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Black Hills Corporation: A 3GW Data Center Pipeline Could Reshape Its Earnings Profile—What Comes Next?

Black Hills Corporation reported financial and operational results for 2025, delivering on its guidance with adjusted earnings per share (EPS) of $4.10, representing a 5% increase over 2024. The company achieved the midpoint of its earnings guidance and maintained strong investment-grade credit ratings while executing a $900 million capital investment plan. Key earnings drivers included regulatory rate increases and rider recoveries, alongside growth in customer demand, notably from large load customers such as data centers. Weather conditions were favorable relative to 2024 but represented a slight headwind compared to normal conditions. Operating and maintenance (O&M) costs rose, driven by higher employee and service expenses, insurance costs, and unplanned generation outages. Financing costs and depreciation also increased due to recent large capital projects. Operationally, Black Hills completed the 260-mile Ready Wyoming transmission project on schedule, enhancing system reliability and reducing reliance on third-party transmission.