Black Hills ((BKH)) has held its Q2 earnings call. Read on for the main highlights of the call.
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During the recent earnings call, Black Hills Corporation expressed a positive sentiment, highlighting significant progress in achieving its financial and strategic goals. The company reported earnings growth, successful regulatory outcomes, and increasing demand from data centers and blockchain. Despite challenges such as higher operating expenses, financing costs, and adverse weather impacts, the overall performance and future outlook remain strong.
Earnings Growth
Black Hills Corporation reported a year-over-year earnings growth of 5% at the midpoint of guidance. The company reaffirmed its 2025 earnings guidance range of $4 to $4.20, representing a 5% growth rate at the midpoint over 2024 EPS. This growth underscores the company’s robust financial health and strategic execution.
Successful Regulatory Strategy
The company achieved a significant milestone with the approval of the Kansas Gas rate review and is actively engaged in a rate review in Nebraska. These efforts reflect the recovery of over $1.3 billion in new system investments, showcasing the company’s effective regulatory strategy.
Data Center and Blockchain Demand
Wyoming Electric, a subsidiary of Black Hills, recorded four distinct all-time peak loads, with a 21% increase over the peak recorded in 2024. This surge is attributed to the growing demand from data centers and blockchain, indicating strong industrial growth.
Ready Wyoming Transmission Project
The Ready Wyoming Transmission Project is on track for completion by year-end. This project is set to enhance system resiliency and improve access to market energy, including renewables, further solidifying Black Hills’ commitment to sustainable energy solutions.
Colorado Clean Energy Plan Progress
Black Hills received approval for 350 megawatts of renewable resources, aiming to reduce emissions for Colorado customers by 80% by 2030. This approval marks a significant step in the company’s clean energy initiatives.
Higher Operating Expenses
The company faced increased operating and maintenance expenses, driven by higher insurance premiums and unplanned outages. These factors contributed to the overall increase in operational costs.
Higher Financing Costs
Black Hills reported $0.08 per share of higher financing costs, which impacted the company’s financial performance. Despite this, the company remains focused on maintaining a strong balance sheet.
Weather Impact
Adverse weather conditions resulted in a $0.04 per share unfavorability during Q2 2025. This impact highlights the challenges posed by external environmental factors on the company’s operations.
Forward-Looking Guidance
Black Hills Corporation reaffirmed its full-year earnings guidance range of $4 to $4.20 per share, representing a 5% growth rate at the midpoint over 2024 EPS. The company is focusing on several key initiatives, including a $1 billion capital plan to support customer growth and achieve a long-term EPS growth target of 4% to 6% starting in 2026. Black Hills is actively working on projects like the Ready Wyoming transmission expansion and the Lange II generation project, while also implementing an emergency public safety power shutoff program to mitigate wildfire risks.
In summary, Black Hills Corporation’s earnings call conveyed a strong and positive sentiment, with significant progress in financial and strategic goals. The company’s focus on regulatory success, industrial growth, and clean energy initiatives positions it well for future growth, despite challenges such as higher expenses and weather impacts. Investors and stakeholders can remain optimistic about Black Hills’ strategic direction and financial health.