Latest news with #gridinfrastructure
Reuters
2 days ago
- Business
- Reuters
Black Hills, NorthWestern merge to form $15.4 billion utility to meet surging demand
Aug 19 (Reuters) - Black Hills (BKH.N), opens new tab and NorthWestern Energy (NWE.O), opens new tab said on Tuesday they would merge, creating a $15.4 billion regulated electric and natural gas utility better equipped to invest in grid infrastructure and meet rising U.S. power demand. U.S. utilities are racing to bulk up as electricity consumption surges, driven by energy-hungry artificial intelligence and cryptocurrency data centers and higher residential and commercial use. Together, Black Hills and NorthWestern plan to invest more than $7 billion between 2025 and 2029 in new electric and natural gas infrastructure. As part of the all-stock deal, NorthWestern shareholders will receive 0.98 Black Hills shares for each held. This represents a per-share value of $59.14, giving the deal an equity value of $3.6 billion, according to Reuters calculation. NorthWestern shares rose more than 4% to $57.23. "This is an interesting merger ... the accretion of 100 basis points to growth should help valuation of both very cheap stocks," said Chris Ellinghaus, analyst at Siebert Williams Shank. The larger balance sheet helps to fund the extra growth opportunities both companies have, Ellinghaus said. Black Hills shareholders will own about 56% of the combined company, which will be headquartered in Rapid City, South Dakota. NorthWestern CEO Brian Bird will take the helm, while Black Hills CEO Linn Evans will retire once the deal closes, expected in 12 to 15 months. The merger will add to earnings per share in the combined entity's first year and support 5% to 7% long-term EPS growth. Its service territories will span South Dakota, Nebraska, Montana, Arkansas, Colorado, Iowa, Kansas and Wyoming, broadening exposure to growth opportunities in regulated electric and natural gas markets.
Reuters
2 days ago
- Business
- Reuters
Utility Black Hills to buy peer NorthWestern Energy for $3.6 billion
Aug 19 (Reuters) - Utility company Black Hills (BKH.N), opens new tab said on Tuesday it would buy peer NorthWestern Energy (NWE.O), opens new tab for $3.6 billion, creating a larger regulated utility with greater scale to invest in grid infrastructure and meet rising energy demand. Consolidation in the U.S. power sector has boomed, propelled by the projections of record electricity demand over the next two years amid rapid expansion of energy-intensive AI and cryptocurrency data centers, along with increased residential and commercial consumption. The all-stock deal implies a per-share value of about $59, a premium of 7.66% to NorthWestern's last close, according to Reuters calculation. Shares of Black Hills rose 1.5% in volatile premarket trading. "Together, we will be better positioned to meet rising demand, accelerate investment in energy and grid infrastructure, and support customers and communities through a rapidly evolving energy landscape," said NorthWestern Energy CEO Brian Bird. The deal will create a regional electric and natural gas utility company with a pro forma market value of about $7.8 billion and a combined enterprise value of $15.4 billion. NorthWestern shareholders will receive 0.98 shares of Black Hills for each held. Black Hills stockholders would own roughly 56% of the company after the deal closes, which is expected in 12 to 15 months. The combined company will have a new name and ticker symbol and headquarters in Rapid City, South Dakota. Bird would continue to lead the combined company as CEO, while NorthWestern's current finance chief Crystal Lail would be the chief financial officer. The new company's board would comprise five directors designated by NorthWestern and six by Black Hills. Linn Evans, CEO of Black Hills, would retire once the transaction is completed.
Yahoo
23-07-2025
- Business
- Yahoo
GE Vernova shares rally on Q2 earnings beat, 2025 guidance raise
-- GE Vernova Inc. shares jumped 4.6% premarket on Wednesday after the company reported stronger-than-expected second-quarter results and raised its full-year guidance, citing robust demand for power and grid infrastructure solutions. The company reported second quarter earnings of $1.86 per share, significantly exceeding analyst estimates of $1.50. Revenue reached $9.11 billion, surpassing the consensus forecast of $8.8 billion and representing an 11% increase (12% organically) compared to the same period last year. The strong performance was driven by growth in both equipment and services across its business segments. "GE Vernova had a productive second quarter, positioning us well to continue to accelerate our growth and margin expansion from here," said CEO Scott Strazik. "We are at the beginning of an investment supercycle into more reliable baseload power, grid infrastructure and decarbonization solutions." The company's backlog grew by more than $5.2 billion sequentially, with Gas Power equipment backlog and slot reservation agreements increasing from 50 to 55 gigawatts. Power segment orders surged 44% organically, led by Gas Power equipment, while Electrification segment revenue jumped 23% (20% organically), primarily due to growth in grid solutions. Based on its strong performance, GE Vernova raised its 2025 guidance, now expecting revenue to trend toward the higher end of its $36-37 billion range, compared to analyst consensus of $37 billion. The company also increased its adjusted EBITDA margin forecast to 8-9% from its previous high-single-digit guidance and significantly boosted its free cash flow outlook to $3.0-3.5 billion from $2.0-2.5 billion previously. The company maintained a solid financial position with a $7.9 billion cash balance and returned $1.7 billion to shareholders year-to-date through share repurchases and dividends. Wind remained the company's most challenging segment, reporting a $165 million EBITDA loss due to higher Onshore Wind services costs and tariff impacts at Offshore Wind, though the company invested more than $100 million to improve performance of its wind turbine installed base. Related articles GE Vernova shares rally on Q2 earnings beat, 2025 guidance raise Risks Rising? Smart Money Dodged 46%+ Drawdowns on These High-Flying Names Apollo economist warns: AI bubble now bigger than 1990s tech mania Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Globe and Mail
01-07-2025
- Business
- Globe and Mail
GE Vernova's Electrification Arm Powers Solid Growth Ahead
While headlines often focus more on GE Vernova Inc. 's GEV wind and gas turbine businesses, the company's Electrification segment has always played the role of a key growth engine. In a world racing toward clean energy, the focus lies on modernizing outdated grids and enabling smarter power distribution for efficient energy systems, and GEV is capitalizing on this trend. The growing demand for large-scale transmission equipment to interconnect renewables and transport bulk power has surged in recent years, driven by rising electricity needs, particularly from the adoption of electric vehicles and the rapid expansion of data centers. At the same time, to accommodate increased electricity generation from renewable sources and enable more efficient storage, significant investments are being made by both governments and private players in grid infrastructure upgrades. These developments are playing in favor of GE Vernova's Electrification segment, which includes Grid Solutions, Power Conversion, solar and storage systems, and electrification software businesses. As a key conductor in the global energy transition orchestra, this segment has benefited from strong order growth, which is now translating into meaningful revenue gains. Evidently, GEV's Electrification segment recorded year-over-year revenue growth of 14% in first-quarter 2025, 11% in fourth-quarter 2024, 22% in third-quarter 2024 and 19% in second-quarter 2024, primarily driven by the continued strong demand for its transformers, switchgears and other key grid equipment. Looking ahead, as the global energy transition continues to accelerate, GE Vernova's Electrification segment remains well-positioned to sustain its growth momentum, backed by steady demand for its grid equipment, particularly in North America and Asia. Other Stocks' Activities Reflect Industry Momentum Like GE Vernova, companies such as Siemens Energy SMNEY and Eaton Corp. ETN are also benefiting from the surge in electricity generation and the resultant grid modernization and integration of renewable energy, underscoring the clean energy industry's broad growth potential. Notably, Siemens Energy's Grid Technologies business segment, which develops and provides solutions for the transmission and distribution of electrical power, with a strong emphasis on integrating renewable energy sources and enhancing grid resilience, registered a solid year-over-year revenue increase of 33.7% and order growth of 41.6% for second-quarter fiscal 2025. On the other hand, its Siemens Gamsea unit, which manufactures wind turbines, recorded order growth of 51.9% and revenue increase of 18.4%. On the other hand, Eaton's Electrical Americas segment recorded a year-over-year sales improvement of 12% for the first quarter of 2025, while the Electrical Global segment registered 7% sales growth. Notably, ETN's electrical products help utilities generate, transmit and distribute power, with solutions ranging from circuit breakers to switchgear to machine controls. The Zacks Rundown for GEV Shares of GE Vernova have surged a solid 211.6% in the past year, outperforming the industry 's 53.6% gain. From a valuation standpoint, GEV is currently trading at a forward 12-month price-to-earnings (P/E) of 56.25X, representing a roughly 165.1% premium compared to the industry average of 21.21X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for GEV's 2025 and 2026 sales suggests a year-over-year improvement of 6.4% and 10%, respectively. The bottom-line estimate for 2025 has moved south over the past 60 days, while the same for 2026 has moved north. GEV currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Eaton Corporation, PLC (ETN): Free Stock Analysis Report GE Vernova Inc. (GEV): Free Stock Analysis Report
