Black Hills 2025 Q3 Earnings Beats Estimates Despite EPS Decline

Black Hills (BKH) reported fiscal 2025 Q3 earnings on Nov 6, 2025, , outperforming expectations. The company reaffirmed its full-year guidance of $4.00–$4.20 adjusted EPS, driven by strategic investments and regulatory progress.

Revenue

Black Hills’ total revenue increased to $430.2 million in Q3 2025, a 7.1% rise from $401.6 million in the prior year. The Electric Utilities segment saw growth from new rates and rider recovery, while the Gas Utilities segment benefited from favorable weather and rate adjustments. Wyoming Electric’s industrial sales surged due to large customer demand, and the Ready Wyoming transmission expansion project neared completion, supporting long-term reliability.

Earnings/Net Income

The company’s GAAP EPS declined 2.9% to $0.34 in Q3 2025, , , . , a 1.9% decrease from $26.4 million in the prior year. Despite the EPS dip, Black Hills maintained profitability for over 20 years, reflecting operational resilience. The decline was attributed to higher interest expenses and weather-related headwinds, partially offset by margin improvements.

Post-Earnings Price Action Review

Black Hills’ stock price surged 3.91% on the latest trading day, 6.44% for the week, and 10.67% month-to-date. The upward momentum followed the earnings beat, with analysts upgrading estimates and maintaining a “buy” rating. The company’s strategic focus on data center demand, including a 500 MW target by 2029, and the Ready Wyoming transmission project bolstered investor confidence.

CEO Commentary

, , highlighted progress on regulatory initiatives and capital projects. “We’re at a pivotal juncture in our company’s history,” he stated, emphasizing the completion of the and the Lang II generation facility. , which could drive earnings beyond current plans. The tone was cautiously optimistic, balancing near-term challenges like inflation with long-term opportunities in .

Guidance

, excluding merger-related costs. The company expects to deliver in the upper half of its 4–6% long-term EPS CAGR starting in 2026, driven by data center demand, rate recoveries, and capital investments.

Additional News

The company announced a tax-free merger with Northwestern Energy, pending regulatory approvals, to enhance scale and growth. CEO Linn Evans emphasized the merger’s benefits for customers and stakeholders. Additionally, , . The 99 MW in South Dakota, expected to replace , .