Black Hills Corp. Reaffirms 2025 Earnings Guidance and Reports 2025 Second-Quarter Results
Reaffirms 2025 earnings guidance range of $4.00 to $4.20 per share
Established Emergency Public Safety Power Shutoff (PSPS) program
Received approval for new rates at Kansas Gas providing $10.8 million of new annual revenues
Received CPCN for South Dakota Electric's 99-megawatt generation project
Served new all-time peak load of 379 megawatts at Wyoming Electric, reflecting an increase of 21% over the 2024 peak
RAPID CITY, S.C., July 30, 2025 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE:BKH) today announced financial results for the second quarter ending June 30, 2025. Operating income, net income available for common stock and earnings per share for the three and six months ended June 30, 2025, compared to the three and six months ended June 30, 2024, were:
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
(in millions, except per share amounts)
Operating Income
$
82.5
$
70.6
$
287.4
$
264.0
Net income available for common stock
$
27.5
$
22.8
$
161.7
$
150.6
Earnings per share, Diluted
$
0.38
$
0.33
$
2.24
$
2.19
Earnings of $0.38 per share compared to $0.33 per share for the second quarter of 2024 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.
"We delivered strong earnings and achieved key milestones for our regulatory and growth initiatives," said Linn Evans, president and CEO of Black Hills Corp. "We are maintaining our solid financial credit metrics and executing on our $1 billion capital plan for this year to serve our customers and support our long-term growth strategy. I'm pleased with the relentless focus of our team in advancing our strategy and remaining on track to achieve our 2025 earnings guidance that represents 5% year-over-year growth at the midpoint.
"We are successfully executing on our plan to deliver in the upper half of our long-term 4% to 6% growth target as we complete and advance our pipeline of key regulatory and growth initiatives. Our $350-million Ready Wyoming electric transmission project is on track for completion by year-end 2025, and during the second half of 2026 our $280-million Lange II generation project in South Dakota is planned to be in service. Meta's new data center site is under construction in Wyoming, which will contribute to our forecast of more than 10% of our EPS from data centers by 2028. Additionally, upside potential from data centers, blockchain demand and other organic growth in our service territories will drive transmission and generation investment opportunities further supporting our long-term growth trajectory," concluded Evans.
SECOND-QUARTER 2025 HIGHLIGHTS AND RECENT UPDATES
Electric Utilities
In the first half of 2025, Wyoming electric recorded four new all-time peak loads, including an all-time peak of 379 megawatts on June 20, 2025. The peaks represent 19 consecutive years of increasing electric demand in Wyoming and an increase of 21% over the all-time peak in 2024.
On June 30, the company established its Emergency Public Safety Power Shutoff program across all three of its electric utilities to promote customer safety and mitigate wildfire risk. In establishing the PSPS program, the company engaged with wildfire experts and key stakeholders including customers, community and local agencies, regulators and community leaders.
During the second quarter, Wyoming Electric continued construction of its 260-mile, $350-million Ready Wyoming electric transmission expansion project. The project is on track to be completed and in service by year-end 2025. The project is expected to maintain long-term cost stability for customers, enhance system resiliency and access to power markets, support local economic growth and facilitate development of Wyoming's strong wind and solar natural resources.
On June 10, South Dakota Electric received approval from the Wyoming Public Service Commission for a certificate of public convenience and necessity (CPCN) for the 99-megawatt, $280 million Lange II gas-fired generation project. The new facility is scheduled to begin construction in the third quarter of 2025 and to be in service during the second half of 2026. The addition of these resources will replace generation resources planned for retirement and support updated planning reserve margin requirements.
During the second quarter, Colorado Electric continued to advance the addition of 350 megawatts of new renewable generation resources in support of its Clean Energy Plan. In 2024, the Colorado Public Utilities Commission approved the addition of a 100-megawatt utility-owned solar project, a 50-megawatt utility-owned battery storage project and a 200-megawatt solar power purchase agreement. On June 12, the company filed a request for a CPCN for the battery storage project and expects a decision by year-end. Negotiations with counterparties for the other two projects are ongoing, which will drive the final cost and timing of projects.
Gas Utilities
On July 24, Kansas Gas received approval from the Kansas Corporation Commission of a settlement agreement for its rate review request seeking approval to recover approximately $118 million of system investments and increased operations and maintenance costs driven by inflation and operational needs to serve customers. The black box settlement provides approximately $10.8 million of new annual revenue, with new rates effective Aug. 1, 2025. The settlement provides the renewal of the company's safety and integrity rider and allows for a new insurance cost tracker with deferred accounting treatment. It also includes approval for the company to file an abbreviated case during the first quarter of 2026 that includes the addition of capital placed in service through Dec. 31, 2025.
On May 1, Nebraska Gas filed a rate review request with the Nebraska Public Service Commission seeking approval to recover approximately $453 million of system investments and increased operations and maintenance costs driven by inflation and operational needs to serve customers. The rate review requested $35 million of new annual revenue based on a capital structure of 50.5% equity and 49.5% debt and a return on equity of 10.5%. Interim rates will be effective Aug. 1, 2025 and new final rates in the first quarter of 2026.
Corporate and Other
On July 22, Black Hills' board of directors approved a quarterly dividend of $0.676 per share payable on Sept. 2, 2025, to common shareholders of record at the close of business on Aug. 18, 2025. On an annualized basis, the dividend represents 55 consecutive years of increases, the second-longest track record in the electric and natural gas industry.
On June 2, the company utilized one of two one-year extension options available for its Revolving Credit Facility, extending the maturity to May 31, 2030, with all other terms unchanged.
During the second quarter, the company issued a total of 0.3 million shares of new common stock for net proceeds of $20 million. Year-to-date, the company has issued a total of 1.1 million shares of new common stock for net proceeds of $65 million.
During the second quarter, Black Hills published its 2024 Corporate Sustainability Report, highlighting the company's environmental, social and governance impacts and its progress on major projects and climate goals.
2025 EARNINGS GUIDANCE REAFFIRMED
Black Hills reaffirms its guidance for 2025 earnings per share available for common stock to be in the range of $4.00 to $4.20, based on the following assumptions issued on Feb. 5, 2025:
Normal weather conditions within our utility service territories
Constructive and timely outcomes of utility regulatory dockets;
Excludes mark-to-market adjustments;
No unplanned outages at our generation facilities;
Compounded annual growth rate of approximately 3.5% for operations and maintenance expense (excludes depreciation and amortization and taxes other than income taxes) off 2023 of $552 million
Equity issuance between $215 million and $235 million; and
An effective tax rate of approximately 13% for the full year.
BLACK HILLS CORPORATIONCONSOLIDATED FINANCIAL RESULTS
(Minor differences may result due to rounding)
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
(in millions, except per share amount)
Revenue
$
439.0
$
402.6
$
1,244.2
$
1,129.0
Operating expenses:
Fuel, purchased power and cost of natural gas sold
124.0
107.1
483.8
423.7
Operations and maintenance
147.6
141.7
301.3
275.2
Depreciation and amortization
69.8
66.6
139.0
132.5
Taxes other than income taxes
15.1
16.6
32.7
33.6
Total operating expenses
356.5
332.0
956.8
865.0
Operating income
82.5
70.6
287.4
264.0
Interest expense, net
(48.9
)
(42.6
)
(100.3
)
(86.7
)
Other income (expense), net
(0.4
)
0.4
0.6
(0.5
)
Income tax benefit (expense)
(4.4
)
(3.7
)
(22.5
)
(20.6
)
Net income
28.8
24.7
165.2
156.2
Net income attributable to non-controlling interest
(1.3
)
(1.9
)
(3.5
)
(5.6
)
Net income available for common stock
$
27.5
$
22.8
$
161.7
$
150.6
Weighted average common shares outstanding:
Basic
72.4
69.0
72.0
68.6
Diluted
72.4
69.0
72.1
68.7
Earnings per share:
Earnings Per Share, Basic
$
0.38
$
0.33
$
2.25
$
2.20
Earnings Per Share, Diluted
$
0.38
$
0.33
$
2.24
$
2.19
CONSOLIDATING INCOME STATEMENTS
(Minor differences may result due to rounding)
Consolidating Income Statement
Three Months Ended June 30, 2025
Electric Utilities
Gas Utilities
Corporate and Other
Total
(in millions)
Revenue
$
219.9
$
223.0
$
(3.9
)
$
439.0
Fuel, purchased power and cost of natural gas sold
55.3
68.9
(0.2
)
124.0
Operations and maintenance
69.2
80.1
(1.7
)
147.6
Depreciation and amortization
37.5
32.3
-
69.8
Taxes other than income taxes
8.9
6.2
-
15.1
Operating income
$
49.0
$
35.5
$
(2.0
)
$
82.5
Interest expense, net
(48.9
)
Other income (expense), net
(0.4
)
Income tax benefit (expense)
(4.4
)
Net income
28.8
Net income attributable to non-controlling interest
(1.3
)
Net income available for common stock
$
27.5
Consolidating Income Statement
Three Months Ended June 30, 2024
Electric Utilities
Gas Utilities
Corporate and Other
Total
(in millions)
Revenue
$
205.1
$
202.0
$
(4.5
)
$
402.6
Fuel, purchased power and cost of natural gas sold
45.9
61.3
(0.1
)
107.1
Operations and maintenance
68.1
79.3
(5.7
)
141.7
Depreciation and amortization
35.5
31.1
-
66.6
Taxes other than income taxes
9.3
7.3
-
16.6
Operating income
$
46.3
$
23.0
$
1.3
$
70.6
Interest expense, net
(42.6
)
Other income (expense), net
0.4
Income tax benefit (expense)
(3.7
)
Net income
24.7
Net income attributable to non-controlling interest
