Thu, May 8, 3:50 PM (7 days ago)
### Black Hills Corporation (BKH) Q1 2025 Financial Performance Summary **Overview:** Black Hills Corporation (BKH) reported a solid financial performance for the first quarter of 2025, with notable improvements in revenue and operational metrics. The company's strategic initiatives and regulatory activities contributed to its financial health and future growth prospects. **Financial Health and Performance Metrics:** - **Revenue:** Total revenue increased to $805.2 million, up from $726.4 million in Q1 2024, driven by higher rates and rider recovery in the Gas Utilities segment. - **Profit Margins:** Operating income rose to $205.0 million, a 11.7% increase from $193.3 million in Q1 2024. Net income was $136.4 million, up from $131.6 million. - **Cash Flow:** Net cash provided by operating activities was $227.8 million, slightly lower than the $233.4 million in Q1 2024 due to higher outflows from changes in operating assets and liabilities. - **Earnings Changes:** Earnings per share (EPS) remained steady at $1.87, reflecting stable earnings growth. **Segment Performance:** - **Electric Utilities:** Operating income decreased by $10.3 million due to higher operating expenses and unplanned generation outages. However, revenue increased by $14.5 million. - **Gas Utilities:** Operating income increased by $20.7 million, driven by new rates and favorable winter heating season weather, partially offset by higher operating expenses. - **Corporate and Other:** Operating loss was comparable to the prior year, with minor fluctuations in inter-segment eliminations. **Trends and Uncertainties:** - **Regulatory Activity:** Successful rate reviews and regulatory approvals in Colorado, Iowa, Kansas, and Nebraska are expected to generate significant new annual revenue. - **Capital Expenditures:** The company plans to invest $1,002 million in 2025, focusing on infrastructure and renewable energy projects. - **Future Operations Impact:** Ongoing projects like the Ready Wyoming transmission expansion and the Lange II construction are expected to enhance operational efficiency and reliability. **Conclusion:** Black Hills Corporation demonstrated strong financial performance in Q1 2025, with strategic investments and regulatory successes driving revenue growth and operational improvements. The company's focus on renewable energy and infrastructure projects positions it well for future growth and sustainability.