NorthWestern Energy's 2025 Report to Reveal Merger and Rate Case Impacts

BUTTE, MT & SIOUX FALLS, SD – January 12, 2026 – NorthWestern Energy is poised to unveil the financial toll and triumphs of a pivotal year as it prepares to host an investor webinar on February 12, 2026, to discuss its full-year 2025 results. The announcement comes after a year defined by a landmark merger agreement, contentious regulatory proceedings, and ambitious strategic expansions, setting the stage for what will be one of the company's most scrutinized earnings calls in recent memory.

Investors, customers, and regulators across Montana, South Dakota, and Nebraska will be closely watching when the utility (Nasdaq: NWE) releases its detailed financial data on the evening of February 11. The results will provide the first comprehensive look at how these major developments have impacted the company's bottom line and its ability to meet its own financial guidance.

A Year of Financial Headwinds

NorthWestern Energy entered 2025 on the heels of a strong 2024, which saw net income of $224.1 million and a dividend increase. The company began the year with a robust first quarter, reporting GAAP earnings of $1.25 per share, up from $1.06 in the prior year, buoyed by new rates and higher retail volumes. However, the momentum slowed significantly in the subsequent quarters.

The second quarter saw earnings per share drop to $0.35 from $0.52 in the same period of 2024, a decline the company attributed primarily to milder weather reducing energy usage, along with rising operational and interest expenses. The trend continued into the third quarter, with earnings of $0.62 per share, down from $0.76 a year earlier. Despite these headwinds, NorthWestern has consistently reaffirmed its full-year 2025 adjusted non-GAAP earnings guidance of $3.53 to $3.65 per share. Achieving this target will hinge on a strong fourth-quarter performance, the details of which will be a central focus of the upcoming report.

Analysts will be parsing the data to see how factors like non-recoverable electric supply costs and depreciation have been managed, and whether the company's cost-control measures have been sufficient to offset market and operational pressures.

Navigating a Contentious Regulatory Gauntlet

A significant portion of NorthWestern's 2025 story was written in the hearing rooms of state utility commissions. In Montana, the company engaged in a protracted rate case that ultimately yielded a mixed outcome. After initially implementing an 8.3% interim rate increase in May 2025, the Montana Public Service Commission (PSC) later approved a much smaller final increase of 4.2%, ordering the company to issue refunds to customers for the overcharges.

Simultaneously, the PSC rendered a critical decision on the Yellowstone County Generating Station (YCGS), a new natural gas plant. While the commission approved the construction of the plant, deeming it necessary for grid capacity, it reduced the recoverable investment, or rate base, by $43 million from the company's original $289 million request. This decision highlights the ongoing tension between the utility's need for infrastructure investment and the regulatory mandate to protect consumer affordability.

On a more positive note for the company, the Montana Legislature passed House Bill 490, which provides clearer limits on utility liability related to wildfires, a risk of growing concern across the western United States. In South Dakota, NorthWestern secured both natural gas and electric rate increases in late 2024 and early 2025, respectively. However, these approvals came with a crucial stipulation: rate moratoriums that prevent the company from seeking further base rate hikes until 2027 for electricity and 2028 for natural gas, locking in revenues but limiting short-term flexibility.

Strategic Pivots: Mergers, Acquisitions, and Data Centers

Beyond the daily operations and regulatory battles, 2025 was a year of bold strategic maneuvering for NorthWestern Energy. The most significant development was the August 18 announcement of an all-stock merger agreement with Black Hills Corporation. The proposed merger, which is pending state and federal regulatory approval and is expected to close in the second half of 2026, aims to create a larger, more diversified utility with an enhanced growth profile. Investors will be eager for any updates on the approval process and the projected synergies from the combination.

Furthering its growth strategy, the company completed the acquisition of Energy West's natural gas system in Montana during the second quarter, adding over 33,000 customers to its base. This move solidified its footprint in the state and demonstrated a continued appetite for strategic acquisitions.

Perhaps most indicative of its future direction is NorthWestern's aggressive pursuit of the burgeoning data center market. The company signed three separate non-binding letters of intent in late 2024 and mid-2025 to supply power for massive data center developments in Montana. These projects, including one with Quantica Infrastructure, could collectively demand nearly 1,000 megawatts of electricity by 2030—a colossal increase in load that underscores the strategic importance of new generation sources like the YCGS.

Industry Pressures and the Path Forward

NorthWestern's actions in 2025 reflect broader trends pressuring the entire utility sector. The industry is grappling with aging infrastructure, with much of the U.S. power grid over 25 years old and vulnerable to extreme weather. In response, NorthWestern has affirmed a $2.7 billion five-year capital investment plan for 2025-2029, aimed at modernizing its grid and supporting a 4% to 6% rate base growth target. Critically, the company has stated it does not expect to issue new equity to fund this ambitious plan.

The upcoming financial results will be the first major data point for stakeholders to assess how this complex tapestry of regulatory outcomes, strategic growth plays, and capital-intensive plans is translating to financial reality. The webinar will provide a crucial platform for management to articulate its strategy for funding its expansion, integrating its acquisitions, navigating the Black Hills merger approval, and ultimately delivering on its promise of a bright future for customers and investors alike.