Key Highlights

• Q3 2026 GAAP diluted EPS of $0.50; Adjusted non-GAAP EPS of $0.58

• Full-year 2026 Earnings guidance affirmed at $3.68 to $3.83 per diluted share

• Merger with Black Hills Corporation expected to close by year-end 2026, forming Bright Horizon Energy Corporation

• Quarterly Dividend of $0.67 per share announced, payable December 1, 2026

NorthWestern Energy Group, Inc.(NASDAQ:NWE), a regulated Utility serving customers in Montana, South Dakota, and Nebraska, reported third-quarter 2026 financial results that reflected both the ongoing costs of its Colstrip power plant ownership expansion and progress toward its transformative merger with Black Hills Corporation.

Quarterly Financial Results

Net income for the third quarter of 2026 was $30.7 million, or $0.50 per diluted share, compared with $38.2 million and $0.62 per diluted share in Q3 2025. The year-over-year decline was primarily driven by $6.1 million of net losses associated with additional ownership interests in Colstrip Units 3 and 4, higher Depreciation expense, and increased interest expense. These negative factors were partially offset by lower non-recoverable Montana electric Supply costs, higher retail volumes, increased transmission revenue, and reduced merger-related costs.

On a non-GAAP adjusted basis, Q3 2026 Net Income was $35.6 million, or $0.58 per diluted share, compared with $48.4 million and $0.79 in the year-ago quarter. The adjusted figures exclude certain items related to the Colstrip Acquisition and merger costs.

The company affirmed its full-year 2026 earnings guidance range of $3.68 to $3.83 per diluted share on a standalone basis. It also reaffirmed its record $683 million Capital plan for 2026 and its Long-term Growth outlook of 4% to 6% EPS and rate base growth annually.

Black Hills Merger Update

The most closely watched development for NorthWestern Energy is the pending merger of equals with Black Hills Corporation, first announced in August 2025. Under the merger agreement, the combined entity will operate under the new name Bright Horizon Energy Corporation. The transaction is structured as an all-stock merger.

Regulatory approvals have progressed through multiple jurisdictions. Shareholders of both companies voted to approve the merger in April 2026. The Hart-Scott-Rodino antitrust Waiting Period expired in the same month. Approvals have been secured from the Federal Energy Regulatory Commission, the Nebraska Public Service Commission, and the South Dakota Public Utilities Commission. The Montana Public Service Commission remains the final regulatory hurdle, with a hearing held in May 2026 and a settlement agreement reached with key intervenors. Management anticipates a decision prior to November 12, 2026.

President and CEO Brian Bird expressed confidence in completing the transaction by year-end 2026, subject to satisfactory final approval from the Montana commission. During the first nine months of 2026, NorthWestern incurred $9.9 million in merger-related costs.

Colstrip and Capital Investment

The incremental costs from NorthWestern's additional ownership in Colstrip Units 3 and 4 created a temporary earnings headwind during the quarter. Management characterised the Colstrip ownership expansion as a strategic decision to ensure reliable energy supply for customers and support economic development in Montana, despite the near-term earnings pressure.

The company's $683 million capital plan for 2026 reflects ongoing investment in generation, transmission, and distribution infrastructure across its service territory. This level of capital deployment supports the long-term rate base growth that underpins the company's EPS growth outlook.

The board declared a quarterly dividend of $0.67 per share, payable December 1, 2026, to shareholders of record as of November 15, 2026, maintaining the company's status as a consistent dividend payer.

Looking Ahead

NorthWestern Energy's Q3 2026 results reflect a company navigating near-term earnings pressures from Colstrip costs while positioning for a potentially transformative combination with Black Hills. The Montana regulatory decision in November will be the pivotal event for the company and its shareholders, determining whether Bright Horizon Energy Corporation takes shape by the end of the calendar year as planned.