Black Hills Corporation

Black Hills reported Q2 2026 GAAP EPS of $0.50, including $0.04 of merger-related transaction costs, and adjusted EPS of $0.54 versus $0.38 in Q2 2025. For the first half of 2026, GAAP EPS was $2.23 and adjusted EPS was $2.33 versus $2.24 a year ago. Management said $0.21 per share of new rates and rider recovery more than offset higher financing and depreciation costs in the quarter, while O&M was flat excluding merger costs. The company reaffirmed 2026 adjusted EPS guidance of $4.25 to $4.45 and said it remains on track to be in the upper half of its 4% to 6% long-term growth target.

Linden Evans framed the quarter as solid execution against strategy, highlighting progress on large-load opportunities, regulation, and the Northwestern merger. He said the company is on track with its earnings guidance and emphasized a nearly $1 billion capital plan, the 99 MW Lange II project, and ongoing rate cases. On data centers, he stressed that Black Hills is negotiating with hyperscale end users and wants to “do it right, not just fast,” while still aiming to finish key agreements by quarter-end.

Kimberly Noly said Q2 adjusted EPS benefited from new rates and rider recovery, while higher financing and depreciation costs were the main offsets. She cited $0.21 per share of new rates and rider recovery in the quarter, $0.45 per share year to date, and $0.11 of lower O&M year to date excluding merger costs. She also noted credit metrics remain targeted at 14% to 15% FFO-to-debt and better than 55% net debt to capitalization, with $50 million of equity issued through the ATM, more than $650 million of revolver availability, and a $400 million debt maturity coming in January 2027.

The main analyst focus was the 1.8 GW data-center opportunity and whether Crusoe’s exit changed the deal. Management said Crusoe’s exit had no impact, that negotiations are with the hyperscale end user, and that the company is still aiming to finish agreements by the end of the quarter. On Montana, management said settlements with about five parties improve the path to approval, with a decision expected around mid-October to mid-November if the commission uses the full timeline.