Core Points - We Energies has received the 2025 ReliabilityOne® Award for exceptional reliability performance in the Upper Midwest, based on its performance in 2024 [1][4] - The award recognizes utilities that excel in providing reliable electric service to customers, with We Energies being highlighted for its commitment to reliability and service excellence [1][4] Company Investments and Improvements - We Energies has invested in upgrading its grid to enhance performance and recovery from storms, including modernizing aging systems and burying hundreds of miles of power lines [3] - The company has implemented high-tech equipment to minimize the impact of power outages and has undertaken extensive tree trimming and removal along thousands of miles of power lines [3] - These investments aim to modernize delivery systems, reduce operating costs, and improve energy efficiency [3] Award Selection Process - The ReliabilityOne® Award is open to all utilities operating electric delivery networks in North America, with selection based on system reliability statistics measuring the frequency and duration of customer outages [5][6] - Companies undergo a rigorous certification process that includes independent reviews of their reliability reporting processes [6] Company Overview - We Energies serves over 1.1 million electric and natural gas customers in Wisconsin and is a subsidiary of WEC Energy Group Inc. [7]

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]