Abstract
Black Hills Corporation will report quarterly results on February 04, 2026 Post Market; this preview summarizes last quarter’s actuals, the company’s guidance framework, and the current consensus for revenue, profitability, and adjusted EPS, along with segment dynamics and majority analyst views.
Market Forecast
Consensus for the current quarter points to total revenue of $648.22 million, adjusted EPS of $1.41, and EBIT of $203.51 million. The year-over-year forecast implies revenue growth of 8.56%, adjusted EPS growth of 5.22%, and EBIT growth of 13.60%. Forecast margin signals are mixed: the model implies stable-to-improving EBIT conversion while EPS gains are more modest. Segment commentary centers on regulated electric and gas utility contributions, with electricity remaining the larger revenue driver and gas moderating as weather normalizes. The most promising near-term segment is the electric utility business, supported by favorable rate structures and load growth; the last reported quarter showed electric revenue of $249.70 million, and forward narratives imply a mid-single-digit year-over-year uptrend as usage and approved mechanisms flow through.
Last Quarter Review
Black Hills Corporation’s prior quarter delivered revenue of $430.20 million, a gross profit margin of 38.91%, GAAP net income attributable to the parent of $24.90 million, a net profit margin of 5.79%, and adjusted EPS of $0.34, with year-over-year adjusted EPS down 2.86%. The company’s quarter-on-quarter net income change was -9.45%, indicating sequential margin pressure tied to seasonal patterns and cost timing. Main business contributions featured electricity at $249.70 million, gas utilities at $184.40 million, and corporate/other at -$3.90 million; electricity remained the anchor segment, while gas contributions trailed amid shoulder-season demand.
Current Quarter Outlook (with major analytical insights)
Regulated Utility Foundation: Electricity and Gas as Core Earnings Engines
Black Hills Corporation’s regulated utility portfolio places electricity and gas distribution at the center of earnings quality for this quarter. With consensus revenue of $648.22 million and EBIT of $203.51 million, the implied EBIT margin of approximately 31.40% suggests better cost recovery and seasonal uplift relative to the prior quarter’s dynamics. The electric business remains the larger contributor by revenue, and regulated rate structures help translate higher winter load and approved trackers into improved gross profit. Gas distribution adds scale during peak-heating months, though volumetric sensitivity can be tempered by weather normalization clauses and cost pass-through. On balance, the model points to a quarter in which revenue expansion outpaces EPS, indicating incremental opex and financing costs that are being absorbed but not fully neutralized, while EBIT leverage improves.
Most Promising Segment: Electric Utility Growth from Load and Mechanisms
The electric utility segment appears positioned for the healthiest growth this quarter, supported by winter load, approved rate relief flowing through bills, and capital investment that expands the rate base. Last quarter’s electricity revenue of $249.70 million established the segment’s scale, and the current-quarter forecast embeds a favorable seasonal lift. Cost recovery mechanisms and fuel adjustments help stabilize gross margin, consistent with the broader consensus implying improved EBIT performance. Incremental growth potential also comes from customer additions and data-center or commercial demand pockets in certain service territories. While weather variability remains a factor, regulatory constructs should reduce the amplitude of margin volatility, supporting a steadier earnings contribution.
Key Stock Driver: Margin Trajectory and EPS Conversion
The market’s focus centers on whether the quarter’s revenue strength and EBIT improvement convert into proportionate gains in adjusted EPS. The forecast EPS of $1.41, up 5.22% year over year, trails the EBIT growth outlook, underlining the importance of non-operating items—namely interest expense and taxes—and the timing of depreciation tied to recent capital projects. If management demonstrates sustained cost discipline and effective recovery of fuel and purchased power costs, gross margin could show a measured improvement from last quarter’s 38.91%. The net profit margin will be watched closely relative to last quarter’s 5.79%, with investor sensitivity high to any signs of operating efficiency gains offset by financing headwinds. A confirmation of improving margin mix would likely be interpreted as supportive for the medium-term EPS glide path.
Analyst Opinions
Based on the majority of recent institutional commentary, views skew cautiously positive into the print. Analysts emphasizing regulated exposure and visibility cite the support from rate base growth and seasonal uplift as near-term tailwinds, and they look for a modest beat on EBIT with EPS roughly in line given interest expense. The bullish camp highlights electricity-led growth, constructive cost recovery, and manageable weather sensitivity, while also noting the company’s recent ability to align opex with approved recovery mechanisms. The cautious qualifiers include sensitivity to heating degree days and the lag effect of financing costs in a still-elevated rate environment. Overall, the consensus narrative suggests incremental improvement in operating leverage and stable-to-modestly better adjusted EPS, with electricity remaining the centerpiece of the story for this quarter.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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