NWE

Interested in Black Hills Corporation? Here are five stocks we like better. Black Hills reaffirmed its 2026 adjusted EPS guidance of $4.25–$4.45 after second-quarter adjusted earnings rose to $0.54 per share from $0.38 a year earlier, supported by rate recovery, cost reductions and capital investments. The company’s Wyoming data-center pipeline exceeds 3 gigawatts, including 600 megawatts incorporated into its plan through 2030 for Microsoft and Meta. Black Hills is also negotiating more than 2.5 gigawatts of additional large-load opportunities, including a potential 1.8-gigawatt project. Black Hills has secured six of seven approvals for its planned NorthWestern Energy merger, with Montana approval remaining; a decision is expected around mid-October or mid-November if the review is extended. The 127-Gigawatt Problem: Why AI Needs Its Own Power Black Hills (NYSE:BKH) said it remains on track to meet its 2026 earnings guidance as new rates and rider recovery, large-load demand growth and ongoing capital investments supported second-quarter results. The utility reported second-quarter GAAP earnings per share of $0.50, including $0.04 per share of merger-related transaction costs. Adjusted earnings were $0.54 per share, compared with $0.38 per share in the second quarter of 2025. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth 3 Under-the-Radar AI Infrastructure Stocks Powering the Next Buildout For the first six months of 2026, GAAP earnings were $2.23 per share, including $0.10 per share of merger-related costs. Adjusted earnings totaled $2.33 per share, up from $2.24 per share in the prior-year period. Chief Financial Officer Kimberly Nooney said the company benefited from $0.21 per share of new rates and rider recovery in the second quarter, which more than offset higher financing and depreciation expenses. The company also held operating and maintenance expenses flat for the quarter after excluding merger costs, while employee-cost reductions contributed $0.04 per share versus the prior year. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Is the AI Boom a Bubble? These 2 Dividend Stocks Say No Black Hills reaffirmed adjusted EPS guidance of $4.25 to $4.45 for 2026, representing 6% growth at the midpoint compared with 2025. Nooney said the company expects new rates, capital-project recovery, large-load demand and its financial position to support performance in the upper half of its long-term 4% to 6% growth target. President and Chief Executive Officer Linn Evans highlighted growing electricity demand in Wyoming, where the company has recorded 20 consecutive years of rising peak system loads. Wyoming Electric’s July peak load reached 439 megawatts, up 16% from the prior-year peak and 183% above the level when Black Hills acquired the utility in 2005. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling The company said its data-center opportunity pipeline exceeds 3 gigawatts. About 600 megawatts of that potential demand is included in its financial plan through 2030, primarily tied to Microsoft’s expansion and Meta’s planned artificial-intelligence data center in Cheyenne. Black Hills expects Meta’s customer load to begin ramping later this year. Marne Jones, senior vice president and chief utility officer, said the company has served Microsoft’s hyperscale data-center growth for more than a decade, primarily through market-energy procurement. Black Hills expects to serve the demand currently included in its plan through a combination of market energy and contracted resources, with minimal incremental capital investment. Beyond the 600 megawatts included in the plan, the company is negotiating more than 2.5 gigawatts of additional large-load opportunities in Wyoming. That pipeline includes a previously disclosed 1.8-gigawatt project. Jones said Black Hills is in advanced negotiations for commercial agreements supporting a diversified resource portfolio for the 1.8-gigawatt opportunity. A generation reservation agreement with a prospective customer has been extended through Aug. 31 and includes up to $377 million of refundable customer advances for long-lead generation equipment. The company said it remains optimistic about reaching definitive agreements during the third quarter. During the question-and-answer session, Evans said the exit of Caruso from the project had not affected negotiations because Black Hills has been negotiating with the hyperscale end user. He said the company is seeking to finalize the related agreements by the end of the third quarter, while emphasizing that it intends to prioritize appropriate risk and reward arrangements for the company, customers and shareholders. Evans also said a separate 75-megawatt data-center opportunity is progressing and is unrelated to the 1.8-gigawatt project. Black Hills is executing a nearly $1 billion capital plan in 2026. Its 99-megawatt Lange II generation project, which will serve western South Dakota and northeastern Wyoming, remains on schedule for service in the fourth quarter. The project’s final long-lead component, a generation step-up transformer, was delivered to the site, according to Jones. The company is advancing rate reviews for Arkansas Gas and South Dakota Electric, while filing a new rate request for Colorado Electric. The Colorado request seeks $26.7 million in annual revenue based on a 10.5% return on equity and a capital structure consisting of 49% debt and 51% equity. Black Hills also received approval for an abbreviated Kansas rate review, with new rates effective July 1. In South Dakota, interim electric rates are scheduled to take effect Aug. 18, while an Arkansas gas rate-review hearing is set for Aug. 20. In Wyoming, the company requested a Large Customer Transmission Cost Adjustment Mechanism intended to recover transmission-related investments and expenses directly from large-load customers that benefit from those facilities. Black Hills expects the tariff to become effective in January 2027. The company’s Wyoming integrated resource plan, submitted June 30, identifies a near-term 95-megawatt capacity need for non-large-load customers. Black Hills recommended meeting that need through a combination of natural gas generation, battery storage and market-energy purchases. Black Hills said it has received six of seven approvals required for its planned merger with NorthWestern Energy. The company received approval from the Federal Energy Regulatory Commission during the second quarter, as well as unanimous settlement approvals in Nebraska and South Dakota. Montana remains the final approval needed to close the transaction. Evans said Black Hills reached settlements with several intervening parties in Montana, while two groups with environmental concerns did not settle. Final briefs were filed July 13, starting a 90-day decision period that could be extended by 30 days. Evans said the company expects a Montana decision around mid-October or, if extended, by mid-November, keeping the transaction on track for a second-half 2026 closing. Black Hills ended the quarter with more than $650 million available under its revolving credit facility. The company issued $50 million of equity through its at-the-market program year to date and is evaluating refinancing options ahead of a January 2027 maturity of $400 million in 3.15% notes. Black Hills Corporation is a diversified energy company based in Rapid City, South Dakota, that provides electricity and natural gas distribution services to residential, commercial and industrial customers. Through its regulated utility subsidiaries—Black Hills Power, Cheyenne Light & Power, and Black Hills Energy—the company delivers reliable energy across Colorado, Kansas, Montana, Nebraska, South Dakota and Wyoming. In addition to its distribution operations, Black Hills owns and operates a generation portfolio that includes natural gas–fired plants, coal-fired units, hydroelectric facilities and wind projects. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Black Hills Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Image source: The Motley Fool. Thursday, July 30, 2026 at 3:30 p.m. ET President and Chief Executive Officer - Brian Bird Chief Financial Officer - Crystal Dawn Lail Director of Corporate Development and Investor Relations Officer - Travis Meyer Operator: Hello everyone. Thank you for joining us and welcome to the NorthWestern Energy Second Quarter 2026 Financial Results Webinar. After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please press one. To raise your hand. To withdraw your question, press one again. I will now hand the conference over to Travis Meyer, Director of Corporate Development and Investor Relations Officer. Travis? Please go ahead. Travis Meyer: Thank you, Kendra. Good afternoon, and thank you for joining NorthWestern Energy Group's financial results webcast for the quarter ended June 30, 2026. Joining us on the call today are Brian Bird, President and Chief Executive Officer and Crystal Dawn Lail, chief financial officer. Brian and Crystal will walk us through the results, and provide an overall update on the great progress we have made this quarter. Before handing the call over, however, a few reminders regarding today's call. NorthWestern's results have been released, and the release is available on our website at northwesternenergy.com. We also released our 10-Q premarket this morning. Please note that the company's press release, this presentation, comments by presenters and responses to your questions may contain forward-looking statements. As such, I will direct you to the disclosures contained within our SEC filings in the Safe Harbor provisions included on the second slide of this presentation. Also note that this presentation includes non-GAAP financial measures and information regarding the pending merger transaction. See the non-GAAP disclosure, definitions, and reconciliations in the merger-related disclosures in the appendix of today's materials. The webcast is being recorded. An archived replay will be available shortly after the event and will remain active for one year. Please visit the financial results section of our website to access the replay. With those details behind us, I will hand the presentation over to Brian Bird for his opening remarks. Brian Bird: Thank you, Travis, for recent highlights for the quarter. We reported GAAP diluted EPS of $0.40 and a non-GAAP diluted EPS of $0.50. We are also affirming our 2026 earnings guidance range of $3.68 to $3.83. And also affirming our long-term rate base and EPS growth rate targets of 4% to 6%. Regarding the merger, during the quarter, we received approvals from the Nebraska PSC, the South Dakota PUC, and FERC, We also had our Montana hearing, and the final briefing is now completed, and we are awaiting the final word. Lastly, in terms of dividend, we declared $0.67 per share payable September 1, 2026. You might note there is a change in the payment date and August 17 record date to make sure we align with Black Hills Corporation's dividend dates which was intended to simplify the closing mechanics in the merger. And with that, I am going to hand it over to Crystal to cover the second quarter financial review. Crystal Dawn Lail: Thank you, Brian. I will begin my comments on Slide 7. In my comments today, I will cover our second quarter results, our 2026 earnings outlook and our capital plan. As Brian mentioned, for the second quarter, we delivered GAAP earnings of $0.40. $0.40 includes merger-related costs, costs related to incremental Colstrip ownership, and weather impacts. On an adjusted basis, we delivered $0.50 which reflects a $0.10 increase from 2025. Moving to Slide 8, on a year-to-date basis, we have GAAP earnings of $1.43 versus $1.60 in the prior period. On an adjusted basis, that is $1.81 versus $1.62 I will remind you that we started off the year with an unseasonably warm winter reflecting a significant adjustment to adjust out that weather impact for Q1 impacting our year-to-date results. Slide 9 moves to a bit more of the key drivers for the quarter in particular. Key drivers include improved margin net of weather, offset by higher costs, depreciation, and interest expense. Increased operating costs include $0.12 from incremental Colstrip ownership, which we spoke about a lot on our Q1 call, as to the impact of us owning those assets and the importance to resource adequacy. Moving to Slide 10, I will discuss in more detail our margin impact, including the $0.38 improvement over the prior period. Margin for the second quarter reflects new rates in Montana. We will remind you that we implemented rates in the rate review from 2024. And May 2025 toward the end. So you could see the continued improvement from that. And impacting the first half of the year for us. It also reflects the sales from the Puget Colstrip interest and growth in transmission revenues. Moving to Slide 11, to address our adjusted second quarter earnings, Again, as I alluded to, while the first quarter had a very significant weather impact, we returned to a closer to normal impact here. You will see weather was unfavorable by $0.01 versus normal. The quarter also included $0.04 of merger costs, and $0.05 of operating expenses from Colstrip that were not recovered. These adjustments move from $0.40 on a GAAP basis to $0.50 delivered on a non-GAAP adjusted basis versus $0.40 in the prior quarter of 2025 as compared and, again, noting that was really driven off of improved base rate recovery versus last year. Moving to Slide 12, as Brian indicated, we are pleased with our start to 2026 and it is in line with our expectations, and we are reaffirming our guidance. We have executed on the financing plans for the year, expect that to not have an impact in the back part of the year. Moving to Slide 13 and concluding my comments, our $3.2 billion capital plan from 2026 through 2030 remains on track and unchanged and is driven by the essential investments we need to meet our customers' needs. This plan does not include any incremental investment that may be driven by additional opportunities related to regional transmission growth or serving large loads, and we are excited to continue pursuing those opportunities. With that, I will turn it back to Brian for a further business update. Brian Bird: Thanks, Crystal, my comments on Page 15. You know, specific to the merger with Black Hills and the benefits to stakeholders. We certainly have talked quite a bit about benefits to shareholders and certainly want to thank all of those who voted on the approval from a shareholder perspective of the transaction and acknowledge the overwhelming support. That also took place in the second quarter. And also, opportunity on this page, the center of the page, also remind folks that there is also substantial long-term value for customers. Not only are we bringing together two strong teams from a service perspective, we are gonna continue to provide great service on a going-forward basis on a combined basis. Not only that, any benefits that are accrued for putting these two companies together from a cost savings perspective that will ultimately accrue to customers in future rate reviews. Moving forward to Page 16, if you think about the timeline, we now have all the necessary approvals other than the MPSC's approval. As you note on this page, you see a lot of green checks. As a matter of fact, like we said earlier, shareholder approval, FERC, Nebraska, South Dakota, you think about, like, what was all done in the quarter, it was a pretty busy quarter from a merger perspective. We also as we sit here today, we are working extremely hard with our friends at Black Hills from an integration planning perspective. And so we are we are prepared. We would be prepared if, in fact, we do get approval from the Montana Commission to close and actually start providing the benefits of the merger to our customers and other stakeholders. Speaking of the decision, waiting on decision from the Montana Public Service Commission, we note on this slide that is the fourth quarter. I think people understand, from the timing that is in front of the commission that we believe that on our filing of our briefing in mid July, that we would see a decision sometime in 90 days or they can extend another 30 days, so 90 to 120 days we should see a decision. That should mean a decision sometime between mid October and mid November. And so we are certainly cautiously optimistic about that decision and working really hard so that we are prepared to provide benefits to stakeholders on a going-forward basis. If, in fact, we get that approval. Moving forward with data centers, we continue to work hard on the data center process on Page 17. I think you can see some change in the high-level assessments. We are still very active in terms of folks looking at primarily Montana and South Dakota. From a data center perspective. More importantly, we continue to work for those with those folks that we have development agreements with. And striving to get to ESAs with those parties. And as I mentioned on the prior quarter's call, I noted no guarantees, but I mentioned on that call, I do it again. No guarantees. Here. We still expect to have ESAs with that two of those three parties. And the reason it is two of those three, I said three last quarter, is that two parties, Quantica and Atlas, we still believe by year end, The issue where we sit here today with Sabey is they still are dealing with land procurement items. And so until that happens, it is difficult to say we would have an ESA done with them by the end of the year as we sit here today. We continue to work with all three parties and those parties in the both the data center request and high-level assessment to continue to move forward to ultimately have data center load that we can provide in Montana and South Dakota. Moving forward, just a little bit more on large load customers. Think you are also aware in March, of this year, we did submit our large new load tariff. The hope at that time when we filed it, we would be filing it with an ESA. We did not. We wanted to make sure that we were aware that we are trying to protect customers with this large load of tariffs, and we wanted to get that in front of the commission. it is there for people to see. In addition, we would like to when we do sign an ESA, file that with the large new tariff decision on that ESA as well. In South Dakota, any new large load customers, we require incremental capacity, but we do have an infrastructure rider there to help us with generation cost recovery. And the South Dakota PUC already has an established large load tariff that we can serve large load customers with. The one issue in South Dakota continues to be the sales tax issue on equipment purchases and we are hopeful in the upcoming legislative session that issue will be dealt with. On the right-hand side of the slide here, I continue to show from a megawatt perspective, each of those three entities in the development stage, nothing's necessarily changed there. So continue to forge ahead with them. On their current plans. Lastly, on slide 19, is our standalone value proposition with an approximate 4% dividend yield with our base capital plan, we can achieve a 4% to 6% EPS growth, ultimately, today provide an 8% to 10% total return. We are able to take an opportunity and execute on data center and other large load opportunities for regional transmission and any incremental generating capacity we should be able to grow at a faster rate and get above the 6% range, that plus that dividend yield I talked about earlier, around 4%, we could see total returns greater than 10%. Obviously, that is our standalone proposition. As we sit here today, we think we could be able to deliver a 5% to 7% EPS growth on a combined basis in our merger with Black Hills. that is ultimately what we believe is the best thing we can do from a shareholder perspective. But as I mentioned earlier, another thing we really want to do for customers particularly in this day and age where affordability is a key issue. We wanna make sure we continue to be as efficient as we can and even more so on a merged basis to provide those cost-saving benefits to customers on a going-forward basis. And with that, I will turn it back over to Kendra to conduct the Q&A session. Operator: We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please standby while we compile the Q&A roster. Your first question from the line of Aidan Charles Kelly with JPMorgan Securities. Aidan, your line is open. You may now go ahead. Aidan Kelly: Thanks. Hey, guys. Good afternoon. Thanks for the time today. Thanks, Ed. Yeah. Just want to hone in on the Quantica project first. I think many are focused on the quoted 7.2 GW interconnection request laid out there. I know, which is clearly a substantial number. And I understand when you capacity adjust, it could be closer to, like, the 3 GW range. But still clearly implies some upside beyond Phase 1 what you disclosed. So would just be curious to hear your take on the probability of realizing the full 7 GW and any physical considerations that come to mind here. Brian Bird: I put in this context, Aidan, I do not wanna speak for Quantica here. I think as you noted, on the document we shared here, 1.1 GW is what we are talking about from a Quantica perspective. I think we all need to have success at these lower gigawatt levels. And if we are ultimately in an ESA perspective and we are moving forward with Quantica, we will let them talk about their relative success and how to ultimately build up to that level. But as we sit here today, we are focused on the 1.1 GW. Aidan Kelly: Understood. Understood. Thanks, Brian. And then just maybe wanted to ask a high-level question on the Colstrip ownership pieces. You know, in the 10-Q, you guys lay out that the PCCAM tariff waiver was insufficient to contribute to the recovery of the O&M for the Avista share. Could you just remind us on the action plan for getting better protection on these costs? And how are you thinking about the timing there? Crystal Dawn Lail: Hi, Aidan. I will take that 1. it is a fair question. We have laid out the impact year-to-date. And we do have a tariff waiver currently for how that the impact of those cells flows through PCAM. If you listen to the merger hearing, you would have heard a lot of commentary from the commission on their overall support for Colstrip. And their view on what that asset means to Montanans and keeping costs low. Our action plan eventually is to file a rate review and put that asset into base rates where it should be. The thing I would mention and remind you all of is we are waiting for a motion for reconsideration on our 2024 rate review. And by my clock here, we are close to July 2026. So we need to see that order. We are continuing to invest in Montana and to your point and action plan for ultimately adjudicating that piece of Colstrip with the commission. I think we will need to file a rate review to address that, and that is something that we are considering timing of. And meanwhile, the PCCAM docket where that tariff waiver sits, progresses. That was granted on an interim basis and we expect that docket to move through probably timeline of Q4 of this year and maybe end of or early of 27. Aidan Kelly: Great. that is helpful. Thanks, Crystal. I will leave it there. Crystal Dawn Lail: Thank you, Aidan. Brian Bird: Thanks, Aidan. Operator: Your next question from the line of Shahriar Pourreza. From Wells Fargo Securities. Shar, your line is open. You may now go ahead. Whitney Mutalemwa: Good afternoon, Brian and Crystal. This is Whitney Mutalemwa on for Shahriar. Yep. Hi there. Hey. So I am looking through the IRP materials, and they show available import capacity on your transmission path declining through 2028 even before accounting for the large load pipeline Obviously, there is the North Plains Connector, and the utility has a 10% stake that is still contingent on permits. Is that 300 MW going to matter given how much load you are now discussing? Or does the real transmission answer have to be a bigger Bright Horizons-led project rather than a minority position in someone else's line? Brian Bird: I would-- you know, I feel bad now I did not include our regional transmission material in our presentation, which we have certainly spoken about in the past. North Plains Connector is certainly something that we think is necessary. Our Montana to Idaho line that we are working with, we think is also crucial to provide capacity on a going-forward basis Those are in addition to some other opportunities. On path 8, is our current Colstrip line that we share with other partners that serve the West, there are opportunities to expand the capacity on that line. And that as you would expect is a little easier to do than other greenfield projects and even reconductoring. So there is some work on that line that we think is extremely easy to do on a relative basis to other opportunities, but we are gonna pursue those. We are also looking at Path 18 as an opportunity. But I would argue that there is a lot of transmission capacity that we are going to need, particularly if there is going to be growth in the Pacific Northwest and certainly in Montana. So we are excited about that opportunity and our ability to invest in transmission in a going-forward basis. Whitney Mutalemwa: Sounds good. Well said. And then just to squeeze in a tiny question there has been a run of local pushback this quarter. There were the moratorium discussions in a couple of counties a couple of ballot petitions. Just zooming out, is that changing how you and developers approach siting? More preengagement, more flexibility on location, that kind of thing, or do you see it as pretty contained to a handful of communities? That will be all. Thank you. Brian Bird: Yeah. I could spend half an hour talking on this topic I would say it this way. We as an industry and certainly the data centers themselves, and the developers that may be between the utilities and the data centers, we all need to do a better job in terms of communicating and working with communities to find out what the communities want not necessarily what we think they want. And I think there is a lot of misinformation about data centers. We believe data centers are gonna be great things for our service territory, and we think it is gonna help our communities. So many ways. We are gonna continue to be supportive of their efforts. But we have to work collectively as a group and demonstrate benefits in a more concise way so they understand that these are actually good projects that are going to help their communities. And so there is work to be done. I would argue that is something that is to be done in all states, not just the two states that we operate in from an electric perspective. Think it is more of an industry issue than just a NorthWestern Energy issue. There are certain states, of course, that support this. Support data centers, and we can certainly name those states. But even those are running into some public pushback, I think as we continue to educate folks around energy use, and around water use. I think what has been recently done here in terms of an acknowledgment by utilities and data centers that we are not gonna pass on higher cost to customers that data centers are going to pay their own way those commitments are going to help deal with some of these issues. But this is gonna be a continuing issue for the industry for some time. Whitney Mutalemwa: All set. Thank you. Brian Bird: Thank you. Operator: Your next question from the line of Chris Ellinghaus. With Siebert Williams Shank. Chris, your line is open. Please go ahead. Chris Ellinghaus: Hey, everybody. Crystal Dawn Lail: Hey, Chris. Brian Bird: Hey, Chris. Chris Ellinghaus: Crystal, can you give us a breakdown of the weather adjustment by segment? Crystal Dawn Lail: Chris, I think that is in our appendix, but I would remind you for Q2, it is only 1 cent. So it is pretty small. As it relates to the quarter. Obviously, a much bigger impact for Q1 as we saw really mild weather there. Travis might have it off top of his head. Travis Meyer: And we have not disclosed that, Chris, by segment. I assume you are looking to electric gas, South Dakota, Montana. We do not disclose that. that is something we can consider in the future. Chris Ellinghaus: But Okay. That would be helpful. The weather seems like it was pretty warm for July, certainly across Montana anyway, I saw Crystal, can you give us any sense of how you see the progression of the 2, you know, Puget and the Avista Colstrip pieces through the rest of the year, particularly with what the third quarter weather looks like so far? Crystal Dawn Lail: Sure, Chris. And by the way, I will comment that I did see the you have come around to our way of thinking on the weather. So I do not know if that is been a 10- or 15-year running conversation, but glad to see we finally got you there. The next question is after a super-mild kind of winter weather in the whole Pacific Northwest and abnormal call it Q2 shoulder. What that had done, and we had talked a lot about market prices and the impact to finally being resource adequate in Montana. Having assets where we could sell into the market and seeing really low market prices that obviously continued through the first and second quarters. I will tell you here in July that we have seen, I think we set a new balancing area record again. So we have seen warmer temps and demand on our system. I will tell you the market prices for a variety of reasons that our supply folks could get into have not necessarily there have not been kind of those big peaking events that you sometimes see in the market, but certainly an improvement as you are about through July here as to what we have seen for prices and the ability to cover our costs of those assets. What that continues into late summer and fall I do not know that I will be on the record for predicting the weather since meteorologists cannot seem to do it for the next day or so. But I will say we did see some improvement here in July based off that demand and temps being higher across the West and hope to see that continue as we go through the year. Obviously, we would like to see those market sales impact our ability to cover those costs at Colstrip and hopefully earn back a bit of what happened in the first half of the year, but I will not give you any predictions as to where that might be. Chris Ellinghaus: Okay. that is that is helpful. Brian, 1 more thing. Now that what is-his-name Voldemort is gone from the MPSC, do you still stick to the sort of 90- to 120-day expectation? Does that sort of slow or speed the process of the merger approval? And how does that affect the large tariff docket also? Brian Bird: Yeah. Of course, I assume you are talking about Commissioner Molnar. I do not think that has bearing on the timing here. I think the 90 to 120 days still should hold. And my expectation is as folks know, there are many times when commissioners are not present to vote, as long as there is a quorum, they can continue to vote on any matters. And I expect that to be the case here as we move forward. Chris Ellinghaus: Okay. Thanks. Appreciate it. Brian Bird: Thanks, Chris. Crystal Dawn Lail: Thank you, Chris. Operator: Your next question from the line of Paul Fremont from Ladenburg. Paul, your line is open. Please go ahead. Paul Fremont: Thanks. I guess I would like to start with the high-level assessment pool. Which seemed to have doubled to 8 customers. Can we get a sense of sort of the megawatt size of demand that is in that queue? Brian Bird: Paul, no. We have not shared nor do we share who is in that queue nor do we share the megawatts that folks are talking about. At this point in time. Paul Fremont: Well, how about in terms of with the customers doubling, should we assume that also represents a doubling of the megawatt demand in that in that bucket? Brian Bird: I would say it this way. I would not concern yourself too much with megawatts until you see development agreements. Paul Fremont: And then it looks like 2 may have come from the data center request bucket. And that 2 of those customers are you know, would have come from somewhere else. Like, is that a fair way to look at it? Brian Bird: Yeah. I would say what happens many times when, you know, you get to an assessment, some people fall away because they find out they have got a preliminary idea of what the costs are gonna be, and so they may fall away. So I cannot speak to how the bucket shifted from requests to you know, high-level assessment But typically what happens when you get to a certain point, you actually know your cost. You do see some folks fall away. You also see some folks that work pretty quickly through that process. Paul Fremont: And then maybe last question for me are is there sort of anything you can tell us about the geography? Of where those new high-level assessment customers are looking? Is it is it South Dakota or is it Montana? Brian Bird: I mean, I will say it this way. I think in those two earlier buckets, we are seeing interest in both states. Paul Fremont: Great. that is it for me. Thank you. Crystal Dawn Lail: Thank you. Brian Bird: Thanks, Paul. Travis Meyer: Thanks, Paul. Operator: Your final question comes from the line of Rex Savage with Clear Street. Rex, your line is open. Please go ahead. Rex Savage: Hi. Thank you. I wanted to ask a version of a prior question on the commissioner status and so forth. It appears, you know, that commissioner is challenging his removal in Lewis and Clark State Court. I was wondering if you had any thoughts about that. Plus, it appears the governor is maybe moving to replace him for this, you know, one-year period. Does that potentially change the 90 to 120 days? And then, you know, related question is, hey, on Quantica, which was brought up, I believe, on the first question, that 7.2 GW in the filing did seem to activate 1 of the opposers on the merger docket. To ask to reopen the record, Are we past that point? Do you believe that commission is going to look at it as is? Brian Bird: For my understanding, I think the commission's forging ahead here. I do not think-- I think they have done a good enough job through this process to say, that this transaction's not about data centers. I think that conversation was had frequently during the hearing. And so I do not believe we are going to see a delay as a result of anything that is happening with Commissioner Molnar at this point in time or any incremental information that may have happened since the hearing. Thank you. Thanks, Rex. Operator: There are no further questions at this time. I will now turn the call back to Brian Bird for closing remarks. Brian Bird: From a closing remarks perspective, I just want to say this again. I think we think about what we need to do as a company to grow and what is changing in the energy space. This merger is really important, not only obviously to the folks listening to this call today, but our customers and ultimately our employees. We need to be bigger. We need-- it is more of a competitive environment that we sit in today. Than utilities have seen in certainly their first 100 years of existence. And so it is critical that we move forward, and we become bigger, it allows us to better serve our customers and all of you We continue to be very, very focused on that as do our friends at Black Hills. And we hope to be talking about that with you if not in October, sometime shortly thereafter. And until next time, I wanna continue to thank you for your support of NorthWestern Energy and obviously our friends at Black Hills. Thank you very much. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in NorthWestern Energy Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and NorthWestern Energy Group wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,405!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,344,091!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 7, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. NorthWestern Energy (NWE) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Black Hills Corp (NYSE:BKH) reaffirmed its 2026 adjusted EPS guidance of $4.25 to $4.45, representing 6% growth at the midpoint, and expects to deliver in the upper half of its 4% to 6% long-term growth target. The company reported strong second-quarter adjusted EPS of $0.54, up from $0.38 in Q2 2025, driven by $0.21 per share from new rates and rider recovery. Black Hills Corp (NYSE:BKH) has a robust large load demand pipeline exceeding 3 gigawatts, with 600 megawatts already included in its financial plan and over 2.5 gigawatts of additional opportunities under active negotiation. The pending merger with Northwestern Energy has received six of seven required approvals, including FERC and unanimous settlements in Nebraska and South Dakota, with a decision in Montana expected by mid-October to mid-November. The company maintains a solid financial position with strong liquidity of over $650 million under its revolving credit facility and a 56-year track record of consecutive dividend increases. Black Hills Corp (NYSE:BKH) is advancing its regulatory agenda with multiple rate reviews, including a new $26.7 million request for Colorado Electric, and has completed wildfire liability protections in South Dakota and Wyoming. Black Hills Corp (NYSE:BKH) incurred $0.04 per share of merger-related transaction costs in Q2 2026 and $0.10 per share year-to-date, which negatively impacted GAAP earnings. Higher financing costs of $0.06 per share and depreciation expenses of $0.06 per share in Q2 2026 partially offset gains from new rates, reflecting increased debt and new assets placed in service. Weather was $0.03 per share unfavorable compared to normal in Q2 2026 and $0.18 per share unfavorable year-to-date compared to 2025, impacting earnings. The 1.8 gigawatt data center project negotiations are complex and involve multiple parties, with the generation reservation agreement extended to August 31st, creating uncertainty about finalizing definitive agreements within the third quarter. The company faces a $400 million debt maturity in January 2027, requiring refinancing, which could lead to higher interest expenses given current market conditions. The Montana merger approval remains pending, with potential for a 30-day extension by the Commission, adding uncertainty to the expected second-half 2026 closing timeline. Warning! GuruFocus has detected 10 Warning Signs with BKH. Is BKH fairly valued? Test your thesis with our free DCF calculator. Q: What impact did Crusoe's exit have on the status of negotiations for the 1.8 gigawatt data center project, and did it affect the customer's cash deposits or the overall timeline?A: Lynn Evans (President and CEO): The exit of Crusoe has had no impact on the negotiations. We have always ensured we are negotiating directly with the hyperscale end user, which remains the case. The negotiations are on track, though they involve complex, multi-party agreements. We aim to finalize these agreements by the end of the third quarter, but we prioritize doing it right over speed. There has been no delay due to Crusoe's exit. Q: Can you provide more detail on the status and timing of the Montana merger approval, and how the partial settlement might influence the final decision?A: Lynn Evans (President and CEO): We reached settlements with about five parties, including the Consumer Council. The only two entities we did not settle with had strong environmental perspectives, primarily focused on data centers. The settlements provide a clear path for the Commission to approve the merger. Final briefs were filed on July 13, triggering a 90-day decision timeline with a possible 30-day extension. We expect a decision from Montana by mid-October, or potentially mid-November at the latest. Q: Is the 75-megawatt data center opportunity mentioned in the slides related to the 1.8 gigawatt project, and could it lead to a broader deal?A: Lynn Evans (President and CEO): The 75-megawatt opportunity is a different customer from the 1.8 gigawatt project. It is part of our 2.5 gigawatt pipeline. This particular project is advancing nicely, which is why we highlighted it this quarter. Q: How is the company positioned to achieve its earnings guidance for 2026, and what are the key drivers?A: Kimberly Nooney (SVP and CFO): We reaffirmed our guidance range of $4.25 to $4.45 adjusted EPS, representing 6% growth at the midpoint over 2025. Key drivers include new rates and rider recovery from capital projects, large load demand growth, and our solid financial position. We delivered $0.45 per share of new rates and rider recovery and $0.11 of lower O&M in the first half, which more than offset higher financing and depreciation costs. Q: What is the current status of the large load demand pipeline, and how much is included in the financial plan?A: Marnie Jones (SVP and Chief Utility Officer): Our data center pipeline exceeds 3 gigawatts of potential load. Approximately 600 megawatts is included in our financial plan through 2030, primarily driven by Microsoft and Meta. We are actively negotiating more than 2.5 gigawatts of additional opportunities, all additive to our current plan. This includes a 1.8 gigawatt project where we are in advanced negotiations. Q: Can you elaborate on the generation reservation agreement for the 1.8 gigawatt project and its financial implications?A: Marnie Jones (SVP and Chief Utility Officer): We executed a generation reservation agreement with a prospective customer for company-owned generation. The agreement includes customer-funded milestone payments supporting procurement of long-lead generation equipment. It has been extended through August 31st and provides for up to $377 million of refundable customer advances. This is intended to transition to a long-term generation facilities agreement. Q: What regulatory mechanisms are being pursued to ensure large load customers bear their costs and protect existing retail customers?A: Marnie Jones (SVP and Chief Utility Officer): In Wyoming, we requested a Large Customer Transmission Cost Adjustment Mechanism (LCTCAM) to directly recover transmission-related investments and expenses from large load customers. We expect it to become effective in January 2027. This, along with commercial agreements, ensures large load customers bear costs associated with serving their load and do not adversely impact existing retail customers. Q: What is the status of the Lang 2 generation project and its recovery mechanisms?A: Marnie Jones (SVP and Chief Utility Officer): The 99-megawatt Lang 2 generation project is on schedule to be placed in service in the fourth quarter. The final long-lead piece of equipment, the Generation Step-Up Transformer, was delivered last week. Recovery for the Wyoming portion was included in our rate review request, and we recently filed for recovery of the South Dakota portion through the Generation Rider. Q: How is the company managing its balance sheet and liquidity to support its capital plan?A: Kimberly Nooney (SVP and CFO): We maintain a solid financial position with credit metric targets of 14% to 15% FFO to debt and better than 55% net debt to total capitalization. Year-to-date, we issued $50 million of equity under our ATM program. We have more than $650 million of availability under our revolving credit facility. Our next debt maturity is $400 million of 3.15% notes in January 2027, and we are evaluating refinancing options for later this year. Q: What are the key achievements in the regulatory agenda, and what rate reviews are currently ongoing?A: Marnie Jones (SVP and Chief Utility Officer): We continue to execute on our regulatory plan with a cadence of three to four rate reviews per year. In June, we received approval for an abbreviated rate review in Kansas. Our Arkansas gas rate review is in final stages with a hearing set for August 20. We are advancing South Dakota Electric rate reviews with interim rates effective August 18. We also filed a new rate review for Colorado Electric, requesting $26.7 million of new annual revenue based on a 10.5% ROE. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. NorthWestern Energy Group Inc (NASDAQ:NWE) reaffirmed its 2026 earnings guidance range of $3.68 to $3.83 and its long-term rate base and EPS growth targets of 4% to 6%. The company reported a $0.10 increase in adjusted EPS for Q2 2026 compared to the prior year, driven by improved base rate recovery in Montana. The merger with Black Hills Corporation received key regulatory approvals from the Nebraska PSC, South Dakota PUC, and FERC, with a final decision from the Montana PSC expected between mid-October and mid-November. The company is actively pursuing data center opportunities, with expectations to sign ESAs with two of three development partners (Quantic and Atlas) by year-end. The $3.2 billion capital plan for 2026-2030 remains on track, excluding potential incremental investments from regional transmission growth or serving large loads, which could drive faster growth. The company's standalone value proposition offers an approximate 4% dividend yield and 8% to 10% total return, with potential for greater than 10% if data center and large load opportunities are executed. The merger with Black Hills is expected to deliver 5% to 7% EPS growth on a combined basis, with cost savings benefits accruing to customers in future rate reviews. The company saw improved market conditions in July, with warmer temperatures and higher demand, which could help recover costs from the Colstrip assets in the second half of the year. NorthWestern Energy Group Inc (NASDAQ:NWE) incurred $0.04 of merger-related costs and $0.05 of unrecovered operating expenses from Colstrip in Q2 2026, impacting GAAP earnings. The company experienced an unseasonably warm winter in Q1 2026, which significantly impacted year-to-date results, requiring a large weather adjustment. The final merger approval from the Montana PSC is still pending, with a decision expected in 90 to 120 days, creating uncertainty around the closing timeline. The ESA with SEBI, one of the three data center development partners, is unlikely to be completed by year-end due to ongoing land procurement issues. The company faces ongoing public pushback and local moratorium discussions regarding data center siting, which could delay or complicate project development. The PCAM tariff waiver for Colstrip is insufficient to recover O&M costs for the Avista share, and a rate review filing is needed to address this, with timing still under consideration. The company's transmission import capacity is expected to decline through 2028, even before accounting for large load pipeline, highlighting the need for significant new transmission investments. The South Dakota sales tax issue on equipment purchases for large load customers remains unresolved, potentially hindering data center development in that state. Warning! GuruFocus has detected 12 Warning Signs with NWE. Is NWE fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide your take on the probability of realizing the full 7.2 gigawatt interconnection request from Quantic, and any physical considerations that come to mind?A: Brian Byrd (President and CEO): I don't want to speak for Quantic here. As noted in the document, 1.1 gigawatts is what we are focused on. We all need to have success at these lower gigawatt levels first. If we ultimately sign an ESA and move forward, we will let them discuss their relative success and how to build up to that level. As we sit here today, we are focused on the 1.1 gigawatts. Q: The PCAM tariff waiver was insufficient to contribute to the recovery of the O&M for the Avista share of Colstrip. What is the action plan for getting better protection on these costs and the timing?A: Crystal Lail (CFO): We have a tariff waiver currently for how the impact of those sales flows through PCAM. The Montana Commission has shown overall support for Colstrip and its value to Montanans. Our action plan is to eventually file a rate review and put that asset into base rates. We are waiting for a motion for reconsideration on our 2024 rate review. We will need to file a rate review to address this, and we are considering the timing. The PKM docket where the tariff waiver sits was granted on an interim basis, and we expect it to move through a timeline of Q4 2026 and maybe into early 2027. Q: The IRP materials show available import capacity on your transmission path declining through 2028. Is the 300 megawatts from the North Plains Connector enough, or does the real answer have to be a bigger project?A: Brian Byrd (President and CEO): The North Plains Connector is necessary, and our Montana to Idaho line is also crucial to provide capacity. There are also opportunities to expand capacity on Path 8, which is our current Colstrip line. That is easier to do than greenfield projects. We are also looking at Path 80 as an opportunity. There is a lot of transmission capacity we will need, particularly with growth in the Pacific Northwest and Montana. We are excited about our ability to invest in transmission. Q: There has been local pushback this quarter with moratorium discussions and ballot petitions. Is that changing how you and developers approach siting?A: Brian Byrd (President and CEO): We as an industry need to do a better job communicating and working with communities to find out what they want. There is a lot of misinformation about data centers. We believe they will be great for our service territory. We have to work collectively to demonstrate benefits in a more concise way. This is an industry issue, not just a Northwestern Energy issue. Commitments that data centers will pay their own way and not pass on higher costs to customers will help deal with these issues, but this will be a continuing issue for the industry. Q: Can you give us a breakdown of the weather adjustment by segment?A: Crystal Lail (CFO) and Travis Meyer (Director of Corporate Development and IR): For Q2, the weather adjustment is only $0.01, so it is pretty small. The bigger impact was in Q1 due to mild weather. We do not disclose the weather adjustment by segment (electric vs. gas, Montana vs. South Dakota), but it is something we can consider disclosing in the future. Q: Can you give us a sense of how you see the progression of the Puget and Avista Colstrip pieces through the rest of the year, particularly with Q3 weather?A: Crystal Lail (CFO): After a mild winter and low market prices in Q1 and Q2, we have seen improvement in July with warmer temps and demand on our system. We set a new balancing area record. Market prices haven't had big peaking events, but there has been an improvement in prices and the ability to cover costs of those assets. We hope to see that continue through the year and earn back a bit of what happened in the first half, but I won't give predictions on weather. Q: Now that Commissioner Molnar is gone from the MPSC, do you still stick to the 90 to 120 day expectation for the merger approval? How does that affect the large tariff docket?A: Brian Byrd (President and CEO): I don't think that has bearing on the timing. The 90 to 120 days should still hold. As long as there is a quorum, commissioners can continue to vote on matters. I expect that to be the case as we move forward. Q: The high-level assessment pool doubled to eight customers. Can we get a sense of the megawatt size of demand in that queue?A: Brian Byrd (President and CEO): We haven't shared who is in that queue or the megawatts folks are talking about. I wouldn't concern yourself too much with megawatts until you see development agreements. When you get to assessment, some people fall away when they find out the costs, but some work quickly through the process. We are seeing interest in both Montana and South Dakota. Q: Commissioner Molnar is challenging his removal in state court, and the governor may be moving to replace him. Does that change the 90 to 120 day timeline? Also, the 7.2 gigawatt Quantic filing activated an opposer to ask to reopen the merger record. Are we past that point?A: Brian Byrd (President and CEO): I believe the commission is forging ahead. They have done a good job through this process to show this transaction is not about data centers. I do not believe we will see a delay as a result of anything happening with Commissioner Molnar or any incremental information since the hearing. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed the $0.10 year-over-year adjusted EPS increase primarily to improved base rate recovery following the implementation of new rates in Montana. The company emphasized that incremental ownership of the Colstrip plant is critical for resource adequacy, though it currently creates a $0.05 headwind from unrecovered operating expenses. Strategic positioning is focused on achieving scale through the Black Hills merger to remain competitive in a rapidly evolving energy landscape. Management highlighted that the $3.2 billion capital plan is focused on essential customer needs but excludes significant potential upside from regional transmission and large load growth. Operational performance in the first half of 2026 was significantly impacted by unseasonably warm winter weather, reflecting a $0.38 margin improvement over the prior period. The company is actively transitioning data center prospects from high-level assessments toward formal Electric Service Agreements (ESAs) to secure long-term load growth. Management expects a final decision on the Black Hills merger from the Montana Public Service Commission between mid-October and mid-November 2026. The company anticipates signing Electric Service Agreements with at least two major data center parties, Quantica and Atlas, by the end of the year. Guidance assumes a return to normal weather patterns for the remainder of the year following the significant volatility experienced in the first quarter. Long-term EPS growth is projected at 4% to 6% on a standalone basis, with the potential to reach 5% to 7% on a combined basis post-merger. Future capital allocation may expand beyond the current $3.2 billion plan if regional transmission opportunities or large load interconnections are finalized. The company adjusted the dividend record and payment dates to align with Black Hills Corporation to simplify closing mechanics for the pending merger. Management flagged a sales tax issue on equipment purchases in South Dakota as a potential headwind for large load customers, hoping for legislative resolution in the upcoming session. A $0.04 per share impact from merger-related costs was excluded from adjusted earnings as these are considered non-recurring transaction expenses. The Sabey data center project timeline is currently uncertain due to ongoing land procurement challenges, distinguishing it from other more advanced development agreements. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified they are currently focused on the initial 1.1 GW phase and will defer to the developer regarding the success required to reach higher capacity levels. The response suggests a phased approach where success at lower gigawatt levels is a prerequisite for the total projected upside. The company intends to file a formal rate review to move the incremental Colstrip assets into base rates for permanent recovery. Management is currently relying on an interim tariff waiver while waiting for a final order on their 2024 rate review before determining the exact timing of the next filing. Management stated that the removal of Commissioner Molnar should not impact the 90-to-120-day decision timeline as long as a quorum is present. They emphasized that the commission has successfully decoupled the merger proceedings from separate discussions regarding data center growth. Management acknowledged an industry-wide need for better communication to demonstrate that data centers will 'pay their own way' without increasing costs for existing customers. They noted that while some local pushback exists, it is viewed as an education issue regarding energy and water use rather than a structural barrier to development.

NorthWestern (NWE) came out with quarterly earnings of $0.5 per share, beating the Zacks Consensus Estimate of $0.42 per share. This compares to earnings of $0.4 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +19.05%. A quarter ago, it was expected that this electric and gas utility would post earnings of $1.29 per share when it actually produced earnings of $1.31, delivering a surprise of +1.55%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. NorthWestern, which belongs to the Zacks Utility - Electric Power industry, posted revenues of $392.6 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.08%. This compares to year-ago revenues of $342.7 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. NorthWestern shares have added about 12% since the beginning of the year versus the S&P 500's gain of 8.5%. While NorthWestern has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for NorthWestern was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.90 on $423.39 million in revenues for the coming quarter and $3.75 on $1.75 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Utility - Electric Power is currently in the bottom 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Duke Energy (DUK), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 4. This electric utility is expected to post quarterly earnings of $1.29 per share in its upcoming report, which represents a year-over-year change of +3.2%. The consensus EPS estimate for the quarter has been revised 2.6% higher over the last 30 days to the current level. Duke Energy's revenues are expected to be $7.71 billion, up 2.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NorthWestern Corporation (NWE) : Free Stock Analysis Report Duke Energy Corporation (DUK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in NorthWestern Corporation? Here are five stocks we like better. NorthWestern reported improved second-quarter results, with adjusted EPS rising to $0.50 from $0.40 a year earlier, and reaffirmed its 2026 guidance of $3.68–$3.83 per share. Its $3.2 billion 2026–2030 capital plan remains unchanged. The proposed merger with Black Hills has received all required approvals except from the Montana Public Service Commission, which is expected to decide between mid-October and mid-November. The companies continue integration planning and believe the combined business could achieve 5%–7% long-term EPS growth. NorthWestern is pursuing recovery of Colstrip-related costs while seeking growth from data centers and transmission projects. The company expects potential energy service agreements with Quantica and Atlas by year-end, but emphasized that no agreements are guaranteed. NorthWestern (NASDAQ:NWE) reported second-quarter 2026 GAAP diluted earnings per share of $0.40 and adjusted diluted EPS of $0.50, up from adjusted EPS of $0.40 a year earlier. The company reaffirmed its full-year 2026 earnings guidance of $3.68 to $3.83 per share, along with long-term rate base and EPS growth targets of 4% to 6%. President and Chief Executive Officer Brian Bird said the company also declared a quarterly dividend of $0.67 per share, payable Sept. 1 to shareholders of record Aug. 17. The timing change was intended to align NorthWestern’s dividend schedule with that of Black Hills Corp. as the companies pursue their pending merger. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Chief Financial Officer Crystal Lail said adjusted second-quarter earnings reflected a $0.10-per-share year-over-year increase, driven primarily by improved base-rate recovery. Second-quarter GAAP results included merger-related costs, expenses associated with incremental ownership in the Colstrip generating station, and weather effects. On a year-to-date basis, NorthWestern reported GAAP EPS of $1.43, compared with $1.60 in the prior-year period. Adjusted EPS was $1.81, compared with $1.62 a year earlier. Lail said the first quarter was affected by an unseasonably warm winter, requiring a significant weather adjustment. → 3 Value ETFs to Consider as Growth Stocks Lag Behind For the second quarter, weather was unfavorable by $0.01 per share versus normal conditions, according to the company. NorthWestern excluded $0.04 per share of merger costs and $0.05 per share of unrecovered Colstrip operating expenses in arriving at adjusted EPS. Lail said quarterly margin improved by $0.38 per share from the prior-year period, aided by new Montana rates, sales tied to the Puget Colstrip interest and growing transmission revenue. Those gains were partly offset by higher operating expenses, depreciation and interest expense. Incremental Colstrip ownership accounted for $0.12 per share of higher operating costs, she said. → 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? The company’s $3.2 billion capital plan for 2026 through 2030 remains unchanged. Lail said the plan is focused on essential customer-serving investments and does not include potential incremental spending associated with regional transmission expansion or large-load customers. NorthWestern received approvals for its proposed merger with Black Hills from the Nebraska Public Service Commission, South Dakota Public Utilities Commission and Federal Energy Regulatory Commission during the second quarter. Shareholders also approved the transaction, Bird said. The remaining required approval is from the Montana Public Service Commission. The companies completed final briefing in mid-July, and Bird said NorthWestern expects a decision within roughly 90 to 120 days, or between mid-October and mid-November. “We are certainly cautiously optimistic about that decision,” Bird said, adding that NorthWestern and Black Hills are continuing integration planning so they can move forward if Montana approval is granted. Bird said the companies expect the combined organization to generate long-term benefits for customers as well as shareholders. Any cost savings from combining the companies would accrue to customers in future rate reviews, he said. On a standalone basis, NorthWestern targets 4% to 6% EPS growth and an approximate 4% dividend yield; Bird said the combined company could potentially deliver 5% to 7% EPS growth. During the analyst question-and-answer session, Lail said NorthWestern expects ultimately to seek recovery of Colstrip-related costs through a future Montana rate review. The company currently has an interim tariff waiver governing how sales impacts flow through its power cost and credit adjustment mechanism, or PCCAM. Lail said the PCCAM docket could progress through the fourth quarter of 2026 and potentially into early 2027. She added that the company is awaiting a decision on a motion for reconsideration related to its 2024 rate review while it evaluates the timing of another filing. NorthWestern saw improved demand during July as temperatures increased across the West, Lail said. Although the company had not seen major market-price spikes, she said conditions had improved from the first half of the year and could help the company cover Colstrip costs. Bird said NorthWestern remains active in pursuing data-center and other large-load opportunities in Montana and South Dakota. The company continues to work toward energy service agreements, or ESAs, with Quantica and Atlas by year-end, though Bird stressed there were no guarantees. A third prospective customer, Sabe, is still addressing land-procurement issues. NorthWestern’s current focus with Quantica is a 1.1-gigawatt project, Bird said, rather than the larger 7.2-gigawatt interconnection request referenced by an analyst. He said the parties would need to demonstrate success at lower load levels before discussing further expansion. The company has filed a large new-load tariff in Montana aimed at protecting existing customers. In South Dakota, NorthWestern can use an existing large-load tariff, though Bird said the company is seeking legislative action on sales-tax treatment for equipment purchases. Bird also highlighted transmission needs tied to regional load growth. He cited the North Plains Connector, a Montana-to-Idaho transmission line under development, possible capacity expansion on the Path 8 Colstrip transmission line, and potential work on Path 80. NorthWestern believes additional transmission capacity will be needed to support growth in Montana and the Pacific Northwest, he said. Addressing community concerns surrounding data centers, Bird said utilities, developers and data-center operators need to improve their communication with local communities. He said projects should demonstrate that large-load customers will pay their own costs rather than shifting higher expenses to existing utility customers. NorthWestern Corporation (NASDAQ: NWE) is a regulated energy company that delivers electricity and natural gas to residential, commercial and industrial customers. Through its Electric Operations and Gas Operations segments, the company operates an extensive network of distribution lines, substations and pipelines. NorthWestern's services encompass the delivery of power sourced from regional transmission systems and the procurement, storage and distribution of natural gas to end users. Electric delivery services include the management of distribution infrastructure, customer metering and system reliability programs. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "NorthWestern Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Second Quarter 2026 Diluted GAAP EPS of $0.40, compared to $0.35 in 2025. Second Quarter 2026 Adjusted Diluted Non-GAAP EPS of $0.50, compared to $0.40 in 2025. Affirms 2026 earnings guidance range of $3.68 to $3.83 per diluted share. Affirms record $683 million capital plan for 2026 and 4% to 6% long-term EPS and rate base growth rate. Announces $0.67 per share quarterly dividend - payable September 1, 2026. Received merger regulatory approval from Nebraska, South Dakota, and the Federal Energy Regulatory Commission (FERC). BUTTE, Mont. & SIOUX FALLS, S.D., July 29, 2026--(BUSINESS WIRE)--NorthWestern Energy Group, Inc. d/b/a NorthWestern Energy (Nasdaq: NWE) reported financial results for the Second Quarter of 2026. Net income for the period was $25.0 million, or $0.40 per diluted share, as compared with net income of $21.2 million, or $0.35 per diluted share, for the same period in 2025. This increase was primarily due to new rates and retail volumes. These were offset in part by operating, administrative, and general costs, including merger-related costs and costs associated with our additional ownership interests in Colstrip Units 3 and 4, depreciation expense, and interest expense. NorthWestern’s Second Quarter 2026 non-GAAP net income and diluted earnings per share were $31.1 million and $0.50, respectively, compared to $24.1 million and $0.40 in 2025. See "Adjusted Non-GAAP Earnings" and "Non-GAAP Financial Measures" sections below for more information on these measures. "We are pleased to report solid results for the quarter and exciting progress on the merger," said President and CEO Brian Bird. "In May, we received merger approval from the Federal Energy Regulatory Commission and the Nebraska Public Service Commission followed by approval from the South Dakota Public Utilities Commission in June. That leaves Montana as the only remaining regulatory approval needed for the merger. A hearing with the Montana Public Service Commission was held in May and we await their final order. In the meantime, we remain focused on executing our strategic priorities, delivering safe, reliable, and affordable service to our customers, and integration planning to position the combined company for long-term success." TRANSACTION UPDATE On August 18, 2025, we entered into a Merger Agreement with Black Hills Corporation and a wholly owned subsidiary of Black Hills. The Merger Agreement provides for an all-stock merger of equals between NorthWestern and Black Hills upon the terms and subject to the conditions set forth therein. The new corporate name selected for the resulting parent company of the combined corporate group is Bright Horizon Energy. In April 2026, shareholders of each company voted to approve the Merger and the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act expired, permitting consummation of the transaction. In May 2026, the Federal Energy Regulatory Commission (FERC) and the Nebraska Public Service Commission (NPSC) each approved the Merger. In June 2026, the South Dakota Public Utilities Commission (SDPUC) approved the merger. We filed an application with the Montana Public Service Commission (MPSC) for approval of the Merger, and in April 2026, we reached a settlement agreement with certain key intervenors in Montana, which is subject to the approval by the MPSC. In May 2026, a hearing with the MPSC was held and we await their final order. We anticipate the transaction closing by year-end 2026, subject to the satisfaction or waiver of certain closing conditions. During the three and six months ended June 30, 2026, we have incurred $3.3 million and $6.7 million, respectively, of merger-related costs, which are included in our Administrative and general expenses. FINANCIAL OUTLOOK Affirming 2026 Guidance and Long-Term Growth Rates We are affirming our 2026 non-GAAP earnings guidance of $3.68 - $3.83 per diluted share. This guidance is based upon, but not limited to, the following major assumptions: Normal weather in our service territories; Excludes costs related to the pending merger with Black Hills Corp.; Approval of the Power Cost and Credit Adjustment Mechanism (PCCAM) waiver and power prices sufficient to recover operating expense from incremental Avista and Puget Colstrip interests; An effective income tax rate of approximately 14 percent to 18 percent; and Diluted average shares outstanding of approximately 61.8 million. We are affirming our long-term diluted earnings per share growth guidance of 4% to 6%, based on our 2024 adjusted diluted non-GAAP EPS baseline of $3.40. Additionally, we are affirming our $3.2 billion capital investment plan for 2026-2030, which is expected to support rate base growth of 4% to 6% from our 2024 base year of approximately $5.4 billion. We anticipate funding capital expenditures through cash flows from operations, available credit sources, debt issuances, and future rate increases. In order to fund South Dakota generation investment, equity issuances are expected beginning in 2027. Dividend Declared NorthWestern Energy Group’s Board of Directors has declared a quarterly common stock dividend of $0.67 per share payable on September 1, 2026, to shareholders of record as of August 17, 2026. As previously disclosed in the Company's 2025 Annual Report issued in March 2026, this dividend was expected to be payable on September 30, 2026, to shareholders of record on September 15, 2026. The Board revised the record and payment dates in connection with the pending merger transaction and the dividend coordination provisions of the merger agreement. NorthWestern remains committed to maintaining a dividend payout ratio within our targeted range of 60-70% over the long term. Additional information regarding this release can be found in the earnings presentation at https://www.northwesternenergy.com/investors/earnings. COMPANY UPDATES Montana Rate Review In December 2025, the MPSC issued a final order approving our partial electric settlement agreement. The final order also suspended the 90/10 cost sharing mechanism of the PCCAM on a temporary basis pending further review by the MPSC. Within this final order, the MPSC disallowed a portion of the capital costs related to the construction of Yellowstone County Generating Station (YCGS). As a result, in the fourth quarter of 2025 we recorded a $30.9 million non-cash charge for the regulatory disallowance. In January 2026, we filed a Motion for Reconsideration (Motion) as it relates to this final order. Among other things, our Motion requests that the MPSC reconsider their prudence conclusions regarding the capital costs associated with the construction of YCGS and clarification as to the effective date of the PCCAM sharing mechanism suspension, for which we have requested an effective date of July 1, 2025, to align with the PCCAM tracker year. Any subsequent modifications by the MPSC to their final order are expected to be reflected in our 2026 results. Montana Large New Load Tariff Rule In March 2026, we filed an application with the MPSC requesting approval of a Large New Load tariff rule (LNL Rule) to establish requirements and contract terms for providing electric service to bundled customers with new or expanded loads of five megawatts or greater, including data centers and other energy-intensive operations. This filing establishes a framework governing agreements between us and large new load customers and is intended to address the costs and operational considerations associated with serving those loads while protecting existing customers from cost shifting and other adverse impacts. Under this proposed framework, for the largest commitments, 50 megawatts or greater, we would file the executed Electric Service Agreement with the MPSC for review and approval before service begins. For customers with loads between 5 and 49 megawatts, the tariff's standardized process and mandatory protections apply, but individual agreements do not require case-specific MPSC approval filings. This application initiates a public regulatory proceeding that will include opportunities for review and public comment consistent with MPSC procedures. Data Center Development As previously disclosed, we have signed development agreements with both Sabey Data Centers and Atlas Power Holdings LLC to provide electric supply services for data centers being developed in Montana. In April 2026, we signed a development agreement with Quantica Infrastructure to evaluate the transmission infrastructure and generation resources needed to support their proposed need. The combined energy service requirement associated with these development agreements is currently expected to be 150 megawatts beginning in late 2027, with growth of up to approximately 1,500 megawatts or more by 2030. We are working with each of these parties to execute electric service agreements. Resources and regulatory mechanisms, such as the LNL Rule discussed above, to be utilized for serving these requests are pending further evaluation and regulatory considerations. Colstrip Acquisitions and Requests for Cost Recovery As previously disclosed, we entered into definitive agreements with Avista and Puget to acquire their respective interests in Colstrip Units 3 and 4 for $0 and completed these acquisitions on January 1, 2026. Accordingly, we are responsible for the associated operating costs beginning on January 1, 2026, which we will not collect through utility base rates until requested in a future Montana rate review. Puget and Avista will remain responsible for their respective pre-closing share of environmental, asset retirement obligations, and pension liabilities attributed to events or conditions existing prior to the closing of the transaction and for any future decommissioning and demolition costs associated with the existing facilities that comprise their interests. Avista Interests - The 222 megawatts of generation capacity from Colstrip Units 3 and 4 acquired from Avista (Avista Interests) on January 1, 2026, was identified as a key element in our strategy to achieve resource adequacy for customers, as outlined in our 2023 Montana Integrated Resource Plan. Noting the costs associated with operating this resource are not currently reflected in utility customer rates, in August 2025, we filed a temporary PCCAM tariff waiver request with the MPSC that could provide a near-term cost-recovery mechanism to offset a portion of the approximately $18.0 million in annual incremental operating and maintenance costs associated with the Avista Interests. This waiver requested that the MPSC allow us to keep 100 percent of the net revenue associated with certain designated power sales contracts up to the amount of the operating and maintenance expenses we incur associated with our Avista Interests. Furthermore, the waiver request indicated that any net revenues from the designated contracts exceeding the operating and maintenance expenses associated with our Avista Interests would continue to flow back to retail customers. In January 2026, the MPSC approved our PCCAM tariff waiver request on an interim basis with final approval or denial subject to the ongoing PCCAM docket process. During the three and six months ended June 30, 2026, power prices in the Pacific Northwest associated with these designated power sales contracts included within our PCCAM tariff waiver were insufficient to contribute to the recovery of the operating and maintenance expenses associated with the Avista Interests. Puget Interests - The 370 megawatts of generation capacity from Colstrip Units 3 and 4 acquired from Puget (Puget Interests) on January 1, 2026, increases our ownership share of the facility to 55 percent and provides an increase in voting share in determining strategic direction and investment decisions at the facility. Unlike the Avista Interests, we do not currently need this capacity to serve existing customers in Montana. As such, the Puget Interests are held by our FERC regulated subsidiary to isolate the costs associated with this acquired interest from our Montana retail customers. While we expect our future opportunity to serve growing customer demand, including large-load customers, may be supported by this resource, in October 2025, we signed a contract to sell the dispatchable capacity and associated energy from the Puget Interests beginning January 1, 2026, through late 2027. Revenues from this agreement are expected to largely offset the estimated $30.0 million of annual incremental operating and maintenance costs associated with the Puget Interests. In addition, in October 2025, we submitted a request to the FERC for approval of cost-based rates for our subsidiary that will own the Puget Interests. In February 2026, the FERC approved both the cost-based rates and the contract rates retroactive to January 1, 2026. In March 2026, two MPSC commissioners, in their individual capacity, filed a motion with the FERC requesting a rehearing that largely reiterated arguments previously rejected by the FERC. The FERC denied this motion by operation of law. In June 2026, the two MPSC commissioners appealed the decision to the Ninth Circuit. We have intervened in the case. Generation Capacity in South Dakota The Southwest Power Pool (SPP) has recently updated its resource accreditation and planning reserve margin (PRM) requirements in response to growing reliability concerns. As a result, SPP is requiring additional accredited capacity by 2030 to meet the updated PRM targets. In October 2025, we submitted a project with the SPP under their Expedited Resource Adequacy Study program for the construction of a 131 MW natural gas generating facility located in Aberdeen, South Dakota, to meet regional capacity needs by 2030. Anticipated costs for this project are approximately $300.0 million. As of June 30, 2026, we have recorded $42.3 million within Other noncurrent assets on the Condensed Consolidated Balance Sheets for non-refundable milestone payments to secure the turbines that will be used at this facility. Regional Transmission Development Activities In December 2024, we signed a nonbinding memorandum of understanding (MOU) with North Plains Connector LLC, a wholly owned subsidiary of Grid United, to own 10 percent (300 megawatts) of the North Plains Connector (NPC) Consortium project. The project is entering the permitting phase. Currently, construction is planned to commence in 2028, subject to receipt of regulatory approvals, with the project expected to be operational by 2032. Under the terms of the MOU, Grid United will continue to fund the development of the NPC and we will make our investment decision when the regulatory approvals and permits are in place. The project is a critical infrastructure investment that aligns with our commitment to providing reliable and affordable energy to our customers while also supporting broader grid resilience efforts in the region. We have also entered into a nonbinding letter of intent with Grid United to continue transmission development to further enhance the grid through the southwest corridor of Montana. Development to expand the southwest corridor of Montana through grid build out would represent a significant step in enhancing connectivity between Montana and the broader Western energy market - bolstering grid reliability, allowing for critical import capability, and enabling customers to access and benefit from emerging energy markets in the West. South Dakota Wildfire Risk Mitigation The South Dakota Legislature approved Senate Bill 36, and the Governor signed this bill into law in March 2026. It precludes common law strict liability claims for utility operations alleged to have caused wildfire-related damages; establishes a statutory standard of care, supplanting common law causes of action and other theories of recovery; and creates a rebuttable presumption that a valid and current wildfire mitigation plan is reasonable preparation for, and mitigation of, wildfire risk. The legislation also defines the availability of damages by allowing noneconomic personal injury damages only when there is bodily injury and punitive damages only when an injured party proves by clear and convincing evidence that a qualified utility acted with willful and wanton misconduct and the qualified utility's willful and wanton misconduct was the actual and proximate cause of damages to the plaintiff. We anticipate filing our wildfire mitigation plan with the SDPUC in the third quarter of 2026. Financing Update On April 28, 2026, NWE Public Service priced $150.0 million aggregate principal amount of South Dakota First Mortgage Bonds at a fixed interest rate of 5.51 percent maturing on June 15, 2036. We completed the issuance and sale of these bonds on June 15, 2026. Proceeds were utilized to redeem NWE Public Service's $60.0 million of 2.80 percent South Dakota First Mortgage Bonds due on June 15, 2026, to repay outstanding borrowings under our credit facility, and for general utility purposes. On May 27, 2026, NW Corp entered into a $225.0 million secured Term Loan Credit Agreement (NW Corp Term Loan) with a maturity date of November 26, 2027. NW Corp's obligations under the NW Corp Term Loan are secured by $225.0 million of Montana First Mortgage Bonds issued to the administrative agent of the term loan facility. Borrowings may be made at a variable interest rate equal to the Secured Overnight Financing Rate plus an applicable margin as provided in the NW Corp Term Loan. Proceeds were used to repay a portion of NW Corp's outstanding revolving credit facility borrowings. The NW Corp Term Loan provides for prepayment of the principal and interest; however, amounts prepaid may not be reborrowed. The NW Corp Term Loan requires NW Corp to maintain a consolidated indebtedness to total capitalization ratio of 65 percent or less. It also contains covenants which, among other things, limit our ability to engage in any consolidation or merger (except for our pending merger with Black Hills) or otherwise liquidate or dissolve, dispose of property, and restricts certain affiliate transactions. CONSOLIDATED STATEMENT OF INCOME RECONCILIATION OF PRIMARY CHANGES DURING THE QUARTER EXPLANATION OF CONSOLIDATED RESULTS Three Months Ended June 30, 2026 Compared with the Three Months Ended June 30, 2025 Consolidated gross margin for the three months ended June 30, 2026 was $106.6 million as compared with $94.5 million in 2025, an increase of $12.1 million, or 12.8 percent. This increase was primarily due to new rates and retail volumes. These were offset in part by higher operating, administrative, and general costs, including merger-related costs and costs associated with our additional ownership interests in Colstrip Units 3 and 4, and depreciation expense. Consolidated utility margin for the three months ended June 30, 2026 was $302.8 million as compared with $267.4 million for the same period in 2025, an increase of $35.4 million, or 13.2 percent. Primary components of the change in utility margin include the following: Electric retail volumes were impacted by favorable weather in South Dakota and customer growth in all jurisdictions, partly offset by unfavorable weather in Montana. Natural gas retail volumes were impacted by favorable weather in Montana and South Dakota, the acquisition of the Energy West operations in July 2025, and customer growth, partly offset by unfavorable weather in Nebraska. Under the PCCAM, net supply costs higher or lower than the PCCAM base rate (PCCAM Base) (excluding qualifying facility costs) were allocated 90 percent to Montana customers and 10 percent to shareholders. Effective February 1, 2026 the cost sharing mechanism of the PCCAM was suspended on an interim basis pending further review by the MPSC. For the three months ended June 30, 2025, we recorded a decrease in pre-tax earnings of $0.8 million (10 percent of the PCCAM Base cost variance). Consolidated operating expenses, excluding fuel, purchased supply and direct transmission expense, were $238.6 million for the three months ended June 30, 2026, as compared with $206.7 million for the three months ended June 30, 2025. Primary components of the change include the following: We estimate property taxes throughout each year, and update those estimates based on valuation reports received from the Montana Department of Revenue. Under Montana law, we are allowed to track the increases and decreases in the actual level of state and local taxes and fees and adjust our rates to recover the increase or decrease between rate cases less the amount allocated to FERC-jurisdictional customers and net of the associated income tax benefit. Consolidated operating income for the three months ended June 30, 2026 was $64.2 million as compared with $60.8 million in the same period of 2025. This increase was primarily due to new rates and retail volumes. These were offset in part by operating, administrative, and general costs, including merger-related costs and costs associated with our additional ownership interests in Colstrip Units 3 and 4, and depreciation expense. Consolidated interest expense was $40.3 million for the three months ended June 30, 2026 as compared with $36.3 million for the same period of 2025. This increase was due to higher borrowings and interest rates partly offset by higher capitalization of Allowance for Funds Used During Construction (AFUDC). Consolidated other income was $4.5 million for the three months ended June 30, 2026 as compared with $0.1 million for the same period of 2025. This increase was primarily due to an increase in the value of deferred shares held in trust for deferred compensation, a prior year $1.0 million expense accrual related to an estimated penalty for the previously disclosed Community Renewable Energy Project (CREP) informed by a MPSC ruling, and higher capitalization of AFUDC. Consolidated income tax expense was $3.5 million for the three months ended June 30, 2026 as compared to $3.4 million for the same period of 2025. Our effective tax rate for the three months ended June 30, 2026 was 12.2% as compared with 13.7% for the same period in 2025. The following table summarizes the differences between our effective tax rate and the federal statutory rate: We compute income tax expense for each quarter based on the estimated annual effective tax rate for the year, adjusted for certain discrete items. Our effective tax rate typically differs from the federal statutory tax rate primarily due to the regulatory impact of flowing through federal and state tax benefits of repairs deductions, state tax benefit of accelerated tax depreciation deductions (including bonus depreciation when applicable) and production tax credits. LIQUIDITY AND OTHER CONSIDERATIONS Liquidity and Capital Resources As of June 30, 2026, our total net liquidity was approximately $339.2 million, including $4.2 million of cash and cash equivalents and $335.0 million of revolving credit facility availability with no letters of credit outstanding. This compares to total net liquidity one year ago at June 30, 2025 of $317.9 million. Earnings Per Share Basic earnings per share are computed by dividing earnings applicable to common stock by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution of common stock equivalent shares that could occur if unvested shares were to vest. Common stock equivalent shares are calculated using the treasury stock method, as applicable. The dilutive effect is computed by dividing earnings applicable to common stock by the weighted average number of common shares outstanding plus the effect of the outstanding unvested restricted stock and performance share awards. Average shares used in computing the basic and diluted earnings per share are as follows: As of June 30, 2026, there were no shares from performance and restricted share awards which were antidilutive and excluded from the earnings per share calculations, compared to 68,107 shares as of June 30, 2025. Adjusted Non-GAAP Earnings We reported GAAP earnings of $0.40 per diluted share for the three months ended June 30, 2026 and $0.35 per diluted share for the same period in 2025. Adjusted Non-GAAP earnings per diluted share for the same periods are $0.50 and $0.40, respectively. A reconciliation of items factored into our Adjusted Non-GAAP diluted earnings are summarized below. The amount below represents a non-GAAP measure that may provide users of this data with additional meaningful information regarding the impact of certain items on our expected earnings. More information on this measure can be found in the "Non-GAAP Financial Measures" section below. Company Hosting Earnings Webinar NorthWestern will host an investor earnings webinar on Thursday, July 30, 2026, at 3:30 p.m. Eastern time to review its financial results for the three months ended June 30, 2026. To register for the webinar, please visit www.northwesternenergy.com/earnings-registration. Please go to the site at least 15 minutes in advance of the webinar to register. An archived webinar will be available shortly after the event and remain active for one year. NorthWestern Energy - Delivering a Bright Future NorthWestern Energy Group, doing business as NorthWestern Energy, provides essential energy infrastructure and valuable services that enrich lives and empower communities while serving as long-term partners to our customers and communities. We work to deliver safe, reliable, and innovative energy solutions that create value for customers, communities, employees, and investors. We do this by providing low-cost and reliable service performed by highly-adaptable and skilled employees. We provide electricity and / or natural gas to approximately 850,300 customers in Montana, South Dakota, Nebraska, and Yellowstone National Park. Upon the completion of the holding company reorganization in 2023, NW Corp became a subsidiary of NorthWestern Energy Group. Our operations in Montana and Yellowstone National Park are conducted through our subsidiary, NW Corp, and our operations in South Dakota and Nebraska are conducted through our subsidiary, NWE Public Service. We have provided service in South Dakota and Nebraska since 1923 and in Montana since 2002. Non-GAAP Financial Measures This press release includes financial information prepared in accordance with GAAP, as well as other financial measures, such as Utility Margin, Adjusted Non-GAAP pretax income, Adjusted Non-GAAP net income and Adjusted Non-GAAP Diluted EPS that are considered "non-GAAP financial measures." Generally, a non-GAAP financial measure is a numerical measure of a company’s financial performance, financial position, or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP. We define Utility Margin as Operating Revenues less fuel, purchased supply, and direct transmission expense (exclusive of depreciation and depletion) as presented in our Condensed Consolidated Statements of Income. This measure differs from the GAAP definition of Gross Margin due to the exclusion of Operating and maintenance, Property and other taxes, and Depreciation and depletion expenses, which are presented separately in our Condensed Consolidated Statements of Income. A reconciliation of Utility Margin to Gross Margin, the most directly comparable GAAP measure, is included in the press release above. Management believes that Utility Margin provides a useful measure for investors and other financial statement users to analyze our financial performance in that it excludes the effect on total revenues caused by volatility in energy costs and associated regulatory mechanisms. This information is intended to enhance an investor's overall understanding of results. Under our various state regulatory mechanisms, as detailed below, our supply costs are generally collected from customers. In addition, Utility Margin is used by us to determine whether we are collecting the appropriate amount of energy costs from customers to allow for recovery of operating costs, as well as to analyze how changes in loads (due to weather, economic, or other conditions), rates, and other factors impact our results of operations. Our Utility Margin measure may not be comparable to that of other companies' presentations or more useful than the GAAP information provided elsewhere in this report. Management also believes the presentation of Adjusted Non-GAAP pre-tax income, Adjusted Non-GAAP net income, and Adjusted Non-GAAP Diluted EPS is more representative of normal earnings than GAAP pre-tax income, net income, and EPS due to the exclusion (or inclusion) of certain impacts that are not reflective of ongoing earnings. The presentation of these non-GAAP measures is intended to supplement investors' understanding of our financial performance and not to replace other GAAP measures as an indicator of actual operating performance. Our measures may not be comparable to other companies' similarly titled measures. Special Note Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including, without limitation, the information under "Adjusted Non-GAAP Earnings." Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed. We caution that while we make such statements in good faith and believe such statements are based on reasonable assumptions, including without limitation, management's examination of historical operating trends, data contained in records, and other data available from third parties, we cannot assure you that we will achieve our projections. Factors that may cause such differences include, but are not limited to: risks relating to the pending merger transaction pursuant to that certain Agreement and Plan of Merger dated August 18, 2025 (Merger Agreement) between NorthWestern and Black Hills Corporation (Black Hills), including, among others, (1) the risk of delays in consummating the pending merger transaction, including as a result of required regulatory approvals, which may not be obtained on the expected timeline, or at all, (2) the risk of any event, change or other circumstance that could give rise to the termination of the Merger Agreement, (3) the risk that required regulatory approvals are subject to conditions not anticipated by NorthWestern and Black Hills, (4) the possibility that the anticipated benefits and projected value creation of the pending merger transaction will not be realized or will not be realized within the expected time period, (5) disruption to the parties’ businesses as a result of the announcement and pendency of the merger transaction, including potential distraction of management from current plans and operations of NorthWestern or Black Hills and the ability of NorthWestern or Black Hills to retain and hire key personnel, (6) reputational risk and the reaction of each company’s customers, suppliers, employees or other business partners to the pending merger transaction, (7) the possibility that the pending merger transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events, (8) the outcome of any legal or regulatory proceedings that may be instituted against NorthWestern or Black Hills related to the Merger Agreement or the pending merger transaction, (9) the risks associated with third party contracts containing consent and/or other provisions that may be triggered by the pending merger transaction, (10) legislative, regulatory, political, market, economic and other conditions, developments and uncertainties affecting NorthWestern's or Black Hills' businesses; (11) the evolving legal, regulatory and tax regimes under which NorthWestern and Black Hills operate; (12) restrictions during the pendency of the merger transaction that may impact NorthWestern's or Black Hills' ability to pursue certain business opportunities or strategic transactions; and (13) unpredictability and severity of catastrophic events, including, but not limited to, extreme weather, natural disasters, acts of terrorism or outbreak of war or hostilities, as well as NorthWestern's and Black Hills' response to any of the aforementioned factors; adverse determinations by regulators, such as adverse outcomes from the denial of interim rates, final rates not consistent with a reasonable ability to earn our allowed returns, failure to timely approve our requests associated with recovering the operating costs for the additional interests in Colstrip Units 3 and 4, as well as potential adverse federal, state, or local legislation or regulation, including costs of compliance with existing and future environmental requirements, and wildfire damages in excess of liability insurance coverage, could have a material effect on our liquidity, results of operations and financial condition; our ability to attract and serve large new load customers, including data centers and other energy-intensive operations, depends on regulatory and legislative actions supportive of a framework for review and approval of these large new load customer contracts; our ability to enter agreements to sell excess capacity and associated energy from additional interests in Colstrip Units 3 and 4 on favorable commercial and economic terms; the impact of extraordinary external events and natural disasters, such as a wide-spread or global pandemic, geopolitical events, earthquake, flood, drought, lightning, weather, wind, and fire, could have a material effect on our liquidity, results of operations and financial condition; acts of terrorism, cybersecurity attacks, data security breaches, or other malicious acts that cause damage to our generation, transmission, or distribution facilities, information technology systems, or result in the release of confidential customer, employee, or Company information; supply chain constraints, tariffs on certain imported products, recent high levels of inflation for products, services and labor costs, and their impact on capital expenditures, operating activities, and/or our ability to safely and reliably serve our customers; changes in availability of trade credit, creditworthiness of counterparties, usage, commodity prices, fuel supply costs or availability due to higher demand, shortages, weather conditions, transportation problems or other developments, may reduce revenues or may increase operating costs, each of which could adversely affect our liquidity and results of operations; unscheduled generation outages or forced reductions in output, maintenance or repairs, which may reduce revenues and increase operating costs or may require additional capital expenditures or other increased operating costs; and adverse changes in general economic and competitive conditions in the U.S. financial markets and in our service territories. Additional factors which could affect future results of NorthWestern and Black Hills can be found in NorthWestern Energy’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, and Black Hills’ Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, in each case filed with the SEC and available on the SEC’s website at http://www.sec.gov. NorthWestern and Black Hills disclaim any obligation and do not intend to update or revise any forward-looking statements contained in this communication, which speak only as of the date hereof, whether as a result of new information, future events or otherwise, except as required by federal securities laws. View source version on businesswire.com: https://www.businesswire.com/news/home/20260729177380/en/ Contacts Investor Relations Contact: Travis Meyer (605) [email protected] Media Contact: Jo Dee Black (866) [email protected]

Alliant Energy (LNT) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 30. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This electric and gas utility parent company is expected to post quarterly earnings of $0.66 per share in its upcoming report, which represents a year-over-year change of -2.9%. Revenues are expected to be $1 billion, up 4.3% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Alliant Energy, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -2.54%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Alliant Energy will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Alliant Energy would post earnings of $0.82 per share when it actually produced earnings of $0.82, delivering no surprise. Over the last four quarters, the company has beaten consensus EPS estimates two times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Alliant Energy doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Another stock from the Zacks Utility - Electric Power industry, NorthWestern (NWE), is soon expected to post earnings of $0.42 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +5%. Revenues for the quarter are expected to be $386.22 million, up 12.7% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for NorthWestern has been revised 6.4% up to the current level. Nevertheless, the company now has an Earnings ESP of 0.00%, reflecting an equal Most Accurate Estimate. When combined with a Zacks Rank of #2 (Buy), this Earnings ESP makes it difficult to conclusively predict that NorthWestern will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alliant Energy Corporation (LNT) : Free Stock Analysis Report NorthWestern Corporation (NWE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The market expects NorthWestern (NWE) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 29. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This electric and gas utility is expected to post quarterly earnings of $0.42 per share in its upcoming report, which represents a year-over-year change of +5%. Revenues are expected to be $386.22 million, up 12.7% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 6.38% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For NorthWestern, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%. On the other hand, the stock currently carries a Zacks Rank of #2. So, this combination makes it difficult to conclusively predict that NorthWestern will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that NorthWestern would post earnings of $1.29 per share when it actually produced earnings of $1.31, delivering a surprise of +1.55%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. NorthWestern doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Another stock from the Zacks Utility - Electric Power industry, CMS Energy (CMS), is soon expected to post earnings of $0.63 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -11.3%. Revenues for the quarter are expected to be $1.95 billion, up 6.2% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for CMS Energy has been revised 6.1% up to the current level. Nevertheless, the company now has an Earnings ESP of -10.40%, reflecting a lower Most Accurate Estimate. When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that CMS Energy will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NorthWestern Corporation (NWE) : Free Stock Analysis Report CMS Energy Corporation (CMS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research