Black Hills Corporation (BKH) AI Stock Analysis

Black Hills Corporation operates as an electric and natural gas utility company across two primary segments: Electric Utilities and Gas Utilities. The Electric Utilities segment serves approximately 218,000 customers in Colorado, Montana, South Dakota, and Wyoming, utilizing 1,481.5 megawatts of generation capacity and 8,892 miles of electric transmission and distribution lines. The Gas Utilities segment serves roughly 1,094,000 customers in Arkansas, Colorado, Iowa, Kansas, Nebraska, and Wyoming via 4,732 miles of intrastate gas transmission pipelines, 41,644 miles of distribution mains, and six natural gas storage sites. It also constructs gas infrastructure and provides appliance repair and industrial electrical services.

Revenue rose 8.6% in FY2025 to $2.31B, following contractions of 8.7% in FY2024 to $2.13B and 8.6% in FY2023 to $2.33B. Operating margin was 23.3% in FY2025, slightly down from 23.6% in FY2024 but up from 17.8% in FY2022. Net income grew to $291.6M in FY2025, producing EPS of $4.11. For the trailing twelve months ended June 30, 2026, revenue stood at $2.30B with an operating margin of 21.4% and EPS of $3.97. In the latest quarter ended June 30, 2026, quarterly revenue grew 3.1% year-over-year, while quarterly earnings grew 31.6% year-over-year.

As of June 30, 2026, Black Hills Corporation held $71.5M in cash and short-term investments against total debt of $4.49B, resulting in net debt of $4.42B. The debt-to-equity ratio stood at 1.14, and the current ratio was 0.52. Operating cash flow in FY2025 reached $673.4M, but free cash flow was -$146.4M after funding $819.8M in capital expenditures. Cash outflows also included $197.9M in dividends paid, while share issuance contributed $219.2M, with share count increasing 18.7% over 5 years.

Black Hills Corporation trades at a trailing P/E of 19.3x, compared to 20.6x for the median of its US-listed Utilities peers. Its forward P/E of 15.0x and EV/EBITDA of 11.4x also trade below the peer medians of 17.2x and 12.1x, respectively. The price-to-sales ratio is 2.5x compared to the peer median of 2.4x. Over the past year, the stock returned 27.6%, outperforming the S&P 500 return of 16.8%, though its 5-year return of 45.5% trailed the S&P 500 return of 83.0%.

Black Hills Corporation pays a quarterly dividend with an annual forward dividend of $2.81, yielding 3.67%. It maintains a payout ratio of 66.5% and has paid dividends for 42 consecutive years. The dividend has grown at a 5-year annualized rate of 4.5%, with the last ex-dividend date on August 17, 2026.

Wall Street coverage includes 5 Strong Buy ratings, 1 Buy rating, and zero Hold or Sell ratings. The mean price target is $84.86, representing a 10.7% upside against the last close of $76.63. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $2.46B and EPS of $4.36, reflecting 6.2% EPS growth. The company beat EPS estimates in 1 of the last 4 quarters, and its next earnings date is November 4, 2026.

This page is an AI-written research summary of Black Hills Corporation (BKH). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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