WEC Energy Group reports first-quarter results
Consolidated revenues totaled
"Our positive first-quarter results were driven by continued economic growth in our region and a strong focus on operating excellence," said
For the quarter, natural gas deliveries in
Retail deliveries of electricity — excluding the iron ore mine in
Electricity consumption by small commercial and industrial customers was 2.1 percent higher. Electricity use by large commercial and industrial customers — excluding the iron ore mine — increased by 1.1 percent.
Residential electricity use rose by 5.5 percent.
On a weather-normal basis, retail deliveries of electricity — excluding the iron ore mine — increased by 0.7 percent.
The company is reaffirming its 2025 earnings guidance of
Earnings per share listed in this news release are on a fully diluted basis.
Conference call
A conference call is scheduled for
All interested parties, including stockholders, news media and the general public, are invited to listen. Access the call at 888-330-2443 up to 15 minutes before it begins. The number for international callers is 240-789-2728. The conference ID is 3088105.
Conference call access also is available at wecenergygroup.com. Under 'Webcasts,' select 'Q1 Earnings.' In conjunction with this earnings announcement,
Replay
A replay will be available on the website and by phone. Access to the webcast replay will be available on the website about two hours after the call. Access to a phone replay also will be available approximately two hours after the call and remain accessible through
The company's principal utilities are
Forward-looking statements
Certain statements contained in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based upon management's current expectations and are subject to risks and uncertainties that could cause our actual results to differ materially from those contemplated in the statements. Readers are cautioned not to place undue reliance on these statements. Forward-looking statements include, among other things, statements concerning management's expectations and projections regarding earnings, earnings growth rates, dividend payments and future results. In some cases, forward-looking statements may be identified by reference to a future period or periods or by the use of forward-looking terminology such as "anticipates," "believes," "estimates," "expects," "forecasts," "guidance," "intends," "may," "objectives," "plans," "possible," "potential," "projects," "should," "targets," "will" or similar terms or variations of these terms.
Factors that could cause actual results to differ materially from those contemplated in any forward-looking statements include, but are not limited to: general economic conditions, including business and competitive conditions in the company's service territories; timing, resolution and impact of rate cases and other regulatory decisions, including rider reconciliations; the company's ability to continue to successfully integrate the operations of its subsidiaries; availability of the company's generating facilities and/or distribution systems; unanticipated changes in fuel and purchased power costs; key personnel changes; unusual, varying or severe weather conditions; continued industry restructuring and consolidation; continued advances in, and adoption of, new technologies that produce power or reduce power consumption; energy and environmental conservation efforts; electrification initiatives, mandates and other efforts to reduce the use of natural gas; the company's ability to successfully acquire and/or dispose of assets and projects and to execute on its capital plan; terrorist, physical or cyber-security threats or attacks and data security breaches; construction risks; labor disruptions; equity and bond market fluctuations; changes in the company's and its subsidiaries' ability to access the capital markets; changes in tax legislation or our ability to use certain tax benefits and carryforwards; changes in and uncertainty around federal, state, and local legislation and regulation, including changes resulting from the new
Tables follow
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CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited)
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Three Months Ended |
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(in millions, except per share amounts) |
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2025 |
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2024 |
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Operating revenues |
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$ 3,149.5 |
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$ 2,680.2 |
|
|
|
|
|
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Operating expenses |
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|
|
|
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Cost of sales |
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1,165.7 |
|
927.1 |
|
Other operation and maintenance |
|
608.0 |
|
530.8 |
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Depreciation and amortization |
|
359.9 |
|
333.4 |
|
Property and revenue taxes |
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78.4 |
|
75.5 |
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Total operating expenses |
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2,212.0 |
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1,866.8 |
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|
|
|
|
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Operating income |
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937.5 |
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813.4 |
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|
|
|
|
|
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Equity in earnings of transmission affiliates |
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53.6 |
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44.8 |
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Other income, net |
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18.1 |
|
44.1 |
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Interest expense |
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223.0 |
|
192.0 |
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Other expense |
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(151.3) |
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(103.1) |
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|
|
|
|
|
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Income before income taxes |
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786.2 |
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710.3 |
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Income tax expense |
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60.7 |
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87.7 |
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Net income |
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725.5 |
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622.6 |
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|
|
|
|
|
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Preferred stock dividends of subsidiary |
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0.3 |
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0.3 |
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Net income attributed to noncontrolling interests |
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(1.0) |
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— |
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Net income attributed to common shareholders |
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$ 724.2 |
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$ 622.3 |
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Earnings per share |
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Basic |
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$ 2.28 |
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$ 1.97 |
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Diluted |
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$ 2.27 |
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$ 1.97 |
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|
|
|
|
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Weighted average common shares outstanding |
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|
|
|
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Basic |
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318.2 |
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315.6 |
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Diluted |
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319.3 |
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315.9 |
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Dividends per share of common stock |
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$ 0.8925 |
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$ 0.8350 |
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CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in millions, except share and per share amounts) |
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Assets |
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Current assets |
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Cash and cash equivalents |
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$ 82.2 |
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$ 9.8 |
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Accounts receivable and unbilled revenues, net of reserves of |
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1,812.4 |
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1,669.3 |
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Materials, supplies, and inventories |
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576.0 |
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813.2 |
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Prepaid taxes |
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171.6 |
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214.9 |
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Other prepayments |
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76.2 |
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82.6 |
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Other |
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224.9 |
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121.9 |
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Current assets |
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2,943.3 |
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2,911.7 |
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Long-term assets |
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Property, plant, and equipment, net of accumulated depreciation and amortization of |
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35,447.8 |
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34,645.4 |
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Regulatory assets ( |
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3,283.3 |
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3,339.7 |
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Equity investment in transmission affiliates |
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2,149.0 |
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2,108.9 |
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3,052.8 |
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3,052.8 |
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Pension and OPEB assets |
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983.8 |
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968.5 |
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Other |
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372.1 |
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336.2 |
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Long-term assets |
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45,288.8 |
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44,451.5 |
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Total assets |
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$ 48,232.1 |
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$ 47,363.2 |
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Liabilities and Equity |
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Current liabilities |
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Short-term debt |
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$ 1,327.1 |
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$ 1,116.6 |
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Current portion of long-term debt ( |
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2,729.9 |
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1,729.0 |
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Accounts payable |
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791.5 |
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1,137.1 |
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Other |
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1,014.4 |
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859.2 |
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Current liabilities |
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5,862.9 |
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4,841.9 |
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Long-term liabilities |
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Long-term debt ( |
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16,161.8 |
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17,178.1 |
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Finance lease obligations |
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293.9 |
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303.3 |
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Deferred income taxes |
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5,577.2 |
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5,514.7 |
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Deferred revenue, net |
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329.3 |
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334.6 |
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Regulatory liabilities |
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4,043.9 |
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3,958.0 |
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Intangible liabilities |
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624.5 |
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566.8 |
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Environmental remediation liabilities |
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442.1 |
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445.8 |
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Asset retirement obligations |
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601.5 |
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580.0 |
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Other |
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868.0 |
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838.1 |
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Long-term liabilities |
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28,942.2 |
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29,719.4 |
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Commitments and contingencies |
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Common shareholders' equity |
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|
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Common stock – |
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3.2 |
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3.2 |
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Additional paid in capital |
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4,456.1 |
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4,315.8 |
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Retained earnings |
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8,524.4 |
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8,083.8 |
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Accumulated other comprehensive loss |
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(7.9) |
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(7.8) |
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Common shareholders' equity |
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12,975.8 |
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12,395.0 |
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Preferred stock of subsidiary |
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30.4 |
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30.4 |
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Noncontrolling interests |
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420.8 |
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376.5 |
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Total liabilities and equity |
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$ 48,232.1 |
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$ 47,363.2 |
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
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Three Months Ended |
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(in millions) |
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2025 |
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2024 |
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Operating activities |
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Net income |
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$ 725.5 |
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$ 622.6 |
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Reconciliation to cash provided by operating activities |
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|
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Depreciation and amortization |
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359.9 |
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333.4 |
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Deferred income taxes and ITCs, net |
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55.6 |
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184.3 |
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Contributions and payments related to pension and OPEB plans |
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(3.9) |
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(4.0) |
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Equity income in transmission affiliates, net of distributions |
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2.2 |
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(9.1) |
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Change in – |
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Accounts receivable and unbilled revenues, net |
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(180.3) |
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(61.3) |
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Materials, supplies, and inventories |
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237.2 |
|
166.6 |
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Other current assets |
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13.0 |
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36.9 |
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Accounts payable |
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(195.4) |
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(229.8) |
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Temporary LIFO liquidation credit |
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68.6 |
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— |
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Accrued interest |
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83.5 |
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33.4 |
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Other current liabilities |
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5.6 |
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(78.2) |
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Other, net |
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(8.9) |
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(131.2) |
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Net cash provided by operating activities |
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1,162.6 |
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863.6 |
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Investing activities |
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Capital expenditures |
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(701.1) |
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(444.5) |
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Acquisition of Hardin Solar III Energy Center, net of cash acquired of |
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(406.1) |
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— |
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Capital contributions to transmission affiliates |
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(42.3) |
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(12.1) |
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Proceeds from the sale of investments held in rabbi trust |
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16.9 |
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14.8 |
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Reimbursement for |
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39.7 |
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6.2 |
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Other, net |
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(8.9) |
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(0.6) |
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Net cash used in investing activities |
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(1,101.8) |
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(436.2) |
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Financing activities |
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Exercise of stock options |
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21.2 |
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3.7 |
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Issuance of common stock, net |
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117.1 |
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19.2 |
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Purchase of common stock |
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(1.3) |
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(2.0) |
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Dividends paid on common stock |
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(283.6) |
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(263.5) |
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Retirement of long-term debt |
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(17.9) |
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(756.9) |
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Change in commercial paper |
|
209.5 |
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552.8 |
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Purchase of additional ownership interest in |
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— |
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(28.1) |
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Other, net |
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(4.6) |
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(1.7) |
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Net cash provided by (used in) financing activities |
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40.4 |
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(476.5) |
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Net change in cash, cash equivalents, and restricted cash |
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101.2 |
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(49.1) |
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Cash, cash equivalents, and restricted cash at beginning of period |
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42.2 |
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165.2 |
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Cash, cash equivalents, and restricted cash at end of period |
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$ 143.4 |
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$ 116.1 |
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