NorthWestern Energy Reports Third Quarter 2026 Financial Results
NorthWestern Energy Group, Inc. (NWE) filed an SEC Form 8-K — Results of Operations and Financial Condition. NorthWestern Energy Group, Inc. d/b/a NorthWestern Energy 3010 W. 69 th Street Sioux Falls, SD 57108 www.northwesternenergy.com FOR IMMEDIATE RELEASE NorthWestern Energy Reports Third Quarter 2026 Financial Results • Third Quarter 2026 Diluted GAAP EPS of $0.50, compared to $0.62
How this was made
The 30-second read
Why it matters
The earnings miss and dividend announcement are the primary drivers of short‑term price action; the pending merger adds a longer‑term catalyst.
Market read
The filing provides fresh earnings data and guidance reaffirmation, offering a modest trading edge for investors focused on utility stocks.
What to watch
The dividend declaration and upcoming merger with Black Hills may provide longer‑term upside not reflected in the short‑term price move.
NorthWestern Energy Reports Third Quarter 2026 Financial Results
Third-quarter utility margin increased $16.5 million, or 5.5 percent, but higher Colstrip-related costs, operating expenses, depreciation and interest expense reduced GAAP diluted EPS to $0.50 from $0.62 and adjusted diluted non-GAAP EPS to $0.58 from $0.79. The company affirmed its 2026 adjusted diluted non-GAAP EPS guidance of $3.68 - $3.83 per diluted share.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Third Quarter 2026 electric revenueGAAP | $373.6M | – | – |
| Third Quarter 2026 gas revenueGAAP | $50.1M | – | – |
| Third Quarter 2026 total revenuesGAAP | $423.8M | – | – |
| Third Quarter 2026 fuel, purchased supply and direct transmission expenseGAAP | $107.3M | – | – |
| Third Quarter 2026 operating and maintenance expenseGAAP | $84.9M | – | 32.4 % |
| Third Quarter 2026 administrative and general expenseGAAP | $39.5M | – | (15.4) % |
| Third Quarter 2026 property and other taxesGAAP | $50.5M | – | 9.5 % |
| Third Quarter 2026 depreciation and depletionGAAP | $67M | – | 6.7 % |
| Third Quarter 2026 total operating expensesGAAP | $349.1M | – | – |
| Third Quarter 2026 operating expenses excluding fuel, purchased supply and direct transmission expenseGAAP | $241.9M | – | 10.1 % |
| Third Quarter 2026 gross marginGAAP | $114.1M | – | (10.2) percent |
| Third Quarter 2026 utility marginnon-GAAP | $316.5M | – | 5.5 percent |
| Third Quarter 2026 electric utility marginnon-GAAP | $277.4M | – | 5.6 % |
| Third Quarter 2026 natural gas utility marginnon-GAAP | $39.1M | – | 4.5 % |
| Third Quarter 2026 operating incomeGAAP | $74.6M | – | – |
| Third Quarter 2026 interest expense, netGAAP | −$42.2M | – | – |
| Third Quarter 2026 other income, netGAAP | $3M | – | – |
| Third Quarter 2026 income before income taxesGAAP | $35.4M | – | – |
| Third Quarter 2026 income tax expenseGAAP | −$4.7M | – | – |
| Third Quarter 2026 effective tax rateGAAP | 13.2% | – | – |
| Third Quarter 2026 net incomeGAAP | $30.7M | – | $(7.5) million |
| Third Quarter 2026 basic earnings per average common shareGAAP | $0.50 | – | – |
| Third Quarter 2026 diluted earnings per average common shareGAAP | $0.50 | – | $(0.12) |
| Third Quarter 2026 average common shares outstandingother | 61,518 | – | – |
| Third Quarter 2026 adjusted non-GAAP pre-tax incomenon-GAAP | $41.8M | – | – |
| Third Quarter 2026 adjusted non-GAAP net incomenon-GAAP | $35.6M | – | – |
| Third Quarter 2026 adjusted non-GAAP diluted EPSnon-GAAP | $0.58 | – | – |
| Nine Months Ended September 30, 2026 electric revenueGAAP | $1.06B | – | – |
| Nine Months Ended September 30, 2026 gas revenueGAAP | $254M | – | – |
| Nine Months Ended September 30, 2026 total revenuesGAAP | $1.31B | – | – |
| Nine Months Ended September 30, 2026 fuel, purchased supply and direct transmission expenseGAAP | $342.7M | – | – |
| Nine Months Ended September 30, 2026 operating and maintenance expenseGAAP | $238.5M | – | – |
| Nine Months Ended September 30, 2026 administrative and general expenseGAAP | $128M | – | – |
| Nine Months Ended September 30, 2026 property and other taxesGAAP | $151M | – | – |
| Nine Months Ended September 30, 2026 depreciation and depletionGAAP | $200.9M | – | – |
| Nine Months Ended September 30, 2026 total operating expensesGAAP | $1.06B | – | – |
| Nine Months Ended September 30, 2026 operating incomeGAAP | $253M | – | – |
| Nine Months Ended September 30, 2026 interest expense, netGAAP | −$122.4M | – | – |
| Nine Months Ended September 30, 2026 other income, netGAAP | $10.6M | – | – |
| Nine Months Ended September 30, 2026 income before income taxesGAAP | $141.1M | – | – |
| Nine Months Ended September 30, 2026 income tax expenseGAAP | −$21.9M | – | – |
| Nine Months Ended September 30, 2026 net incomeGAAP | $119.2M | – | – |
| Nine Months Ended September 30, 2026 basic earnings per average common shareGAAP | $1.94 | – | – |
| Nine Months Ended September 30, 2026 diluted earnings per average common shareGAAP | $1.93 | – | – |
| Nine Months Ended September 30, 2026 average common shares outstandingother | 61,496 | – | – |
| Nine Months Ended September 30, 2026 dividends declared per common shareGAAP | $2.01 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Electric revenue, Third Quarter 2026Electric retail volumes were impacted by favorable weather and customer growth in all jurisdictions. | $373.6M | – | – |
| Gas revenue, Third Quarter 2026Natural gas retail volumes were impacted by favorable weather in Montana and customer growth, partly offset by unfavorable weather in South Dakota and Nebraska. | $50.1M | – | – |
2026 outlook
- Tax rateapproximately 14 percent to 18 percent
- NoteAdjusted non-GAAP earnings guidance of $3.68 - $3.83 per diluted share.
- NoteLong-term diluted earnings per share growth guidance of 4% to 6%, based on our 2024 adjusted diluted non-GAAP EPS baseline of $3.40.
- Note$3.2 billion capital investment plan for 2026-2030.
- NoteRate base growth of 4% to 6% from our 2024 base year of approximately $5.4 billion.
- NoteDiluted average shares outstanding of approximately 61.8 million.
- NoteNormal weather in our service territories.
- NoteExcludes costs related to the pending merger with Black Hills.
- NoteApproval of the Power Cost and Credit Adjustment Mechanism waiver and power prices sufficient to recover operating expense from incremental Avista and Puget Colstrip interests.
Capital returns
- Quarterly common stock dividend of $0.67 per share, payable on December 1, 2026, to shareholders of record as of November 17, 2026.
- Targeted dividend payout ratio of 60% to 70% over the long term.
- If the merger is completed before the November 17, 2026 record date, eligible former NorthWestern shareholders would receive the dividend of $0.703 per Bright Horizon share declared by Black Hills on October 28, 2026.
What drove it
- Consolidated utility margin increased $16.5 million, or 5.5 percent, driven by $5.3 million of electric margin from the acquisition of the Colstrip Puget Interests, $2.3 million of lower non-recoverable Montana electric supply costs, $1.5 million from electric retail volumes, $1.3 million of electric transmission revenue and $1.0 million of natural gas retail volumes.
- Electric retail volumes benefited from favorable weather and customer growth in all jurisdictions.
- Natural gas retail volumes benefited from favorable weather in Montana and customer growth, partly offset by unfavorable weather in South Dakota and Nebraska.
- The company completed acquisitions of the Avista and Puget interests in Colstrip Units 3 and 4 on January 1, 2026.
- The company has development agreements with Atlas Power Holdings LLC and Quantica Infrastructure for data centers in Montana with a combined energy service requirement expected to be 75 megawatts beginning in late 2027, with growth of up to approximately 1,250 megawatts or more by 2030.
Concerns
- The quarter included a $6.1 million net loss associated with additional ownership interests in Colstrip Units 3 and 4.
- Power prices in the Pacific Northwest were insufficient during the three and nine months ended September 30, 2026 to contribute to recovery of Avista Interests operating and maintenance expenses under the temporary PCCAM tariff waiver.
- Operating, maintenance, and administrative expenses excluding merger-related costs reduced net income by $11.4 million, depreciation reduced net income by $3.1 million, interest expense reduced net income by $2.8 million, and property and other taxes not recoverable within trackers reduced net income by $1.5 million.
- The Montana Public Service Commission's suspension of the PCCAM 90/10 cost-sharing mechanism remains subject to a separate PCCAM docket, with resolution anticipated in the first half of 2027.
- The pending Black Hills merger is subject to final, satisfactory approval from the Montana Public Service Commission, which management expected to consider the merger prior to November 12, 2026.
What to watch
- Final Montana Public Service Commission action on the Black Hills merger and anticipated transaction closing by year-end 2026.
- Final approval or denial of the interim PCCAM tariff waiver and the separate PCCAM docket resolution anticipated in the first half of 2027.
- Electric service agreements with Atlas and Quantica, the Large New Load tariff rule proceeding, and the regulatory framework for serving large-load customers.
- Recovery of incremental operating and maintenance costs for the Avista Interests and commercial outcomes for excess Colstrip capacity.
- South Dakota Public Utilities Commission action on the Phase In Rate Plan Rider filing requesting collection of approximately $11.8 million for the July 2026 through June 2027 period.
Balance sheet and cash flow
- As of September 30, 2026, total net liquidity was approximately $349.5 million, including $6.5 million of cash and cash equivalents and $343.0 million of revolving credit facility availability with no letters of credit outstanding.
- Total net liquidity one year ago at September 30, 2025 was $262.2 million.
- On August 20, 2026, NW Corp increased its revolving credit facility capacity from $425.0 million to $500.0 million.
- On August 20, 2026, NorthWestern Energy Group and NWE Public Service increased their revolving credit facility capacity from $200.0 million to $250.0 million.
- On September 30, 2026, NWE Public Service repaid at maturity $45.0 million of 2.66 percent South Dakota First Mortgage Bonds due on September 30, 2026.
- As of September 30, 2026, $42.6 million was recorded within Other noncurrent assets for non-refundable milestone payments to secure turbines for the Hub City Energy Park generation project.
Analysis
Third-quarter operating revenue was $423.8 million, compared with $387.0 million in 2025, while utility margin rose to $316.5 million from $300.0 million. The utility-margin gain reflected the Colstrip Puget Interests, lower non-recoverable Montana electric supply costs, electric and natural gas retail volumes, and electric transmission revenue. Management attributed electric-volume improvement to favorable weather and customer growth across all jurisdictions. Natural-gas volumes benefited from favorable Montana weather and customer growth, partly offset by unfavorable weather in South Dakota and Nebraska.
The higher utility margin did not translate into higher earnings. Gross margin declined to $114.1 million from $127.0 million, while operating income declined to $74.6 million from $80.3 million. Operating and maintenance expense increased to $84.9 million from $64.1 million, depreciation and depletion increased to $67.0 million from $62.8 million, and net interest expense increased to $42.2 million from $38.4 million. The company identified operating losses associated with additional Colstrip ownership interests and depreciation expense as primary drivers of the operating-income decline.
GAAP net income was $30.7 million, or $0.50 per diluted share, versus $38.2 million, or $0.62 per diluted share. Adjusted non-GAAP net income was $35.6 million and adjusted diluted EPS was $0.58, compared with $48.4 million and $0.79. The adjusted results exclude favorable weather, merger-related costs and Colstrip Avista Interests impacts in 2026. The reported effective tax rate was 13.2%, compared with 18.7% in the prior-year quarter.
Capital allocation remains focused on investment and the pending merger. The company affirmed its record $683 million capital plan for 2026 and its $3.2 billion capital investment plan for 2026-2030, and stated that equity issuances are expected beginning in 2027 to fund South Dakota generation investment. Liquidity was approximately $349.5 million at September 30, 2026, including $6.5 million of cash and cash equivalents. The board declared a $0.67 per share quarterly dividend payable December 1, 2026.
NorthWestern affirmed 2026 adjusted non-GAAP EPS guidance of $3.68 - $3.83 per diluted share, with assumptions including normal weather, exclusion of pending-merger costs, an approximately 14 percent to 18 percent effective income tax rate, and approximately 61.8 million diluted average shares outstanding. The guide depends in part on approval of the PCCAM waiver and power prices sufficient to recover operating expense from incremental Avista and Puget Colstrip interests. Standalone guidance will no longer apply or be indicative of expected combined-company results after the Black Hills merger closes.
Management, verbatim
The third quarter was a busy and productive one for NorthWestern. We continued to execute on our core business and remain focused on delivering long-term value for our customers, communities, and shareholders. Although the costs associated with our incremental ownership in Colstrip have created a temporary earnings headwind, this strategic decision helps ensure reliable energy for our customers and support economic development in Montana. Looking ahead, we are excited about the prospect of completing our merger with Black Hills and beginning the next chapter for our combined company, subject to final, satisfactory approval from the Montana Public Service Commission which is expected to consider the merger prior to November 12, 2026.
Brian Bird, President and CEO
Not in the filing
stated, not guessed- Previous-period outlook was not provided, so comparison of actual results with prior guidance is unavailable.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Total debt and net debt were not reported.
- Share repurchases were not reported.
- Capital expenditures for the reported quarter and nine-month period were not reported.
- Quarterly GAAP and non-GAAP gross-margin percentages were not reported.
- Prior-quarter comparisons for reported financial metrics were not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
NorthWestern Energy filed an 8‑K reporting its Q3 2026 financial results, a quarterly dividend, and reaffirmed 2026 earnings guidance while awaiting merger approval with Black Hills.
Ticker impact
NorthWestern Energy reported Q3 2026 earnings miss and reaffirmed its 2026 EPS guidance range of $3.68‑$3.83 per share.
likely modest downside as investors digest the earnings miss despite guidance reaffirmation
The company posted lower GAAP EPS ($0.50 vs $0.62 YoY) and non‑GAAP EPS ($0.58 vs $0.79 YoY). Guidance was reaffirmed, not raised, so the market may view the results as a slight disappointment but with no immediate upside catalyst.
Market effects
The earnings miss may prompt a brief reassessment of the utility sector's earnings outlook, but the reaffirmed guidance tempers broader impact.
Limited to the U.S. utility space; no significant regional ripple.
Minimal global effect; primarily a company‑specific update.
Counterpoint
If the market overreacts to the earnings miss, the reaffirmed guidance could support a bounce.
Key entities
- companyNorthWestern Energy Group, Inc.
Utility company reporting Q3 2026 results and reaffirming guidance.
- companyBlack Hills Corporation
Merger partner; pending regulatory approvals.
