Black Hills Corp Reports Robust Q2 2025 Earnings Growth

Financial Highlights from the Second Quarter of 2025

As the second quarter of 2025 concluded, Black Hills Corp. (NYSE: BKH) reaffirmed its earnings guidance for the year, projecting earnings per share between $4.00 and $4.20. This guidance is bolstered by a solid operational performance and strategic enhancements across its service territories.

Key Achievements and Developments

Earnings Performance

In the most recent quarter, the company reported earnings of $0.38 per share, reflecting a commendable increase from $0.33 per share reported in the same quarter last year. This growth can be attributed to the implementation of new rate structures and the recovery of previous costs through approved riders. Notably, performance in previous periods also played a crucial role, with milder weather conditions from the previous year partially offset by rising operational costs.

Infrastructure and Capacity Improvements

Significant infrastructure developments highlighted the second quarter, especially the establishment of the Emergency Public Safety Power Shutoff (PSPS) protocol across all electric utilities. This initiative aims to enhance customer safety and reduce wildfire risks, indicating the company's commitment to prioritizing community needs.

Moreover, Black Hills Corp. reached an all-time peak electric load of 379 megawatts in Wyoming, marking a 21% increase compared to previous records. This surge in demand underscores the company's expanding customer base and the success of its ongoing projects.

Utility Regulatory Updates

In June 2025, Kansas Gas received regulatory approval for a new settlement agreement leading to an annual revenue boost of approximately $10.8 million. This follows the recovery of nearly $118 million in system investments and increased operational costs attributed to inflation and the growing needs of customers.

Capital Project Progress

Black Hills Corp. remains on track with its ambitious $1 billion capital investment strategy for the year. The $350-million Ready Wyoming electric transmission project is poised for completion by the end of 2025, while the Lange II generation project in South Dakota, which carries a price tag of $280 million, is slated to start construction soon with an expected operational date in 2026. These initiatives are central to the company’s long-term expansion and efficiency goals.

Outlook for the Future

CEO Linn Evans emphasized the company’s focus on achieving upper-range growth targets of 4% to 6% annually as part of its long-term strategies. Moreover, developments such as Meta's new data center in Wyoming are projected to enhance the company’s earnings contribution from data centers by over 10% by 2028.

Dividend Increase

Reflecting on its commitment to shareholders, the board of directors of Black Hills Corp. approved a quarterly dividend of $0.676 per share, maintaining a record of 55 consecutive years of dividend increases.

Frequently Asked Questions

What is the 2025 earnings guidance for Black Hills Corp.?

The company has reaffirmed its earnings guidance for 2025, projecting earnings per share to be in the range of $4.00 to $4.20.

What were the earnings per share for Q2 2025?

Black Hills Corp. achieved earnings of $0.38 per share in the second quarter of 2025.

What key infrastructure projects is Black Hills Corp. currently working on?

Key projects include the $350 million Ready Wyoming electric transmission project and the $280 million Lange II generation project.

What significant regulatory approvals did Black Hills Corp. receive?

The Kansas Gas division received approval for new rates, which will generate an additional $10.8 million annually in revenues.

How has Black Hills Corp. performed with peak electric loads?

In June 2025, the company recorded an all-time peak electric load of 379 megawatts, a 21% increase from the previous peak.

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