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Jun 30
Black Hills Q2 2025 Earnings Report
Black Hills Corp. reported strong second-quarter 2025 financial results, driven by new rates, rider recovery, and favorable weather conditions, while reaffirming its full-year earnings guidance.
Key Takeaways
Black Hills Corp. delivered strong earnings in the second quarter of 2025, with significant increases in revenue, net income, and EPS compared to the prior year. The company benefited from new rates and rider recovery, particularly in its Gas Utilities segment, and milder weather in the prior year. Despite higher operating expenses, financing, and depreciation costs, Black Hills Corp. maintained solid financial credit metrics and is on track with its $1 billion capital plan for the year, reaffirming its 2025 earnings guidance.
Revenue increased to $439.0 million in Q2 2025 from $402.6 million in Q2 2024, reflecting growth across both Electric and Gas Utilities.
Diluted EPS rose to $0.38 in Q2 2025 from $0.33 in Q2 2024, primarily due to new rates and rider recovery.
Operating income increased by $11.9 million to $82.5 million, with Gas Utilities showing a substantial $12.5 million increase.
The company reaffirmed its 2025 earnings guidance of $4.00 to $4.20 per share, indicating confidence in continued growth and execution of its capital plan.
Black Hills
Black Hills
Black Hills Revenue by Segment
Black Hills Revenue by Geographic Location
Revenue by Segment
Electric Utilities Revenue
CapyFin.comGas Utilities Revenue
CapyFin.comCorporate and Other Revenue
CapyFin.comRevenue by Geographic Location
Colorado Electric Revenue
CapyFin.comSouth Dakota Electric Revenue
CapyFin.comWyoming Electric Revenue
CapyFin.comIntegrated Generation Revenue
CapyFin.comArkansas Gas Revenue
CapyFin.comColorado Gas Revenue
CapyFin.comIowa Gas Revenue
CapyFin.comKansas Gas Revenue
CapyFin.comNebraska Gas Revenue
CapyFin.comWyoming Gas Revenue
CapyFin.com Forward Guidance
Black Hills Corp. reaffirmed its 2025 earnings guidance, expecting EPS in the range of $4.00 to $4.20, based on several key assumptions including normal weather, constructive regulatory outcomes, and no unplanned generation outages.
Positive Outlook
- Reaffirmed 2025 earnings guidance of $4.00 to $4.20 per share, representing 5% year-over-year growth at the midpoint.
- Successful execution of the $1 billion capital plan for 2025 to serve customers and support long-term growth.
- Ready Wyoming electric transmission project ($350 million) on track for completion by year-end 2025.
- Lange II gas-fired generation project ($280 million) in South Dakota scheduled to be in service in the second half of 2026.
- Forecast of more than 10% of EPS from data centers by 2028, with upside potential from new data centers, blockchain demand, and other organic growth.
Challenges Ahead
- Guidance assumes normal weather conditions, which could be a risk if actual weather deviates significantly.
- Relies on constructive and timely outcomes of utility regulatory dockets, which are subject to external approval processes.
- Excludes mark-to-market adjustments, which could introduce volatility not captured in the guidance.
- Assumes no unplanned outages at generation facilities, which could impact operational efficiency and costs.
- Operations and maintenance expense is projected to grow at approximately 3.5% compounded annually, indicating ongoing cost pressures.