NorthWestern (US:NWE)2026-02-12 16:47Financial Performance - Net income for 2025 was $181.1 million, or $2.94 per diluted share, down from $224.1 million, or $3.65 per diluted share in 2024, primarily due to higher operating expenses [2]. - Adjusted non-GAAP net income for 2025 was $220.1 million, or $3.58 per diluted share, compared to $208.9 million, or $3.40 per diluted share in 2024 [3]. - Total revenues for 2025 were $1,610.6 million, an increase of 6.4% from $1,513.9 million in 2024 [34]. - Net income for 2025 was $181.1 million, down 19.2% from $224.1 million in 2024 [34]. - Consolidated gross margin increased by $23.5 million, or 5.1%, to $484.3 million in 2025 compared to $460.8 million in 2024 [37]. - Consolidated operating income for 2025 was $325.8 million, slightly up from $323.3 million in 2024, driven by new rates and increased revenues [45]. - Consolidated interest expense rose to $150.4 million in 2025 from $131.7 million in 2024, attributed to higher borrowings and interest rates [46]. - Consolidated other income decreased to $12.1 million in 2025 from $23.0 million in 2024, primarily due to lower capitalization of Allowance for Funds Used During Construction (AFUDC) [47]. - Consolidated income tax expense for 2025 was $6.5 million, compared to an income tax benefit of $9.4 million in 2024, with an effective tax rate of 3.5% [48]. - Basic earnings per share for 2025 were $2.94, down from $3.65 in 2024, while adjusted non-GAAP earnings per diluted share were $3.58 for 2025 compared to $3.40 for 2024 [56]. - For the full year 2025, NorthWestern Energy reported a GAAP net income of $181.1 million, with a diluted EPS of $2.94, compared to $224.1 million and $3.65 in 2024, representing a decrease of 19.2% in net income and 19.5% in EPS year-over-year [58]. - Non-GAAP adjusted net income for 2025 was $220.1 million, with a diluted EPS of $3.58, compared to $208.9 million and $3.40 in 2024, indicating an increase of 5.7% in net income and 5.3% in EPS year-over-year [58]. - Adjusted Non-GAAP pre-tax income for 2025 was $176.2 million, compared to $159.2 million in 2024, reflecting an increase of 10.5% [58]. Revenue and Expenses - Utility margin rose to $1,200.8 million in 2025, an increase of 11.2% from $1,080.1 million in 2024 [40]. - Electric revenues increased to $1,270.0 million in 2025, up from $1,200.7 million in 2024, reflecting a growth of 5.8% [34]. - Gas revenues also increased to $340.6 million in 2025, compared to $313.2 million in 2024, marking an increase of 8.7% [34]. - Operating expenses totaled $1,284.7 million in 2025, up from $1,190.6 million in 2024, representing an increase of 7.9% [34]. - Consolidated operating expenses (excluding fuel, purchased supply, and direct transmission expense) increased to $874.9 million in 2025, up 15.6% from $756.7 million in 2024 [44]. Capital Investments and Future Plans - A $3.2 billion capital investment plan for 2026-2030 was announced, a 17% increase over the prior plan, supporting rate base growth of 4% to 6% [5][13]. - The company plans to construct a 131 MW natural gas generating facility in South Dakota at an estimated cost of $300 million to meet regional capacity needs by 2030 [29]. - A nonbinding MOU was signed with North Plains Connector LLC for a 10% stake in the NPC Consortium project, which is expected to be operational by 2032 [30]. - The company expects to serve large-load customers with a combined energy service requirement of 175 megawatts beginning in late 2027, potentially growing to 1,100 megawatts by 2030 [24]. Mergers and Acquisitions - The merger agreement with Black Hills Corporation was announced, targeting a close in the second half of 2026, with regulatory applications filed in multiple states [4][9]. - The company completed the acquisition of Energy West, adding approximately 33,000 new natural gas customers [4]. - The acquisition of Colstrip Units 3 and 4 from Avista and Puget was completed on January 1, 2026, enhancing resource adequacy for customers [26][27][28]. - NorthWestern Energy is involved in a proposed transaction with Black Hills, with proxy statements filed with the SEC [72]. Regulatory and Compliance - The Montana electric and natural gas rate review was completed, allowing recovery of significant investments and incorporating the Yellowstone County Generating Station into rates [4][18]. - The Montana wildfire mitigation plan was approved by the MPSC in November 2025, with a decision anticipated in Q1 2026 [32]. - Information regarding executive officers and stock ownership is available in SEC filings for both NorthWestern and Black Hills [72]. - The Annual Report on Form 10-K for NorthWestern for the fiscal year ended December 31, 2025, was filed on February 12, 2026 [72]. - The Annual Report on Form 10-K for Black Hills for the fiscal year ended December 31, 2025, was filed on February 11, 2026 [72]. - Changes in ownership of securities will be reflected in Forms 3, 4, or 5 filed with the SEC [72]. Investor Relations - A quarterly dividend of $0.67 per share was declared, representing a 1.5% increase over the previous quarter [5][15]. - The company plans to host an investor earnings webinar on February 12, 2026, to discuss its financial results for the year ending December 31, 2025 [60]. - Investor relations and media contact information is provided for further inquiries [73]. Risks and Challenges - Supply chain constraints and high inflation levels are impacting capital expenditures and operating activities [71]. - Changes in trade credit availability and commodity prices may reduce revenues or increase operating costs [71]. - Unscheduled generation outages could lead to reduced revenues and increased operating costs [71]. - Adverse economic conditions in U.S. financial markets may negatively affect results of operations [71]. - The company reported a weather-related unfavorable adjustment of $14.4 million for the full year 2025, which impacted its financial results [58].