NorthWestern Corporation

Black Hills Corp reaffirmed its 2026 adjusted EPS guidance of $4.25 to $4.45, representing 6% growth at the midpoint, and expects to deliver in the upper half of its 4% to 6% long-term growth target. The company reported second-quarter adjusted EPS of $0.54, up from $0.38 a year earlier, driven by $0.21 per share from new rates and rider recovery. Its large load demand pipeline exceeds 3 gigawatts, with 600 megawatts already in the financial plan and over 2.5 gigawatts of additional opportunities under active negotiation, including a 1.8 gigawatt data center project in advanced talks. The pending merger with Northwestern Energy has received six of seven required approvals, with a decision in Montana expected by mid-October to mid-November. Black Hills also maintains strong liquidity of over $650 million under its revolving credit facility and a 56-year track record of consecutive dividend increases.

NorthWestern Corporation reported quarterly earnings of $0.50 per share, beating the Zacks Consensus Estimate of $0.42 per share and marking a 19.05% earnings surprise. Revenue for the quarter ended June 2026 came in at $392.6 million, surpassing the consensus estimate by 4.08% and up from $342.7 million a year ago. The company has topped consensus EPS estimates three times in the last four quarters and currently carries a Zacks Rank #3, or Hold. NorthWestern shares have gained about 12% year to date, outperforming the S&P 500's 8.5% advance.

Black Hills, a Dividend King utility with over 50 years of consecutive dividend increases, is an under-the-radar buy as electricity demand is projected to surge 60% between 2025 and 2045. The company plans to merge with Northwestern Energy, nearly doubling its size and lifting combined earnings growth to 5% to 7% annually. Black Hills offers a 3.8% dividend yield, well above the 2.6% utility average, and provides exposure to rising power needs driven by AI and data centers. While larger rival NextEra Energy is acquiring Dominion Energy, Black Hills remains a smaller but reliable income play with a growth catalyst.