Core Viewpoint - WEC Energy Group, Inc. is a prominent U.S. energy holding company with a market capitalization of approximately $36.5 billion, focusing on electricity and natural gas supply, as well as investments in renewable energy and infrastructure assets [1] Stock Performance - Over the past 52 weeks, WEC Energy's shares have increased by 14.6%, slightly outperforming the S&P 500 Index, which gained 14.5% during the same period [2] - Year-to-date, WEC's stock is up 19.2%, compared to the S&P 500's 16.5% increase [2] Sector Comparison - The Utilities Select Sector SPDR Fund (XLU) has shown a return of 14.6% over the past 52 weeks and 18.8% year-to-date, indicating a competitive performance within the utilities sector [3] Growth Drivers - WEC's stock rise is attributed to optimism surrounding its growth plan, particularly driven by regional demand from data center developments in Wisconsin, modernization and expansion of energy infrastructure, and a consistent history of delivering dividends while exceeding guidance in recent quarters [4] Earnings Expectations - For the fiscal year ending December 2025, analysts project WEC's earnings per share (EPS) to grow by 7.2% year-over-year to $5.23, with a mixed earnings surprise history [5] Analyst Sentiment - The consensus rating among 19 analysts covering WEC Energy is a "Moderate Buy," consisting of seven "Strong Buys," 11 "Holds," and one "Strong Sell" [6] - The current analyst sentiment has improved from a "Hold" rating a month ago, with BTIG initiating coverage with a "Buy" rating and a price target of $136, citing diversified demand growth [7]

Core Viewpoint - FirstEnergy (FE) is currently viewed as a better value opportunity compared to WEC Energy Group (WEC) based on various financial metrics and earnings outlook improvements [1][3][7] Valuation Metrics - FirstEnergy has a forward P/E ratio of 18.10, while WEC has a forward P/E of 21.18, indicating that FE is relatively cheaper [5] - The PEG ratio for FE is 2.80, compared to WEC's PEG ratio of 3.12, suggesting FE may offer better value when considering expected earnings growth [5] - FE's P/B ratio stands at 1.87, whereas WEC's P/B ratio is 2.58, further supporting the notion that FE is undervalued relative to its book value [6] Earnings Outlook - FirstEnergy has experienced stronger estimate revision activity, which is a positive indicator for its earnings outlook compared to WEC [3][7] - The Zacks Rank for FE is 2 (Buy), while WEC holds a Zacks Rank of 3 (Hold), reflecting a more favorable investment sentiment towards FE [3]

Core Viewpoint - Hybrid Power Solutions Inc. is focused on expanding its clean energy solutions amidst economic challenges, emphasizing strategic partnerships, manufacturing reshoring, and R&D acceleration to capture sales opportunities in key markets [2] Q1 2025 Business Highlights - The company has signed distribution agreements with One Stop Truck & Equipment, Alamo Auto Supply, and Purafy [4] - A partnership has been formed with Terrapass for carbon offset solutions [4] - A Memorandum of Understanding has been signed with Volthium Energy Inc. for lithium-ion battery systems [4] - Orders received include two Spark power systems and two Batt Pack Jupiter units from major Canadian transit agencies [4] - Initial sales of Batt Pack Energy and Pro units have been made to Canadian universities [4] - Multiple Batt Pack Pro units sold through Alamo Auto Supply [4] - Participation in the 2025 Nevada Energy Storage Roadshow has been confirmed [4] Q1 2025 Financial Highlights - The net loss for the period ending August 31, 2025, is ($627,687), an improvement from a net loss of ($1,122,670) for the same period in 2024 [4] - Revenue for the period ending August 31, 2025, is $298,926, down from $1,038,582 in 2024 [4] - Expenses for the period ending August 31, 2025, are $668,159, reduced from $1,425,760 in 2024 [4]

Financial Performance - The company reported a net income attributed to common shareholders of $271.3 million for Q3 2025, an increase of $31.2 million compared to Q3 2024[254]. - Diluted EPS for Q3 2025 was $0.83, an increase of $0.07 compared to Q3 2024[254]. - The Wisconsin segment's net income attributed to common shareholders was $281.3 million in Q3 2025, an increase of $43.5 million or 18.3% compared to Q3 2024[260]. - Net income attributed to common shareholders for the nine months ended September 30, 2025, increased by $167.2 million, from $1,073.7 million in 2024 to $1,240.9 million in 2025[305]. - Net income attributed to common shareholders rose to $823.6 million, reflecting an increase of $187.3 million or 29.4% compared to $636.3 million in the same period of 2024[315]. - The Illinois segment's contribution to net income attributed to common shareholders was $170.2 million, a 3.4% increase from the previous year, driven by a favorable legal settlement impact[325]. - The other states segment's contribution to net income attributed to common shareholders was $37.7 million, reflecting a $2.2 million or 6.2% increase compared to 2024[335]. Revenue and Sales - Operating revenues for the Wisconsin segment reached $1,791.6 million in Q3 2025, up $201.6 million from $1,590.0 million in Q3 2024[261]. - Operating revenues for the Illinois segment increased to $183.5 million in Q3 2025, up $9.9 million from $173.6 million in Q3 2024[273]. - Total retail electric sales volumes grew by 446.7 MWh (thousands), totaling 27,759.2 MWh, with residential sales increasing by 257.5 MWh[316]. - Natural gas sales volumes increased by 189.6 million therms, totaling 1,264.5 million therms, driven by a rise in residential and commercial demand[316]. - Electric revenues increased by $475.9 million, reaching $4,242.6 million, while natural gas revenues rose by $225.8 million to $1,196.1 million[318]. Capital Expenditures and Investments - The company plans to invest approximately $11.6 billion in regulated renewable energy from 2026 to 2030, including 3,700 MWs of utility-scale solar and 1,780 MWs of battery storage[233]. - Total capital expenditures for regulated utility businesses are projected to be approximately $32.4 billion from 2026 to 2030[247]. - Capital contributions to transmission affiliates increased by $96.9 million during the nine months ended September 30, 2025, compared to the same period in 2024[361]. - Capital expenditures in the Wisconsin segment rose by $1,145.8 million to $2,692.4 million, driven by renewable energy projects and system upgrades[361]. - Estimated capital expenditures for 2025 are projected at $4,762.1 million, with significant investments in Wisconsin and Illinois segments[370]. Operational Metrics - Utility margin (non-GAAP) increased by $118.7 million to $1,213.4 million in Q3 2025, driven by a $97.8 million increase from Wisconsin rate orders effective January 1, 2025[265][266]. - The Wisconsin segment's gross margin (GAAP) increased by $251.2 million to $1,766.8 million, while utility margin (non-GAAP) rose by $394.8 million to $3,571.5 million[318]. - The Illinois segment's gross margin (GAAP) increased by $22.9 million to $484.6 million in 2025, while utility margin (non-GAAP) rose by $41.2 million to $903.3 million[330]. - Other operating expenses rose by $75.2 million in Q3 2025, primarily due to increases in depreciation and amortization, and property and revenue taxes[267][268]. Environmental and Regulatory Initiatives - The company aims for net carbon neutral electric generation by 2050, with plans to eliminate coal as an energy source by the end of 2032[232]. - The company has signed contracts for 2.1 Bcf of renewable natural gas (RNG) to reduce methane emissions in its distribution systems[237]. - The company plans to construct an LNG facility with a storage capacity of two Bcf to enhance natural gas supply reliability during peak demand[240]. - The company plans to initiate a general rate case proceeding in early 2026 to provide regulatory clarity before increasing spending associated with the Pipeline Replacement Program[406]. Debt and Liquidity - The company's total capitalization as of September 30, 2025, was $34,424.1 million, with a debt-to-total capitalization ratio of 60.5%[392]. - The company expects to maintain compliance with all financial covenants related to outstanding short-term and long-term debt as of September 30, 2025[394]. - The company maintains bank back-up credit facilities to support obligations related to commercial paper and general corporate purposes, ensuring adequate liquidity support[385]. - As of September 30, 2025, current liabilities exceeded current assets by $2,535.0 million, but the company expects no impact on liquidity due to available capacity under existing revolving credit facilities and cash generated from operations[388]. Market and Economic Conditions - The U.S. solar industry has faced increased costs and delays due to new tariffs on imports from Malaysia, Vietnam, Thailand, and Cambodia, with significant tariff rates effective from May 2025[415]. - The Infrastructure Investment and Jobs Act allocates approximately $1.2 trillion for federal spending over five years, including $85 billion for renewable infrastructure investments[417]. - The Inflation Reduction Act provides $258 billion in energy-related provisions over a 10-year period, aimed at incentivizing domestic clean energy investment and reducing carbon emissions[418]. - The proposed Chicago Indoor Emissions Standard could materially adversely impact PGL's future natural gas operations if passed[411].

Financial Data and Key Metrics Changes - The company reported third quarter 2025 earnings of $0.83 per share, which is one cent higher than the adjusted earnings for the same period in 2024 [3][12] - The earnings guidance for 2025 remains reaffirmed at a range of $5.17 to $5.27 per share, assuming normal weather conditions for the remainder of the year [3][15] - The utility operations contributed $0.12 more to earnings compared to third quarter 2024 adjusted earnings, with weather positively impacting earnings by about $0.01 [12] Business Line Data and Key Metrics Changes - Weather-normal retail electric deliveries increased by 1.8% compared to the third quarter of 2024, driven by a 2.9% growth in the large commercial and industrial segment [13] - Earnings from the American Transmission Company segment contributed an incremental $0.02 to Q3 earnings versus 2024 [14] - Earnings from corporate and other segments decreased by $0.11, primarily due to tax timing and higher interest expenses [14] Market Data and Key Metrics Changes - Wisconsin's unemployment rate stands at 3.1%, which is below the national average, supporting economic growth in the region [6] - The company expects electric demand to grow by 3.4 GW between 2026 and 2030, an increase of 1.6 GW compared to the prior plan [4][6] Company Strategy and Development Direction - The company plans to invest $36.5 billion in capital projects between 2026 and 2030, which is an increase of $8.5 billion from the previous five-year plan, representing over a 30% increase [6][8] - The updated capital plan anticipates an average asset base growth rate of just over 11% per year, supporting long-term projected earnings per share growth of 7% to 8% annually from 2026 to 2030 [6][17] - The company is focusing on an all-of-the-above approach for generation, investing in natural gas, batteries, and renewables to support economic growth and reliability [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's future and investment opportunities, citing strong economic development and load growth in Wisconsin as the foundation for the new five-year plan [17][18] - The management team highlighted that the growth from large customers is fostering small commercial and residential development throughout the service territory [5][6] Other Important Information - The company plans to file a rate case in Wisconsin for its biannual process, looking at inflation-type increases, but ensuring that costs from hyperscalers do not affect other customers [70] - The Very Large Customer tariff is designed to ensure that large customers pay their fair share without subsidizing other customers [10][52] Q&A Session Summary Question: On the updated growth outlook and back-end loading - Management explained that the compound annual growth rate (CAGR) will ramp up post-2027, with expectations of 7% to 8% growth in the outer years [20][21] Question: Timing around Point Beach conversations with NextEra - Conversations are ongoing, but may be shifting further out, with no capital included in the current plan for potential capacity replacement [23] Question: Microsoft expansion and its impact on the plan - Management confirmed that the growth in Southeastern Wisconsin is largely driven by data center projects, including Microsoft and Vantage Data Centers [27][28] Question: Clarification on capital plan increase - The increase in capital plan is primarily due to investments in regulated electric generation, transmission, and distribution [7][9] Question: Impact of Illinois legislation on growth - Management indicated that the Illinois legislation is being monitored, but does not expect it to have a significant effect on the company [32] Question: Future growth opportunities beyond the current plan - Management sees potential for additional growth both within the current five-year plan and beyond, depending on customer development [73]

Financial Data and Key Metrics Changes - The company reported third quarter 2025 earnings of $0.83 per share, which is $0.10 higher than the adjusted earnings for the same period in 2024 [4][17] - The earnings guidance for 2025 remains reaffirmed at a range of $5.17 to $5.27 per share [5][21] - Weather positively impacted earnings by approximately $0.01 compared to last year, with a favorable impact of $0.03 in 2025 versus $0.02 in 2024 [19] Business Line Data and Key Metrics Changes - Utility operations earnings increased by $0.12 compared to third quarter 2024 adjusted earnings [18] - Retail electric deliveries, excluding the iron ore mine, saw a 1.8% increase compared to 2024, driven by a 2.9% growth in the large commercial and industrial segment [19] - Earnings from the Corporate and Other segment decreased by $0.11, primarily due to tax timing and higher interest expenses [21] Market Data and Key Metrics Changes - Wisconsin's unemployment rate stands at 3.1%, which is below the national average, supporting economic development [9] - The company expects electric demand to grow by 3.4 gigawatts between 2026 and 2030, an increase of 1.6 gigawatts compared to the prior plan [6][9] Company Strategy and Development Direction - The company plans to invest $36.5 billion in capital projects between 2026 and 2030, which is an increase of $8.5 billion from the previous five-year plan [9][10] - The updated capital plan anticipates asset-based growth at an average rate of just over 11% per year [10] - The company will utilize an all-of-the-above approach for generation, investing in natural gas, batteries, and renewables [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic development and load growth in Wisconsin, which is the foundation of the new five-year plan [24] - The long-term projected earnings per share growth is expected to be 7% to 8% annually on a compound basis between 2026 and 2030 [10][22] - Management noted that the growth from large customers is fostering small commercial and residential development throughout the service territory [8] Other Important Information - The company expects to maintain a dividend payout ratio of 65% to 70% of earnings, with a growth rate of 6.5% to 7% consistent with past practices [25] - The proposed very large customer tariff is under review, designed to meet the needs of large customers while protecting other customers [14][15] Q&A Session Summary Question: On the updated growth outlook and its back-end loading - Management explained that the growth is expected to ramp up in 2027, with a compound annual growth rate of 7% to 8% in the outer years [29][31] Question: Timing around Point Beach conversations with NextEra - Conversations are ongoing, but may shift further out; no capital is assumed in the current plan for potential replacements [34][35] Question: Microsoft expansion and its impact on the plan - Management expressed confidence in growth in Southeastern Wisconsin, with Microsoft’s data center potentially scaling up to 2 gigawatts [40][41] Question: Clarification on capital plan increase - The increase in capital plan is primarily due to additional investments in regulated electric generation and transmission [12][22] Question: Engagement with other potential customers - Management confirmed ongoing discussions with other customers but emphasized that Microsoft and Vantage are the main focus currently [95][96] Question: Impact of the very large customer tariff on customer rates - The tariff is designed to ensure large customers pay their fair share without subsidizing other customers [89][90]

Core Insights - WEC Energy Group reported quarterly earnings of $0.83 per share, exceeding the Zacks Consensus Estimate of $0.79 per share, and showing a slight increase from $0.82 per share a year ago, resulting in an earnings surprise of +5.06% [1] - The company generated revenues of $2.1 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 4.88%, compared to $1.86 billion in the same quarter last year [2] - WEC Energy shares have increased approximately 21.8% year-to-date, outperforming the S&P 500's gain of 17.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.41 on revenues of $2.46 billion, and for the current fiscal year, it is $5.23 on revenues of $9.62 billion [7] - The estimate revisions trend for WEC Energy was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Utility - Electric Power industry is currently ranked in the top 24% of over 250 Zacks industries, suggesting a favorable outlook as the top 50% of Zacks-ranked industries tend to outperform the bottom 50% by more than 2 to 1 [8] - Alliant Energy, another company in the same industry, is expected to report quarterly earnings of $1.17 per share, reflecting a year-over-year change of +1.7%, with revenues anticipated to be $1.1 billion, up 2% from the previous year [9][10]

Financial Performance - WEC Energy Group reported net income of $271.3 million, or 83 cents per share, for Q3 2025, an increase from $240.1 million, or 76 cents per share, in Q3 2024[2] - For the nine months ended September 30, 2025, net income was $1.24 billion, or $3.85 per share, up from $1.07 billion, or $3.40 per share, in the same period last year[4] - Operating income for the nine months ended September 30, 2025, was $1.79 billion, up from $1.56 billion in the same period last year[21] - Net income for the nine months ended September 30, 2025, was $1,238.7 million, compared to $1,071.2 million for the same period in 2024, reflecting an increase of 15.6%[26] Revenue and Deliveries - Consolidated revenues for the nine months ended September 30, 2025, totaled $7.3 billion, an increase of $947.3 million compared to the prior year[4] - Operating revenues for Q3 2025 were $2.1 billion, compared to $1.86 billion in Q3 2024[21] - Retail electricity deliveries increased by 1.9% in Q3 2025 compared to Q3 2024, with residential electricity use rising by 2.1%[5][6] - The company reported a 2.5% increase in electricity use by large commercial and industrial customers, excluding the iron ore mine[6] Guidance and Dividends - The company reaffirmed its 2025 earnings guidance of $5.17 to $5.27 per share, assuming normal weather conditions for the remainder of the year[7] - Dividends per share of common stock increased to $0.8925 in Q3 2025 from $0.8350 in Q3 2024[21] Assets and Liabilities - Total assets increased to $49,808.9 million as of September 30, 2025, up from $47,363.2 million on December 31, 2024, representing a growth of 5.1%[23] - Common shareholders' equity increased to $13,568.4 million as of September 30, 2025, from $12,395.0 million on December 31, 2024, a rise of 9.5%[23] - Long-term liabilities increased to $30,747.8 million as of September 30, 2025, compared to $29,719.4 million on December 31, 2024, an increase of 3.5%[23] Cash Flow and Expenditures - Net cash provided by operating activities was $2,954.8 million for the nine months ended September 30, 2025, compared to $2,630.0 million in 2024, an increase of 12.3%[26] - Capital expenditures rose to $3,095.1 million in the nine months ended September 30, 2025, compared to $1,934.7 million in 2024, indicating a significant increase of 60.0%[26] - Cash and cash equivalents at the end of the period were $117.7 million, down from $361.0 million at the end of the same period in 2024, a decrease of 67.4%[26] Acquisitions and Market Presence - The company made an acquisition of Hardin Solar III Energy Center for $406.1 million during the nine months ended September 30, 2025[26] - WEC Energy Group serves approximately 4.7 million customers across multiple states, indicating a strong market presence[13] Accounts Receivable - The company reported a decrease in accounts receivable and unbilled revenues, net of reserves, to $1,269.5 million as of September 30, 2025, from $1,669.3 million on December 31, 2024, a decline of 23.9%[23]

Core Insights - WEC Energy Group is expected to report quarterly earnings of $0.79 per share, a decline of 3.7% year-over-year, with revenues forecasted at $2.01 billion, reflecting a 7.6% increase [1] Earnings Estimates - The consensus EPS estimate has been revised downward by 1.4% over the past 30 days, indicating a collective reassessment by analysts [2] - Revisions to earnings estimates are significant indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [3] Revenue Forecasts - Analysts estimate 'Operating Revenues- Regulated Utility Operations- Wisconsin' at $1.68 billion, representing a year-over-year increase of 5.9% [5] - 'Operating Revenues- Regulated Utility Operations- Illinois' is predicted to reach $177.52 million, indicating a 2.3% year-over-year change [5] - The total 'Operating Revenues- Total Utility Operations' is expected to be $1.92 billion, reflecting a 5.7% year-over-year increase [6] - The consensus for 'Operating Revenues- Regulated Utility Operations- Other States' stands at $58.24 million, suggesting a 9.9% year-over-year change [6] Stock Performance - Over the past month, WEC Energy shares have returned +0.6%, compared to the Zacks S&P 500 composite's +3.8% change [6] - WEC Energy holds a Zacks Rank 3 (Hold), indicating that its performance is likely to align with the overall market in the upcoming period [6]

Group 1 - Japan has unveiled a potential project list for a $550 billion investment mechanism in the U.S., with participating companies including SoftBank, Westinghouse Electric, GE Vernova, and Hitachi, covering sectors such as energy, artificial intelligence, and critical minerals [1][3] - The project list includes 21 projects with a total investment scale exceeding $400 billion, with energy projects dominating the list, including Westinghouse's AP1000 nuclear reactor and small modular reactor projects, each estimated at nearly $100 billion [3][4] - SoftBank is interested in a $25 billion large-scale power infrastructure development project, while other companies like Carrier and Panasonic are also involved in energy-related initiatives [3][4] Group 2 - The investment plan aims to enhance economic and security interests between the U.S. and Japan, focusing on sectors such as semiconductors, pharmaceuticals, metals, critical minerals, shipbuilding, energy, artificial intelligence, and quantum computing [4] - Japan's automotive manufacturers have reported a decline in sales in the U.S. market, with a 22.7% drop in automotive exports contributing to a 10.2% decrease in total exports to the U.S. in the first half of the fiscal year [5] - The U.S. has reduced tariffs on Japanese automobiles from 27.5% to 15% as part of a trade agreement, which is a core component of the investment plan [4]