Black Hills Reaffirms $4.25–$4.45 EPS Guidance, Secures 1.8 GW Data Center Deal
BKH•Black Hills reported first-quarter adjusted EPS of $1.79, excluding $0.05 merger costs, and reaffirmed full-year guidance of $4.25 to $4.45 per share despite $0.18 of weather headwinds. The company reserved generation for a 1.8 GW Wyoming data center with $201 million in deposits and won shareholder approval for its NorthWestern Energy merger.
1. First-Quarter Financial Performance
Black Hills reported GAAP net income of $131.0 million and diluted EPS of $1.73 for Q1 2026, down from $134.3 million and $1.87 in Q1 2025. Adjusted EPS of $1.79 excluded $0.05 of merger-related costs and reflected $0.18 of weather impacts, higher financing and depreciation costs, partially offset by rate recoveries and lower O&M expenses.
2. 2026 Guidance Reaffirmed
The company reaffirmed its full-year 2026 adjusted EPS guidance of $4.25 to $4.45 per share, citing strong operational performance and strategic progress. Wyoming Electric delivered a record 393 MW peak load, up 4% year-over-year, supporting confidence in meeting long-term EPS growth targets of 4%–6%.
3. Data Center and Generation Agreement
On April 22, Wyoming Electric executed an agreement to reserve generation equipment for a prospective 1.8 GW data center in Wyoming, with $201 million in refundable contributions to date. Black Hills’ data center pipeline exceeds 3 GW, driven by expansions with Microsoft and Meta, alongside ongoing construction of the 99 MW Lange II project in Rapid City slated for Q4 service.
4. Merger and Regulatory Progress
Shareholders approved the tax-free, all-stock merger with NorthWestern Energy and the companies reached settlement agreements with intervenors in Montana, South Dakota and Nebraska. The Hart-Scott-Rodino waiting period closed on April 20, 2026, the FERC review is pending with a mid-2026 decision expected, and the transaction remains on track to close in H2 2026; South Dakota enacted wildfire liability protections and Black Hills filed rate reviews seeking $5 million in new annual revenue with a 10.5% ROE.
