01—Abstract
Summary
Summary of the 10-Q filed May 7, 2025. Cited figures are marked; the original filing is the authoritative source.
WEC Energy Group, Inc. reported net income attributed to common shareholders of $724.2 milliona, or $2.27 diluted EPS, for the three months ended March 31, 2025, compared with $622.3 million, or $1.97 diluted EPS, in the same period of 2024.
Operating revenues rose to $3,149.5 millionb from $2,680.2 million, and the filing attributes the $101.9 million earnings increase mainly to the Wisconsin segment, which grew $93.5 million on higher margins from Wisconsin rate orders effective January 1, 2025 and higher retail sales volumes from colder weather. The non-utility energy infrastructure segment added $14.5 million, driven by production tax credits, while the Illinois segment declined $9.4 million on higher operating expenses. Cash flow from operations was $1,162.6 million, up from $863.6 million, while investing outflows rose to $1,101.8 million, including $406.1 million for the February 2025 acquisition of a 90% interest in the 250 MW Hardin III solar facility in Ohio and capital expenditures of $701.1 million.
Long-term debt fell to $16,161.8 millionc from $17,178.1 million as current maturities rose to $2,729.9 million, and short-term debt increased to $1,327.1 million. The company's capital plan calls for approximately $24.4 billion of regulated utility capital expenditures from 2025 to 2029, and the filing reports a debt-to-total-capitalization ratio of 60.9% on an actual basis.
The filing also highlights regulatory and litigation developments, including a February 2025 Illinois Commerce Commission order requiring PGL to replace cast and ductile iron pipe under 36 inches by January 1, 2035, a pending Wisconsin application for a Very Large Customer tariff filed March 31, 2025, and continued appeals related to ATC's return on equity. Management stated that its current liabilities exceeded current assets by $2,919.6 milliond, which it does not expect to affect liquidity.
02—Key points
Key Highlights
- Net income attributed to common shareholders rose to $724.2 million ($2.27 diluted EPS) from $622.3 million ($1.97 diluted EPS) in Q1 2024, an increase of $101.9 million.
- Operating revenues increased to $3,149.5 million from $2,680.2 million, with cost of sales rising to $1,165.7 million from $927.1 million.
- The Wisconsin segment contributed $359.9 million of net income, up $93.5 million, driven by 2025 Wisconsin rate orders and colder weather that raised heating degree days 21.5% in the Milwaukee area.
- Operating cash flow was $1,162.6 million versus $863.6 million a year earlier, while capital expenditures were $701.1 million versus $444.5 million.
- WECI acquired a 90% interest in the 250 MW Hardin III solar facility in Ohio for $406.1 million in February 2025, which qualifies for production tax credits.
- Long-term debt declined to $16,161.8 million from $17,178.1 million as current portion of long-term debt rose to $2,729.9 million; the company issued common stock under a $1.5 billion at-the-market program and realized $201.4 million in net proceeds to date.
- The ICC's February 20, 2025 order requires PGL to replace cast and ductile iron pipe under 36 inches by January 1, 2035, and PGL's appeal of prior disallowances remains pending.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2025, Wec Energy Group kept $0.23.
- Revenue$3.15B100.0%
- Cost of revenue−$1.17B37.0%
- Gross profit$1.98B63.0%
- Operating costs−$1.05B33.2%
- Operating income$937.5M29.8%
- Interest, other & tax−$213.3M6.8%
- Net income$724.2M23.0%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed May 7, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $3.15B$2.68B | +17.5% |
| Cost of Revenue | $1.17B$927.10M | +25.7% |
| Gross Profit | $1.98B$1.75B | +13.2% |
| Operating Expenses | $2.21B$1.87B | +18.5% |
| Operating Income | $937.50M$813.40M | +15.3% |
| Interest Expense | $223.00M$192.00M | +16.1% |
| Net Income | $724.20M$622.30M | +16.4% |
| EPS (Basic) | $2.28$1.97 | +15.7% |
| EPS (Diluted) | $2.27$1.97 | +15.2% |
| Shares Outstanding (Basic) | 318.20M315.60M | +0.8% |
| Shares Outstanding (Diluted) | 319.30M315.90M | +1.1% |
05—Questions
Frequently Asked Questions
What drove the increase in WEC Energy Group's first-quarter 2025 earnings?
The filing attributes the $101.9 million increase in net income attributed to common shareholders mainly to the Wisconsin segment, which rose $93.5 million on higher margins from Wisconsin rate orders effective January 1, 2025 and higher retail sales volumes. The non-utility energy infrastructure segment added $14.5 million from higher production tax credits, while the Illinois segment declined $9.4 million due to higher operating expenses.
How is WEC Energy Group funding its capital plan?
The company cites internal cash from operations, access to the capital markets, and common equity, including an at-the-market program under an equity distribution agreement of up to $1.5 billion that had yielded $201.4 million in net proceeds as of March 31, 2025. Its short-term credit capacity totaled $3,300.0 million, with $1,323.9 million of commercial paper outstanding.
What is the status of the Illinois natural gas infrastructure proceedings?
On February 20, 2025, the ICC directed PGL to replace all cast and ductile iron pipe with a diameter under 36 inches by January 1, 2035, through its Pipeline Replacement Program, with an ICC-appointed safety monitor overseeing the program. The company is evaluating the order's impact on operations and its capital plan, and PGL's petition to the Illinois Appellate Court regarding about $237.9 million of disallowed capital costs and $116.0 million of other disallowed safety and reliability investments is pending.
What new large-customer tariff did Wisconsin Electric file?
On March 31, 2025, WE filed an application with the PSCW for a Very Large Customer Tariff and a Bespoke Resources Tariff for customers using 500 MW or more, such as large data centers. Under the proposal, these customers would pay for the power and facilities built to serve them, with a proposed ROE of 10.48% and equity ratio of 57%. The company expects a PSCW decision in the second quarter of 2026.
What are the company's leverage and liquidity positions?
The debt-to-total-capitalization ratio was 60.9% on an actual basis and 59.7% on an adjusted basis that treats $375.0 million of the $750.0 million 2024 Junior Notes as equity. Current liabilities exceeded current assets by $2,919.6 million, which management does not expect to affect liquidity, and the company stated it was in compliance with all debt covenants at March 31, 2025.
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