Key Highlights

  • GAAP EPS reached USD 0.54 versus USD 0.34, while adjusted EPS moved up to USD 0.57 from USD 0.45, with Net Income available to common stock at USD 41.0 million.
  • The company reaffirmed 2026 adjusted EPS guidance of USD 4.25 to USD 4.45, which excludes merger-related costs, and sees itself in the upper half of its 4% to 6% Long-term Growth target.
  • Signed Google Data Center agreements run through 2048 and are projected to contribute about USD 150 million of annual net income in 2030.
  • Wyoming transmission proposals total USD 686 million, and the Montana decision on the NorthWestern Energy Merger remains pending.

Rate Relief and Weather Support a Stronger Quarter

Black Hills (NYSE:BKH) released third-quarter 2026 results on November 4, 2026. GAAP EPS was USD 0.54 compared with USD 0.34, and adjusted EPS of USD 0.57 stacked up against USD 0.45. New rates and rider recovery contributed USD 0.15 per share and favorable weather added USD 0.06, outweighing higher operating, financing and Depreciation expenses. The chief executive called the quarter excellent and noted that solid investment-grade Credit ratings were maintained. Merger costs cut EPS by USD 0.03, down from USD 0.10. Over nine months, GAAP EPS was USD 2.76 against USD 2.58, and adjusted EPS came to USD 2.89 against USD 2.68.

Google Data Center Agreements in Cheyenne

On September 30 the company signed definitive contracts running through 2048 to serve a planned Cheyenne, Wyoming data center, backed by 2.7 gigawatts of resources including reserve margins. Black Hills intends to invest USD 1.8 billion in 564 megawatts of newly built company-owned generation and to manage 2.1 gigawatts of third-party capacity. Earnings should begin around mid-2027, with fees on contracted resources starting in late 2027, and net income is projected at roughly USD 150 million in 2030. Unlevered free Cash Flow is forecast near USD 2.4 billion over the contract term, after the USD 1.8 billion outlay.

Transmission Filings, Rate Cases and the NorthWestern Combination

Wyoming Electric asked for approval of two transmission projects valued at USD 80 million and USD 606 million, with decisions anticipated in mid-2027, and a cost recovery Tariff ruling is expected in the first quarter of 2027. South Dakota Electric reached a settlement adding USD 27.4 million of annual Revenue and a rate moratorium through August 2030. The all-stock merger with NorthWestern Energy, announced August 19, 2025, is expected to close by year-end 2026, pending a final Montana Public Service Commission decision. Additional Wyoming generation and transmission Investment for large-load Demand totals USD 2.5 billion and is described as upside to the current plan. Risks include regulatory timing and execution on a large Capital program, and the Lange II gas plant, a 99 megawatt project costing USD 320 million in South Dakota, is on track for service in the fourth quarter.

Where Things Stand

Earnings should arrive in stages rather than all at once. Black Hills (NYSE:BKH) expects Google-linked contributions to begin in mid-2027, with the USD 150 million of net income projected for 2030. Near term, rates, rider recovery and the Lange II facility, due in service in the fourth quarter, underpin the reaffirmed 2026 guidance. The Montana decision on the NorthWestern merger and the Wyoming transmission approvals are the key milestones, along with an updated 2027 to 2031 plan promised with year-end results.