NorthWestern's Q4 adjusted EPS misses estimates

Overview

• U.S. utility's Q4 adj EPS of $1.17 missed analyst expectations

• Company announced $3.2 bln 5-year capital plan, a 17% increase over prior plan

• FY2025 net income falls from FY2024

Outlook

• NorthWestern announces 2026 earnings guidance of $3.68 to $3.83 per diluted share

• Company affirms long-term EPS growth rate of 4% to 6%

• NorthWestern announces $3.2 bln capital plan for 2026-2030

Result Drivers

• OPERATING EXPENSES - Higher operating expenses, including a non-cash charge for regulatory disallowance, merger-related costs, and increased depreciation, impacted FY2025 net income

• RATE INCREASES - Higher rates, electric transmission revenue, and natural gas transportation revenues partly offset the decrease in net income

• STRATEGIC INITIATIVES - Energy West acquisition and merger agreement with Black Hills Corporation marked significant strategic moves

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the electric utilities peer group is "buy"

• Wall Street's median 12-month price target for NorthWestern Energy Group Inc is $62.50, about 8.7% below its February 11 closing price of $68.45

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nBw262vpla

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