WEC Energy(WEC) - 2025 Q2 - Quarterly Results

Executive Summary & Highlights Second Quarter 2025 Financial Performance 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] First Six Months 2025 Financial Performance 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 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] 2025 Earnings Guidance 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 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] - 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] - 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] Conference Call & Webcast Details 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] - 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][8] - 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] Financial Statements Condensed Consolidated Income Statements 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 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 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] - 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] Forward-Looking Statements & Risk Factors Forward-Looking Statements Disclaimer 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] - These statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated[13] - 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] Factors Affecting Future Results 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] - 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] - 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]