NWE earnings analysis
What we found in NWE's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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%.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.31
- Gross margin
- 32.3%
- Segment
- Electric
- Segment
- Natural Gas
What they said about what is next.
Outlook deferred to earnings press release / call.
The filing reads worse than the one before it.
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing NWE makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
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