NorthWestern Energy Group, Inc. · NASDAQ:NWE
NorthWestern Energy — Q3 2026 Earnings Presentation
50 slides from NorthWestern Energy's earnings presentation, Nov 5, 2026
Slide 1: Third Quarter Earnings Webinar
Third Quarter Earnings Webinar November 5, 2026 8-K Date: November 5, 2026
Slide 2: Forward-Looking Statements
Forward-Looking Statements Information in this communication, other than statements of historical facts, may constitute forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These s
Slide 3: NorthWestern Energy
NorthWestern Energy NorthWestern Energy Group, Inc. Corporate Support Office Director - Corporate Development dba: NorthWestern Energy 3010 West 69th Street & Investor Relations Officer Ticker: NWE (Nasdaq) Sioux Falls, SD 57108 Travis Meyer www.northwesternenergy.com (605) 978-2900 605-978-2967 3 t
Slide 4: Recent Highlights
Missouri River near Three Forks, MT Recent Highlights ✓ Reported GAAP diluted EPS of $0.50 o Non-GAAP diluted EPS of $0.581 o Affirming 2026 earnings guidance range of $3.68 - $3.832 o Affirming long-term rate base and EPS growth rates targets of 4% - 6%3 ✓ Dividend Declared: $0.67 per share payable
Slide 5: Third Quarter Financial Review
Thank you Third Quarter Financial Review 5
Slide 6: Third Quarter 2026 Financial Results
Third Quarter 2026 Financial Results Third Quarter Net Income vs Prior Period • GAAP: $7.5 or (19.6)% • Non-GAAP1: $12.8 or (26.4)% Third Quarter EPS vs Prior Period • GAAP: $0.12 or (19.4)% • Non-GAAP1: $0.21 or (26.6)% 6 (1) See “Third Quarter 2026 Non-GAAP Earnings” and “Non-GAAP Financial Measur
Slide 7: Year-to-Date 2026 Financial Results
Year-to-Date 2026 Financial Results Year-to-Date Net Income vs Prior Period • GAAP: $17.2 or (12.6)% • Non-GAAP1: $0.6 or (0.4)% Year-to-Date EPS vs Prior Period • GAAP: $0.29 or (13.1)% • Non-GAAP1: $0.02 or (0.8)% 7 (1) See “Year-to-Date 2026 Non-GAAP Earnings” and “Non-GAAP Financial Measures” sl
Slide 8: Third Quarter 2026 Earnings Drivers
Third Quarter 2026 Earnings Drivers After-Tax EPS vs Prior Year Key Takeaway Core utility earnings intact. Primary Earnings Drivers vs Guidance: ▼ Remaining GAAP Colstrip Loss ▼ Timing of Operating Expenses Colstrip represents a $0.10 GAAP EPS headwind as compared to Q3 2025. Note: Subtotal variance
Slide 9: Third Quarter 2026 Non-GAAP Earnings
Third Quarter 2026 Non-GAAP Earnings (1) As a result of the adoption of Accounting Standard Update 2017-07 in March 2018, pension and other employee benefit expense is now disaggregated on the GAAP income statement with portions now recorded in both OG&A expense and Other (Expense) Income lines. To
Slide 10: Year-to-Date 2026 Earnings Drivers
Year-to-Date 2026 Earnings Drivers After-Tax EPS vs Prior Year Key Takeaway Core utility earnings intact. Primary Earnings Drivers vs Guidance: ▼ Remaining GAAP Colstrip Loss ▼ Timing of Operating Expenses Colstrip represents a $0.27 GAAP EPS headwind as compared to year-to- date 2025. Note: Subtota
Slide 11: Year-to-Date 2026 Non-GAAP Earnings
Year-to-Date 2026 Non-GAAP Earnings (1) As a result of the adoption of Accounting Standard Update 2017-07 in March 2018, pension and other employee benefit expense is now disaggregated on the GAAP income statement with portions now recorded in both OG&A expense and Other (Expense) Income lines. To f
Slide 12: Strong Growth Outlook
Strong Growth Outlook Affirming 2026 Non-GAAP EPS Guidance of $3.68 - $3.83 per diluted share ✓ Affirming long-term growth rate from 2024 base1 • EPS growth of 4% to 6% • Rate base growth of 4% to 6% • Continued focus on closing the gap between earned & authorized returns The 2026 Non-GAAP EPS guida
Slide 13: Regulated Utility Five-Year Capital Plan (millions)
Regulated Utility Five-Year Capital Plan (millions) Highly diversified, executable, and low-risk critical capital investment plan. 13
Slide 14: Business Updates
Thank you Business Updates 14
Slide 15: Merger with Black Hills Benefits Stakeholders
Merger with Black Hills Benefits Stakeholders Increases Scale Strengthens Position and Growth Balance Sheet Increases the combined company Substantial Long-Term Strong and predictable cash flows target EPS growth rate to 5-7%, support a customer-focused capital supported by the doubling of each Valu
Slide 16: Merger with Black Hills Timeline
Merger with Black Hills Timeline ✓ Filed joint applications for approval in Montana, Nebraska, and South Dakota in Q4 2025 ✓ Nebraska hearing held April 7, 2026; unanimous approval of settlements received May 19, 2026 ✓ South Dakota hearing held and unanimous approval of settlements received June 24
Slide 17: Data Center Process (Montana & South Dakota)
Data Center Process (Montana & South Dakota) Data Center Request Development Energy Service Construction & Assessment Agreement Agreement (ESA) • Project Management • Load & Location • Deposit Funds • Regulatory Approvals Assignment • Viability Assessment Studies (Montana: (as needed) • Construction
Slide 18: Large-Load Customers
Large-Load Customers ✓ Montana ▪ Expected to be served by overall utility portfolio, which is Montana Large-Load Opportunities long capacity beginning in 2026 ▪ Diversified and highly carbon-free generating portfolio ✓ Announced: December 19, 2024 ▪ Submitted a Large New Load tariff rule proposal wi
Slide 19: The NorthWestern Value Proposition
The NorthWestern Value Proposition Approximately 4% Dividend Yield + + Base Capital Plan: Incremental Opportunities: 4% to 6% EPS Growth > 6% EPS Growth 2026-2030 Capital Investment ($ Millions) $3.21 billion of highly diversified, ✓ Data centers & new large- executable and low-risk load opportuniti
Slide 20: Conclusion
Conclusion Best Practices Attractive Strong Pure Electric Solid Utility Corporate Future Growth Earnings & & Gas Utility Foundation Governance Prospects Cash Flows The pending merger with Black Hills Corporation will combine the strengths of both companies, resulting in an organization with greater
Slide 21: Appendix
Thank Appendix: you 21
Slide 22: Colstrip Transaction Overview
Appendix Colstrip Transaction Overview Avista Puget NorthWestern’s acquisition of Announcement: January 2023 July 2024 Avista and Puget’s 592 MW of Effective Date: December 31, 2025 December 31, 2025 additional Colstrip capacity: Capacity: 222 MW 370 MW • Avista interests advance our (111 MW each of
Slide 23: Financial Impact of Incremental Colstrip Ownership
Appendix Financial Impact of Incremental Colstrip Ownership Three Months Ended September 30, 2026 GAAP Impact Non-GAAP Addback Remaining Impact Avista Puget Total Avista Puget Total Avista Puget Total Utility Margin1 $ - $ 5.3 $ 5.3 $ 4.3 $ - $ 4.3 $ - $ 5.3 $ 5.3 Operating Expense 4.3 7.2 11.5 - -
Slide 24: Rate Base & Authorized Return Summary
Appendix Rate Base & Authorized Return Summary (1) The revenue requirement associated with the FERC regulated portion of Montana electric transmission and ancillary services are included as revenue credits to our MPSC jurisdictional customers. Therefore, we do not separately reflect FERC authorized
Slide 25: Third Quarter Appendix
Thank you Third Quarter Appendix 25
Slide 26: Third Quarter 2026 Financial Results
Appendix Third Quarter 2026 Financial Results (1) Utility Margin is a non- GAAP Measure. See appendix slide titled “Reconciling Gross Margin to Utility Margin” for additional disclosure. Note: Subtotal variances may exist due to rounding. 26
Slide 27: Utility Margin (Q3)
Appendix Utility Margin (Q3) ($ in millions) Three Months Ended September 30, 2026 2025 Variance Electric $ 277.4 $ 262.6 $ 14.8 5.6% Natural Gas 39.1 37.4 1.7 4.5% Total Utility Margin1 $ 316.5 $ 300.0 $ 16.5 5.5% Increase in utility margin due to the following factors: $ 5.3 Electric margin from t
Slide 28: Operating Expenses (Q3)
Appendix Operating Expenses (Q3) ($ in millions) Three Months Ended September 30, 2026 2025 Variance Operating & maintenance $ 84.9 $ 64.1 $ 20.8 32.4% Administrative & general 39.5 46.7 (7.2) (15.4%) Property & other taxes 50.5 46.1 4.4 9.5% Depreciation & depletion 67.0 62.8 4.2 6.7% Total Operati
Slide 29: Operating to Net Income (Q3)
Appendix Operating to Net Income (Q3) ($ in millions) Three Months Ended September 30, 2026 2025 Variance Operating Income $ 74.6 $ 80.3 ($5.7) (7.1%) Interest Expense, net (42.2) (38.4) 3.8 9.9% Other Income, net 3.0 5.1 (2.1) (41.2%) Income Before Income Taxes 35.4 47.0 (11.6) (24.7%) Income Tax E
Slide 30: Tax Reconciliation (Q3)
Appendix Tax Reconciliation (Q3) 30
Slide 31: Segment Results (Q3)
Appendix Segment Results (Q3) *Direct transmission expense excludes depreciation and depletion. (1) Utility Margin is a non-GAAP Measure. See appendix slide titled “Reconciling Gross Margin to Utility Margin” for additional disclosure. (2) Consists of unallocated corporate costs, including merger-re
Slide 32: Electric Segment (Q3)
Appendix Electric Segment (Q3) (1) Utility Margin is a non-GAAP Measure. See appendix slide titled “Reconciling Gross Margin to Utility Margin” for additional disclosure. 32
Slide 33: Natural Gas Segment (Q3)
Appendix Natural Gas Segment (Q3) (1) Utility Margin is a non-GAAP Measure. See appendix slide titled “Reconciling Gross Margin 33 to Utility Margin” for additional disclosure.
Slide 34: 2026 Year-to-Date Appendix
Thank you 2026 Year-to-Date Appendix 34
Slide 35: Year-to-Date 2026 Financial Results
Appendix Year-to-Date 2026 Financial Results (1) Utility Margin is a non- GAAP Measure. See appendix slide titled “Reconciling Gross Margin to Utility Margin” for additional disclosure. Note: Subtotal variances may exist due to rounding. 35
Slide 36: Utility Margin (YTD)
Appendix Utility Margin (YTD) ($ in millions) Nine Months Ended September 30, 2026 2025 Variance Electric $ 800.6 $ 725.2 $ 75.4 10.4% Natural Gas 170.7 170.7 0.0 0.0% Total Utility Margin1 $ 971.3 $ 895.9 $ 75.4 8.4% Increase in utility margin due to the following factors: $ 36.3 Base rates 15.5 El
Slide 37: Operating Expenses (YTD)
Appendix Operating Expenses (YTD) ($ in millions) Nine Months Ended September 30, 2026 2025 Variance Operating & maintenance $ 238.5 $ 183.2 $ 55.3 30.2% Administrative & general 128.0 121.8 6.2 5.1% Property & other taxes 151.0 137.5 13.5 9.8% Depreciation & depletion 200.9 187.6 13.3 7.1% Total Op
Slide 38: Operating to Net Income (YTD)
Appendix Operating to Net Income (YTD) ($ in millions) Nine Months Ended September 30, 2026 2025 Variance Operating Income $ 253.0 $ 265.8 ($12.8) (4.8%) Interest Expense, net (122.4) (111.1) 11.3 10.2% Other Income, net 10.6 9.1 1.5 16.5% Income Before Income Taxes 141.1 163.8 (22.7) (13.9%) Income
Slide 39: Tax Reconciliation (YTD)
Appendix Tax Reconciliation (YTD) 39
Slide 40: Segment Results (YTD)
Appendix Segment Results (YTD) *Direct transmission expense excludes depreciation and depletion. (1) Utility Margin is a non-GAAP Measure. See appendix slide titled “Reconciling Gross Margin to Utility Margin” for additional disclosure. (2) Consists of unallocated corporate costs, including merger-r
Slide 41: Electric Segment (YTD)
Appendix Electric Segment (YTD) (1) Utility Margin is a non-GAAP Measure. See appendix slide titled “Reconciling Gross Margin to Utility Margin” for additional disclosure. 41
Slide 42: Natural Gas Segment (YTD)
Appendix Natural Gas Segment (YTD) (1) Utility Margin is a non-GAAP Measure. See appendix slide titled “Reconciling Gross Margin 42 to Utility Margin” for additional disclosure.
Slide 43: Year-to-Date 2026 Cash Flow
Appendix Year-to-Date 2026 Cash Flow Cash from Operating Activities increased by $25.8 million. The increase in cash provided by working capital is primarily due to an increase in our net cash inflows for energy supply costs, as shown in the table below. Funds from Operations increased by $1.8 milli
Slide 44: Balance Sheet
Appendix Balance Sheet Debt to Total Capitalization slightly up from last quarter and just above our targeted 50% - 55% range. 44
Slide 45: Reconciling Gross Margin to Utility Margin
Appendix Reconciling Gross Margin to Utility Margin Management believes that Utility Margin provides a useful measure for investors and other financial statement users to analyze our financial performance in that it excludes the effect on total revenues caused by volatility in energy costs and assoc
Slide 46: PCCAM Impact by Quarter
Appendix PCCAM Impact by Quarter Pre-Tax $ Millions – Shareholder (Detriment) Benefit Note: • Effective February 1, 2026 the cost sharing mechanism of the PCCAM was suspended on an interim basis pending further review by the MPSC. 46 • Subtotal variances may exist due to rounding.
Slide 47: Qualified Facility Earnings Adjustment
Appendix Qualified Facility Earnings Adjustment Our electric QF liability consists of unrecoverable costs associated with contracts covered under PURPA that are part of a 2002 stipulation with the MPSC and other parties. Risks / losses associated with these contracts are born by shareholders, not cu
Slide 48: Non-GAAP Financial Measures
Appendix Non-GAAP Financial Measures Pre-Tax Adjustments ($ Millions) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Reported GAAP Pre-Tax Income $ 156.5 $ 176.1 $ 178.3 $ 182.2 $ 144.2 $ 190.2 $ 182.4 $ 201.6 $ 214.7 $ 187.6 Non-GAAP Adjustments to Pre-Tax Income: Weather 15.2 (3.4) (1.3) (7.3)
Slide 49: Non-GAAP Financial Measures
Appendix Non-GAAP Financial Measures This presentation includes financial information prepared in accordance with GAAP, as well as other financial measures, such as Utility Margin, Adjusted Non-GAAP pretax income, Adjusted Non-GAAP net income and Adjusted Non-GAAP Diluted EPS that are considered “no
Slide 50: Thank you
Thank you Delivering a bright future 50
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