NorthWestern Energy Reports 2025 Financial Results

Core Insights - NorthWestern Energy reported a net income of $181.1 million for 2025, a decrease from $224.1 million in 2024, primarily due to higher operating expenses and regulatory disallowances [1][4] - The company announced a $3.2 billion capital investment plan for 2026-2030, representing a 17% increase over the previous plan [1][2] - A quarterly dividend of $0.67 per share was declared, marking a 1.5% increase, payable on March 31, 2026 [1][2] - The 2026 earnings guidance is set between $3.68 and $3.83 per diluted share, with a long-term EPS growth rate affirmed at 4% to 6% [1][2] Financial Performance - Adjusted diluted non-GAAP EPS for 2025 was $3.58, up from $3.40 in 2024, while diluted GAAP EPS was $2.94, down from $3.65 [1][4] - Total revenues for 2025 reached $1.61 billion, compared to $1.51 billion in 2024, driven by higher electric transmission revenue and retail volumes [4][5] - Operating expenses increased to $1.28 billion in 2025 from $1.19 billion in 2024, influenced by higher maintenance, administrative costs, and merger-related expenses [4][5] Strategic Developments - The company completed the acquisition of Energy West, adding approximately 33,000 natural gas customers [1] - A merger agreement with Black Hills Corporation was announced, expected to close in the second half of 2026, creating a stronger utility [1][2] - The Montana electric and natural gas rate review was completed, allowing recovery of significant investments made for reliable service [1][2] Regulatory and Legislative Updates - House Bill 490 was passed in Montana, providing clarity on wildfire-related risks and enhancing regulatory certainty for the company [1][2] - The Montana Public Service Commission approved a final order for natural gas and partial electric settlement agreements, impacting revenue recovery mechanisms [2][5] Future Outlook - The company anticipates funding its capital expenditures through operational cash flows, credit sources, and future rate increases [2] - A focus on resource adequacy and serving large-load customers is emphasized, with plans for new generation capacity in South Dakota [3][5] - The company is actively pursuing regulatory approvals for its merger and other strategic initiatives, with hearings scheduled for 2026 [1][2]