NorthWestern Energy Group, Inc.

NorthWestern Energy Group, Inc., doing business as NorthWestern Energy, supplies electricity and natural gas in Montana, South Dakota and Nebraska. Its shares trade on Nasdaq under NWE. Its fiscal year ends December 31.

Latest quarterly financial results

Additional Colstrip ownership reduced Q3 net income by $6.1 million. A $3.2 million Avista-related adjustment removed part of that cost, leaving a $2.9 million impact in adjusted earnings. The adjusted measure also normalizes weather and removes merger-related costs. Higher depreciation and interest expense also weighed on reported earnings.

For the first nine months, reported diluted earnings were $1.93 per share versus $2.22. Adjusted earnings were $2.39 versus $2.41, after weather, merger, Avista and other specified adjustments. Higher revenue therefore did not translate into higher nine-month earnings.

Annual outlook and capital requirements

The 2026 adjusted earnings target remains $3.68 to $3.83 per share, matching July and September. It assumes normal weather, excludes merger costs, and requires final approval of the power-cost recovery waiver and power prices sufficient to recover costs associated with the additional Colstrip interests. The standalone forecast will cease to apply when the Black Hills merger closes.

The capital plan remains $683 million for 2026 and $3.207 billion over 2026 through 2030. Long-term earnings and rate-base growth targets remain 4% to 6%.

The planned 131-megawatt Hub City Energy Park in Aberdeen, South Dakota, is now estimated at $470 million, versus approximately $300 million in July. The current five-year schedule still allocates $332 million to South Dakota generation. The company has not reconciled the full-project estimate with that allocation. It had recorded $42.6 million of nonrefundable turbine milestone payments by September 30.

Funding plans include operating cash flow, credit capacity, debt issuance and future rate increases. Equity issuance for South Dakota generation is expected from 2027, as already stated in July.

Data-center development

The Sabey Data Centers development agreement has been terminated. Atlas Power and Quantica Infrastructure remain in the development pipeline. The first expected demand is 75 megawatts beginning in late 2027, versus 150 megawatts in July. The indicative 2030 figure is now approximately 1,250 megawatts or more, versus approximately 1,500 megawatts or more.

These development agreements require evaluation of generation and transmission needs. Electric-service agreements with the remaining developers are still being negotiated. September's investor presentation had still listed Sabey. The pending Montana large-new-load tariff framework sets proposed contract requirements and protections for existing customers.

Cash generation, debt and liquidity

Operating cash flow was $364.1 million in the first nine months, versus $338.3 million. A $30.7 million improvement in net cash inflows for energy-supply costs helped the comparison. The company's funds-from-operations measure, which removes working-capital changes, was $341.6 million versus $339.8 million.

Cash property and equipment spending was $464 million, compared with $374.5 million. That left operating cash $99.9 million below capital spending, before $123.2 million of dividends. The presentation's $453.5 million capital-investment measure uses a different basis, including construction-accounting and payment-timing adjustments.

At September 30, cash and cash equivalents were $6.5 million, with a separate $19.5 million restricted. Debt at carrying value totaled $3.660 billion, excluding finance leases. Revolving credit capacity available was $343 million at September 30 and $352 million at October 30. Debt to total capital was 55.9%, just above its target range.

A $100 million group term loan is due December 31, 2026, and a $225 million NW Corp term loan November 26, 2027. The company completed a $150 million, 5.51% South Dakota bond issue in June, due in 2036; proceeds refinanced $60 million and $45 million maturities and supported other utility uses.

Completed Colstrip purchases and pending merger

NorthWestern completed the Avista and Puget Colstrip purchases on January 1, 2026, adding 222 and 370 megawatts respectively and bringing ownership of the facility to 55%. The cash purchase price was zero. The acquired interests carry operating costs; sellers retain specified pre-closing environmental and retirement responsibilities under contractual arrangements.

The Black Hills merger remains pending. NorthWestern expects the Montana regulator to consider it before November 12 and anticipates closing by year-end, subject to satisfactory approval and other closing conditions. Earlier shareholder, antitrust, federal, Nebraska and South Dakota approvals have been obtained. Under the existing terms, each NorthWestern share converts into 0.98 Black Hills shares, with cash for fractions, and the combined parent is to be named Bright Horizon Energy Corporation.

The declared NorthWestern dividend is $0.67 per share, with November 17 as the record date and December 1 the payment date. Those dates replace the previously expected December schedule to coordinate the pending merger. If closing occurs before the record date, eligible holders instead receive the combined company's declared dividend under the transaction's coordination provisions.