WEC Energy(US:WEC)2026-01-05 21:17Financial Performance - The company has a market cap of $34.3 billion and serves 4.7 million retail customers, with total assets amounting to $49.8 billion[3]. - The 2025 adjusted earnings per share (EPS) guidance is projected to be between $5.17 and $5.27, with a long-term EPS growth outlook of 6.7% CAGR[4][6]. - The company reported a strong earnings growth with a projected long-term EPS growth of 7.0% to 8.0%[27]. - Adjusted EPS for 2023 is projected at $4.63, with guidance for 2024 between $4.88 and $5.17[49]. - The company expects a GAAP EPS of $4.22 for 2023, reflecting an increase from $3.79 in 2017[49]. - The adjusted EPS for 2025 is projected at $4.83 to $4.93, indicating a steady growth trajectory[49]. Dividend and Shareholder Returns - The board plans to increase the quarterly dividend to 95.25 cents per share for Q1 2026, resulting in an annual rate of $3.81 per share, marking the 23rd consecutive year of dividend growth[7]. Capital Investment and Expenditures - A significant investment of over $7 billion is planned for the Microsoft Data Center project, expected to create 2,300 construction jobs and 2,000 permanent jobs[12]. - The capital plan for 2026-2030 includes $8.5 billion in additional investments, with $3.4 billion allocated to natural gas generation and $2.5 billion to regulated renewables[15]. - The projected capital expenditures from 2026 to 2030 total $36.5 billion, supporting long-term EPS growth of 7.0% to 8.0%[17]. - The company plans to invest approximately $5.7 billion in capital projects in 2026, with projections increasing to $7.8 billion by 2028[38]. Energy Transition and Sustainability - The company aims to eliminate coal as an energy source by the end of 2032, having already retired nearly 2,500 MW of fossil fuel generation since 2018[25]. - The company is maintaining its long-term goal of achieving net carbon neutral electric generation by 2050, despite reconsidering near-term goals due to tightened energy supply requirements[26]. - The company is involved in clean energy pilot projects, including a long-duration energy storage battery project that utilizes environmentally friendly materials[35]. - The company has several solar projects with anticipated capacities, including Koshkonong Solar Park (270 MW, $621M investment) and High Noon Solar Park (270 MW, $576M investment), expected to be operational by 2026 and 2027 respectively[30]. - Battery projects include Darien Battery Park (68 MW, $140M investment) and Koshkonong Battery Park (149 MW, $309M investment), with expected service dates in 2026 and 2027[31]. Regulatory and Compliance - The issuer credit ratings for WEC Energy Group are A- from S&P and Baa1 from Moody's, with a target FFO to debt ratio of over 15%[24]. - The company is focused on regulatory compliance and has mechanisms for capital cost recovery in place[48]. - Earnings sharing mechanisms are in place for Wisconsin utilities, with specific thresholds for sharing above allowed ROE[48]. - The company has a bad debt rider and fuel cost recovery mechanisms in place across various states[48]. Customer and Community Engagement - The company has a balanced sales mix, with 33% from large commercial and industrial customers and 31% from residential and farm customers[44]. - The company contributed over $20 million to nonprofit organizations in 2024, demonstrating a commitment to community support[33]. Operational Metrics - The average asset base for 2024 is projected to be $30.8 billion, with Wisconsin Electric representing 29.2% of the total[39]. - The equity layer for Wisconsin Electric is 57%, with a ROE range of 10.48%-10.98%[47]. - Authorized ROE for Wisconsin Electric, Wisconsin Public Service, and Wisconsin Gas is set at 9.80% within a range of 50.50%-55.50%[47]. - The company has outlined a 50/50 sharing on the next 60 basis points above the allowed ROE for WPS and WG utilities[48]. - The impact of additional shares from the Integrys acquisition reduced EPS by $0.47[49].