BKH · Black Hills Corporation

Black Hills Corporation reported first-quarter 2026 GAAP diluted EPS of $1.73, down from $1.87 in the same period last year, primarily due to mild winter weather impacts of $0.18 per share and higher financing and depreciation costs, partially offset by new rates and rider recovery and lower operations and maintenance expenses. On an adjusted basis, excluding $0.05 per share of after-tax merger-related costs, adjusted EPS was $1.79, compared to $1.87 in the prior year. Revenue decreased to $780.7 million from $805.2 million, driven by lower fuel and purchased power costs. The company reaffirmed its 2026 adjusted earnings guidance of $4.25 to $4.45 per share, excluding merger-related costs, based on assumptions of normal weather, constructive regulatory outcomes, and equity issuance of $50-$70 million. Management expressed confidence in achieving the upper half of its 4%-6% long-term EPS growth target. Key strategic updates include progress on the pending merger with NorthWestern Energy, which received shareholder approval and is expected to close in the second half of 2026, and an agreement to reserve generation equipment for a 1.8 GW data center project in Wyoming, with $201 million in refundable contributions received. Additionally, South Dakota enacted wildfire liability legislation, and the company continued construction of the 99-MW Lange II generation project and a 50-MW battery storage project. The board approved a quarterly dividend of $0.703 per share, extending the company's 56-year dividend increase streak.