Black Hills Q3 adjusted EPS rises on new rates and rider recovery

What happened

Black Hills reported higher year-over-year third-quarter revenue and adjusted earnings per share of $0.57, attributing the earnings increase to new rates and recovery of costs through rider mechanisms, especially for South Dakota and Wyoming electric projects. It reaffirmed its 2026 adjusted earnings guidance of $4.25 to $4.45 per share.

Confirmed

Global impact / market context

Higher regulated rates and rider recovery can help Black Hills earn back project costs through customer bills, supporting earnings as it invests in new assets. However, rising operating, financing and depreciation costs partly offset those gains, while favorable weather added $0.06 per share this quarter.

Analyst inference

The company expects earnings from Google data center agreements to begin in mid-2027 and targets the upper half of its 4%–6% annual earnings growth range for 2026–2030. Those expectations depend on future execution; the article provides no agreement revenue amounts or final merger approval.

Analyst inference

What to watch

1. Watch for final regulatory approval of the proposed merger with NorthWestern Energy; the article says Black Hills is still awaiting approval before it can close. Confirmed
2. Track whether new rates and rider recovery continue to offset higher operating, financing and depreciation costs as Black Hills adds assets through capital investment. Analyst inference
3. Look for updates on when earnings from Google data center agreements will begin; Black Hills expects them in mid-2027, but gives no revenue estimate. Confirmed

Evidence

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