Black Hills Corporation's Q2 2025: Unpacking Key Contradictions in Revenue Growth, Data Centers, and Reliability

Electricity revenue growth projections, data center growth projections, rate case and financial guidance, reliability and outages are the key contradictions discussed in Black Hills Corporation's latest 2025Q2 earnings call.



Earnings Growth and Financial Performance:
- Black Hills Corporation reported earnings per share of $0.38 for Q2 2025, compared to $0.33 in Q2 2024, representing a 15.2% increase.
- The growth was driven by new base rates, rider recovery, and customer growth.

Capital Investment and Infrastructure Expansion:
- The company's $4.7 billion capital plan includes strategic investments such as the Ready Wyoming transmission expansion and the Lange II generation project.
- These investments aim to enhance system resiliency, support growing demand, and comply with regulations like the Colorado Clean Energy Plan.

Data Center and Blockchain Demand:
- Black Hills Corporation anticipates data center demand to contribute more than 10% of its total EPS by 2028.
- This growth is supported by serving Microsoft's hyperscale data center demand and Meta's new data center site under construction.

Regulatory Success and Rate Reviews:
- The company's regulatory strategy resulted in the recovery of over $1.3 billion in new system investments through multiple rate reviews.
- Approval for Kansas Gas rate review and active rate reviews in Nebraska and Arkansas reflect the strength of the regulatory team.