v3.25.4
Share-based Compensation Plans (Tables)
12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Share-based Payment Arrangement, Expensed Amount Stock-based compensation expense, which is included in Operations and maintenance on the accompanying Consolidated Statements of Income, was as follows for the years ended December 31:

 

2025

 

2024

 

2023

 

 

(in millions)

 

Stock-based compensation expense

$

11.8

 

$

10.6

 

$

7.0

 

 

Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity

A summary of the status of the restricted stock and restricted stock units at December 31, 2025, was as follows:

 

Restricted Stock

 

Weighted-Average Grant Date Fair Value

 

Balance at January 1, 2025

 

231,942

 

$

56.68

 

Granted

 

187,983

 

 

60.00

 

Vested

 

(103,344

)

 

58.71

 

Forfeited

 

(31,257

)

 

57.74

 

Balance at December 31, 2025

 

285,324

 

$

58.01

 

 

The weighted-average grant-date fair value of restricted stock granted, and the total fair value of shares vested during the years ended December 31, were as follows:

 

Weighted-Average Grant Date Fair Value

 

Total Fair Value of Shares Vested

 

 

 

(in millions)

 

2025

$

60.00

 

$

6.4

 

2024

$

53.58

 

$

4.5

 

2023

$

63.33

 

$

5.9

 

 

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions The Monte Carlo simulation is used to estimate expected share payout based on the Company’s TSR for a three-year performance period relative to the designated peer group beginning January 1 of the award year. The significant assumptions included in the company's Monte Carlo simulations were as follows:

 

2025

2024

Fair value of share units award

77.95

55.14

Risk-free rate

3.84%

4.12%

Black Hills Corporation’s common stock volatility

31%

24%

Volatility range for the peer group

24-39%

12-53%

Schedule of Nonvested Share Activity

The following table summarizes the performance share unit activity for the year ended December 31, 2025:

 

Performance Share Units -
Market Condition

 

Performance Share Units -
Performance Condition

 

Share Units

 

Weighted-Average Fair Value per Share Unit

 

Share Units

 

Weighted-Average Fair Value per Share Unit

 

Nonvested at January 1, 2025

 

151,535

 

$

66.43

 

 

72,805

 

$

62.59

 

Granted

 

31,275

 

 

62.16

 

 

46,915

 

 

57.56

 

Vested

 

(32,986

)

 

74.48

 

 

(21,994

)

 

70.57

 

Forfeited

 

(14,510

)

 

64.45

 

 

(10,142

)

 

58.71

 

Nonvested at December 31, 2025

 

135,314

 

$

63.69

 

 

87,584

 

$

58.34