Black Hills (BKH) Q4 2025 earnings summary

Executive summary

• Achieved midpoint of 2025 earnings guidance and long-term growth targets, maintaining investment-grade credit ratings and strong liquidity.

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

• Completed major projects including the Ready Wyoming 260-mile transmission line and broke ground on the 99 MW Lange II generation project.

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

• Advanced major rate reviews in multiple states and obtained approval for a 50 MW battery project in Colorado.

Financial highlights

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

• Net income available for common stock was $291.6 million in 2025, with adjusted earnings of $300.4 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 $450 million in debt; maintained strong liquidity with over $700 million available.

• Maintained investment-grade credit ratings: Moody’s Baa2, S&P BBB+ (stable outlooks).

Outlook and guidance

• Initiated 2026 adjusted EPS guidance of $4.25–$4.45, representing 6% growth at the midpoint over 2025.

• Long-term EPS growth target of 4%–6% CAGR from 2026 to 2030, aiming for the upper half of the range.

• Capital plan of $4.7 billion from 2026–2030 focused on safety, reliability, and growth, with minimal investment for 600 MW of data center demand included.

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

• Targeting a 55%–65% dividend payout ratio, with 56 consecutive years of increases in 2026.