• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    Should Black Hills’ 2025 Earnings Growth and Higher Sales Require Action From Black Hills (BKH) Investors?

    Simply Wall St·02/18/2026 18:23:51
    Listen to the news
    • In February 2026, Black Hills Corporation reported past fourth-quarter 2025 results showing sales of US$635.5 million and net income of US$104.9 million, with diluted earnings per share from continuing operations of US$1.39.
    • For the full year 2025, Black Hills grew sales to US$2.31 billion and net income to US$291.6 million, with diluted continuing EPS of US$3.98, highlighting consistent year-on-year earnings expansion.
    • We’ll now consider how this earnings growth, particularly the full-year increase in sales and net income, interacts with Black Hills’ investment narrative.

    Uncover the next big thing with 31 elite penny stocks that balance risk and reward.

    Black Hills Investment Narrative Recap

    To own Black Hills, you need to be comfortable with a regulated utility that leans on steady earnings, heavy capital projects and constructive regulators. The recent 2025 results, with modest year-on-year improvements in sales and net income, support rather than change the near term focus on integrating large new loads and managing capital spending, while the key risk remains whether rising infrastructure investment can be recovered promptly through rates without pressuring margins.

    The Ready Wyoming electric transmission expansion, placed into service in December 2025, feels particularly relevant here. With about US$300 million to be recovered through a Wyoming Transmission Rider and roughly US$50 million awaiting recovery in a future rate case, it connects directly to Black Hills’ main catalyst of regulated rate base growth, but also to the risk that any delay or shortfall in regulatory recovery could weigh on cash flows.

    Yet behind this steady earnings picture, there is a growing risk that investors should be aware of around large, concentrated data center load and what happens if...

    Read the full narrative on Black Hills (it's free!)

    Black Hills' narrative projects $3.0 billion revenue and $375.9 million earnings by 2028. This requires 10.3% yearly revenue growth and around a $91.7 million earnings increase from $284.2 million today.

    Uncover how Black Hills' forecasts yield a $80.50 fair value, a 9% upside to its current price.

    Exploring Other Perspectives

    BKH 1-Year Stock Price Chart
    BKH 1-Year Stock Price Chart

    Four members of the Simply Wall St Community currently place Black Hills’ fair value anywhere between US$50 and US$80.50, a wide band that reflects very different expectations around future capital recovery on projects like Ready Wyoming and invites you to weigh several contrasting views before forming your own.

    Explore 4 other fair value estimates on Black Hills - why the stock might be worth 32% less than the current price!

    The Verdict Is Yours

    Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

    Want Some Alternatives?

    Markets shift fast. These stocks won't stay hidden for long. Get the list while it matters:

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.