NorthWestern Energy Reports Third Quarter 2026 Results, Affirms Full-Year Earnings Guidance
NorthWestern Energy Group, Inc., doing business as NorthWestern Energy (Nasdaq: NWE), has reported its financial results for the third quarter of 2026, recording net income of $30.7 million, equivalent to $0.50 per diluted share. The results compare with net income of $38.2 million, or $0.62 per diluted share, reported during the corresponding quarter of 2025.
The year-over-year decline in earnings primarily reflected a $6.1 million net loss associated with the company’s additional ownership interests in Colstrip Units 3 and 4. Higher depreciation and interest expenses also contributed to the lower results. These factors were partially offset by reduced non-recoverable Montana electric supply costs, changes in retail volumes, increased transmission revenue, and lower merger-related expenses.
On an adjusted non-GAAP basis, NorthWestern Energy reported third-quarter 2026 net income of $35.6 million and diluted earnings per share of $0.58. This compared with adjusted non-GAAP net income of $48.4 million and diluted earnings per share of $0.79 in the third quarter of 2025. The adjusted figures exclude certain items and provide an additional perspective on the company’s underlying financial performance.
President and Chief Executive Officer Brian Bird described the third quarter as a busy and productive period for the company. He said NorthWestern continued executing its core business priorities while maintaining its focus on delivering long-term value for customers, communities, and shareholders.
Bird acknowledged that expenses associated with the company’s increased ownership in Colstrip have created a temporary impact on earnings. However, he emphasized that the strategic investment is intended to help maintain reliable energy supplies for customers while supporting economic development across Montana.
The company is also preparing for a potential combination with Black Hills Corporation, which management expects to create new opportunities for the business. The transaction remains subject to final regulatory approvals, including satisfactory approval from the Montana Public Service Commission. The commission was expected to consider the merger before November 12, 2026.
Merger Agreement and Regulatory Developments
NorthWestern Energy entered into a merger agreement with Black Hills Corporation and a wholly owned subsidiary of Black Hills on August 18, 2025. The agreement establishes the framework for an all-stock merger of equals between the two companies, subject to the terms, conditions, and regulatory requirements outlined in the transaction documents.
Following completion, the resulting parent company of the combined corporate group is expected to operate under the name Bright Horizon Energy Corporation. The proposed combination represents an important development in NorthWestern’s corporate strategy and is intended to bring the two energy businesses together under a unified organization.
Progress toward completing the transaction continued throughout 2026. In April, shareholders of both NorthWestern Energy and Black Hills voted in favor of the merger. During the same month, the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act expired, allowing the companies to proceed toward satisfying the remaining transaction requirements.
Additional regulatory approvals were secured in May 2026, when the Federal Energy Regulatory Commission and the Nebraska Public Service Commission each approved the proposed merger. In June, the South Dakota Public Utilities Commission also granted its approval.
Montana remains an important regulatory consideration for completing the transaction. NorthWestern Energy submitted an application to the Montana Public Service Commission seeking authorization for the merger. In April 2026, the company reached a settlement agreement with certain key intervenors in the state. However, the settlement remains subject to approval by the commission.
A hearing concerning the transaction took place before the Montana Public Service Commission in May 2026. NorthWestern Energy is awaiting the commission’s final order before the merger can move forward toward completion.
The company continues to anticipate closing the transaction by the end of 2026, provided all required closing conditions are satisfied or appropriately waived. Completion will depend on the remaining regulatory and other requirements established under the merger agreement.
Merger-related expenses have also contributed to the company’s administrative and general costs. NorthWestern Energy recorded $3.2 million in merger-related expenses during the three months ended September 30, 2026. For the nine-month period ending on the same date, these expenses totaled $9.9 million. Both amounts were included in administrative and general expenses.
2026 Financial Guidance and Long-Term Growth Outlook
NorthWestern Energy reaffirmed its 2026 earnings guidance and long-term financial growth expectations while continuing to plan for the anticipated merger with Black Hills.
The financial outlook currently presented by the company is based on NorthWestern Energy operating independently. Management clarified that the standalone financial guidance and long-term projections will no longer apply or serve as an indication of expected results once the merger is completed. The combined company will have its own financial expectations and outlook following the transaction.
For the full year 2026, NorthWestern Energy reaffirmed its adjusted non-GAAP earnings guidance of $3.68 to $3.83 per diluted share. This outlook is based on several operating and financial assumptions that management considers important to achieving the projected results.
The guidance assumes normal weather conditions across the company’s service territories. It also excludes expenses associated with the pending merger with Black Hills, allowing the earnings projection to reflect the standalone business rather than transaction-related costs.
Another important assumption concerns the approval of a waiver under the Power Cost and Credit Adjustment Mechanism, commonly known as PCCAM. The company’s outlook also assumes that power prices will be sufficient to recover operating expenses associated with its incremental ownership interests in the Avista and Puget portions of Colstrip.
NorthWestern Energy expects its effective income tax rate to remain within a range of approximately 14% to 18%. The earnings guidance also assumes diluted average shares outstanding of approximately 61.8 million.
In addition to its 2026 earnings outlook, the company reaffirmed its long-term diluted earnings per share growth target of 4% to 6%. This projection is calculated using the company’s 2024 adjusted diluted non-GAAP earnings per share baseline of $3.40.
The reaffirmed growth target reflects management’s expectations for the company’s standalone business over the longer term. However, the projected growth rate will no longer represent the expected performance of the organization after the proposed merger is completed.
Capital Investment Program and Funding Strategy
NorthWestern Energy also reaffirmed its planned capital investment program of $3.2 billion for the 2026 through 2030 period. The investment program is expected to support continued infrastructure development, operational improvements, and growth in the company’s regulated asset base.
Based on its investment plans, NorthWestern expects to achieve rate base growth of approximately 4% to 6%. This projection uses 2024 as the base year, when the company’s rate base was approximately $5.4 billion.
The planned capital expenditure program is intended to support the company’s ongoing energy operations and infrastructure requirements. Investments are expected to contribute to maintaining system reliability while accommodating changing customer requirements and regional energy demand.
To finance its capital expenditure commitments, NorthWestern Energy anticipates using several funding sources. These include cash generated from operating activities, available credit facilities, debt issuances, and future customer rate increases.
The company also expects to use equity issuances beginning in 2027 to help finance generation investments in South Dakota. This approach is intended to provide additional funding flexibility as the company advances its planned generation-related expenditures.
Overall, NorthWestern Energy’s third-quarter 2026 results reflect higher operating costs and expenses associated with its additional Colstrip ownership interests, while the company continues advancing its capital investment strategy and proposed merger with Black Hills. Management has maintained its full-year earnings guidance and long-term standalone growth targets as it works toward completing the transaction by year-end 2026, subject to the remaining regulatory approvals and closing conditions.
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