 2024, reflecting 5% year-over-year growth, with GAAP EPS of $3.98 including $0.12 per share in merger-related costs.

• Full-year 2025 revenue was $2,310.0 million, up from $2,127.7 million in 2024; net income available for common stock was $291.6 million.

• Delivered $0.95 per share of new rates and rider recovery margin, offsetting higher O&M, financing, and depreciation expenses.

• Issued $220 million in equity and completed a $450 million debt offering at 4.55%.

• Maintained investment-grade credit ratings (Moody's Baa2, S&P BBB+), with over $700 million in available liquidity at year-end.

Outlook and guidance

• Initiated 2026 adjusted EPS guidance of $4.25–$4.45, representing 6% growth at the midpoint over 2025, assuming normal weather and constructive regulatory outcomes.

• Targeting upper half of 4%–6% long-term EPS growth range, driven by customer growth, data center demand, and new rates.

• Forecasting $4.7 billion in capital investment from 2026 to 2030, excluding upside from additional data center demand.

• Expecting lower equity needs ($50–$70 million) in 2026 due to stronger forecasted cash flows.

• Dividend increased for the 56th consecutive year in 2026, with a 55%-65% payout ratio target.