DULUTH, Minn.--(BUSINESS WIRE)--ALLETE, Inc. (NYSE: ALE) ALLETE today reported third quarter 2025 earnings of 46 cents per share on net income of $27.1 million. Last year's third quarter results were 78 cents per share on net income of $45.0 million. Net income in the third quarter of 2025 and year to date primarily reflects lower sales to industrial customers and inflationary pressures at Minnesota Power, lower sales of renewable projects at the clean energy businesses and transaction related. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2025 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ______________ to ______________ Commission File Number 1-3548 ALLETE, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdi ...

Financial Results Announcement - ALLETE Inc. will announce its financial results for the third quarter before the stock markets open on October 31, 2025 [1] Company Overview - ALLETE, Inc. is an energy company headquartered in Duluth, Minnesota, with electric utilities including Minnesota Power and Superior Water, Light and Power of Wisconsin [2] - The company also owns ALLETE Clean Energy, BNI Energy, and New Energy Equity, and holds an 8% equity interest in the American Transmission Co [2] Recent Developments - The Minnesota Public Utilities Commission unanimously approved ALLETE's acquisition by Canada Pension Plan Investment Board and Global Infrastructure Partners, with the transaction expected to close in late 2025 [5] - ALLETE reported second quarter 2025 earnings of 55 cents per share on net income of $31.9 million, compared to 57 cents per share and net income of $33.0 million in the same quarter last year [6] - The board of directors declared a quarterly dividend of 73 cents per share, equivalent to $2.92 per share annually, unchanged from the previous quarter [7]

Core Insights - The Minnesota Public Utilities Commission (PUC) unanimously approved the $6.2 billion sale of Allete to the Canada Pension Plan Investment Board and Blackrock's Global Infrastructure Partners, determining that the benefits to ratepayers outweighed the risks associated with private equity ownership [6]. Group 1: Deal Overview - The review of the Allete deal focused on its public interest implications, particularly in light of ongoing discussions regarding private equity acquisitions in the utility sector [3]. - The deal includes a commitment from CPP Investments and GIP to fund Allete's $5 billion, five-year capital plan and provide $50 million for clean power initiatives, with total benefits to ratepayers estimated at $200 million [4]. Group 2: Regulatory Conditions - Under the agreement, Minnesota Power will freeze its base rates for one year and reduce its return on equity (ROE) from 9.78% to 9.65% until the next rate case, with a cap of 9.78% ROE through 2030 [5]. - Additional provisions in the agreement establish quality of service, reporting, and governance requirements, which helped alleviate some concerns regarding the transaction [5]. Group 3: Stakeholder Perspectives - PUC Commissioner Audrey Partridge expressed serious concerns about private equity ownership of public utilities, citing its negative reputation [4]. - Commissioner Joe Sullivan acknowledged the near- and medium-term benefits of the deal but raised concerns about potential long-term implications [6].

Core Points - The Minnesota Public Utilities Commission (MPUC) has unanimously approved the acquisition of ALLETE, Inc. by Canada Pension Plan Investment Board (CPP Investments) and Global Infrastructure Partners (GIP) [1] - All necessary regulatory approvals have been secured, and the transaction is anticipated to close in late 2025, pending the issuance of the MPUC's written order [1] Company Summary - ALLETE, Inc. is set to undergo an acquisition by CPP Investments and GIP, indicating a significant shift in ownership structure [1] - The approval from MPUC marks a critical milestone in the acquisition process, showcasing regulatory support for the transaction [1] Industry Summary - The acquisition reflects ongoing trends in the utility sector, where institutional investors like CPP Investments and GIP are increasingly involved in infrastructure investments [1] - The expected closing of the transaction in late 2025 suggests a long-term strategic investment approach within the utilities industry [1]

Core Points - Minnesota regulators approved a $6.2 billion takeover of Minnesota Power by a private equity group, despite opposition from the state attorney general and consumer advocates [1][2][5] - The deal includes a 19% premium for shareholders and assumes $2.3 billion in debt, with assurances that operations and rates will remain unaffected [5] - The approval comes amid rising electricity bills in the U.S., with concerns that residential customers may subsidize the energy needs of large tech companies [3][4] Company Overview - Minnesota Power, a subsidiary of Allete, serves 150,000 customers and has a diverse energy portfolio including coal, gas, wind, and solar [4] - The takeover involves a BlackRock subsidiary and the Canada Pension Plan Investment Board, raising concerns about the potential for similar deals across the U.S. [4][5] Regulatory Actions - The Minnesota Public Utilities Commission believes that the conditions imposed on the deal will protect public interest and prevent rate increases [2][6] - Modifications negotiated by the state Department of Commerce include additional financial and regulatory safeguards to protect customers [6][7]

Group 1 - The Minnesota Public Utilities Commission (PUC) approved the sale of Allete (NYSE:ALE) to a partnership led by Canada Pension Plan Investment Board and BlackRock's Global Infrastructure Partners [4] - The transaction was approved unanimously by the Minnesota PUC commissioners [4] - The acquisition price is set at $67 per share in cash, totaling $6.2 billion including debt [4]

Core Insights - Companies with a strong history of dividend payments and increases are attractive to income-focused investors, with Allete, WEC Energy, and Chevron being notable examples offering yields up to approximately 4% [1] Allete - Allete operates in two segments: Regulated Operations and Allete Clean Energy, generating electricity from various sources including coal, biomass, hydro, wind, and solar [2] - The company has raised its dividends for 14 consecutive years, with a recent increase of 3.5% to $0.73 per share, translating to an annual figure of $2.92 per share [3] - Allete's annual revenue as of June 30 was $1.53 billion, and it reported Q2 2025 revenues of $360.30 million, exceeding the consensus estimate of $354.50 million, while EPS was $0.61, below the consensus of $0.85 [4] WEC Energy - WEC Energy Group provides regulated natural gas, electricity, and renewable energy services in the U.S. [4] - The company has increased its dividends for 22 consecutive years, with a recent hike of 6.90% to $0.8925 per share, equating to an annual figure of $3.57 per share [5] - WEC Energy's annual revenue as of June 30 was $9.31 billion, and it reported Q2 2025 revenues of $2.01 billion, with EPS of $0.76, both surpassing consensus estimates [6] Chevron - Chevron is an integrated energy company involved in the production of crude oil, natural gas, and other essential products both domestically and internationally [7]

Group 1: Acquisition News - AES Corp's stock surged 14.06% to $15.01 in pre-market trading due to reports of BlackRock's Global Infrastructure Partners nearing a $38 billion acquisition deal [1][2] - Negotiations between Global Infrastructure Partners and AES are reportedly well advanced, although there remains a possibility that the deal may not be finalized [2] Group 2: Market Context - The increasing demand for power, driven by the expansion of artificial intelligence and data centers, is benefiting utility companies, prompting strategic deals within the sector [3] - Market analysts are closely monitoring the developments surrounding the acquisition [3] Group 3: Company Performance - AES exceeded Wall Street's profit expectations for the second quarter, with significant growth in its renewable energy division due to the global shift towards cleaner power sources [4] - Over the past year, AES has experienced a 34.98% loss, but has gained 2.25% year-to-date, with a market capitalization of $9.37 billion [7] Group 4: Historical Context - On July 8, AES shares rose nearly 13% following reports of the company considering strategic options, including a potential sale due to interest from several investment firms [5] - Global Infrastructure Partners has a proven track record in the utilities sector, having previously acquired the U.S. utility Allete in a $6.2 billion deal [6]

Core Insights - Private investment firms are increasingly interested in local utilities that supply electricity to customers and support AI data centers, driven by the potential for significant financial returns [1][2][3] Investment Trends - Billions of dollars are being directed towards electric utilities in states like New Mexico, Texas, Wisconsin, and Minnesota, serving over 150 million customers [2] - The demand for infrastructure investment is heightened by the rapid expansion of AI technologies, particularly following the launch of OpenAI's ChatGPT in late 2022 [3] Major Deals and Developments - Blackstone is pursuing regulatory approval to acquire utilities such as the Public Service Company of New Mexico and Texas New Mexico Power Co [4] - Wisconsin has approved the buyout of the parent company of Superior Water, Light and Power, while Northern Indiana Public Service Co. sold a 19.9% stake to Blackstone [4] Regulatory Challenges - A contentious situation has arisen in Minnesota regarding the buyout of Allete, the parent company of Minnesota Power, which serves 150,000 customers and has diverse energy sources [5][6] - The outcome of the Minnesota Public Utilities Commission vote on October 3 could significantly impact the expansion strategies of private equity firms in the utility sector [5][7]