Key Highlights

  • Third-quarter GAAP EPS was USD 0.54 against USD 0.34, and adjusted EPS was USD 0.57 against USD 0.45, with Net Income available for common stock of USD 41.0 million.
  • 2026 adjusted EPS guidance of USD 4.25 to USD 4.45, excluding merger-related costs, was reaffirmed, and management expects to land in the upper half of its 4% to 6% Long-term Growth target.
  • Definitive Google Data Center agreements run through 2048 and are expected to add about USD 150 million of annual net income in 2030.
  • Black Hills requested approval for USD 686 million of Wyoming transmission projects and awaits Montana's final decision on its Merger with NorthWestern Energy.

Rates and Weather Lift Third-Quarter Earnings

Black Hills (NYSE:BKH) reported third-quarter 2026 results on November 4, 2026. GAAP EPS was USD 0.54 against USD 0.34, and adjusted EPS of USD 0.57 compared with USD 0.45. New rates and rider recovery added USD 0.15 per share and favorable weather added USD 0.06, more than offsetting higher operating, financing and Depreciation costs. The CEO described results as excellent and said the company maintained solid investment-grade Credit ratings. Merger costs reduced EPS by USD 0.03, down from USD 0.10. For nine months, GAAP EPS was USD 2.76 against USD 2.58, and adjusted EPS was USD 2.89 against USD 2.68.

The Google Data Center Agreements in Wyoming

On September 30, the company signed definitive agreements with terms through 2048 to serve a planned data center in Cheyenne, Wyoming, backed by 2.7 gigawatts of resources including reserve margins. It plans to invest USD 1.8 billion in 564 megawatts of new company-owned generation and to manage 2.1 gigawatts of third-party resources. Earnings are expected to begin in mid-2027, with fees on contracted resources starting in late 2027, and net income is projected to reach about 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 investment.

Transmission Requests, Rate Cases and the NorthWestern Merger

Wyoming Electric requested approval of two transmission projects worth USD 80 million and USD 606 million, with decisions expected in mid-2027, and a cost recovery Tariff decision expected in the first quarter of 2027. South Dakota Electric won a settlement adding USD 27.4 million of annual Revenue and a rate moratorium until 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. In total, USD 2.5 billion of additional generation and transmission Investment for large-load data center Demand in Wyoming is described as upside to the current plan. Risks include regulatory timing and execution on a large Capital program. The Lange II project, a 99 megawatt, USD 320 million gas plant 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 contributions from the Google project to begin in mid-2027, with the full USD 150 million of net income targeted for 2030. In the nearer term, rates, rider recovery and the Lange II generation facility, due in service in the fourth quarter, support 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.