Black Hills Q2 Earnings Beat, Guidance Reaffirmed; Merger and Data Center Deal Advance
BKH sits 26% above its 52-week low of $58.06.
Summary
Black Hills reported Q2 EPS of $0.50, up 32% year-over-year, reaffirmed 2026 guidance, and advanced its merger with NorthWestern Energy and a 1.8 GW data center deal.
Key Events · Earnings and Guidance · BKH
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Q2 Earnings Beat
Diluted EPS of $0.50 versus $0.38 in Q2 2025, driven by new rates and rider recovery. Adjusted EPS of $0.54 beat last year's $0.38 by 42%.
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2026 Guidance Reaffirmed
Management reaffirmed its full-year 2026 earnings guidance, signaling confidence in the outlook.
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Merger with NorthWestern Advances
NPSC, SDPUC, and FERC approvals received; only MPSC approval remains. Closing expected by year-end 2026.
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1.8 GW Data Center Deal Progresses
Wyoming Electric's generation reservation agreement amended to $377M in refundable advances, maturing August 31, 2026, while definitive agreements are negotiated.
Analysis · BKH · Energy & Transportation
A strong second quarter saw adjusted EPS of $0.54 beat last year's $0.38 by 42%, powered by new rates and rider recovery across both electric and gas utilities. Confidence in the full-year outlook is underscored by the reaffirmed 2026 earnings guidance. The pending all-stock merger with NorthWestern Energy has cleared key regulatory hurdles — NPSC, SDPUC, and FERC approvals are in hand, with only MPSC remaining; closing is expected by year-end. Meanwhile, the scale of the data center opportunity is highlighted by Wyoming Electric's amended generation reservation agreement with a prospective 1.8 GW customer, now involving $377 million in refundable advances. Multiple rate reviews are advancing, including a $50.6 million request in South Dakota and a $26.7 million request in Colorado, which would further support earnings growth. The combination of strong operational execution, regulatory progress on the transformative merger, and a massive data center load opportunity makes this a thesis-affirming quarter.
At the time of this filing, BKH was trading at $73.02 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $5.6B. The 52-week trading range was $58.06 to $78.69. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.