NorthWestern Energy Q2 adjusted EPS beats on new rates, retail volumes

Overview

• U.S. regulated utility's Q2 revenue rose 15% yr/yr on new rates and retail volumes

• Q2 adjusted EPS beat analyst expectations, rising to $0.50 from $0.40 last year

• Company affirms 2026 earnings guidance and reports progress on Black Hills merger approvals

Outlook

• NorthWestern affirms 2026 non-GAAP EPS guidance of $3.68-$3.83 per diluted share

• Company maintains long-term EPS growth guidance of 4%-6% from 2024 baseline

• NorthWestern affirms $3.2 bln capital investment plan for 2026-2030

Result Drivers

• NEW RATES AND RETAIL VOLUMES - Co said higher revenue and margin were primarily due to new rates and increased retail volumes

• COLSTRIP INTERESTS - Additional electric margin from the acquisition of Colstrip Puget Interests contributed to results

• HIGHER OPERATING COSTS - Results were partly offset by higher operating, administrative, and general costs, including merger-related costs and costs tied to Colstrip Units 3 and 4, and increased depreciation

Company press release: ID:nBw1z8nrza

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electric utilities peer group is "buy"

• Wall Street's median 12-month price target for NorthWestern Energy Group Inc is $73.00, about 3.4% above its July 29 closing price of $70.61

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 17 three months ago

Reuters Recommended Reads

• July 28 - CenterPoint Energy reports Q2 profit beat, hikes capex plan on data center demand

• July 28 - Expand Energy tops profit estimates as higher output offsets lower gas prices

• July 28 - CMS Energy Q2 revenue misses estimates; maintains long-term adjusted EPS growth target

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)