NorthWestern Energy Group, Inc.NWE

NorthWestern Energy Group, Inc. Segments Disclosure

10-KFiled Feb 12, 20262 min read
(22) Segment and Related Information

Our reportable segments are engaged in the electric and gas utility businesses. Our Electric segment includes the aggregated operating segment results of the regulated electric utility operations of Montana and South Dakota. Our Gas segment includes the aggregated operating segment results of the regulated gas utility operations of Montana, South Dakota, and Nebraska.

Our CODM, who is our Chief Executive Officer, uses segment net income to evaluate if our operating segments are earning their authorized rate of return and in the annual budget and forecasting process. Our CODM uses segment net income to determine how to allocate capital resources between our operating segments and when to allocate the resources necessary to file for rate reviews. The accounting policies of the operating segments are the same as those described within Note 2 – Significant Accounting Policies. Segment asset and capital expenditure information is not provided for our reportable segments. As an integrated electric and gas utility, we operate significant assets that are not dedicated to a specific reportable segment.

Financial data for the business segments for the twelve months ended are as follows (in thousands):
December 31, 2025ElectricGasTotal
Operating revenues$1,269,956 $340,603 $1,610,559 
Fuel, purchased supply and direct transmission expense (exclusive of depreciation and depletion shown separately below)306,569 103,186 409,755 
Operating, general, and administrative331,477 101,257 432,734 
Property and other taxes140,937 41,204 182,141 
Depreciation and depletion208,565 40,961 249,526 
Interest expense, net(113,525)(30,271)(143,796)
Other income, net7,574 3,702 11,276 
Income tax (expense) benefit(16,029)(1,087)(17,116)
Segment net income$160,428 $26,339 $186,767 
Reconciliation to consolidated net income
Other, net(1)
(5,675)
Consolidated net income$181,092 

December 31, 2024ElectricGasTotal
Operating revenues$1,200,701 $313,197 $1,513,898 
Fuel, purchased supply and direct transmission expense (exclusive of depreciation and depletion shown separately below)329,578 104,238 433,816 
Operating, general, and administrative270,145 92,211 362,356 
Property and other taxes126,470 37,386 163,856 
Depreciation and depletion189,987 37,648 227,635 
Interest expense, net(99,250)(27,740)(126,990)
Other income, net18,082 5,803 23,885 
Income tax (expense) benefit(20,892)7,963 (12,929)
Segment net income$182,461 $27,740 $210,201 
Reconciliation to consolidated net income
Other, net(1)
13,910 
Consolidated net income$224,111 

December 31, 2023ElectricGasTotal
Operating revenues$1,068,833 $353,310 $1,422,143 
Fuel, purchased supply and direct transmission expense (exclusive of depreciation and depletion shown separately below)262,755 157,507 420,262 
Operating, general, and administrative249,549 87,153 336,702 
Property and other taxes120,289 34,323 154,612 
Depreciation and depletion174,071 36,403 210,474 
Interest expense, net(84,089)(15,719)(99,808)
Other income, net11,580 3,344 14,924 
Income tax (expense) benefit(14,196)4,627 (9,569)
Segment net income$175,464 $30,176 $205,640 
Reconciliation to consolidated net income
Other, net(1)
(11,509)
Consolidated net income$194,131 
(1) Consists of unallocated corporate costs, including merger-related costs, and certain limited unregulated activity within the energy industry.

Historical Timeline

Fiscal YearFiled
2025Feb 12, 2026Showing above
2024Feb 13, 2025
2023Feb 15, 2024

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

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