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.
Second-Quarter Results and Capital Plan
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.
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.
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.
Black Hills Merger Awaits Montana Decision
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.
Colstrip Recovery and Summer Market Conditions
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.
Data Centers and Transmission Opportunities
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.
About NorthWestern (NASDAQ:NWE)
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.
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