WEC Energy Beats Q4 Earnings Estimates, to Add More Renewable Assets

Core Insights - WEC Energy Group reported Q4 2025 earnings of $1.42 per share, exceeding the Zacks Consensus Estimate of $1.38 per share by 2.9%, but down 0.7% from $1.43 per share in the same quarter last year [1][2] - The company achieved adjusted earnings of $5.27 per share for 2025, reflecting an 8.0% increase from $4.88 per share in 2024 [2] Revenue Performance - Operating revenues for Q4 2025 were $2.54 billion, surpassing the Zacks Consensus Estimate of $2.45 billion by approximately 3.7%, and increased 11% from $2.28 billion in the year-ago quarter [3][7] - Total revenues for 2025 reached $9.80 billion, a 14% increase from $8.60 billion in 2024 [3] Consumption and Deliveries - Retail electricity deliveries increased by 2.2% in Michigan's Upper Peninsula and 1.1% in Wisconsin year-over-year [4] - Electricity consumption by small commercial and industrial customers rose by 1.6%, while residential consumption increased by 3.5% in 2025 [4] Operating Expenses and Income - Total operating expenses were $2.08 billion, up 23% from $1.69 billion in the previous year, primarily due to higher sales costs and increased operating and maintenance expenses [5] - Operating income fell to $452.9 million, a decrease of 23.4% from $590.9 million in the year-ago quarter [5] Financial Position - As of December 31, 2025, WEC had cash and cash equivalents of $27.6 million, up from $9.8 million at the end of 2024 [6] - Long-term debt increased to $18.50 billion from $17.18 billion in 2024 [6] - Net cash provided by operating activities was $3.38 billion, compared to $3.21 billion in the previous year [6] Future Outlook - WEC reaffirmed its 2026 earnings projection in the range of $5.51-$5.61 per share [9] - The company anticipates a 1.6% growth in retail electric sales in Wisconsin and a 5.8% increase in the large commercial and industrial segment from 2025 [9] - Planned investments include $7.4 billion in natural gas generation and LNG storage, and $12.6 billion to add 6,500 MW in renewable energy from 2026 to 2030 [9][10] Capital Expenditure - Capital expenditure for 2025 totaled $4.40 billion, compared to $2.78 billion in 2024 [8]