MGE Energy 2025 Q2 Earnings Strong Performance as Net Income Surges 11.4%

MGE Energy (MGEE) reported its fiscal 2025 Q2 earnings on Aug 06th, 2025. The results surpassed expectations with double-digit growth in both revenue and net income, though the company did not provide specific forward-looking earnings guidance. The performance was driven by rate base investments and favorable weather conditions, with no major adjustments to prior guidance noted.

Revenue
MGE Energy’s total revenue rose 9.4% to $159.45 million in 2025 Q2, compared to $145.71 million in 2024 Q2. The increase was largely fueled by stronger performance in the electric segment, which generated $129.53 million in revenue, while the gas segment contributed $29.93 million. Combined, the two operating segments accounted for the full $159.45 million in total operating revenue.

Earnings/Net Income
The company’s earnings per share (EPS) increased by 10.6% to $0.73 in Q2 2025, compared to $0.66 in the same period in 2024. Net income also expanded, rising to $26.50 million from $23.79 million, representing an 11.4% growth year-over-year. This continued earnings expansion reflects MGE Energy’s long-standing profitability and operational resilience across more than 20 years of consistent performance in the same quarter.

Price Action
Over the latest trading day, the stock price of MGE Energy fell slightly by 0.66%. However, over the most recent full week, it gained 0.29%. The stock, however, experienced a more pronounced decline of 4.85% month-to-date.

Post-Earnings Price Action Review
A strategy of buying MGE Energy shares following a revenue increase in the financial report and holding for 30 days yielded moderate returns. The compound annual growth rate (CAGR) was 1.63%, which lagged significantly behind the benchmark by 46.95 percentage points. Despite the low returns, the strategy was characterized by a maximum drawdown of 0% and a Sharpe ratio of 0.07, indicating a low-risk profile. However, the 23.72% volatility highlighted the significant price fluctuations associated with the stock.

CEO Commentary
The CEO attributed the strong performance to growth in the rate base and the impact of favorable weather conditions. He emphasized the company’s continued investment in renewable generation and infrastructure, particularly the Darien Solar Project and the Paris Battery Energy Storage System, which were recently brought online. These projects are expected to enhance system reliability and support long-term asset growth. The CEO also highlighted a 5% increase in electric residential sales driven by warmer-than-normal weather. Meanwhile, gas net income remained stable, showing minimal variation compared to the prior year.

Guidance
MGE Energy provided forward-looking guidance cautioning that actual results may differ from expectations due to risks outlined in its 2024 Form 10-K. The company does not intend to update or revise its forward-looking statements, which are based on current expectations. While no specific earnings or revenue targets were provided, the CEO expressed confidence in the company’s ongoing investments in renewable energy and operational efficiency as key drivers of future performance.

Additional News
On August 6, 2025, MGE Energy, Inc. (Nasdaq: MGEE) reported its financial results for the second quarter of 2025. Under GAAP, the company reported net income of $26.5 million, or $0.73 per share, compared to $23.8 million, or $0.66 per share, in the prior year. The earnings were primarily driven by rate base investment growth and favorable weather conditions. The Darien Solar Project, which became operational in March 2025, and the Paris Battery Energy Storage System, commissioned in June 2025, contributed significantly to the company’s electric earnings. MGE owns 25 MW of solar capacity from the Darien Solar Project and 11 MW of battery capacity from the Paris BESS project. Electric residential sales increased by approximately 5% during the quarter, largely due to warmer-than-normal weather. Gas net income remained relatively stable compared to the previous year.