--- title: "Black Hills | 10-Q: FY2026 Q1 Revenue: USD 780.7 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/285582458.md" datetime: "2026-05-07T15:50:14.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285582458.md) - [en](https://longbridge.com/en/news/285582458.md) - [zh-HK](https://longbridge.com/zh-HK/news/285582458.md) --- # Black Hills | 10-Q: FY2026 Q1 Revenue: USD 780.7 M Revenue: As of FY2026 Q1, the actual value is USD 780.7 M. EPS: As of FY2026 Q1, the actual value is USD 1.73, missing the estimate of USD 1.88. EBIT: As of FY2026 Q1, the actual value is USD 253.8 M. #### Consolidated Financial Performance Black Hills Corporation reported consolidated operating income of $201.9 million for the three months ended March 31, 2026, a decrease of - $3.1 million from $205.0 million in the same period of 2025. Net income for the period was $133.1 million, down - $3.3 million from $136.4 million in the prior year. Net income available for common stock was $131.0 million in 2026, compared to $134.3 million in 2025. Interest expense, net, was comparable year-over-year at - $51.9 million in 2026 versus - $51.3 million in 2025. Income tax expense was also comparable, at - $17.6 million in 2026 versus - $18.1 million in 2025, with an effective tax rate of 11.7% for both periods. #### Electric Utilities Segment ##### Segment Revenue Total revenue for the Electric Utilities segment increased by $4.9 million to $241.6 million for the three months ended March 31, 2026, from $236.7 million in the prior year. Revenue from external customers was $239.1 million in 2026, up from $234.3 million in 2025. Retail revenue increased to $197.0 million from $191.3 million, while wholesale revenue decreased to $6.0 million from $7.1 million. Market-off-system sales were $10.9 million, slightly down from $11.3 million. ##### Operational Metrics Operating income for the Electric Utilities segment increased by $5.6 million to $59.9 million in 2026, up from $54.3 million in 2025. The non-GAAP Electric Utility margin increased by $5.3 million to $174.8 million, primarily driven by $13.3 million from new rates and rider recovery, partially offset by - $3.6 million from lower residential and commercial customer usage and - $3.2 million from unfavorable weather. Operations and maintenance expense decreased by - $3.7 million to $65.1 million, mainly due to $2.4 million lower outside services expenses. Depreciation and amortization increased by $3.5 million to $40.6 million due to a higher asset base from capital expenditures. ##### Unique Metrics Total quantities sold in the Electric Utilities segment increased to 1,928.0 GWh in 2026 from 1,889.4 GWh in 2025. Industrial quantities sold significantly increased to 707.4 GWh from 609.8 GWh. Combined heating degree days were 2,263 in 2026, a -22% variance from normal, compared to 3,060 in 2025, a 7% variance from normal. Capital expenditures for Electric Utilities were $189.5 million in 2026, a substantial increase from $102.1 million in 2025. #### Gas Utilities Segment ##### Segment Revenue Total revenue for the Gas Utilities segment decreased by - $29.3 million to $543.1 million for the three months ended March 31, 2026, from $572.4 million in the prior year. Revenue from external customers was $541.6 million in 2026, down from $570.9 million in 2025. Retail revenue decreased to $458.7 million from $499.7 million, and transportation revenue decreased to $54.5 million from $57.7 million. ##### Operational Metrics Operating income for the Gas Utilities segment decreased by - $5.0 million to $146.5 million in 2026, from $151.5 million in 2025. The non-GAAP Gas Utility margin decreased by - $7.9 million to $271.9 million, primarily due to - $13.2 million from unfavorable weather and - $2.1 million from lower retail customer usage, partially offset by $8.8 million from new rates and rider recovery. Operations and maintenance expense decreased by - $5.6 million to $82.3 million, mainly due to $4.4 million lower employee costs. Depreciation and amortization increased by $2.1 million to $34.2 million due to a higher asset base from capital expenditures. ##### Unique Metrics Total quantities sold and transported in the Gas Utilities segment decreased to 84.5 million Dth in 2026 from 96.1 million Dth in 2025. Combined heating degree days were 2,513 in 2026, a -18% variance from normal, compared to 3,082 in 2025, a 1% variance from normal. Capital expenditures for Gas Utilities were $68.4 million in 2026, up from $59.0 million in 2025. #### Corporate and Other Operating loss for Corporate and Other increased by - $3.7 million to - $4.5 million in 2026, from - $0.8 million in 2025, primarily due to $4.6 million in costs related to the pending merger with NorthWestern. #### Cash Flow Activities Net cash provided by operating activities decreased by - $51.6 million to $176.2 million for the three months ended March 31, 2026, compared to $227.8 million in 2025. Net cash used in investing activities increased by - $114.8 million to - $270.0 million, primarily due to a $114.5 million increase in cash outflows from capital expenditures. Net cash used in financing activities decreased by $16.7 million to - $65.2 million, primarily due to net borrowing activity under the Commercial Paper Program, partially offset by the repayment of $300 million senior unsecured notes. #### Capital Structure and Liquidity As of March 31, 2026, total debt was $4,654.7 million, with a debt to capitalization ratio of 54.1%. Available liquidity, including cash and cash equivalents ($23.6 million) and available capacity under the Revolving Credit Facility and CP Program ($494.6 million), totaled $518.2 million. #### Future Outlook and Strategy Black Hills Corporation plans to fund its capital program and strategic objectives through operating cash flow and various financing options, including a new shelf registration statement and refinancing $400 million senior unsecured notes due in January 2027. Capital expenditures are forecasted to be $906 million for 2026, $844 million for 2027, $983 million for 2028, $969 million for 2029, and $968 million for 2030, with key projects like the Lange II construction and Colorado Electric’s 50-MW battery storage project progressing. The proposed merger with NorthWestern is anticipated to close in the second half of 2026, pending regulatory approvals, while several rate reviews are ongoing or recently approved, including Arkansas Gas, Kansas Gas, South Dakota Electric, and Nebraska Gas. ### Related Stocks - [BKH.US](https://longbridge.com/en/quote/BKH.US.md) ## Related News & Research - [Black Hills (NYSE:BKH) Issues Quarterly Earnings Results, Misses Expectations By $0.09 EPS](https://longbridge.com/en/news/285451262.md) - [Black Hills Corp. 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