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Earnings analysis · 10-Q

NWE earnings analysis

Filed April 29, 2026 · Our reading of the company's report

The latest report

NorthWestern Energy reported a decrease in consolidated net income for Q1 2026 to $63.5 million, down from $76.9 million in Q1 2025, reflecting challenges in retail volumes and rising costs associated with…

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NorthWestern Energy reported a decrease in consolidated net income for Q1 2026 to $63.5 million, down from $76.9 million in Q1 2025, reflecting challenges in retail volumes and rising costs associated with administration and merger activities. Revenues fell to $497.6 million, slightly below estimates and previous year figures, while operating cost pressures decreased gross margin to 32.3%.

Read the original on SEC.gov

Reported figures

Earnings per share
$1.31
Gross margin
32.3%
Segment
Electric
Segment
Natural Gas

What stood out

  • EPS Beats Estimates

    Q1 EPS was reported at $1.31, exceeding estimates of $1.29 by 1.5%.

  • Cash Flow Recovery

    Free cash flow turned positive at $61 million in Q1 2025, compared to $-33 million in Q3 2024.

  • Utility Margin Growth

    Utility margin increased by 7.2% to $352 million from $328.4 million, supported by base rates and electric transmission revenues.

  • Improved Gross Margin

    Despite overall revenue decline, gross margin showed resilience at 32.3% in Q1 2026, maintaining close performance against 35% in Q1 2025.

  • Cost Management Efforts

    Operating, maintenance, and administrative costs decreased by $14.9 million in Q1, helping to manage expenses.

  • Merger Advantages

    The ongoing merger with Black Hills Corporation aims to enhance scale and operational stability.

What to watch

  • Declining Retail Volumes

    Electric retail volumes decreased by $12.2 million, significantly impacting net revenue.

  • Increased Overall Operating Costs

    Operational expenses rose due to merger-related costs and maintenance of new Colstrip interests.

  • Regulatory Challenges

    Pending regulatory reviews could impact the costs and pricing structure going forward, affecting profitability.

Management's outlook

Outlook deferred to earnings press release / call.

This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.