Core Viewpoint - NASA is accelerating its lunar nuclear reactor construction plan, aiming to develop a 100-kilowatt fission reactor system for launch by 2030, which is seen as crucial for the Artemis lunar program and a strategic asset in the new space race [1][2]. Group 1: Lunar Nuclear Reactor Development - NASA plans to initiate industry bidding for a 100-kilowatt lunar nuclear fission reactor system, with a target launch by 2030 [1]. - The nuclear reactor is intended to provide a stable energy supply for a lunar base, which is essential for long-term exploration and operations on the Moon and Mars [2][4]. - The reactor's design is expected to utilize uranium fuel and include a multi-layer shielding system to protect astronauts from radiation [4]. Group 2: Challenges and Concerns - Experts express skepticism about the feasibility of deploying a nuclear reactor on the Moon by 2030, citing significant technical and logistical challenges [6]. - Key challenges include ensuring the reactor can operate under extreme lunar conditions, such as temperature fluctuations and low gravity, as well as navigating lengthy approval processes [6]. - The development of materials that can withstand high temperatures and the safe transport of nuclear materials to space are also highlighted as critical hurdles [6]. Group 3: Strategic Implications - The push for a lunar nuclear reactor is partly driven by concerns over the U.S. losing its leadership in space exploration, especially with increasing collaboration between China and Russia on lunar projects [2][3]. - The first country to establish a nuclear reactor on the Moon could potentially claim exclusive rights to certain areas, impacting U.S. interests in lunar exploration [3].

[FORM 10-Q Filing Information](index=1&type=section&id=FORM%2010-Q) WEC Energy Group, Inc. filed its Quarterly Report on Form 10-Q for the period ended June 30, 2025, as a large accelerated filer on the NYSE [Registrant Information](index=1&type=section&id=Registrant%20Information) WEC Energy Group, Inc. filed its Quarterly Report on Form 10-Q for the period ended June 30, 2025, as a Wisconsin Corporation registered on the NYSE under WEC, classified as a large accelerated filer - WEC Energy Group, Inc. filed its Quarterly Report on Form 10-Q for the period ended June 30, 2025[2](index=2&type=chunk) Registrant Details | Detail | Value | | :--- | :--- | | Registrant | WEC ENERGY GROUP, INC. | | State of Incorporation | A Wisconsin Corporation | | Commission File Number | 001-09057 | | Trading Symbol | WEC | | Exchange | New York Stock Exchange | | Filer Status | Large accelerated filer | | Common Stock Outstanding (June 30, 2025) | 321,866,395 shares | [Glossary of Terms and Abbreviations](index=4&type=section&id=GLOSSARY%20OF%20TERMS%20AND%20ABBREVIATIONS) This section provides definitions for key terms, abbreviations, subsidiaries, regulatory agencies, accounting, environmental, and measurement units relevant to the report [Subsidiaries and Affiliates](index=4&type=section&id=Subsidiaries%20and%20Affiliates) This section lists the key subsidiaries and affiliates of WEC Energy Group, including ATC, Bluewater, Integrys, and various utility companies like Wisconsin Electric Power Company (WE) and Wisconsin Public Service Corporation (WPS) - The glossary provides definitions for subsidiaries and affiliates such as ATC, Bluewater, Integrys, WE, and WPS[10](index=10&type=chunk) [Federal and State Regulatory Agencies](index=4&type=section&id=Federal%20and%20State%20Regulatory%20Agencies) This section defines abbreviations for federal and state regulatory bodies relevant to WEC Energy Group's operations, such as FERC, ICC, IRS, MPSC, PSCW, and SEC - Key regulatory agencies include FERC, ICC, IRS, MPSC, PSCW, and SEC[11](index=11&type=chunk) [Accounting Terms](index=4&type=section&id=Accounting%20Terms) This section provides definitions for accounting terms used in the report, including AFUDC, ARO, ASC, ASU, FASB, GAAP, LIFO, OPEB, and VIE - Important accounting terms defined are AFUDC, ARO, ASC, ASU, FASB, GAAP, LIFO, OPEB, and VIE[12](index=12&type=chunk) [Environmental Terms](index=4&type=section&id=Environmental%20Terms) This section defines environmental terms and abbreviations such as CAA, CCR, CO2, CWA, ELG, FGD, GHG, GHG Power Plant Rule, MATS, NAAQS, and NOx - Environmental terms include CAA, CCR, CO2, CWA, ELG, FGD, GHG, GHG Power Plant Rule, MATS, NAAQS, and NOx[12](index=12&type=chunk)[13](index=13&type=chunk) [Measurements](index=6&type=section&id=Measurements) This section lists common measurement units used in the energy industry, such as Bcf, Dth, lb/MMBtu, MW, MWh, and µg/m3 - Standard measurements include Bcf, Dth, lb/MMBtu, MW, MWh, and µg/m3[14](index=14&type=chunk) [Other Terms and Abbreviations](index=6&type=section&id=Other%20Terms%20and%20Abbreviations) This section provides definitions for various other terms and abbreviations, including specific debt notes, regulatory acts, and project names - Other terms include specific debt notes, regulatory acts like IRA and OBBBA, and project names such as Badger Hollow Wind and Paris Solar-Battery Park[15](index=15&type=chunk)[16](index=16&type=chunk) [Cautionary Statement Regarding Forward-Looking Information](index=9&type=section&id=CAUTIONARY%20STATEMENT%20REGARDING%20FORWARD-LOOKING%20INFORMATION) This section advises readers that the report contains forward-looking statements regarding future expectations, beliefs, plans, and performance, highlighting that actual results may differ materially due to various risks and uncertainties - Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially[19](index=19&type=chunk) - Factors affecting utility and non-utility energy infrastructure operations (e.g., weather, outages, grid reliability) - Factors affecting demand for electricity and natural gas (e.g., economic conditions, climate change, commodity prices) - Timing, resolution, and impact of rate cases and regulatory decisions - Impact of federal, state, and local legislative and regulatory changes (e.g., tax laws, environmental regulations) - Risks of delays, shortages, and increased costs of equipment and materials due to trade policy, supply chain disruptions, and inflation - Risks involved in developing and implementing AI, including data privacy and regulatory scrutiny - Risks related to non-utility renewable energy facilities (e.g., weather, off-take agreements, component performance) - Changes in credit ratings, interest rates, and access to capital markets [PART I. FINANCIAL INFORMATION](index=14&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This part presents the unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition and results of operations [ITEM 1. FINANCIAL STATEMENTS (Unaudited)](index=14&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%20(UNAUDITED)) This section presents the unaudited condensed consolidated financial statements for WEC Energy Group, Inc., including income statements, balance sheets, cash flows, and equity, along with detailed notes [Condensed Consolidated Income Statements](index=14&type=section&id=Condensed%20Consolidated%20Income%20Statements) The company reported an increase in operating revenues and net income for both the three and six months ended June 30, 2025, compared to the prior year, with diluted EPS also showing growth Condensed Consolidated Income Statement Highlights (in millions, except per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Operating revenues | $2,009.5 | $1,772.0 | $5,159.0 | $4,452.2 | | Operating income | $404.9 | $364.8 | $1,342.4 | $1,178.2 | | Net income | $243.0 | $210.0 | $968.5 | $832.6 | | Net income attributed to common shareholders | $245.4 | $211.3 | $969.6 | $833.6 | | Diluted EPS | $0.76 | $0.67 | $3.02 | $2.64 | [Condensed Consolidated Statements of Comprehensive Income](index=15&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income for common shareholders increased for both the three and six months ended June 30, 2025, primarily driven by the increase in net income, with minimal impact from other comprehensive income/loss items Condensed Consolidated Statements of Comprehensive Income Highlights (in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income | $243.0 | $210.0 | $968.5 | $832.6 | | Other comprehensive income (loss), net of tax | — | — | (0.1) | (0.1) | | Comprehensive income attributed to common shareholders | $245.4 | $211.3 | $969.5 | $833.5 | [Condensed Consolidated Balance Sheets](index=16&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $48,524.3 million as of June 30, 2025, from $47,363.2 million at December 31, 2024, primarily due to growth in property, plant, and equipment, with common shareholders' equity also rising Condensed Consolidated Balance Sheet Highlights (in millions) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total assets | $48,524.3 | $47,363.2 | | Current assets | $2,599.1 | $2,911.7 | | Property, plant, and equipment, net | $36,060.8 | $34,645.4 | | Total liabilities and equity | $48,524.3 | $47,363.2 | | Current liabilities | $4,697.6 | $4,841.9 | | Long-term debt | $17,110.4 | $17,178.1 | | Common shareholders' equity | $13,223.1 | $12,395.0 | [Condensed Consolidated Statements of Cash Flows](index=18&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities increased to $2,015.9 million for the six months ended June 30, 2025, while net cash used in investing activities significantly increased due to higher capital expenditures and acquisitions Condensed Consolidated Statements of Cash Flows Highlights (in millions) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $2,015.9 | $1,901.0 | | Net cash used in investing activities | $(1,972.8) | $(1,250.8) | | Net cash used in financing activities | $(16.1) | $(512.5) | | Net change in cash, cash equivalents, and restricted cash | $27.0 | $137.7 | | Cash, cash equivalents, and restricted cash at end of period | $69.2 | $302.9 | [Condensed Consolidated Statements of Equity](index=19&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) Common shareholders' equity increased to $13,223.1 million at June 30, 2025, from $12,395.0 million at December 31, 2024, driven by net income and stock issuance, partially offset by dividends Condensed Consolidated Statements of Equity Highlights (in millions) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Common Shareholders' Equity | $13,223.1 | $12,395.0 | | Net income attributed to common shareholders (6 months) | $969.6 | $833.6 | | Issuance of common stock, net (6 months) | $398.8 | $38.2 | | Dividends paid on common stock (6 months) | $(568.7) | $(527.2) | [Notes to Condensed Consolidated Financial Statements](index=21&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations and disclosures for the condensed consolidated financial statements, covering significant accounting policies, acquisitions, revenues, credit losses, regulatory items, and other financial details [Note 1 General Information](index=21&type=section&id=Note%201%20General%20Information) WEC Energy Group serves approximately 1.7 million electric and 3.0 million natural gas customers, holds a 60% stake in ATC, and prepares interim financial statements under SEC rules and GAAP - WEC Energy Group serves approximately **1.7 million electric customers** and **3.0 million natural gas customers**[37](index=37&type=chunk) - The company owns approximately **60% of ATC** and majority interests in multiple renewable generating facilities[37](index=37&type=chunk) - Interim financial statements are prepared under SEC rules and GAAP, with all necessary adjustments for fair presentation[41](index=41&type=chunk)[42](index=42&type=chunk) [Note 2 Acquisitions](index=21&type=section&id=Note%202%20Acquisitions) WEC Energy Group completed several asset acquisitions, including a 90% ownership interest in Hardin III, a 250 MW solar facility in Ohio, for $406.1 million in February 2025, and increased stakes in other facilities - **Hardin III Acquisition:** In February 2025, WECI acquired a **90% ownership interest** in Hardin III, a **250 MW solar generating facility** in Ohio, for **$406.1 million**. The project qualifies for PTCs and has a 15-year offtake agreement - **West Riverside Acquisition:** In May 2024, WE acquired **100 MWs of West Riverside's capacity** for **$98.2 million**, increasing its total ownership to **200 MWs (27.5%)** at a cost of **$193.5 million** - **Samson I Acquisition:** In January 2024, WECI acquired an additional **10% ownership interest** in Samson I, a **250 MW solar facility** in Texas, for **$28.1 million**. Samson I qualifies for PTCs and has a 15-year offtake agreement [Note 3 Operating Revenues](index=22&type=section&id=Note%203%20Operating%20Revenues) Total operating revenues increased for both the three and six months ended June 30, 2025, driven by electric and natural gas utility operations across segments and non-utility energy infrastructure contributions Total Operating Revenues by Segment (in millions) | Segment | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Wisconsin | $1,587.2 | $1,368.2 | $3,647.1 | $3,147.0 | | Illinois | $270.6 | $276.8 | $1,058.9 | $942.8 | | Other States | $82.3 | $71.0 | $309.4 | $255.6 | | Non-Utility Energy Infrastructure | $189.4 | $175.6 | $383.7 | $346.5 | | Total Operating Revenues | $2,009.5 | $1,772.0 | $5,159.0 | $4,452.2 | Electric Utility Operating Revenues by Customer Class (in millions) | Customer Class | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Residential | $511.9 | $458.6 | $1,056.9 | $941.8 | | Small commercial and industrial | $423.3 | $383.6 | $844.4 | $775.3 | | Large commercial and industrial | $257.8 | $224.9 | $496.1 | $442.5 | | Total electric utility operating revenues | $1,303.1 | $1,148.5 | $2,623.1 | $2,333.8 | Natural Gas Utility Operating Revenues by Customer Class (in millions) | Customer Class | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Residential | $433.5 | $317.1 | $1,530.6 | $1,201.1 | | Commercial and industrial | $158.5 | $110.9 | $613.2 | $463.7 | | Total natural gas utility operating revenues | $634.1 | $534.0 | $2,351.2 | $1,897.4 | Other Non-Utility Operating Revenues (in millions) | Revenue Source | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Renewable generation revenues | $48.1 | $49.3 | $101.9 | $93.8 | | We Power revenues | $6.1 | $6.1 | $12.2 | $12.1 | | Appliance service revenues | $5.4 | $4.9 | $10.9 | $9.9 | | Total other non-utility operating revenues | $59.6 | $60.3 | $125.0 | $115.8 | [Note 4 Credit Losses](index=28&type=section&id=Note%204%20Credit%20Losses) The allowance for credit losses decreased by $20.6 million to $142.2 million at June 30, 2025, from $162.8 million at January 1, 2025, primarily due to customer write-offs and improved collection efforts, with a significant portion of receivables mitigated by regulatory mechanisms Accounts Receivable and Allowance for Credit Losses (in millions) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Accounts receivable and unbilled revenues | $1,638.6 | $1,832.1 | | Allowance for credit losses | $142.2 | $162.8 | | Accounts receivable and unbilled revenues, net | $1,496.4 | $1,669.3 | | Past due greater than 90 days, net | $106.3 | $84.4 | | Collection risk mitigated by regulatory mechanisms | 94.0% | 93.2% | Roll-forward of Allowance for Credit Losses (Six Months Ended June 30, 2025, in millions) | Activity | Amount | | :--- | :--- | | Balance at January 1, 2025 | $162.8 | | Provision for credit losses | $68.0 | | Provision for credit losses deferred for future recovery or refund | $(27.3) | | Write-offs charged against the allowance | $(114.9) | | Recoveries of amounts previously written off | $53.6 | | Balance at June 30, 2025 | $142.2 | - The decrease in allowance for credit losses is largely due to customer write-offs in Wisconsin and a decrease in past due account balances, attributed to collection efforts and lower energy bills in spring/summer[63](index=63&type=chunk) [Note 5 Regulatory Assets and Liabilities](index=32&type=section&id=Note%205%20Regulatory%20Assets%20and%20Liabilities) Total regulatory assets decreased to $3,256.0 million at June 30, 2025, while total regulatory liabilities increased, with key items including plant retirement, pension/OPEB costs, and income tax related items Regulatory Assets (in millions) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Plant retirement related items | $800.6 | $810.5 | | Pension and OPEB costs | $637.5 | $684.9 | | Environmental remediation costs | $527.3 | $570.1 | | Income tax related items | $465.5 | $438.5 | | Total regulatory assets | $3,256.0 | $3,378.7 | Regulatory Liabilities (in millions) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Income tax related items | $1,809.5 | $1,825.4 | | Removal costs | $1,520.0 | $1,458.2 | | Pension and OPEB benefits | $297.3 | $308.5 | | Energy costs refundable through rate adjustments | $233.4 | $160.8 | | Total regulatory liabilities | $4,131.5 | $4,003.3 | [Note 6 Property, Plant, and Equipment](index=33&type=section&id=Note%206%20Property,%20Plant,%20and%20Equipment) WEC Energy Group extended the retirement plans for Oak Creek Power Plant Units 7 and 8 to the end of 2026 and recognized impairment losses totaling $11.6 million at its Samson I and Delilah I solar facilities due to storm damage - **OCPP Units 7 and 8:** Retirement plans extended to end of 2026 (originally end of 2025). Net book value was **$639.3 million** at June 30, 2025 - **Columbia Energy Center Units 1 and 2:** Expected to be retired by end of 2029, with exploration of natural gas conversion. Net book value was **$243.4 million** at June 30, 2025 - **Samson I and Delilah I Solar Facilities:** Recognized an **$8.8 million impairment loss** in Q2 2025 due to March 2025 storm damage. An earlier **$2.8 million impairment loss** from 2023 and 2024 storms was also recognized due to unrecoverable insurance proceeds [Note 7 Common Equity](index=33&type=section&id=Note%207%20Common%20Equity) The company's common stock outstanding increased to 321,866,395 shares at June 30, 2025, with $466.0 million (net) generated from stock issuance and a quarterly cash dividend of $0.8925 per share declared - **Stock-Based Compensation:** Awarded **231,024 stock options**, **79,170 restricted shares**, and **185,945 performance units** during the six months ended June 30, 2025 - **Dividend Restrictions:** Subsidiary financing arrangements and regulatory requirements impose restrictions on fund transfers, but these are not expected to materially affect operations or dividend payments - **Common Stock Issuance:** Issued **3,504,367 shares** under the at-the-market offering program, generating **$466.0 million (net)** in proceeds for the six months ended June 30, 2025 - **Shares Outstanding:** Common stock shares outstanding increased to **321,866,395** at June 30, 2025, from **317,680,855** at December 31, 2024 - **Dividends Declared:** A quarterly cash dividend of **$0.8925 per share** was declared on July 17, 2025, payable September 1, 2025 Earnings Per Share (in millions, except per share amounts) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income attributed to common shareholders | $245.4 | $211.3 | $969.6 | $833.6 | | Weighted average basic shares outstanding | 320.3 | 315.9 | 319.3 | 315.8 | | Basic EPS | $0.77 | $0.67 | $3.04 | $2.64 | | Diluted EPS | $0.76 | $0.67 | $3.02 | $2.64 | [Note 8 Short-Term Debt and Lines of Credit](index=35&type=section&id=Note%208%20Short-Term%20Debt%20and%20Lines%20of%20Credit) Commercial paper outstanding decreased to $806.4 million at June 30, 2025, with a weighted-average interest rate of 4.53%, and the company maintains $3,300.0 million in total short-term credit capacity Short-Term Borrowings (in millions, except percentages) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Commercial paper outstanding | $806.4 | $1,114.4 | | Weighted-average interest rate on commercial paper | 4.53% | 4.63% | | Operating expense loans outstanding | $3.9 | $2.2 | Revolving Credit Facilities (in millions) | Metric | June 30, 2025 | | :--- | :--- | | Total short-term credit capacity | $3,300.0 | | Less: Letters of credit issued | $2.3 | | Less: Commercial paper outstanding | $806.4 | | Available capacity | $2,491.3 | [Note 9 Long-Term Debt](index=36&type=section&id=Note%209%20Long-Term%20Debt) WEC Energy Group issued $900.0 million of 3.375% Convertible Senior Notes due June 1, 2028, in June 2025, to repay short-term debt, alongside other debt maturities and new senior note issuances by subsidiaries - **2028 Convertible Senior Notes:** Issued **$900.0 million of 3.375% notes** due June 1, 2028, in June 2025. Initial conversion rate is **7.7901 shares per $1,000 principal amount** - **Debt Maturities:** **$120.0 million of 3.55% Senior Notes** and WE's **$250.0 million of 3.10% Debentures** matured and were repaid in June 2025 - **MERC and MGU Notes:** MERC issued **$50.0 million of 5.20% Senior Notes** due May 1, 2030, to repay maturing debt. MGU issued **$75.0 million of 5.20% Senior Notes** due May 1, 2030, to repay maturing debt and intercompany short-term debt Convertible Debt Instruments Summary (June 30, 2025, in millions) | Instrument | Principal Amount | Net Carrying Amount | Fair Value Amount | | :--- | :--- | :--- | :--- | | 2027 Notes | $862.5 | $856.1 | $968.5 | | 2028 Notes | $900.0 | $888.8 | $902.9 | | 2029 Notes | $862.5 | $854.7 | $991.1 | Interest Expense for Convertible Notes (in millions) | Instrument | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | 2027 Notes | $10.4 | $3.8 | $20.6 | $3.8 | | 2028 Notes | $2.1 | — | $2.1 | — | | 2029 Notes | $10.0 | $3.7 | $19.9 | $3.7 | [Note 10 Leases](index=37&type=section&id=Note%2010%20Leases) WECI acquired land leases for the Hardin III solar facility in Ohio, with total operating lease obligations of $29.4 million, while WE and WPS entered into finance land leases for the High Noon solar facility with total obligations of $66.6 million - **Hardin III Operating Leases:** WECI acquired land leases for Hardin III, with terms up to 50 years. Total obligation was **$29.4 million** at June 30, 2025, with a weighted-average discount rate of **6.30%** - **High Noon Finance Leases:** WE and WPS entered into land leases for the High Noon solar facility. Total obligation was **$66.6 million** at June 30, 2025, with a weighted-average discount rate of **6.45%**. Commercial operation is targeted for 2027 Future Minimum Lease Payments (in millions) | Year | Operating Leases | Finance Leases | | :--- | :--- | :--- | | Six Months Ended December 31, 2025 | $0.4 | $2.7 | | 2026 | $1.5 | $1.4 | | 2027 | $1.5 | $1.8 | | 2028 | $1.5 | $3.6 | | 2029 | $1.6 | $3.7 | | 2030 | $1.6 | $3.8 | | Thereafter | $110.2 | $290.8 | | Total minimum lease payments | $118.3 | $307.8 | | Present value of minimum lease payments | $29.4 | $66.6 | [Note 11 Materials, Supplies, and Inventories](index=38&type=section&id=Note%2011%20Materials,%20Supplies,%20and%20Inventories) Total inventories decreased to $703.0 million at June 30, 2025, primarily due to a reduction in natural gas in storage, with PGL and NSG recording a temporary LIFO liquidation credit of $12.8 million Inventories Composition (in millions) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Materials and supplies | $399.4 | $412.5 | | Natural gas in storage | $209.9 | $300.2 | | Fossil fuel | $93.7 | $100.5 | | Total | $703.0 | $813.2 | - PGL and NSG price natural gas storage injections at the calendar year average and withdrawals using the LIFO method. A temporary LIFO liquidation credit of **$12.8 million** was recorded at June 30, 2025[98](index=98&type=chunk)[99](index=99&type=chunk) [Note 12 Income Taxes](index=39&type=section&id=Note%2012%20Income%20Taxes) Total income tax expense decreased for both the three and six months ended June 30, 2025, with lower effective tax rates primarily due to Production Tax Credits (PTCs) and federal excess deferred tax amortization Income Tax Expense and Effective Tax Rate (in millions, except percentages) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total income tax expense | $19.5 | $41.6 | $80.2 | $129.3 | | Effective Tax Rate | 7.4% | 16.5% | 7.6% | 13.4% | | Statutory federal income tax | $55.6 | $53.1 | $220.4 | $202.2 | | PTCs, net | $(40.5) | $(22.2) | $(160.6) | $(110.2) | | Federal excess deferred tax amortization | $(6.8) | $(4.9) | $(25.5) | $(20.3) | - The effective tax rates are primarily influenced by PTCs from renewable generation facilities and federal excess deferred tax amortization[100](index=100&type=chunk) - The company entered into agreements to sell the majority of its 2025 and 2026 PTCs to third parties, and also sold remaining unsold 2024 PTCs[102](index=102&type=chunk) [Note 13 Fair Value Measurements](index=40&type=section&id=Note%2013%20Fair%20Value%20Measurements) The company categorizes fair value measurements into a three-level hierarchy, with derivative assets increasing to $56.4 million and derivative liabilities to $15.8 million at June 30, 2025 - Fair value measurements are classified into Level 1 (quoted prices in active markets), Level 2 (observable inputs not quoted prices), and Level 3 (unobservable inputs)[105](index=105&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk) Financial Assets and Liabilities at Fair Value (June 30, 2025, in millions) | Category | Level 1 | Level 2 | Level 3 | Total | | :--- | :--- | :--- | :--- | :--- | | Derivative assets: Natural gas contracts | $19.2 | $18.2 | — | $37.4 | | Derivative assets: FTRs and TCRs | — | — | $19.0 | $19.0 | | Total derivative assets | $19.2 | $18.2 | $19.0 | $56.4 | | Investments held in rabbi trust | $37.9 | — | — | $37.9 | | Derivative liabilities: Natural gas contracts | $6.5 | $9.3 | — | $15.8 | Changes in Level 3 Derivatives (in millions) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Balance at beginning of period | $3.0 | $2.6 | $7.8 | $7.2 | | Purchases | $22.5 | $25.8 | $23.7 | $26.8 | | Net realized and unrealized gains (losses) | $0.3 | $(0.2) | — | $(1.0) | | Settlements | $(6.8) | $(7.4) | $(12.5) | $(12.2) | | Balance at end of period | $19.0 | $20.8 | $19.0 | $20.8 | [Note 14 Derivative Instruments](index=42&type=section&id=Note%2014%20Derivative%20Instruments) WEC Energy Group uses derivatives to manage market risks related to interest rates, purchased power, generation, and natural gas costs, with total derivative assets increasing to $56.4 million and liabilities to $15.8 million at June 30, 2025 - Derivatives are used for non-speculative risk management of interest rates, purchased power, generation, and natural gas costs, with regulatory approval for hedging programs[115](index=115&type=chunk) Derivative Assets and Liabilities (in millions) | Category | June 30, 2025 Assets | June 30, 2025 Liabilities | December 31, 2024 Assets | December 31, 2024 Liabilities | | :--- | :--- | :--- | :--- | :--- | | Current Natural gas contracts | $33.7 | $15.5 | $29.2 | $13.9 | | Current FTRs and TCRs | $19.0 | — | $7.8 | — | | Long-term Natural gas contracts | $3.7 | $0.3 | $4.1 | — | | Total | $56.4 | $15.8 | $41.1 | $13.9 | Realized Gains (Losses) on Derivatives (in millions) | Contract Type | 3 Months Ended June 30, 2025 Gains | 3 Months Ended June 30, 2024 Gains (Losses) | 6 Months Ended June 30, 2025 Gains | 6 Months Ended June 30, 2024 Gains (Losses) | | :--- | :--- | :--- | :--- | :--- | | Natural gas contracts | $6.5 | $(29.8) | $4.6 | $(86.7) | | FTRs and TCRs | $3.3 | $2.0 | $4.8 | $3.6 | | Total | $9.8 | $(27.8) | $9.4 | $(83.1) | [Note 15 Guarantees](index=43&type=section&id=Note%2015%20Guarantees) The company has total outstanding guarantees of $234.5 million at June 30, 2025, primarily consisting of standby letters of credit and surety bonds for various operational and environmental obligations Outstanding Guarantees (in millions) | Type of Guarantee | Total Committed at June 30, 2025 | Less Than 1 Year | 1 to 3 Years | Over 3 Years | | :--- | :--- | :--- | :--- | :--- | | Standby letters of credit | $177.4 | $20.7 | $30.0 | $126.7 | | Surety bonds | $46.5 | $44.6 | $1.9 | — | | Other guarantees | $10.6 | — | — | $10.6 | | Total guarantees | $234.5 | $65.3 | $31.9 | $137.3 | [Note 16 Employee Benefits](index=44&type=section&id=Note%2016%20Employee%20Benefits) For the six months ended June 30, 2025, net periodic pension benefit cost was $5.2 million and OPEB benefit credit was $(17.4) million, with contributions made to both plans and regulatory assets established Net Periodic Benefit Cost (Credit) (in millions) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Pension Benefits: Net periodic benefit cost (credit) | $(0.3) | $4.2 | $5.2 | $9.0 | | OPEB Benefits: Net periodic benefit credit | $(8.5) | $(10.1) | $(17.4) | $(20.1) | - Contributions and payments made during the six months ended June 30, 2025: **$6.2 million** for pension plans and **$0.9 million** for OPEB plans - Regulatory assets at June 30, 2025: **$12.1 million** for pension costs and **$28.3 million** for OPEB costs, with amortization beginning in 2025 [Note 17 Goodwill and Intangibles](index=44&type=section&id=Note%2017%20Goodwill%20and%20Intangibles) Goodwill remained unchanged at $3,052.8 million at June 30, 2025, with no impairment losses, while intangible liabilities primarily from PPAs increased to $609.7 million Goodwill Balance by Segment (June 30, 2025, in millions) | Segment | Goodwill Balance | | :--- | :--- | | Wisconsin | $2,104.3 | | Illinois | $758.7 | | Other States | $183.2 | | Non-Utility Energy Infrastructure | $6.6 | | Total | $3,052.8 | - **Other Indefinite-Lived Intangible Assets:** **$29.3 million**, mainly spectrum frequencies, and **$5.2 million** for an MGU trade name - **Finite-Lived Intangible Asset:** **$18.8 million** related to a PPA for Maple Flats Solar Energy Center, amortized over 15 years - **Intangible Liabilities:** Increased to **$609.7 million** at June 30, 2025, from **$566.8 million** at December 31, 2024, primarily from PPAs related to renewable energy acquisitions. Amortization for these liabilities was **$28.7 million** for the six months ended June 30, 2025 [Note 18 Investment in Transmission Affiliates](index=46&type=section&id=Note%2018%20Investment%20in%20Transmission%20Affiliates) WEC Energy Group's equity investment in transmission affiliates increased to $2,200.1 million at June 30, 2025, driven by equity earnings and capital contributions Investment in Transmission Affiliates (in millions) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Equity investment in ATC | $2,177.5 | $2,085.1 | | Equity investment in ATC Holdco | $22.6 | $23.8 | | Total | $2,200.1 | $2,108.9 | Changes in Investment in Transmission Affiliates (Six Months Ended June 30, 2025, in millions) | Activity | ATC | ATC Holdco | Total | | :--- | :--- | :--- | :--- | | Balance at beginning of period | $2,085.1 | $23.8 | $2,108.9 | | Add: Earnings from equity method investment | $100.3 | $5.2 | $105.5 | | Add: Capital contributions | $87.8 | — | $87.8 | | Less: Distributions | $95.7 | $6.4 | $102.1 | | Balance at end of period | $2,177.5 | $22.6 | $2,200.1 | Summarized Financial Data for ATC (in millions) | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--- | :--- | :--- | | Operating revenues | $476.1 | $430.2 | | Net income | $160.0 | $145.2 | | Total assets (June 30, 2025) | $7,294.9 | $6,919.2 | | Members' equity (June 30, 2025) | $2,961.1 | $2,808.4 | [Note 19 Segment Information](index=47&type=section&id=Note%2019%20Segment%20Information) WEC Energy Group operates through six segments, with the President and CEO using net income attributed to common shareholders to assess profitability and allocate resources, and segment accounting policies aligning with consolidated policies - **Wisconsin Segment:** Electric and natural gas utility operations of WE, WPS, WG, and UMERC - **Illinois Segment:** Natural gas utility operations of PGL and NSG - **Other States Segment:** Natural gas utility operations of MERC and MGU and non-utility operations of MERC - **Electric Transmission Segment:** Approximately **60% ownership in ATC** and **75% in ATC Holdco** - **Non-Utility Energy Infrastructure Segment:** We Power (generation facilities leased to WE), Bluewater (natural gas storage), and WECI (renewable generating facilities) - **Corporate and Other Segment:** WEC Energy Group holding company, Integrys holding company, Peoples Energy, LLC holding company, Wispark LLC, Wisvest LLC, Wisconsin Energy Capital Corporation, and WEC Business Services LLC Net Income (Loss) Attributed to Common Shareholders by Segment (in millions) | Segment | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Wisconsin | $182.4 | $132.1 | $542.3 | $398.5 | | Illinois | $22.6 | $25.7 | $200.7 | $213.2 | | Other States | $3.5 | $0.6 | $46.6 | $39.2 | | Electric Transmission | $35.6 | $31.4 | $72.5 | $61.5 | | Non-utility energy infrastructure | $82.3 | $93.3 | $191.1 | $187.6 | | Corporate and other | $(81.0) | $(71.8) | $(83.6) | $(66.4) | | WEC Energy Group Consolidated | $245.4 | $211.3 | $969.6 | $833.6 | [Note 20 Variable Interest Entities](index=55&type=section&id=Note%2020%20Variable%20Interest%20Entities) WEPCo Environmental Trust Finance I, LLC is consolidated as a VIE due to WE being its primary beneficiary, while ATC and ATC Holdco are VIEs accounted for using the equity method due to limited voting rights - **WEPCo Environmental Trust Finance I, LLC:** Consolidated as a VIE; WE is the primary beneficiary and servicer of environmental control property, which secures ETBs - **ATC and ATC Holdco:** Determined to be VIEs but not consolidated. WEC Energy Group accounts for them as equity method investments due to limited voting rights, with maximum exposure to loss approximating the equity investment Impact of WEPCo Environmental Trust on Balance Sheets (in millions) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets: Regulatory assets | $72.2 | $76.5 | | Liabilities: Current portion of long-term debt | $9.2 | $9.2 | | Liabilities: Long-term debt | $71.9 | $76.4 | [Note 21 Commitments and Contingencies](index=57&type=section&id=Note%2021%20Commitments%20and%20Contingencies) WEC Energy Group has significant commitments, including $9.4 billion in future purchase obligations, and faces ongoing environmental compliance and remediation obligations subject to EPA deregulatory efforts and legal challenges - Minimum future purchase obligations totaled approximately **$9.4 billion** as of June 30, 2025, for electricity, natural gas, and related services[159](index=159&type=chunk) - **EPA Deregulatory Actions:** In March 2025, EPA announced 31 deregulatory actions impacting rules like the Good Neighbor Rule, MATS, PM Standard, and GHG Power Plant Rule, which are being monitored for potential risks and benefits - **Good Neighbor Rule:** Supreme Court granted a stay in June 2024, and the D.C. Circuit Court of Appeals held the case in abeyance. EPA issued an Interim Final Rule in November 2024 to administratively stay the rule in all states - **MATS:** EPA proposed to repeal the 2024 Final Action in June 2025, which had lowered the PM limit, citing compliance costs and technical feasibility concerns - **NAAQS (Ozone & Particulate Matter):** Milwaukee, Sheboygan, and Chicago areas reclassified to 'serious' nonattainment for ozone, potentially impacting future permitting. EPA finalized a rule lowering the primary annual PM2.5 NAAQS to **9 µg/m3** in February 2024 - **Climate Change (GHG Power Plant Rule):** EPA proposed to exclude the power sector from GHG regulation or eliminate carbon capture requirements in June 2025. The company reconsidered near-term CO2 emission reduction goals but maintains a long-term goal of net carbon neutral electric generation by 2050 - **Steam Electric Effluent Limitation Guidelines (ELG):** The 2024 Supplemental ELG Rule established zero discharge requirements for certain wastewaters. The company plans to opt into the 'cessation of coal by December 31, 2034' subcategory for ERGS and Weston facilities. Litigation challenging the rule is in abeyance - **Manufactured Gas Plant Remediation:** Regulatory assets and reserves established for remediation costs, which are historically recoverable through rates - **Coal Combustion Residuals (CCR) Rule:** Final rule effective November 2024, regulating previously exempt closed landfills. Litigation challenging the rule is in abeyance [Note 22 Supplemental Cash Flow Information](index=69&type=section&id=Note%2022%20Supplemental%20Cash%20Flow%20Information) Cash paid for interest was $429.2 million and cash received for income taxes was $(133.2) million for the six months ended June 30, 2025, with restricted cash totaling $69.2 million Supplemental Cash Flow Information (Six Months Ended June 30, in millions) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Cash paid for interest, net of amount capitalized | $429.2 | $377.7 | | Cash received for income taxes, net | $(133.2) | $(172.8) | | Accounts payable related to construction costs | $153.9 | $167.1 | | Common stock issued for stock-based compensation plans | $3.2 | $6.4 | Restricted Cash Reconciliation (in millions) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $23.0 | $9.8 | | Restricted cash included in other current assets | $11.7 | $5.3 | | Restricted cash included in other long-term assets | $34.5 | $27.1 | | Total cash, cash equivalents, and restricted cash | $69.2 | $42.2 | [Note 23 Regulatory Environment](index=69&type=section&id=Note%2023%20Regulatory%20Environment) WE filed for new VLC and Bespoke Resources Tariffs, PGL and NSG are appealing ICC rate orders, and UMERC filed an Amended Renewable Energy Plan, reflecting ongoing regulatory developments - **WE VLC and Bespoke Resources Tariffs:** Filed in March 2025, these tariffs propose that very large customers (**500 MW+**), such as data centers, directly pay for dedicated power plants and distribution facilities. A PSCW decision is expected in Q2 2026 - **PGL and NSG 2023 Rate Order Appeal:** PGL and NSG appealed ICC orders disallowing **$237.9 million** in capital costs and **$116.0 million** for PGL's natural gas delivery system. The ICC also directed PGL to replace cast and ductile iron pipes under 36 inches by January 1, 2035 - **Uncollectible Expense Adjustment (UEA) Rider:** PGL and NSG's petition to the Illinois Supreme Court regarding a **$15.4 million** and **$0.7 million** refund order for the 2018 UEA rider was denied in March 2025. Open reconciliation years (2019-2024) have combined annual costs of **$10 million to $40 million**, with potential for material disallowances - **Qualifying Infrastructure Plant (QIP) Rider:** PGL's 2016 QIP reconciliation resulted in a **$14.8 million** disallowance, leading to a **$25.3 million pre-tax charge** in Q3 2024. PGL is appealing this order. Pending QIP reconciliations (2017-2023) involve approximately **$2.9 billion** in capital costs and returns, with potential for material disallowances - **UMERC Amended Renewable Energy Plan (AREP):** Filed in February 2025, UMERC's AREP seeks MPSC approval to recover compliance costs for renewable portfolio standards, including its **$226 million Renegade solar facility (100 MW)**, expected to be completed in February 2026 [Note 24 New Accounting Pronouncements](index=47&type=section&id=Note%2024%20New%20Accounting%20Pronouncements) The FASB issued ASU No. 2024-03 requiring disaggregation of income statement expenses and ASU No. 2023-09 requiring improved income tax disclosures, both effective for future annual periods - **ASU No. 2024-03 (Expense Disaggregation):** Requires disclosure of disaggregated income statement expenses, effective for annual periods after December 15, 2026. Early adoption is permitted - **ASU No. 2023-09 (Income Tax Disclosures):** Requires additional disclosures for income taxes paid and the rate reconciliation table, effective for annual periods after December 15, 2024. Early adoption is permitted [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=76&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides management's perspective on the company's financial performance, strategic initiatives, and future outlook, detailing corporate developments, results of operations, liquidity, capital resources, and risk factors [Corporate Developments](index=76&type=section&id=CORPORATE%20DEVELOPMENTS) WEC Energy Group is a diversified holding company focused on long-term value creation through environmental stewardship, reliability, operating efficiency, financial discipline, customer care, and safety, with a capital plan emphasizing zero-carbon renewables and efficient natural gas - WEC Energy Group is a diversified holding company with natural gas and electric utility operations, an equity interest in ATC, and non-utility energy infrastructure operations[221](index=221&type=chunk) - **Corporate Strategy:** Focuses on environmental stewardship, reliability, operating efficiency, financial discipline, exceptional customer care, and safety to build long-term value - **Sustainable Future:** Capital plan includes retiring older fossil-fueled generation (**2,500 MWs since 2018, 1,200 MWs more by 2031**) and replacing it with zero-carbon renewables and efficient natural gas-fired generation - **Renewable Investments (2025-2029):** Approximately **$9.1 billion** in regulated renewable energy in Wisconsin, including **2,900 MWs of utility-scale solar, 900 MWs of wind, and 565 MWs of battery storage** - **Natural Gas Generation Investments:** Plans for **1,100 MWs of combustion turbines** at OCPP, an additional **675 MWs of combustion turbines**, and **242 MWs of RICE natural gas-fueled generation** - **Methane Emission Reductions:** Continued focus on upgrading natural gas distribution systems and using Renewable Natural Gas (RNG), with **2.1 Bcf of RNG contracts** in place. Reassessing standalone methane emission goals - **Reliability:** Investing approximately **$4.5 billion** from 2025-2029 in electric distribution projects, including LNG facilities (**2 Bcf approved, 4 Bcf proposed**) to reduce natural gas system constraints - **Operating Efficiency:** Progressing on AMI program for smart meters and two-way communication, aiming to reduce manual effort and enhance outage management - **Financial Discipline:** Planned investment focus from 2025-2029 includes **$24.4 billion** in regulated utilities and **$3.2 billion** in ATC. Acquired Hardin III for **$406.1 million** in February 2025 [Results of Operations](index=81&type=section&id=RESULTS%20OF%20OPERATIONS) Consolidated net income attributed to common shareholders increased for Q2 and the six months ended June 30, 2025, driven by the Wisconsin and Electric Transmission segments, partially offset by increased losses in Corporate and Other and decreased earnings in Illinois Consolidated Net Income Attributed to Common Shareholders (in millions, except per share data) | Segment | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Wisconsin | $182.4 | $132.1 | $542.3 | $398.5 | | Illinois | $22.6 | $25.7 | $200.7 | $213.2 | | Other States | $3.5 | $0.6 | $46.6 | $39.2 | | Electric Transmission | $35.6 | $31.4 | $72.5 | $61.5 | | Non-utility energy infrastructure | $82.3 | $93.3 | $191.1 | $187.6 | | Corporate and other | $(81.0) | $(71.8) | $(83.6) | $(66.4) | | Total Net income attributed to common shareholders | $245.4 | $211.3 | $969.6 | $833.6 | | Diluted EPS | $0.76 | $0.67 | $3.02 | $2.64 | - The Wisconsin segment's earnings increased significantly due to higher margins from 2025 rate orders and higher retail sales volumes, partially offset by increased operating expenses[245](index=245&type=chunk)[250](index=250&type=chunk)[299](index=299&type=chunk)[302](index=302&type=chunk) - The Illinois segment experienced decreased earnings primarily due to higher operating expenses, including maintenance costs at Manlove Gas Storage Field and the period-over-period impact of a favorable legal claim settlement in 2024[246](index=246&type=chunk)[261](index=261&type=chunk)[297](index=297&type=chunk)[316](index=316&type=chunk) - The Electric Transmission segment's earnings increased due to continued capital investment by ATC and a gain from an investment sale at ATC Holdco[297](index=297&type=chunk)[337](index=337&type=chunk) - The Non-Utility Energy Infrastructure segment saw a decrease in operating income due to lower performance payments and storm-related impairment losses, partially offset by new investments and increased PTCs[246](index=246&type=chunk)[288](index=288&type=chunk)[289](index=289&type=chunk)[291](index=291&type=chunk)[341](index=341&type=chunk)[343](index=343&type=chunk) - The Corporate and Other segment's net loss increased due to higher interest expense from long-term debt issuances and decreased earnings from equity method investments[246](index=246&type=chunk)[293](index=293&type=chunk)[297](index=297&type=chunk)[346](index=346&type=chunk) [Liquidity and Capital Resources](index=112&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) WEC Energy Group expects to maintain adequate liquidity through internal cash generation and capital market access, with operating cash flow increasing and significant capital projects planned for 2025-2027, primarily in Wisconsin - The company expects to maintain adequate liquidity through internal cash generation from operations and access to capital markets[348](index=348&type=chunk)[376](index=376&type=chunk) Cash Flow Summary (Six Months Ended June 30, in millions) | Activity | 2025 | 2024 | Change in 2025 Over 2024 | | :--- | :--- | :--- | :--- | | Operating activities | $2,015.9 | $1,901.0 | $114.9 | | Investing activities | $(1,972.8) | $(1,250.8) | $(722.0) | | Financing activities | $(16.1) | $(512.5) | $496.4 | - **Operating Activities:** Increased cash by **$114.9 million**, driven by higher customer collections due to rate orders, higher natural gas costs, and colder weather, partially offset by increased operating and maintenance expenses and lower cash received for income taxes - **Investing Activities:** Increased cash used by **$722.0 million**, primarily due to the **$406.1 million acquisition of Hardin III** and a **$392.1 million increase in capital expenditures** - **Financing Activities:** Decreased cash used by **$496.4 million**, mainly due to lower net repayments of commercial paper and higher common stock issuances, partially offset by lower long-term debt issuances and higher common stock dividends Estimated Capital Expenditures and Acquisitions (in millions) | Segment | 2025 | 2026 | 2027 | | :--- | :--- | :--- | :--- | | Wisconsin | $4,202.4 | $4,410.7 | $4,873.2 | | Illinois | $373.7 | $404.8 | $369.7 | | Other states | $106.5 | $121.4 | $123.4 | | Non-utility energy infrastructure | $437.6 | $23.1 | $33.8 | | Corporate and other | $17.9 | $10.2 | $2.4 | | Total | $5,138.1 | $4,970.2 | $5,402.5 | - **Significant Capital Projects:** Include solar, wind, battery storage, and natural gas-fired generation facilities (e.g., Paris, Darien, Koshkonong, High Noon, Renegade, OCPP combustion turbines, LNG facilities) - **ATC Capital Contributions:** Expected to be approximately **$445 million** from 2025 through 2027, plus a portion of MISO Tranche 1 investment (**$580 million** from 2025-2029) - **Common Stock Dividends:** Current quarterly dividend rate is **$0.8925 per share**, or **$3.57 annually** - **Capitalization Structure (June 30, 2025, in millions):** * Common shareholders' equity: **$13,223.1** (Actual), **$13,598.1** (Adjusted) * Long-term debt (including current portion): **$19,360.8** (Actual), **$18,985.8** (Adjusted) * Ratio of debt to total capitalization: **60.3%** (Actual), **59.2%** (Adjusted) - **Debt Covenants:** In compliance with all debt covenants at June 30, 2025, and expect to remain so - **Credit Rating Risk:** Moody's changed PGL's rating outlook to stable from negative in March 2025, affirming its Aa3 senior secured rating and P-1 short term rating [Factors Affecting Results, Liquidity, and Capital Resources](index=124&type=section&id=FACTORS%20AFFECTING%20RESULTS,%20LIQUIDITY,%20AND%20CAPITAL%20RESOURCES) This section discusses key factors impacting the company's financial performance, including regulatory, legislative, and legal matters, as well as market and other significant risks, such as trade policies and new energy legislation - **Regulatory Recovery:** Recovery of deferred costs is subject to regulator approval. Ongoing ICC proceedings for PGL and NSG's UEA and QIP riders could result in material disallowances - **Illinois Proceedings:** ICC ordered PGL to pause spending on natural gas delivery system upgrades and focus on replacing cast and ductile iron pipes by 2035. A statewide 'Future of Gas' proceeding is exploring decarbonization of the gas distribution system - **Chicago Decarbonization Efforts:** The proposed Clean and Affordable Buildings Ordinance (CABO) in Chicago could prohibit natural gas use in new buildings, potentially impacting PGL's future natural gas operations - **Uyghur Forced Labor Prevention Act (UFLPA):** CBP's enforcement of UFLPA on silica-based products from Xinjiang, China, could impact solar panel supply, timing, and cost of solar projects - **United States Department of Commerce Complaints:** DOC imposed duties on solar cells from four Southeast Asian countries, increasing costs and causing delays for solar projects. New petitions filed in July 2025 could further strain the solar panel industry - **Renewable Energy Legislation (IRA & OBBBA):** The IRA provides tax benefits for renewable technologies and allows tax credit transferability. The OBBBA (signed July 4, 2025) modifies clean-energy tax credits, requiring construction starts by July 4, 2026, and in-service dates by December 31, 2027, for wind and solar projects to qualify for PTCs/ITCs - **FERC ROE Incentive:** A proposed FERC rule could limit the **50 basis point ROE incentive** for transmission organization membership, potentially reducing future after-tax equity earnings from ATC by approximately **$8 million annually** - **ATC Allowed ROE Complaint:** FERC's October 2024 order set ATC's base ROE at **9.98%** for the complaint period, leading to additional refunds. Appeals are pending before the D.C. Circuit Court of Appeals - **Market Risks:** Exposure to changes in U.S. trade policy (tariffs), inflation, and supply chain disruptions could increase costs, disrupt operations, and impact capital projects [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=132&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) There have been no material changes to the company's market risk disclosures from those presented in its 2024 Annual Report on Form 10-K - No material changes to market risk disclosures from the 2024 Annual Report on Form 10-K[427](index=427&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=132&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management evaluated the effectiveness of disclosure controls and procedures as of June 30, 2025, concluding they are effective, with no material changes in internal control over financial reporting during the second quarter - Disclosure controls and procedures were evaluated and deemed effective as of June 30, 2025[428](index=428&type=chunk) - No material changes in internal control over financial reporting occurred during the second quarter of 2025[429](index=429&type=chunk) [PART II. OTHER INFORMATION](index=133&type=section&id=PART%20II.%20OTHER%20INFORMATION) This part includes disclosures on legal proceedings, risk factors, equity security sales, other information, and a list of exhibits [ITEM 1. LEGAL PROCEEDINGS](index=133&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is involved in various legal and administrative proceedings, with management believing appropriate reserves have been established and that ultimate resolution will not materially impact financial statements - Management believes that appropriate reserves have been established for legal proceedings and that their ultimate resolution will not materially impact financial statements[433](index=433&type=chunk) [ITEM 1A. RISK FACTORS](index=133&type=section&id=ITEM%201A.%20RISK%20FACTORS) There were no material changes to the risk factors disclosed in the company's 2024 Annual Report on Form 10-K - No material changes from the risk factors disclosed in the 2024 Annual Report on Form 10-K[434](index=434&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=133&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) During the three months ended June 30, 2025, the company purchased 289 shares of its equity securities at an average price of $108.64 per share, surrendered by employees to satisfy tax withholding obligations Issuer Purchases of Equity Securities (Three Months Ended June 30, 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 1 – April 30 | 289 | $108.64 | | May 1 – May 31 | — | — | | June 1 – June 30 | — | — | | Total | 289 | $108.64 | - All shares purchased were surrendered by employees to satisfy tax withholding obligations upon vesting of restricted stock[436](index=436&type=chunk) [ITEM 5. OTHER INFORMATION](index=133&type=section&id=ITEM%205.%20OTHER%20INFORMATION) No directors or officers adopted or terminated any Rule 10b5-1 trading arrangements during the three months ended June 30, 2025 - No directors or officers adopted or terminated any Rule 10b5-1 trading arrangements during the three months ended June 30, 2025[437](index=437&type=chunk) [ITEM 6. EXHIBITS](index=134&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed or furnished with the report, including instruments defining security holders' rights, certifications, and Interactive Data Files (Inline XBRL) - **Exhibit 4:** Instruments Defining the Rights of Security Holders, Including Indentures (e.g., Indenture dated June 10, 2025) - **Exhibit 31:** Rule 13a-14(a) / 15d-14(a) Certifications - **Exhibit 32:** Section 1350 Certifications - **Exhibit 101:** Interactive Data Files (Inline XBRL Instance Document, Taxonomy Extension Schema, Calculation Linkbase, Definition Linkbase, Label Linkbase, Presentation Linkbase) - **Exhibit 104:** Cover Page Interactive Data File [Signature](index=135&type=section&id=SIGNATURE) The report was duly signed on behalf of WEC Energy Group, Inc. by William J. Guc, Vice President and Controller (Chief Accounting Officer), on August 1, 2025 - The report was signed by William J. Guc, Vice President and Controller (Chief Accounting Officer) on August 1, 2025[444](index=444&type=chunk)

Core Insights - WEC Energy Group reported Q2 2025 earnings of 76 cents per share, exceeding the Zacks Consensus Estimate of 71 cents by 7% and increasing 13.4% from 67 cents in the same quarter last year [1][8] - Operating revenues reached $2.01 billion, surpassing the Zacks Consensus Estimate of $1.86 billion by approximately 8.2%, and also reflecting a 13.4% increase from $1.77 billion in the prior year [2][8] Revenue and Sales Performance - Electricity consumption by small commercial and industrial customers rose by 0.6%, while large commercial and industrial customers, excluding the iron ore mine, saw an increase of 0.8% [2] - On a weather-normal basis, retail electricity deliveries, excluding the iron ore mine, increased by 1.1% [3] - Total electric sales volume for the quarter was 10,656 thousand megawatt-hours, up 2.7% year over year [3] Operating Expenses and Income - Total operating expenses amounted to $1.6 billion, up 13.4% from $1.41 billion in the previous year, driven by higher sales costs and increased operating and maintenance expenses [3] - Operating income totaled $404.9 million, reflecting an 11% increase from $364.8 million in the year-ago quarter [3] Financial Position - As of June 30, 2025, WEC had cash and cash equivalents of $23 million, up from $9.8 million as of December 31, 2024 [5] - Long-term debt stood at $17.11 billion, slightly down from $17.18 billion as of December 31, 2024 [5] - Net cash provided by operating activities during the first half of 2025 was $2.01 billion, compared to $1.9 billion in the same period last year [5] Guidance and Future Outlook - WEC reaffirmed its 2025 earnings projection in the range of $5.17-$5.27 per share, with the Zacks Consensus Estimate at $5.23 per share, which is higher than the midpoint of the company's guidance [6] - The company plans to invest $28 billion during the 2025-2029 period [6]

Financial Data and Key Metrics Changes - The company reported earnings of $0.76 per share for Q2 2025, reflecting a $0.09 increase compared to 2024 [15] - The earnings guidance for 2025 remains between $5.17 to $5.27 per share, assuming normal weather conditions for the remainder of the year [3][20] - The company expects an 8% to 10% growth in O&M expenses for the full year compared to 2024 [16] Business Line Data and Key Metrics Changes - Utility operations earnings increased by $0.16 compared to 2024, with weather positively impacting earnings by approximately $0.04 [15][16] - Retail electric deliveries grew by 1.1%, led by a 1.9% increase in the large commercial and industrial segment [18] - Earnings from the Energy Infrastructure segment decreased by $0.03 due to storm damage losses [19] Market Data and Key Metrics Changes - Wisconsin's unemployment rate stands at 3.2%, below the national average, indicating strong economic development in the region [4] - The company forecasts a demand growth of 1.8 gigawatts to serve the I-94 corridor, with significant projects underway [5][6] Company Strategy and Development Direction - The company is pursuing a robust capital plan totaling $28 billion over five years, focusing on low-risk and highly executable projects [7] - The company plans to extend the operating lives of coal units at the Oak Creek plant through 2026 to meet energy demand [10] - The Very Large Customer tariff is under review, designed to meet the needs of large load customers while protecting other customers [12] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about continued growth in the region and the company's future, citing strong economic development and job creation [22] - The company is actively working with large customers to meet their demand needs, particularly in light of the tight capacity in the system [29] Other Important Information - The company is working on safe harboring renewable projects to qualify for tax credits under current treasury guidance [8][63] - The company has no active rate cases currently, and the Very Large Customer tariff is expected to receive a commission decision by Q2 next year [11][12] Q&A Session Summary Question: Can you discuss the 3.5 gigawatts of demand and how you're thinking about procuring generation for that? - The company is actively working with large customers to meet demand needs and is exploring various options for generation planning [25][29] Question: How are you thinking about the capital update and growth rate? - The company is assessing growth patterns and will present updates in the third quarter call [31][32] Question: What is the status of the large load tariff docket? - The company has reached a settlement with large customers on the tariff, which is currently under review by the commission [34] Question: Can you provide more details on the storm damage recognized in Q2? - The company is working with insurance providers to recover losses from storm damage impacting Texas solar facilities [58] Question: How much of your plan is already safe harbor? - Approximately 40% to 50% of the plan is already safe harbored, with ongoing efforts to comply with new treasury requirements [63] Question: What influenced the decision to extend the operating lives of the Oak Creek coal units? - The decision was based on higher than expected summer demand and MISO prices, with no political pressure involved [67][68]

Financial Data and Key Metrics Changes - The company reported earnings of $0.76 per share for Q2 2025, reflecting a $0.09 increase compared to Q2 2024 [15] - The earnings guidance for 2025 remains between $5.17 to $5.27 per share, assuming normal weather conditions for the remainder of the year [3][20] - The company expects a long-term compound annual earnings growth rate of 6.5% to 7% [4][20] Business Line Data and Key Metrics Changes - Utility operations earnings increased by $0.16 compared to Q2 2024, with weather positively impacting earnings by approximately $0.04 [15][16] - Retail electric deliveries grew by 1.1%, led by a 1.9% increase in the large commercial and industrial segment [17] - Earnings from the Energy Infrastructure segment decreased by $0.03 due to storm damage losses [18] Market Data and Key Metrics Changes - The unemployment rate in Wisconsin stands at 3.2%, below the national average, indicating strong economic conditions [4] - The company anticipates a demand growth forecast of 1.8 gigawatts to serve the I-94 corridor [5] - The Wall Street Journal reported Milwaukee ranked second among U.S. metro areas for college graduates landing jobs, highlighting a skilled labor market [6] Company Strategy and Development Direction - The company is executing a five-year capital investment plan totaling $28 billion, the largest in its history, aimed at supporting economic growth and reliability [7] - The company is actively working on renewable projects and has received approvals for natural gas generation and storage projects [9][10] - The Very Large Customer tariff is under review, designed to meet the needs of large load customers while protecting other customers [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the economic development in the region, particularly with significant investments from companies like Yaskawa and Microsoft [4][5] - The company is closely monitoring the regulatory environment and expects a decision on the Very Large Customer tariff by Q2 next year [12] - Management remains optimistic about continued growth in the region and the company's future [21] Other Important Information - The company plans to extend the operating lives of coal units at the Oak Creek plant through 2026 to meet energy demand [10][68] - The company is working on safe harboring renewable projects to qualify for tax credits under new treasury guidance [8][64] - The annualized dividend stands at $3.57 per share, with a target payout ratio of 65% to 70% of earnings [21] Q&A Session Summary Question: Can you discuss the demand from Vantage and how the company plans to procure generation for that? - The company is actively working with Vantage to meet their demand needs, aiming for about 1.3 gigawatts by 2027, while exploring various options for capacity [24][28] Question: How does the company view the capital growth rate and potential adjustments? - Management is optimistic about economic development and will review growth patterns in the upcoming capital plan update [30][32] Question: What is the status of the large load tariff proceeding? - The company has reached a settlement with large customers on the tariff, which is currently under review by the commission [33][34] Question: Can you provide updates on the Microsoft data center site? - The company is confident in the ongoing development at the Microsoft site and anticipates future opportunities as construction progresses [75][84] Question: What is the plan for the Point Beach PPA and Port Washington Unit one? - Discussions are ongoing regarding the Point Beach PPA, with productive talks expected to yield updates by the end of the year [47][48]

WEC Energy shares have added about 15.5% since the beginning of the year versus the S&P 500's gain of 8.3%. WEC Energy Group (WEC) came out with quarterly earnings of $0.76 per share, beating the Zacks Consensus Estimate of $0.71 per share. This compares to earnings of $0.67 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +7.04%. A quarter ago, it was expected that this electricity and natural gas provider would post earnings ...

Executive Summary & Highlights [Second Quarter 2025 Financial Performance](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Performance) WEC Energy Group reported a strong second quarter in 2025, with net income and earnings per share increasing significantly compared to the prior year, driven by a warm start to summer, capital plan execution, and operational efficiency Second Quarter Financial Performance | Metric | Q2 2025 | Q2 2024 | Change | | :------------------- | :-------- | :-------- | :------- | | Net Income | $245.4 M | $211.3 M | +16.1% | | EPS | $0.76 | $0.67 | +13.4% | - The **strong quarter** was attributed to a warm start to the summer, steady execution of the capital plan, and a continued focus on operating efficiency[3](index=3&type=chunk) [First Six Months 2025 Financial Performance](index=1&type=section&id=First%20Six%20Months%202025%20Financial%20Performance) For the first half of 2025, the company also demonstrated robust growth in net income, EPS, and consolidated revenues, building on the positive momentum from the second quarter First Six Months Financial Performance | Metric | H1 2025 | H1 2024 | Change | | :------------------- | :-------- | :-------- | :------- | | Net Income | $969.6 M | $833.6 M | +16.3% | | EPS | $3.02 | $2.64 | +14.4% | | Consolidated Revenues | $5.2 B | $4.49 B | +$706.8 M | [Operational Highlights & Deliveries](index=1&type=section&id=Operational%20Highlights%20%26%20Deliveries) Retail electricity deliveries saw increases across all customer segments in Q2 2025, with residential use leading the growth, and overall deliveries showing a positive trend even on a weather-normal basis Q2 2025 Retail Electricity Delivery Growth (YoY) | Customer Segment | Growth Rate | | :------------------------------- | :---------- | | Retail deliveries (excl. iron ore mine) | +1.0% | | Small commercial and industrial | +0.6% | | Large commercial and industrial (excl. iron ore mine) | +0.8% | | Residential | +1.6% | - On a weather-normal basis, retail deliveries of electricity (excluding the iron ore mine) increased by **1.1 percent** in the second quarter of 2025[5](index=5&type=chunk) [2025 Earnings Guidance](index=1&type=section&id=2025%20Earnings%20Guidance) The company reaffirmed its full-year 2025 earnings guidance, assuming normal weather conditions for the remainder of the year 2025 Earnings Guidance | Metric | Guidance Range | | :----- | :------------- | | EPS | $5.17 to $5.27 | Company Overview & Investor Information [About WEC Energy Group](index=2&type=section&id=About%20WEC%20Energy%20Group) WEC Energy Group is a premier energy company serving 4.7 million customers across four Midwestern states, operating through various principal utilities and a renewable generation subsidiary, and is recognized as a Fortune 500 company and an S&P 500 component - WEC Energy Group serves **4.7 million customers** in Wisconsin, Illinois, Michigan, and Minnesota[10](index=10&type=chunk) - Key subsidiaries include We Energies, Wisconsin Public Service, Peoples Gas, North Shore Gas, Michigan Gas Utilities, Minnesota Energy Resources, Upper Michigan Energy Resources, and We Power (electric generating plants); WEC Infrastructure LLC owns renewable generation facilities[11](index=11&type=chunk) - The company is a Fortune 500 company and a component of the S&P 500, with approximately **33,000 stockholders**, **7,000 employees**, and over **$48 billion in assets**[12](index=12&type=chunk) [Conference Call & Webcast Details](index=2&type=section&id=Conference%20Call%20%26%20Webcast%20Details) WEC Energy Group scheduled a conference call to discuss Q2 2025 earnings and future outlook, providing access details for live participation and subsequent replay via phone and webcast - A conference call to review Q2 2025 earnings and company outlook is scheduled for **1 p.m. Central time, Wednesday, July 30**[7](index=7&type=chunk) - Access to the live call is available via phone (**888-330-2443** or **240-789-2728** for international callers, Conference ID: **3088105**) or webcast at wecenergygroup.com[7](index=7&type=chunk)[8](index=8&type=chunk) - A replay will be available on the website approximately **two hours** after the call and via phone (**800-770-2030** or **647-362-9199** for international callers, Replay Conference ID: **3088105**) through **August 13, 2025**[9](index=9&type=chunk) Financial Statements [Condensed Consolidated Income Statements](index=4&type=section&id=Condensed%20Consolidated%20Income%20Statements) The condensed consolidated income statements show significant year-over-year growth in operating revenues, operating income, and net income for both the second quarter and the first six months of 2025, despite increases in operating expenses Condensed Consolidated Income Statement Highlights (Unaudited, in millions, except per share) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------------------- | :-------- | :-------- | :-------- | :-------- | | Operating revenues | $2,009.5 | $1,772.0 | $5,159.0 | $4,452.2 | | Total operating expenses | $1,604.6 | $1,407.2 | $3,816.6 | $3,274.0 | | Operating income | $404.9 | $364.8 | $1,342.4 | $1,178.2 | | Net income attributed to common shareholders | $245.4 | $211.3 | $969.6 | $833.6 | | Diluted EPS | $0.76 | $0.67 | $3.02 | $2.64 | | Dividends per share of common stock | $0.8925 | $0.8350 | $1.7850 | $1.6700 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, WEC Energy Group's balance sheet shows an increase in total assets, primarily driven by growth in property, plant, and equipment, while common shareholders' equity also increased, reflecting a stronger financial position Condensed Consolidated Balance Sheet Highlights (Unaudited, in millions) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------- | :------------ | :---------------- | | Total assets | $48,524.3 | $47,363.2 | | Current assets | $2,599.1 | $2,911.7 | | Property, plant, and equipment, net | $36,060.8 | $34,645.4 | | Total liabilities | $34,854.2 | $34,561.3 | | Current liabilities | $4,697.6 | $4,841.9 | | Long-term debt | $17,110.4 | $17,178.1 | | Common shareholders' equity | $13,223.1 | $12,395.0 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first six months of 2025, net cash provided by operating activities increased, while net cash used in investing activities significantly rose due to higher capital expenditures and acquisitions; net cash used in financing activities decreased, leading to a net change in cash of $27.0 million Condensed Consolidated Cash Flow Highlights (Unaudited, in millions) | Metric | H1 2025 | H1 2024 | | :------------------------------------- | :-------- | :-------- | | Net cash provided by operating activities | $2,015.9 | $1,901.0 | | Net cash used in investing activities | $(1,972.8) | $(1,250.8) | | Net cash used in financing activities | $(16.1) | $(512.5) | | Net change in cash, cash equivalents, and restricted cash | $27.0 | $137.7 | - Capital expenditures increased to **$1,530.5 million** in H1 2025 from **$1,138.4 million** in H1 2024, and the company acquired Hardin Solar III Energy Center for **$406.1 million**[23](index=23&type=chunk) - Issuance of common stock, net, significantly increased to **$398.8 million** in H1 2025 from **$38.2 million** in H1 2024, while issuance of long-term debt decreased from **$2,074.2 million** to **$1,025.0 million**[23](index=23&type=chunk) Forward-Looking Statements & Risk Factors [Forward-Looking Statements Disclaimer](index=2&type=section&id=Forward-Looking%20Statements%20Disclaimer) This section clarifies that the press release contains forward-looking statements based on management's current expectations, which are subject to risks and uncertainties that could cause actual results to differ materially; readers are cautioned against undue reliance on these statements - Statements in the press release are 'forward-looking statements' under the Securities Act of 1933 and the Securities Exchange Act of 1934, based on management's current expectations[13](index=13&type=chunk) - These statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated[13](index=13&type=chunk) - Forward-looking terminology includes words like 'anticipates,' 'believes,' 'estimates,' 'expects,' 'forecasts,' 'guidance,' 'intends,' 'may,' 'objectives,' 'plans,' 'possible,' 'potential,' 'projects,' 'should,' 'targets,' 'will,' or similar terms[14](index=14&type=chunk) [Factors Affecting Future Results](index=3&type=section&id=Factors%20Affecting%20Future%20Results) A comprehensive list of factors that could materially affect the company's actual results includes general economic conditions, regulatory decisions, operational challenges, technological advancements, environmental concerns, and geopolitical developments, among others - Factors influencing actual results include general economic conditions, business and competitive conditions, timing and impact of rate cases and regulatory decisions, and the ability to integrate subsidiary operations[15](index=15&type=chunk) - Operational risks encompass availability of generating facilities, unanticipated changes in fuel costs, key personnel changes, severe weather, construction risks, labor disruptions, and supply chain issues[15](index=15&type=chunk) - Other significant factors include continued industry restructuring, advances in new technologies, energy and environmental conservation efforts, electrification initiatives, cybersecurity threats, equity and bond market fluctuations, changes in tax legislation, and political/geopolitical developments[15](index=15&type=chunk)

Core Viewpoint - WEC Energy Group is expected to report quarterly earnings of $0.71 per share, a 6% increase year-over-year, with revenues projected at $1.86 billion, reflecting a 4.9% year-over-year growth [1]. Earnings Projections - There has been a downward revision of 1.1% in the consensus EPS estimate over the last 30 days, indicating analysts' reassessment of their initial forecasts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Revenue Estimates - Analysts project 'Operating Revenues- Regulated Utility Operations-Wisconsin' to reach $1.42 billion, marking a 4.1% increase from the previous year [5]. - 'Operating Revenues- Regulated Utility Operations-Illinois' is estimated at $274.60 million, indicating a 0.8% decrease year-over-year [5]. - 'Operating Revenues- Total Utility Operations' is expected to be $1.78 billion, reflecting a 3.6% increase from the year-ago quarter [6]. - 'Operating Revenues- Non-Utility Energy Infrastructure' is forecasted to reach $189.33 million, showing a 7.8% increase year-over-year [6]. - 'Operating Revenues- Regulated Utility Operations- Other States' is estimated at $79.12 million, indicating an 11.4% year-over-year increase [7]. Stock Performance - Over the past month, WEC Energy shares have returned +6.2%, outperforming the Zacks S&P 500 composite's +4.9% change [7].

Core Points - WEC Energy Group Inc. will release its 2025 second-quarter earnings before the stock market opens on July 30, 2025 [1] - A conference call for investors and analysts is scheduled for the same day at 1 p.m. Central time [1] - Detailed financial information will be available on the company's website by 6:30 a.m. Central time on July 30 [1] Company Overview - WEC Energy Group is based in Milwaukee and serves 4.7 million customers across Wisconsin, Illinois, Michigan, and Minnesota [2] - The company's principal utilities include We Energies, Wisconsin Public Service, Peoples Gas, North Shore Gas, Michigan Gas Utilities, Minnesota Energy Resources, and Upper Michigan Energy Resources [3] - WEC Infrastructure LLC owns a fleet of renewable generation facilities in various states, including South Dakota and Texas [3] Financial Information - WEC Energy Group is a Fortune 500 company and a component of the S&P 500 [4] - The company has approximately 33,000 stockholders of record and 7,000 employees [4] - WEC Energy Group has more than $48 billion in assets [4]

Core Viewpoint - WEC Energy Group is expected to report a year-over-year increase in earnings and revenues, but actual results compared to estimates will significantly impact its stock price [1][2]. Earnings Expectations - The upcoming earnings report is anticipated to show quarterly earnings of $0.71 per share, reflecting a +6% change year-over-year, with revenues projected at $1.86 billion, up 4.9% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 1.15% lower in the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][12]. Earnings Surprise Prediction - The Most Accurate Estimate for WEC Energy is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.41%, which complicates predictions of an earnings beat [12]. Historical Performance - In the last reported quarter, WEC Energy exceeded the expected earnings of $2.19 per share by delivering $2.27, achieving a surprise of +3.65%. Over the last four quarters, the company has beaten consensus EPS estimates three times [13][14]. Investment Considerations - Despite the potential for an earnings beat, other factors may influence stock movement, and the company does not currently appear to be a strong candidate for an earnings surprise [15][17].