second quarter 2026
Filed Aug 5, 2026Black Hills Corp. Reports 2026 Second-Quarter Results and Reaffirms 2026 Earnings Guidance
Second-quarter GAAP and adjusted EPS increased from the same period in 2025, supported by new rates and rider recovery, while the company reaffirmed 2026 adjusted EPS guidance of $4.25 to $4.45 per share. Year-to-date GAAP EPS was slightly below the prior-year period, reflecting mild weather, merger-related costs and higher financing and depreciation costs.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net income available for common stock, three months ended June 30GAAP | $ 38.2 | – | – |
| Earnings per share, Diluted, three months ended June 30GAAP | $ 0.50 | – | – |
| Adjusted earnings, three months ended June 30non-GAAP | $ 41.5 | – | – |
| Adjusted EPS, three months ended June 30non-GAAP | $ 0.54 | – | – |
| Net income available for common stock, six months ended June 30GAAP | $ 169.2 | – | – |
| Earnings per share, Diluted, six months ended June 30GAAP | $ 2.23 | – | – |
| Adjusted earnings, six months ended June 30non-GAAP | $ 176.6 | – | – |
| Adjusted EPS, six months ended June 30non-GAAP | $ 2.33 | – | – |
| After-tax merger-related costs per share, three months ended June 30, 2026non-GAAP | $0.04 | – | – |
| After-tax merger-related costs per share, six months ended June 30, 2026non-GAAP | $0.10 | – | – |
| Impacts from mild weather per share, year to dateother | $0.18 per share | – | – |
2026 outlook
- Operating expensesIncrease in operations and maintenance expense (excludes merger-related costs, depreciation and amortization, and taxes other than income taxes) of approximately 3.5% off 2025 of $580 million
- Tax rateapproximately 14% for the full year
- NoteAdjusted EPS* in the range of $4.25 to $4.45 per share
- NoteEquity issuance between $50 million and $70 million
- NoteNormal weather conditions within our utility service territories
- NoteConstructive and timely outcomes of utility regulatory dockets
- NoteExcludes merger-related costs
- NoteExcludes mark-to-market adjustments
- NoteThis guidance excludes the expected merger with NorthWestern Energy
Capital returns
- Quarterly dividend of $0.703 per share payable on Sept. 1, 2026, to common shareholders of record at the close of business on Aug. 17, 2026.
- On an annualized basis, the dividend represents 56 consecutive years of increases, the second-longest track record in the electric and natural gas industry.
What drove it
- Second-quarter financial results benefited from new rates and rider recovery, which more than offset higher financing and depreciation costs driven by capital investment and new assets in service.
- Year-to-date results benefited from new rates and rider recovery and cost management activities.
- Wyoming Electric recorded four new all-time customer load peaks year to date, driven primarily by growth in large-load data center demand.
- The most recent Wyoming Electric peak was 439 MW on July 20, 2026, compared with 379 MW on June 20, 2025.
- Black Hills' current financial plan includes 600 MW by 2030 driven by Microsoft’s expansion of existing operations and Meta’s new AI data center.
- South Dakota Electric filed for recovery through a rider mechanism of costs related to its 99 MW, $320 million Lange II gas-fired generation project.
- Colorado Electric requested $27 million of new annual revenue, South Dakota Electric requested $5 million and $51 million of new annual revenue in separate rate review requests, Arkansas Gas requested $29 million, and Kansas Gas received approval for $2.4 million in new annual revenue.
Concerns
- Year-to-date GAAP EPS was $2.23 compared to $2.24 in the same period in 2025.
- The company cited $0.18 per share of impacts from mild weather year to date.
- Higher financing and depreciation costs were driven by capital investment and new assets in service.
- The NorthWestern Energy merger remains subject to regulatory approval from the Montana Public Service Commission.
- Wyoming Electric continues to negotiate definitive agreements with the prospective customer for the 1.8 GW data center project.
- 2026 guidance assumes normal weather conditions and constructive and timely outcomes of utility regulatory dockets.
What to watch
- Approval from the Montana Public Service Commission, the final stated condition for closing the NorthWestern Energy merger, which is expected to close by year-end 2026.
- Completion and in-service timing during the fourth quarter of 2026 for the 99 MW Lange II generation facility.
- Progress toward definitive agreements for the prospective 1.8 GW data center project in Cheyenne.
- The Aug. 31, 2026 maturity date for the amended generation reservation agreement and refundable advances totaling $377 million.
- Requested approval by Sept. 1, 2026 for Wyoming Electric’s Large Customer Transmission Cost Adjustment Mechanism tariff.
- Rate-case outcomes and expected new-rate timing in 2027 for Colorado Electric and South Dakota Electric, and in the second half of 2026 for Arkansas Gas.
Balance sheet and cash flow
- During the second quarter, the company issued a total of 0.1 million shares of new common stock for net proceeds of $9 million.
- Year to date, the company issued a total of 0.7 million shares of new common stock under its at-the-market equity offering program for net proceeds of $50 million.
- The customer provided $285 million in refundable advances through June 30, 2026, in support of milestone payments to secure generation equipment.
- In July, the parties amended this generation reservation agreement to increase the total refundable advances to $377 million with a new maturity date of Aug. 31, 2026.
Analysis
Black Hills reported improved second-quarter earnings. GAAP net income available for common stock was $ 38.2, compared with $ 27.5 in the same period in 2025, and diluted GAAP EPS was $ 0.50 versus $ 0.38. Adjusted earnings were $ 41.5 and adjusted EPS was $ 0.54, excluding $0.04 of after-tax merger-related costs, versus $ 27.5 and $ 0.38, respectively, in the prior-year period. Management attributed the quarterly result to new rates and rider recovery, which more than offset higher financing and depreciation costs associated with capital investment and new assets in service.
The first-half comparison was more mixed at the GAAP EPS level. Six-month GAAP EPS was $ 2.23, compared with $ 2.24 in the same period in 2025, while adjusted EPS was $ 2.33 compared with $ 2.24. The company stated that rate and rider recovery and cost management activities more than offset $0.18 per share of mild-weather impacts as well as higher financing and depreciation costs. Six-month adjusted earnings included the exclusion of $0.10 per share of after-tax merger-related costs.
Demand developments in Wyoming are a central operating theme. Wyoming Electric recorded four new all-time customer load peaks year to date, with the latest peak of 439 MW on July 20, 2026, representing an increase of 16% over the 379 MW peak on June 20, 2025. The company cited a large-load demand pipeline of more than 3 GW in Wyoming and stated that its current financial plan includes 600 MW by 2030. A prospective 1.8 GW data center project remains under negotiation, while the customer had provided $285 million in refundable advances through June 30, 2026, subsequently increased to $377 million with a maturity date of Aug. 31, 2026.
The capital program and regulatory agenda are active. South Dakota Electric's 99 MW, $320 million Lange II gas-fired generation project is expected to be completed and placed in service during the fourth quarter of 2026. The company also has rate recovery requests in Colorado, South Dakota and Arkansas, while Kansas Gas received approval for new rates effective July 1. These filings and rider mechanisms are relevant because rate and rider recovery were cited as a direct contributor to reported earnings.
Capital allocation included a quarterly dividend of $0.703 per share and second-quarter issuance of 0.1 million shares for net proceeds of $9 million. Year-to-date equity issuance totaled 0.7 million shares for net proceeds of $50 million. Black Hills reaffirmed 2026 adjusted EPS guidance of $4.25 to $4.45 per share, excluding merger-related costs and mark-to-market adjustments, and retained its assumption for equity issuance between $50 million and $70 million. The company expects the NorthWestern Energy merger to close by year-end 2026, subject to the remaining Montana Public Service Commission approval.
Management, verbatim
I’m extremely proud of our team and all we’ve accomplished in the first half of the year, delivering strong financial results and meaningful progress on our strategic initiatives.
Linn Evans, president and CEO of Black Hills Corp.
We are also focused on serving our large-load demand pipeline of more than 3 GW in Wyoming.
Linn Evans, president and CEO of Black Hills Corp.
These significant large-load opportunities and the solid performance of our core businesses provide confidence in our ability to deliver in the upper half of our 4% to 6% long-term EPS growth target, and create compelling upside potential.
Linn Evans, president and CEO of Black Hills Corp.
Not in the filing
stated, not guessed- Total revenue and comparisons
- Segment revenue and comparisons
- Gross margin
- Operating income
- Operating margin
- Revenue guidance
- Gross-margin guidance
- Operating cash flow
- Free cash flow
- Cash balance
- Debt balance
- Share repurchases
- Prior-quarter comparisons for reported earnings metrics
- Year-over-year and quarter-over-quarter percentage changes for reported earnings metrics
- Prior outlook section for comparison against reported results
- Full continuation of the filing text after the statement that 2026 guidance excludes the expected merger with NorthWestern Energy
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.