Black Hills Corp.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 6 May 2026: press release. Guidance figures: 6 kept. The quarter’s numbers.

Key takeaways

Quarterly EPS down from prior year: GAAP EPS was $1.73 against $1.87 a year earlier. Adjusted EPS was $1.79, excluding $0.05 of after-tax merger-related costs. The prior-year figure was $1.87. Source
Mild winter cut $0.18 per share: Weather reduced results by $0.18 per share. Higher financing and depreciation costs also weighed, partly offset by new rates, rider recovery and lower operations and maintenance expenses. Source
Wyoming Electric sets 393 MW peak: Wyoming Electric recorded a new winter and all-time peak of 393 MW on Jan. 23. The peak was 4% above the prior all-time peak of 379 MW set June 20, 2025. Source
Prospective 1.8 GW customer funds equipment: The prospective 1.8 GW data center customer has provided $201 million in refundable contributions to date. The funds support milestone payments for generation equipment. Source
Shareholders approved the merger: Shareholders of both companies approved the merger on April 2, 2026, after the all-stock transaction was announced on Aug. 19, 2025. Source
Settlements reached in three states: Constructive settlements were reached with certain intervenors in Montana and South Dakota, and a full settlement was reached in Nebraska. Source
South Dakota Electric seeks $51 million: The South Dakota rate review requests $51 million of new annual revenue, on a 53% equity and 47% debt capital structure with a 10.5% return on equity. Source

“We maintained our solid financial position and executed on our capital plan for our customers”
Linn Evans, president and CEO of Black Hills Corp.

Guidance

Area	Period	Figure	Against last quarter
2026 adjusted EPS Source	full year 2026	$4.25 to $4.45	Kept
Operations and maintenance expense growth Source	2026	approximately 3.5% off 2025 of $580 million	Kept
Equity issuance Source	2026	$50 million to $70 million	Kept
Effective tax rate Source	full year 2026	approximately 14%	Kept
Long-term adjusted EPS growth Source	long-term	upper half of 4% to 6%	Kept
Data center load in five-year plan Source	by 2030	600 MW	Kept

What changed from last quarter

New: Wyoming Electric agreed on April 22 to procure long lead-time generation equipment for a prospective 1.8 GW data center customer. Source
New: South Dakota Electric filed a rate review with the South Dakota Public Utilities Commission on Feb. 19, seeking recovery of investments since its 2014 review. Source
New: South Dakota enacted wildfire liability legislation on March 12, effective July 1, 2026, covering utilities that follow their wildfire mitigation plans. Source
New: Shareholders of both companies approved the merger on April 2, 2026. Source
New: The Hart-Scott-Rodino waiting period for the merger was completed on April 20, 2026. Source
New: Colorado Electric executed a power purchase agreement for up to 200 MW of solar energy from a third party. Source

Quarter results and guidance

Quarterly EPS down from prior year: GAAP EPS was $1.73 against $1.87 a year earlier. Adjusted EPS was $1.79, excluding $0.05 of after-tax merger-related costs. The prior-year figure was $1.87. Source
Net income and adjusted earnings reported: Net income available for common stock was $131.0 million, against $134.3 million. Adjusted earnings were $135.1 million, against $134.3 million. Source
Mild winter cut $0.18 per share: Weather reduced results by $0.18 per share. Higher financing and depreciation costs also weighed, partly offset by new rates, rider recovery and lower operations and maintenance expenses. Source

Electric utilities results

Electric operating income up $5.6 million: Electric Utilities operating income rose on new Colorado Electric rates and Wyoming rider recovery. Unfavorable weather and lower residential and commercial usage partly offset the gain. Source
Electric revenue rose $4.9 million: Electric revenue was $241.6 million against $236.7 million. Industrial revenue rose to $56.2 million from $48.2 million, driven by Wyoming Electric LPCS and BCIS tariff customers. Source
Electric segment operating income figures: Electric Utilities operating income was $59.9 million, up from $54.3 million. Electric revenue and quantities sold are reported by business unit in the operating statistics. Source

“We are confident in our ability to deliver earnings in the upper half of our 4% to 6% long-term EPS growth target”
Linn Evans, president and CEO of Black Hills Corp.

Gas utilities results

Gas operating income down $5.0 million: Gas Utilities operating income fell $5.0 million, mainly from unfavorable weather. The company reported gas operating income of $146.5 million against $151.5 million. Source
Gas revenue lower on weather: Gas revenue was $543.1 million against $572.4 million, and quantities sold and transported were 84.5 million Dth against 96.1 million Dth. Source
Rate reviews offset part of decline: New rates and rider recovery from the Kansas Gas and Nebraska Gas rate reviews, along with lower operating expenses, partly offset the weather decline. Source

Load growth and data centers

Wyoming Electric sets 393 MW peak: Wyoming Electric recorded a new winter and all-time peak of 393 MW on Jan. 23. The peak was 4% above the prior all-time peak of 379 MW set June 20, 2025. Source
Prospective 1.8 GW customer funds equipment: The prospective 1.8 GW data center customer has provided $201 million in refundable contributions to date. The funds support milestone payments for generation equipment. Source
Additional large-load agreements in progress: Management said it continues to make progress toward definitive agreements for other large-load projects. It said the 1.8 GW data center would be additive to the current plan. Source
Microsoft plans Cheyenne land purchase: Microsoft has announced an intention to invest in 3,200 acres of additional land for future data center expansion in Cheyenne, which management said could add to the growth pipeline. Source

“Our customer-focused strategy has positioned us to consistently and innovatively deliver safe, reliable, and affordable energy while supporting the needs of our customers and communities for growth.”
Linn Evans, president and CEO of Black Hills Corp.

Costs, margins and operating expenses

Operations and maintenance expense down: Operations and maintenance expense was $148.0 million, against $153.7 million. Depreciation and amortization rose to $74.8 million from $69.2 million. Source
Operating income slightly lower: Consolidated operating income was $201.9 million, against $205.0 million. Electric operating income was $59.9 million and gas operating income was $146.5 million. Source
Merger costs drove corporate loss: Corporate and Other operating loss increased $3.7 million, due to costs related to the pending merger with NorthWestern Energy. Source

Capital, financing and dividend

Quarterly dividend of $0.703 approved: The board approved a $0.703 quarterly dividend payable June 1, 2026. The company describes the annualized dividend as the 56th consecutive year of increases. Source
At-the-market share issuance raised $41 million: The company issued 0.6 million new common shares under its at-the-market program during the quarter, for net proceeds of $41 million. Source
Lange II gas plant construction continues: South Dakota Electric continued building the 99 MW Lange II gas plant, a $280 million project to replace generation resources planned for retirement. Source
Colorado battery storage project underway: Construction continued on the 50 MW Colorado Electric battery storage project during the quarter. The company expects it to be completed by year-end 2027. Source

Merger with NorthWestern Energy

Shareholders approved the merger: Shareholders of both companies approved the merger on April 2, 2026, after the all-stock transaction was announced on Aug. 19, 2025. Source
Settlements reached in three states: Constructive settlements were reached with certain intervenors in Montana and South Dakota, and a full settlement was reached in Nebraska. Source
Larger Midwest utility is the goal: Management described the goal as a larger, premier Midwest utility after the merger, which remains subject to regulatory approvals in Montana, Nebraska and South Dakota. Source

Rate reviews and legislation

South Dakota Electric seeks $51 million: The South Dakota rate review requests $51 million of new annual revenue, on a 53% equity and 47% debt capital structure with a 10.5% return on equity. Source
Wyoming rate review requests $5 million: The rate review filed March 18 requests $5 million of new annual revenue. The document names the Wyoming Public Service Commission as the filing body. Source
Kansas Gas files abbreviated rate case: Kansas Gas filed an abbreviated rate review on March 2 seeking $2.4 million of new annual revenue for capital placed in service through Dec. 31, 2025. Source
Arkansas Gas seeks $29 million: The Arkansas Gas rate review requests $29 million of new annual revenue, following about $147 million of pipeline investments since its 2023 filing. Source

Coming up, as management said on 6 May 2026

FERC decision expected mid-2026: Comment period on the FERC joint merger application closed Jan. 20, 2026, with a decision expected by mid-2026. Source
Merger expected to close: The merger is expected to close in the second half of 2026, subject to satisfaction or waiver of certain closing conditions. Source
Lange II in service in fourth quarter: The 99 MW Lange II project in Rapid City is expected to begin serving customers in the fourth quarter of 2026. Source
South Dakota Electric rates finalized in 2027: Interim rates are sought 180 days after the Feb. 19 filing, with new rates to be finalized in the first quarter of 2027. Source
Arkansas Gas final rates in second half: The company is seeking final rates for Arkansas Gas in the second half of 2026. Source
South Dakota wildfire plan filing planned: South Dakota Electric plans to file its wildfire mitigation plan with the South Dakota commission in the second half of 2026. Source
Solar facility expected mid-2029: The 200 MW solar purchase agreement relates to a new renewable facility expected to be completed in mid-2029. Source
AGA Financial Forum meetings in May: Black Hills leadership is scheduled to meet investors and analysts at the AGA Financial Forum from May 17 to May 19, 2026. Source

Figures management reported

Figure	Reported
Rate cases Source	South Dakota Electric $51 million; Wyoming $5 million; Kansas Gas $2.4 million; Arkansas Gas $29 million
Rate base growth Source	about $147 million of system investments since 2023 (Arkansas Gas)
Capital plan Source	Lange II 99 MW, $280 million project
Customer growth Source	more than 1.37 million customers in eight states
Load growth Source	393 MW all-time peak, 4% above prior peak
EPS growth target Source	upper half of 4% to 6% long-term; 2026 adjusted EPS $4.25 to $4.45

Risks management discussed

Regulatory: Guidance assumes constructive and timely regulatory outcomes, while several rate reviews and merger approvals remain pending. Source
Demand: Definitive agreements with the 1.8 GW data center customer are still under negotiation, and several additional agreements remain in progress. Source
Demand: Lower residential and commercial customer usage partly offset gains in electric operating income during the quarter. Source

Earlier plans management reported on

Not stated: Management cites confidence in reaffirming full-year earnings guidance that was initiated in the prior quarter. Source
Not stated: The Lange II project was described in the prior release as expected in service in the fourth quarter of 2026, and that timing is restated. Source
Not stated: Management refers to the Ready Wyoming project as recently completed, in the context of rider recovery. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Black Hills Corp. Reaffirms 2026 Earnings Guidance, Reports 2026 First-Quarter Results, and Provides Updates on Merger with NorthWestern Energy and Data Center Progress

Reaffirms 2026 adjusted earnings guidance in the range of $4.25 to $4.45 per share, excluding merger-related costs

Served new all-time peak load at Wyoming Electric of 393 MW, reflecting an increase of 4% over 2025 peak

Executed an agreement with a prospective customer to reserve generation equipment as part of the resource mix to serve a 1.8 GW data center project in Wyoming

Received shareholder approval of all merger proposals and reached constructive settlement agreements with certain key intervenors in Montana and South Dakota, and a full settlement in Nebraska

Wildfire legislation enacted in South Dakota protecting utilities from liability for damages when following wildfire mitigation plans filed with the commission

RAPID CITY, S.D. - May 6, 2026 - Black Hills Corp. (NYSE: BKH) today announced financial results for the first quarter ended March 31, 2026. Net income available for common stock and earnings per share, diluted (EPS) for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, were:

	Three Months Ended March 31,
	2026	2025
	(in millions, except per share amounts)
GAAP:
Net income available for common stock	$131.0	$134.3
Earnings per share, Diluted	$1.73	$1.87
Non-GAAP :
Adjusted earnings	$135.1	$134.3
Adjusted EPS	$1.79	$1.87

(a) During the three months ended March 31, 2026, Black Hills incurred costs of $0.05 per share, related to the pending merger with NorthWestern Energy. See additional details in the GAAP-to-Non-GAAP reconciliation table in the Use of Non-GAAP Financial Measures section below. Minor differences may result due to rounding.

First-quarter GAAP EPS was $1.73 compared to $1.87 in the same period in 2025. First-quarter adjusted EPS of $1.79, excluding $0.05 of after-tax merger-related costs, compared to $1.87 in the same period in 2025. Financial results included $0.18 per share of weather impacts from mild winter temperatures, and higher financing and depreciation costs, which were partially offset by new rates and rider recovery and lower operations and maintenance expenses.

“I'm proud of the strong operational performance by our team and progress on our strategic initiatives in 2026 to date, providing us confidence in reaffirming our full-year earnings guidance,” said Linn Evans, president and CEO of Black Hills Corp. “We maintained our solid financial position and executed on our capital plan for our customers, including ongoing construction of our 99-MW Lange II generation project in Rapid City that is expected to begin serving customers in the fourth quarter. During the first quarter, we also requested our first rate review in more than a decade for our South Dakota Electric utility, seeking recovery of our investments and costs to serve our customers safely and reliably.

“Our data center pipeline of more than 3 GW includes 600 MW by 2030 in our five-year financial plan primarily driven by Microsoft’s expansion of existing operations and Meta’s new AI data center. In addition, we continue to make progress toward definitive agreements to serve other large-load projects, including a 1.8 GW data center, which would be additive to our current plan. We are also excited about Microsoft's recognition of the value of Wyoming and our decades-long relationship, and their recently announced intention to invest in 3,200 acres of additional land for future data center expansion in Cheyenne, which would provide upside potential to our growth pipeline.

“Our customer-focused strategy has positioned us to consistently and innovatively deliver safe, reliable, and affordable energy while supporting the needs of our customers and communities for growth. We are confident in our ability to deliver earnings in the upper half of our 4% to 6% long-term EPS growth target, and we look forward to an even stronger energy future for all our stakeholders as a larger, premier Midwest utility following our merger with NorthWestern Energy,” concluded Evans.

Merger with NorthWestern Energy Group, Inc.

Black Hills Corp. and NorthWestern Energy announced a tax-free, all-stock merger on Aug. 19, 2025, which was approved by shareholders of both companies on April 2, 2026. During the first quarter, the companies continued to seek joint approval of the transaction from regulatory commissions in Montana, Nebraska and South Dakota, reaching settlements with certain intervenors in all three states to date. The waiting period was completed under the Hart-Scott-Rodino Act on April 20, 2026, satisfying a U.S. antitrust condition to closing, and the initial public comment period regarding the joint application with the Federal Energy Regulatory Commission closed on Jan. 20, 2026, with a decision expected by mid-2026. The transaction is expected to close in the second half of 2026, subject to the satisfaction or waiver of certain closing conditions.

FIRST-QUARTER 2026 HIGHLIGHTS AND RECENT UPDATES

Electric Utilities

On April 22, Wyoming Electric entered into an agreement to procure long lead-time generation equipment with a prospective data center customer seeking to construct a 1.8 GW data center to be served under Wyoming Electric’s Large Power Contract Service Tariff. The customer has provided $201 million in refundable contributions in aid of construction to date in support of milestone payments to secure generation equipment. The company continues to negotiate several additional definitive agreements with the prospective customer.

On March 18, South Dakota Electric filed a rate review request with the Wyoming Public Service Commission seeking approval to recover critical investments since its last rate review in 2014. The rate review requested $5 million of new annual revenue based on a capital structure of 53% equity and 47% debt and a return on equity of 10.5%. The company is seeking new rates in the first quarter of 2027.

On March 12, South Dakota enacted wildfire liability legislation, effective July 1, 2026, which provides material liability protections for a utility that complies with its published wildfire mitigation plan. South Dakota Electric plans to file its wildfire mitigation plan with the South Dakota Public Utilities Commission in the second half of 2026.

On Feb. 19, South Dakota Electric filed a rate review request with the South Dakota Public Utilities Commission seeking approval to recover critical investments since its last rate review in 2014. The rate review requested $51 million of new annual revenue based on a capital structure of 53% equity and 47% debt and a return on equity of 10.5%. The company is seeking interim rates to be effective 180 days after filing, with new rates to be finalized in the first quarter of 2027.

During the first quarter, South Dakota Electric continued construction of its 99 MW, $280 million Lange II gas-fired generation project. The new facility is expected to be completed and in service during the fourth quarter of 2026 to replace generation resources planned for retirement and support updated reserve margin requirements.

On Jan. 23, Wyoming Electric recorded a new winter and all-time customer peak load of 393 megawatts, surpassing the previous all-time peak of 379 MW on June 20, 2025. The new peak represents an increase of 4% over the prior all-time peak and 20 consecutive years of increasing electric demand in the Cheyenne, Wyoming region.

During the first quarter of 2026, construction continued on Colorado Electric’s 50-MW battery storage project. The project was approved in 2025 by the Colorado Public Utilities Commission in support of the Colorado Clean Energy Plan. Construction was commenced in 2025, and the project is expected to be completed by year-end 2027. On Feb. 18, 2026, Colorado Electric executed a PPA with a third party to purchase up to 200 MW of solar energy upon construction of a new renewable generation facility, which is expected to be completed in mid-2029.

Gas Utilities

On March 2, Kansas Gas filed an abbreviated rate review request with the Kansas Corporation Commission seeking $2.4 million in new annual revenue for additional capital placed in service through Dec. 31, 2025. The authorized returns for the additional investment recovery were previously approved during the July 2025 rate review. The capital structure and return on equity were approved under a black box settlement agreement.

On Dec. 5, 2025, Arkansas Gas filed a rate review request with the Arkansas Public Service Commission seeking approval to recover approximately $147 million of system investments for its natural gas pipeline infrastructure since its last general rate filing in 2023. The rate review requested $29 million of new annual revenue based on a capital structure of 50.2% equity and 49.8% debt and a return on equity of 10.5%. The company is seeking final rates in the second half of 2026.

Corporate and Other

On April 28, Black Hills’ board of directors approved a quarterly dividend of $0.703 per share payable on June 1, 2026, to common shareholders of record at the close of business on May 15, 2026. On an annualized basis, the dividend represents 56 consecutive years of increases, the second-longest track record in the electric and natural gas industry.

During the first quarter, the company issued a total of 0.6 million shares of new common stock under its at-the-market equity offering program for net proceeds of $41 million.

2026 ADJUSTED EARNINGS GUIDANCE REAFFIRMED

Black Hills reaffirms its guidance for 2026 adjusted EPS* to be in the range of $4.25 to $4.45, based on the following assumptions:

Normal weather conditions within our utility service territories;

Constructive and timely outcomes of utility regulatory dockets;

Excludes merger-related costs;

Excludes mark-to-market adjustments;

Increase in operations and maintenance expense (excludes merger-related costs, depreciation and amortization, and taxes other than income taxes) of approximately 3.5% off 2025 of $580 million;

Equity issuance between $50 million and $70 million; and

An effective tax rate of approximately 14% for the full year.

This guidance excludes the expected merger with NorthWestern Energy, which is expected to close in the second half of 2026.

The 2026 Adjusted EPS guidance shown above is a forward-looking, non-GAAP financial measure. The company is not able to provide comparable GAAP EPS guidance due to items that are not considered representative of the company's underlying operating performance that cannot be reasonably quantified for the full-year period. These items include merger-related costs the company expects to incur in 2026, in addition to any other unplanned items that may affect GAAP results in 2026.

USE OF NON-GAAP FINANCIAL MEASURES

As noted in this earnings release, in addition to presenting its earnings information in conformity with Generally Accepted Accounting Principles (GAAP), the company has presented non-GAAP Adjusted earnings and Adjusted EPS, which reflect adjustments for expenses, gains and losses that the company believes do not reflect ongoing core operating performance, such as costs related to the pending merger with NorthWestern. The company’s management uses non-GAAP measures for financial planning and analysis, for reporting of results to the Board of Directors, in determining performance-based compensation and communicating its earnings outlook to analysts and investors. Non-GAAP financial measures are intended to supplement investors’ understanding of our performance and should not be considered alternatives for financial measures presented in accordance with GAAP. Our non-GAAP measures may not be comparable to those of other companies.

Reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures are included below.

	Three Months Ended March 31,
	2026	2025
	(in millions, except per share amounts)
Net income available for common stock (GAAP)	$131.0	$134.3
Adjustment:
Merger-related costs	4.6	-
Less: tax effect of adjustment	(0.5)	-
Adjustment, net of tax	4.1	-
Adjusted earnings (non-GAAP)	$135.1	$134.3
Weighted average shares, diluted	75.6	71.8
Earnings per share, diluted (GAAP)	$1.73	$1.87
Adjustment:
Merger-related costs	0.06	-
Less: tax effect of adjustment	(0.01)	-
Adjustment, net of tax	0.05	-
Rounding	0.01	-
Adjusted EPS (non-GAAP)	$1.79	$1.87

BLACK HILLS CORPORATION

CONSOLIDATED FINANCIAL RESULTS

(Minor differences may result due to rounding)

	Three Months Ended March 31,
	2026	2025
	(in millions, except per share amount)
Revenue	$780.7	$805.2
Operating expenses:
Fuel, purchased power and cost of natural gas sold	337.9	359.7
Operations and maintenance	148.0	153.7
Depreciation and amortization	74.8	69.2
Taxes other than income taxes	18.1	17.6
Total operating expenses	578.8	600.2
Operating income	201.9	205.0
Interest expense, net	(51.9)	(51.3)
Other income (expense), net	0.7	0.8
Income tax benefit (expense)	(17.6)	(18.1)
Net income	133.1	136.4
Net income attributable to non-controlling interest	(2.1)	(2.1)
Net income available for common stock	$131.0	$134.3
Weighted average common shares outstanding:
Basic	75.4	71.6
Diluted	75.6	71.8
Earnings per share:
Earnings per share, Basic	$1.74	$1.87
Earnings per share, Diluted	$1.73	$1.87

CONSOLIDATING INCOME STATEMENTS - YEAR-TO-DATE

(Minor differences may result due to rounding)

	Consolidating Income Statement
	(in millions)
Three Months Ended March 31, 2026	Electric Utilities	Gas Utilities	Corporate and Other	Total
Revenue	$241.6	$543.1	$(4.0)	$780.7
Fuel, purchased power and cost of natural gas sold	66.8	271.2	(0.1)	337.9
Operations and maintenance	65.1	82.3	0.6	148.0
Depreciation and amortization	40.6	34.2	-	74.8
Taxes other than income taxes	9.2	8.9	-	18.1
Operating income	$59.9	$146.5	$(4.5)	$201.9
Interest expense, net				(51.9)
Other income (expense), net				0.7
Income tax benefit (expense)				(17.6)
Net income				133.1
Net income attributable to non-controlling interest				(2.1)
Net income available for common stock				$131.0

	Consolidating Income Statement
	(in millions)
Three Months Ended March 31, 2025	Electric Utilities	Gas Utilities	Corporate and Other	Total
Revenue	$236.7	$572.4	$(3.9)	$805.2
Fuel, purchased power and cost of natural gas sold	67.2	292.6	(0.1)	359.7
Operations and maintenance	68.8	87.9	(3.0)	153.7
Depreciation and amortization	37.1	32.1	-	69.2
Taxes other than income taxes	9.3	8.3	-	17.6
Operating income	$54.3	$151.5	$(0.8)	$205.0
Interest expense, net				(51.3)
Other income (expense), net				0.8
Income tax benefit (expense)				(18.1)
Net income				136.4
Net income attributable to non-controlling interest				(2.1)
Net income available for common stock				$134.3

Three Months Ended March 31, 2026, Compared to the Three Months Ended March 31, 2025

Electric Utilities’ operating income increased $5.6 million primarily due to new rates from the Colorado Electric rate review and rider recovery from Wyoming Electric's recently completed Ready Wyoming project, partially offset by unfavorable weather and lower residential and commercial customer usage;

Gas Utilities’ operating income decreased $5.0 million primarily due to unfavorable weather, partially offset by new rates and rider recovery driven by the Kansas Gas and Nebraska Gas rate reviews and lower operating expenses; and

Corporate and Other operating loss increased $3.7 million primarily due to costs related to the pending merger with NorthWestern.

OPERATING STATISTICS

Electric Utilities

	Revenue		Quantities Sold
	Three Months Ended March 31,		Three Months Ended March 31,
By Customer Class	2026	2025	2026	2025
	(in millions)		(in GWh)
Retail Revenue -
Residential	$63.1	$66.4	358.9	406.4
Commercial	70.0	68.8	492.2	517.2
Industrial	56.2	48.2	707.4	609.8
Municipal	4.3	4.5	31.1	34.6
Other Retail	3.4	3.4	-	-
Subtotal Retail Revenue - Electric	197.0	191.3	1,589.6	1,568.0
Wholesale	6.0	7.1	140.1	147.8
Market - off-system sales	10.9	11.3	198.3	173.6
Transmission	12.0	12.1	-	-
Other	15.7	14.9	-	-
Total Revenue and Quantities Sold	$241.6	$236.7	1,928.0	1,889.4
Other Uses, Losses, or Generation, net			103.2	94.1
Total Energy			2,031.2	1,983.5

(a) The increase in industrial revenues and quantities sold for the three months ended Mar. 31, 2026, compared to the same period in 2025, was primarily driven by Wyoming Electric LPCS Tariff and BCIS Tariff customers.

(b) Includes Integrated Generation, inter-segment rent, and non-regulated services to our retail customers under the Service Guard Comfort Plan and Tech Services.

	Revenue		Quantities Sold
	Three Months Ended March 31,		Three Months Ended March 31,
By Business Unit	2026	2025	2026	2025
	(in millions)		(in GWh)
Colorado Electric	$69.2	$72.4	495.9	532.3
South Dakota Electric	86.7	86.9	679.7	682.0
Wyoming Electric	74.8	66.6	726.6	645.8
Integrated Generation	10.9	10.8	25.8	29.3
Total Revenue and Quantities Sold	$241.6	$236.7	1,928.0	1,889.4

	Three Months Ended March 31,
	2026		2025
Degree Days	Actual	Variance from Normal	Actual	Variance from Normal
Heating Degree Days:
Colorado Electric	2,001	(21)%	2,733	9%
South Dakota Electric	2,567	(22)%	3,438	5%
Wyoming Electric	2,325	(23)%	3,140	5%
Combined	2.263	(22)%	3,060	7%
Cooling Degree Days:
Colorado Electric	11	N/M	---	---
South Dakota Electric	---	---	---	---
Wyoming Electric	---	---	---	---
Combined	5	N/M	---	---

(a) Degree days are calculated based on a weighted average of total customers by state.

OPERATING STATISTICS (continued)

Gas Utilities

	Revenue		Quantities Sold and Transported
	Three Months Ended March 31,		Three Months Ended March 31,
By Customer Class	2026	2025	2026	2025
	(in millions)		(Dth in millions)
Retail Revenue -
Residential	$311.7	$344.1	25.2	30.7
Commercial	125.5	134.3	12.2	14.0
Industrial	6.9	6.6	0.9	1.0
Other Retail	14.6	14.7	-	-
Subtotal Retail Revenue - Gas	458.7	499.7	38.3	45.7
Transportation	54.5	57.7	46.2	50.4
Other	29.9	15.0	-	-
Total Revenue and Quantities Sold	$543.1	$572.4	84.5	96.1

(a) Includes Black Hills Energy Services revenue under the Choice Gas Program.

(b) Includes inter-segment rent and non-regulated services under the Service Guard Comfort Plan, Tech Services, and HomeServe.

	Revenue		Quantities Sold and Transported
	Three Months Ended March 31,		Three Months Ended March 31,
By Business Unit	2026	2025	2026	2025
	(in millions)		(Dth in millions)
Arkansas Gas	$122.1	$124.8	11.5	13.2
Colorado Gas	90.2	115.8	10.8	13.2
Iowa Gas	93.8	86.8	14.1	15.2
Kansas Gas	60.6	66.1	10.2	11.7
Nebraska Gas	130.9	130.2	26.2	29.6
Wyoming Gas	45.5	48.7	11.7	13.2
Total Revenue and Quantities Sold	$543.1	$572.4	84.5	96.1

	Three Months Ended March 31,
	2026		2025
Heating Degree Days	Actual	Variance from Normal	Actual	Variance from Normal
Arkansas Gas	1,572	(16)%	1,957	2%
Colorado Gas	2,059	(27)%	2,837	2%
Iowa Gas	2,994	(9)%	3,288	(1)%
Kansas Gas	2,034	(15)%	2,616	10%
Nebraska Gas	2,545	(15)%	3,039	2%
Wyoming Gas	2,464	(24)%	3,323	3%
Combined	2,513	(18)%	3,082	1%

(a) Arkansas Gas and Kansas Gas have weather normalization mechanisms that mitigate the weather impact on Gas Utility margins. Nebraska Gas received NPSC approval to develop a two-year pilot program for a weather normalization mechanism which was effective in August 2025.

(b) Heating degree days are calculated based on a weighted average of total customers by state excluding Kansas Gas and Nebraska Gas (effective in August 2025) due to their weather normalization mechanisms. Arkansas Gas is partially excluded based on the weather normalization mechanism in effect from November through April.

CONFERENCE CALL AND WEBCAST

Black Hills will host a live conference call and webcast at 11 a.m. EST on Thursday, May 7, 2026, to discuss the company's financial results.

To participate by phone and ask a question during the live broadcast, participants can access the event directly at Black Hills Corp. Conference Q&A. Please allow at least five minutes to register. Upon registration, dial-in information will be provided, including a personal identification number.

To access a listen-only webcast and view presentation slides, please register at Black Hills Corp. Webcast. At the conclusion of the call, a replay of the broadcast will be available at this link and at Black Hills’ investor relations website for up to one year.

AGA FINANCIAL FORUM PARTICIPATION

Leadership from Black Hills Corp. is scheduled to meet with investors and analysts at the 2026 AGA Financial Forum taking place from May 17, 2026, through May 19, 2026. An investor presentation will be available prior to the conference on Black Hills’ website at www.blackhillscorp.com under “Events and Presentations."

ABOUT BLACK HILLS CORP.

Black Hills Corp. (NYSE: BKH) is a customer-focused, growth-oriented utility company with a tradition of improving life with energy and a vision to be the energy partner of choice. Based in Rapid City, South Dakota, the company serves more than 1.37 million natural gas and electric utility customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. More information is available at www.blackhillscorp.com.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

Forward-looking statements notice

This press release includes “forward-looking statements” as defined by the Securities and Exchange Commission. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements. This includes, without limitations, our 2026 earnings guidance, long-term growth target and our expectations for regulatory approvals for and the closing of the merger with NorthWestern Energy. These forward-looking statements are based on assumptions which we believe are reasonable based on current expectations and projections about future events and industry conditions and trends affecting our business. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks and uncertainties that, among other things, could cause actual results to differ materially from those contained in the forward-looking statements, including without limitation, the risk factors described in Item 1A of Part I of our 2025 Annual Report on Form 10-K and other reports that we file with the SEC from time to time, and the following:

The accuracy of our assumptions on which our earnings guidance and long-term growth target is based;

Our ability to obtain adequate cost recovery for our utility operations through regulatory proceedings and favorable rulings on periodic applications to recover costs for capital additions, plant retirements and decommissioning, fuel, transmission, purchased power, and other operating costs and the timing in which new rates would go into effect;

Our ability to complete our capital program in a cost-effective and timely manner;

Our ability to execute on our strategy;

Our ability to successfully execute our financing plans;

The effects of changing interest rates;

Our ability to achieve our greenhouse gas emissions intensity reduction goals;

The impact of future governmental regulation;

Our ability to overcome the impacts of supply chain disruptions on availability and cost of materials;

The effects of inflation, tariffs and volatile energy prices;

Our ability to obtain sufficient insurance coverage at reasonable costs and whether such coverage will protect us against significant losses;

The expected timing and likelihood of completion and our ability to realize the anticipated benefits of the proposed merger with NorthWestern Energy Group, Inc., including the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the proposed acquisition that could reduce anticipated benefits or give rise to the termination of the merger; and

Other factors discussed from time to time in our filings with the SEC.

New factors that could cause actual results to differ materially from those described in forward-looking statements emerge from time-to-time, and it is not possible for us to predict all such factors, or the extent to which any such factor or combination of factors may cause actual results to differ from those contained in any forward-looking statement. We assume no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or otherwise.

Contacts
Investor Relations: Sal Diaz · Phone · Email · Media Contact: 24-hour Media Assistance
605-399-5079 · investorrelations@blackhillscorp.com · 888-242-3969