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%.
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.
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Utility Margin Growth
Utility margin increased by 7.2% to $352 million from $328.4 million, supported by base rates and electric transmission revenues.
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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.
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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
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Declining Retail Volumes
Electric retail volumes decreased by $12.2 million, significantly impacting net revenue.
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Increased Overall Operating Costs
Operational expenses rose due to merger-related costs and maintenance of new Colstrip interests.
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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.