NWE · Northwestern Energy Group Inc

NorthWestern Energy's first quarter 2026 results reflect a mixed performance. GAAP diluted EPS declined 17.6% year-over-year to $1.03, primarily due to lower retail volumes, higher operating costs (including merger-related costs and incremental Colstrip operating expenses), increased depreciation, and higher interest expense. These headwinds were partially offset by new Montana electric rates, higher transmission revenues, and lower non-recoverable Montana electric supply costs. On an adjusted non-GAAP basis, diluted EPS rose 7.4% to $1.31, driven by the same rate increases and cost offsets. The company affirmed its 2026 non-GAAP earnings guidance of $3.68 to $3.83 per diluted share, which excludes merger-related costs and assumes normal weather, approval of the PCCAM waiver, and an effective tax rate of 14%-18%. Management highlighted progress on the pending merger with Black Hills Corporation, including shareholder approval and constructive settlements with key intervenors in Montana, Nebraska, and South Dakota. The transaction is expected to close in the second half of 2026. Additionally, NorthWestern signed a development agreement with Quantica Infrastructure for a data center campus, adding to its large-load pipeline. The company declared a quarterly dividend of $0.67 per share, payable June 30, 2026. Overall, the quarter underscores the company's ability to grow adjusted earnings despite operational and merger-related costs, while the merger and data center opportunities provide a positive long-term outlook.