Black Hills Corp. Seeks Growth through Key Projects and Data Center Expansion

Black Hills Corp is on track to meet its 4-6% long-term growth target, thanks to significant advancements in key projects like the $350-million Ready Wyoming electric transmission project and the $280-million Lange II generation project. The company is also constructing a new data center for a major client, expected to contribute over 10% to its EPS by 2028. Black Hills' financial health is mixed, with a 1-year revenue growth decline of 1.4%, but a 5-year growth of 3.8%. The company's valuation metrics suggest potential undervaluation, with a P/E ratio of 14.57 and a P/B ratio of 1.14.

Black Hills Corp. (NYSE: BKH) has reported strong financial results for the second quarter of 2025, reaffirming its 2025 earnings guidance and highlighting significant advancements in key projects. The company's president and CEO, Linn Evans, noted that the earnings per share (EPS) of $0.33 for the quarter benefited from new rates and rider recovery, and milder weather in the prior year, which were partially offset by higher operating expenses, financing, and depreciation costs.

The company's operating income for the second quarter was $70.6 million, compared to $82.5 million in the same period last year. Net income available for common stock was $22.8 million, down from $27.5 million a year ago. The diluted EPS for the quarter was $0.33, compared to $0.38 in the second quarter of 2024.

Black Hills Corp. is on track to meet its 4-6% long-term growth target, driven by significant advancements in key projects. The $350-million Ready Wyoming electric transmission project is expected to be completed by year-end 2025, while the $280-million Lange II generation project in South Dakota is planned to be in service during the second half of 2026. Additionally, the company is constructing a new data center in Wyoming, which is expected to contribute over 10% to its EPS by 2028.

The company's financial health is mixed, with a 1-year revenue growth decline of 1.4%, but a 5-year growth of 3.8%. The company's valuation metrics suggest potential undervaluation, with a P/E ratio of 14.57 and a P/B ratio of 1.14.

Black Hills Corp. also reported that it has established an Emergency Public Safety Power Shutoff (PSPS) program across all three of its electric utilities to promote customer safety and mitigate wildfire risk. The company has also received approval for new rates at Kansas Gas, providing $10.8 million of new annual revenues.

The company's board of directors approved a quarterly dividend of $0.676 per share, payable on September 2, 2025, to common shareholders of record at the close of business on August 18, 2025.

References:
[1] https://ir.blackhillscorp.com/news-releases/news-release-details/black-hills-corp-reaffirms-2025-earnings-guidance-and-reports-0