Black Hills 2025 Q3 Earnings Adjusted EPS Beats Estimates as Revenue Rises 7.1%

Black Hills Corporation (BKH) delivered mixed Q3 2025 results, . The company reaffirmed its full-year 2025 adjusted EPS guidance of $4.00–$4.20, aligning with expectations. Strategic projects, including the Ready Wyoming transmission expansion, are on track for completion by year-end, and data center load negotiations have expanded to over 3 gigawatts, signaling long-term growth potential.

Revenue

Black Hills reported total revenue of $430.20 million for Q3 2025, . The growth was driven by higher utility demand and operational efficiency gains, though revenue fell short of analyst forecasts.

Earnings/Net Income

GAAP EPS declined 2.9% to $0.34 in Q3 2025 from $0.35 in Q3 2024, . However, , reflecting new rate recoveries and operational improvements. The company has maintained profitability for over two decades, underscoring resilience despite margin pressures.

Post-Earnings Price Action Review

Following the earnings report, Black Hills’ stock surged 4.02% to close at $64.75, with a 10.67% month-to-date gain. The strong post-earnings rally aligns with the company’s reaffirmed guidance and progress on strategic initiatives, including data center expansion and transmission projects.

CEO Commentary

CEO Linn Evans highlighted Q3’s stable revenue growth and margin improvements, while acknowledging challenges like rising fuel costs and regulatory pressures. The company is prioritizing renewable energy investments, grid modernization, and debt reduction to navigate macroeconomic uncertainties.

Guidance

, driven by capacity expansion and cost optimization. Capital expenditures of $220 million will focus on clean energy and system reliability, with a balanced approach to debt management and dividend stability.

Additional News

1. Merger with NorthWestern Energy: Black Hills and NorthWestern Energy advanced their tax-free, all-stock merger, filing regulatory applications in Montana, Nebraska, and South Dakota. The deal, expected to close by mid-2026, aims to enhance scale and growth in the Midwest utility market.

2. Data Center Expansion: The company secured non-disclosure agreements for over 3 gigawatts of data center demand, with Meta’s AI facility in Cheyenne transitioning to permanent service later in 2025. Strategic investments in transmission and generation are projected to contribute 10% of 2028 EPS.

3. , critical for grid reliability and renewable integration, is on track for completion by year-end, with new rates effective January 2026.