NorthWestern Energy Reports Third Quarter 2026 Financial Results

• Third Quarter 2026 Diluted GAAP EPS of $0.50, compared to $0.62 in 2025.
• Third Quarter 2026 Adjusted Diluted Non-GAAP EPS of $0.58, compared to $0.79 in 2025.
• Affirms 2026 earnings guidance range of $3.68 to $3.83 per diluted share.
• Affirms record $683 million capital plan for 2026 and 4% to 6% long-term EPS and rate base growth rate.
• Announces $0.67 per share quarterly dividend – payable December 1, 2026.

BUTTE, Mont. & SIOUX FALLS, S.D.–(BUSINESS WIRE)–NorthWestern Energy Group, Inc. d/b/a NorthWestern Energy (Nasdaq: NWE) reported financial results for the Third Quarter of 2026. Net income for the period was $30.7 million, or $0.50 per diluted share, as compared with net income of $38.2 million, or $0.62 per diluted share, for the same period in 2025. This decrease was primarily due to $6.1 million of net loss associated with our additional ownership interests in Colstrip Units 3 and 4, depreciation expense, and interest expense. These were offset in part by lower non-recoverable Montana electric supply costs, retail volumes, transmission revenue, and lower merger-related costs.

NorthWestern’s Third Quarter 2026 non-GAAP net income and diluted earnings per share were $35.6 million and $0.58, respectively, compared to $48.4 million and $0.79 in 2025. See “Adjusted Non-GAAP Earnings” and “Non-GAAP Financial Measures” sections below for more information on these measures.

“The third quarter was a busy and productive one for NorthWestern,” said President and CEO Brian Bird. “We continued to execute on our core business and remain focused on delivering long-term value for our customers, communities, and shareholders. Although the costs associated with our incremental ownership in Colstrip have created a temporary earnings headwind, this strategic decision helps ensure reliable energy for our customers and support economic development in Montana. Looking ahead, we are excited about the prospect of completing our merger with Black Hills and beginning the next chapter for our combined company, subject to final, satisfactory approval from the Montana Public Service Commission which is expected to consider the merger prior to November 12, 2026.”

TRANSACTION UPDATE

On August 18, 2025, we entered into a Merger Agreement with Black Hills Corporation (Black Hills) and a wholly owned subsidiary of Black Hills. The Merger Agreement provides for an all-stock merger of equals between NorthWestern and Black Hills upon the terms and subject to the conditions set forth therein. The new corporate name selected for the resulting parent company of the combined corporate group is Bright Horizon Energy Corporation (Bright Horizon).

In April 2026, shareholders of each company voted to approve the Merger and the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act expired, permitting consummation of the transaction.

In May 2026, the Federal Energy Regulatory Commission (FERC) and the Nebraska Public Service Commission (NPSC) each approved the Merger. In June 2026, the South Dakota Public Utilities Commission (SDPUC) approved the merger.

We filed an application with the Montana Public Service Commission (MPSC) for approval of the Merger, and in April 2026, we reached a settlement agreement with certain key intervenors in Montana, which is subject to the approval by the MPSC. In May 2026, a hearing with the MPSC was held and we await their final order.

We anticipate the transaction closing by year-end 2026, subject to the satisfaction or waiver of certain closing conditions.

During the three and nine months ended September 30, 2026, we have incurred $3.2 million and $9.9 million, respectively, of merger-related costs, which are included in our Administrative and general expenses.

FINANCIAL OUTLOOK

Affirming 2026 Guidance and Long-Term Growth Rates

As noted above, we anticipate completing the merger with Black Hills by year-end 2026. The financial guidance and long-term outlook presented below reflect NorthWestern Energy on a standalone basis. Upon completion of the merger, NorthWestern’s standalone guidance and outlook will no longer apply or be indicative of the combined company’s expected results.

We are affirming our 2026 non-GAAP earnings guidance of $3.68 – $3.83 per diluted share. This guidance is based upon, but not limited to, the following major assumptions:

• Normal weather in our service territories;
• Excludes costs related to the pending merger with Black Hills;
• Approval of the Power Cost and Credit Adjustment Mechanism (PCCAM) waiver and power prices sufficient to recover operating expense from incremental Avista and Puget Colstrip interests;
• An effective income tax rate of approximately 14 percent to 18 percent; and
• Diluted average shares outstanding of approximately 61.8 million.

We are affirming our long-term diluted earnings per share growth guidance of 4% to 6%, based on our 2024 adjusted diluted non-GAAP EPS baseline of $3.40.

Additionally, we are affirming our $3.2 billion capital investment plan for 2026-2030, which is expected to support rate base growth of 4% to 6% from our 2024 base year of approximately $5.4 billion.

We anticipate funding capital expenditures through cash flows from operations, available credit sources, debt issuances, and future rate increases. In order to fund South Dakota generation investment, equity issuances are expected beginning in 2027.

Dividend Declared

NorthWestern Energy Group’s Board of Directors has declared a quarterly common stock dividend of $0.67 per share, payable on December 1, 2026, to shareholders of record as of November 17, 2026. As previously disclosed in NorthWestern’s 2025 Annual Report issued in March 2026, this dividend was expected to be payable on December 31, 2026, to shareholders of record on December 15, 2026. The Board revised the record and payment dates in connection with the pending merger transaction and the dividend coordination provisions of the merger agreement.

If the merger receives final, satisfactory regulatory approval and is completed before the November 17, 2026 record date, each share of NorthWestern common stock will be converted into 0.98 shares of Black Hills common stock, with cash paid in lieu of any fractional shares, pursuant to the merger agreement, and Black Hills will be renamed Bright Horizon Energy Corporation. In that event, former NorthWestern shareholders who become shareholders of Bright Horizon as a result of the merger and are shareholders of Bright Horizon on Bright Horizon’s November 17, 2026 record date will be eligible to receive the dividend of $0.703 per Bright Horizon share from Bright Horizon that was declared by Black Hills on October 28, 2026. If the merger is completed after the November 17, 2026 record date, NorthWestern shareholders of record on that date will receive the NorthWestern dividend of $0.67 per share payable on December 1, 2026.

NorthWestern remains committed to its targeted dividend payout ratio of 60% to 70% over the long term. This target only reflects NorthWestern on a standalone basis through completion of the pending merger with Black Hills.

Additional information regarding this release can be found in the earnings presentation at https://www.northwesternenergy.com/investors/earnings.

COMPANY UPDATES

Montana Rate Review

In December 2025, the MPSC issued a final order approving our partial electric settlement agreement. The final order also suspended the 90/10 cost sharing mechanism of the PCCAM on a temporary basis pending further review by the MPSC. The ultimate resolution regarding the suspension of the PCCAM cost sharing mechanism will be addressed in a separate PCCAM docket and we anticipate resolution in the first half of 2027. Within this final order, the MPSC disallowed a portion of the capital costs related to the construction of Yellowstone County Generating Station (YCGS). As a result, in the fourth quarter of 2025 we recorded a $30.9 million non-cash charge for the regulatory disallowance.

In January 2026, we filed a Motion for Reconsideration (Motion) as it relates to this final order. Among other things, our Motion requests that the MPSC reconsider their prudence conclusions regarding the capital costs associated with the construction of YCGS and clarification as to the effective date of the PCCAM sharing mechanism suspension, for which we have requested an effective date of July 1, 2025, to align with the PCCAM tracker year. Any subsequent modifications by the MPSC to their final order are expected to be reflected in our results.

Montana Large New Load Tariff Rule

In March 2026, we filed an application with the MPSC requesting approval of a Large New Load tariff rule (LNL Rule) to establish requirements and contract terms for providing electric service to bundled customers with new or expanded loads of five megawatts or greater, including data centers and other energy-intensive operations. This filing establishes a framework governing agreements between us and large new load customers and is intended to address the costs and operational considerations associated with serving those loads while protecting existing customers from cost shifting and other adverse impacts. Under this proposed framework, for the largest commitments, 50 megawatts or greater, we would file the executed Electric Service Agreement with the MPSC for review and approval before service begins. For customers with loads between 5 and 49 megawatts, the tariff’s standardized process and mandatory protections apply, but individual agreements do not require case-specific MPSC approval filings. This application initiates a public regulatory proceeding that will include opportunities for review and public comment consistent with MPSC procedures. Discovery has started in this proceeding, however, the MPSC has not set settlement or hearing dates.

Data Center Development

As previously disclosed, we have signed development agreements with Atlas Power Holdings LLC (Atlas) and Quantica Infrastructure (Quantica) to provide electric supply services for data centers being developed in Montana. The development agreements require us to evaluate the transmission infrastructure and generation resources needed to support their proposed need. Our previously disclosed development agreement with Sabey Data Centers has been terminated. The combined energy service requirement associated with our remaining development agreements is currently expected to be 75 megawatts beginning in late 2027, with growth of up to approximately 1,250 megawatts or more by 2030. We are working with Atlas and Quantica to execute electric service agreements.

Resources and regulatory mechanisms, such as the LNL Rule discussed above, to be utilized for serving these requests are pending further evaluation and regulatory considerations.

Colstrip Acquisitions and Requests for Cost Recovery

As previously disclosed, we entered into definitive agreements with Avista and Puget to acquire their respective interests in Colstrip Units 3 and 4 for $0 and completed these acquisitions on January 1, 2026. Accordingly, we are responsible for the associated operating costs beginning on January 1, 2026, which we will not collect through utility base rates until requested in a future Montana rate review. Puget and Avista will remain responsible for their respective pre-closing share of environmental, asset retirement obligations, and pension liabilities attributed to events or conditions existing prior to the closing of the transaction and for any future decommissioning and demolition costs associated with the existing facilities that comprise their interests.

Avista Interests – The 222 megawatts of generation capacity from Colstrip Units 3 and 4 acquired from Avista (Avista Interests) on January 1, 2026, was identified as a key element in our strategy to achieve resource adequacy for customers, as outlined in our 2023 Montana Integrated Resource Plan. Noting the costs associated with operating this resource are not currently reflected in utility customer rates, in August 2025, we filed a temporary PCCAM tariff waiver request with the MPSC that could provide a near-term cost-recovery mechanism to offset a portion of the approximately $18.0 million in annual incremental operating and maintenance costs associated with the Avista Interests. This waiver requested that the MPSC allow us to keep 100 percent of the net revenue associated with certain designated power sales contracts up to the amount of the operating and maintenance expenses we incur associated with our Avista Interests. Furthermore, the waiver request indicated that any net revenues from the designated contracts exceeding the operating and maintenance expenses associated with our Avista Interests would continue to flow back to retail customers. In January 2026, the MPSC approved our PCCAM tariff waiver request on an interim basis with final approval or denial subject to the ongoing PCCAM docket process.

During the three and nine months ended September 30, 2026, power prices in the Pacific Northwest associated with these designated power sales contracts included within our PCCAM tariff waiver were insufficient to contribute to the recovery of the operating and maintenance expenses associated with the Avista Interests.

Puget Interests – The 370 megawatts of generation capacity from Colstrip Units 3 and 4 acquired from Puget (Puget Interests) on January 1, 2026, increases our ownership share of the facility to 55 percent and provides an increase in voting share in determining strategic direction and investment decisions at the facility. Unlike the Avista Interests, we do not currently need this capacity to serve existing customers in Montana. As such, the Puget Interests are held by our FERC regulated subsidiary to isolate the costs associated with this acquired interest from our Montana retail customers. While we expect our future opportunity to serve growing customer demand, including large-load customers, may be supported by this resource, in October 2025, we signed a contract to sell the dispatchable capacity and associated energy from the Puget Interests beginning January 1, 2026, through late 2027. Revenues from this agreement are expected to largely offset the estimated $30.0 million of annual incremental operating and maintenance costs associated with the Puget Interests. In addition, in October 2025, we submitted a request to the FERC for approval of cost-based rates for our subsidiary that will own the Puget Interests. In February 2026, the FERC approved both the cost-based rates and the contract rates retroactive to January 1, 2026. In March 2026, two MPSC commissioners, in their individual capacity, filed a motion with the FERC requesting a rehearing that largely reiterated arguments previously rejected by the FERC. The FERC denied this motion by operation of law. In June 2026, the two MPSC commissioners appealed the decision to the Ninth Circuit. The Court granted our intervention. The Court further granted FERC’s motion to hold the case in abeyance until December 11, 2026.

Generation Capacity in South Dakota

The Southwest Power Pool (SPP) has recently updated its resource accreditation and planning reserve margin (PRM) requirements in response to growing reliability concerns. As a result, SPP is requiring additional accredited capacity by 2030 to meet the updated PRM targets. In October 2025, we submitted a project with the SPP under their Expedited Resource Adequacy Study program for the construction of a 131 MW natural gas generating facility located in Aberdeen, South Dakota, which has been named the Hub City Energy Park generation project, to meet regional capacity needs by 2030. Anticipated costs for this project are approximately $470.0 million. As of September 30, 2026, we have recorded $42.6 million within Other noncurrent assets on the Condensed Consolidated Balance Sheets for non-refundable milestone payments to secure the turbines that will be used at this facility.

South Dakota Phase In Rate Plan Rider

In June 2026, we filed our annual Phase In Rate Plan Rider (PIRP) update with the SDPUC requesting recovery of costs associated with Aberdeen Generating Station, a 33 megawatt (MW) natural gas fired electric generating facility located in Aberdeen, South Dakota, certain nuclear study costs, and the proposed Hub City Energy Park generation project, a 131 MW natural gas generating facility located in Aberdeen, South Dakota. The filing requests collection of approximately $11.8 million of revenue for the July 2026 through June 2027 period with a requested effective date of September 1, 2026. This represents a $7.4 million increase from the previously approved PIRP revenue amount for the July 2025 through June 2026 period. The filing remains pending before the SDPUC.

Regional Transmission Development Activities

In December 2024, we signed a nonbinding memorandum of understanding (MOU) with North Plains Connector LLC, a wholly owned subsidiary of Grid United, to own 10 percent (300 megawatts) of the NPC Consortium project. The project is entering the permitting phase. Currently, construction is planned to commence in 2028, subject to receipt of regulatory approvals, with the project expected to be operational by 2032. Under the terms of the MOU, Grid United will continue to fund the development of the NPC and we will make our investment decision when the regulatory approvals and permits are in place. The project is a critical infrastructure investment that aligns with our commitment to providing reliable and affordable energy to our customers while also supporting broader grid resilience efforts in the region.

We have also entered into a nonbinding letter of intent with Grid United to continue transmission development to further enhance the grid through the southwest corridor of Montana. Development to expand the southwest corridor of Montana through grid build out would represent a significant step in enhancing connectivity between Montana and the broader Western energy market – bolstering grid reliability, allowing for critical import capability, and enabling customers to access and benefit from emerging energy markets in the West.

South Dakota Wildfire Risk Mitigation

The South Dakota Legislature approved Senate Bill 36, and the Governor signed this bill into law in March 2026. It precludes common law strict liability claims for utility operations alleged to have caused wildfire-related damages; establishes a statutory standard of care, supplanting common law causes of action and other theories of recovery; and creates a rebuttable presumption that a valid and current wildfire mitigation plan is reasonable preparation for, and mitigation of, wildfire risk. The legislation also defines the availability of damages by allowing noneconomic personal injury damages only when there is bodily injury and punitive damages only when an injured party proves by clear and convincing evidence that a qualified utility acted with willful and wanton misconduct and the qualified utility’s willful and wanton misconduct was the actual and proximate cause of damages to the plaintiff. In July 2026, we filed our wildfire mitigation plan with the SDPUC. It was duly published completing our compliance obligation.

Financing Update

On August 20, 2026, NW Corp exercised the accordion feature under its existing $425.0 million revolving credit facility to increase the capacity to $500.0 million. On this same day, NorthWestern Energy Group and NWE Public Service exercised the accordion feature under its existing $200.0 million revolving credit facility to increase the capacity to $250.0 million. This increased the base sublimit for NWE Public Service from $150.0 million to $200.0 million. These actions did not affect the maturity date or borrowing rates.

On September 30, 2026, NWE Public Service repaid at maturity $45.0 million of 2.66 percent South Dakota First Mortgage Bonds due on September 30, 2026.

CONSOLIDATED STATEMENT OF INCOME

RECONCILIATION OF PRIMARY CHANGES DURING THE QUARTER

EXPLANATION OF CONSOLIDATED RESULTS

Three Months Ended September 30, 2026 Compared with the Three Months Ended September 30, 2025

Consolidated gross margin for the three months ended September 30, 2026 was $114.

Contacts

Investor Relations Contact:
Travis Meyer (605) 978-2967

travis.meyer@northwestern.com

Media Contact:
Jo Dee Black (866) 622-8081

jodee.black@northwestern.com

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