Northwestern Energy Group Inc Q4 FY2025 earnings call

• Announced merger with Black Hills Corporation, acquired Avista and 1126, submitted a $300,000,000 131 megawatt South Dakota natural gas project, and acquired Energy West and Cutbank Gas natural gas distribution assets.
• Legislative wins: Montana Senate Bill 301 and House Bill 490 signed, wildfire plan approved, and Montana Electric and Natural Gas general rate reviews completed.
• Financial results: GAAP diluted EPS $2.94, non-GAAP diluted EPS $3.58; increased quarterly dividend by 1.5% to $0.67 per share; initiated 2026 earnings guidance $3.68 to $3.83; updated five-year capital plan to $3,210,000,000 (17% increase).
• Merger with Black Hills: Filed joint requests for merger approval in states and FERC, and submitted Form S-4 and joint proxy; integration planning started.
• Data center growth: Signed third letter of intent with Fonica for 500-plus megawatts data center, progressed with Sebi from LOI to development agreement, and advanced Atlas Power to development agreement.
• Colstrip: Closed ownership portions, now 55% owner, filed PCAM tariff waiver for Avista portion, and signed contract for Puget portion electricity sale.

No detailed product segment financials were explicitly discussed in terms of absolute revenue and contribution percentages. However, financial results for the full year showed GAAP diluted EPS of $2.94 and non-GAAP diluted EPS of $3.58. The fourth quarter adjusted earnings were $1.17, with adjustments for weather, merger costs, rate review charges, and taxes.

• Initiated 2026 earnings guidance range of $3.68 to $3.83 per share, representing 5% growth at midpoint off 2025 results.
• Updated five-year capital plan to $3,210,000,000, a 17% increase, including the 131 megawatt South Dakota generating facility and incremental full strip ownership.
• Expect to need equity beyond 2026 to fund South Dakota investment, with debt to equity ratio expected to be 50/50.

• Uncertainty regarding EPA endangerment finding reversal affecting Colstrip investment plans.
• Regulatory and procedural delays in merger approvals and data center large load tariff filings.
• Impact of weather on financial margins and PCAM mechanism effects on earnings.

Q: Update on large load tariff timing and scope for data centers A: Will file a large load tariff once a signed ESA is obtained, and expect to do so by the end of the second quarter of 2026 Q: Merger education plan for stakeholders A: Engaging with the community, demonstrating the tariff protects customers, and working with data centers to show they pay their fair share Q: Growth outlook and financing A: Incremental CapEx in South Dakota is recoverable via a phase-in rate plan rider, and financing will be 50-50 debt to equity Q: South Dakota plant commercial operation date A: Expected to be completed in 2030 Q: EPA endangerment finding and Colstrip A: Uncertain, but will invest in Colstrip or its replacement to serve customers as needed Q: Merger state regulatory timelines A: Working on resetting procedural schedules in South Dakota, with dockets progressing normally in Montana