MGE Energy 2025 Q3 Earnings Strong Performance with 8.7% Net Income Growth

MGE Energy (MGEE) reported Q3 2025 earnings on Nov 5, 2025, with results exceeding expectations. The company’s EPS rose 8.0% to $1.22, beating the Zacks Consensus Estimate of $1.19, while net income grew 8.7% to $44.5 million. Management attributed the gains to rate base expansion and non-utility investment gains, though no explicit guidance was provided for future periods.

Revenue

The total revenue of MGE Energy increased by 4.3% to $175.68 million in 2025 Q3, up from $168.48 million in 2024 Q3.

Earnings/Net Income

MGE Energy's EPS rose 8.0% to $1.22 in 2025 Q3 from $1.13 in 2024 Q3, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $44.50 million in 2025 Q3, marking 8.7% growth from $40.94 million in 2024 Q3. Remarkably, the company has sustained profitability for more than 20 years over the corresponding fiscal quarter, underscoring strong operational resilience. The EPS and net income growth reflect robust operational performance and strategic capital deployment.

Price Action

The stock price of MGE Energy has edged up 1.58% during the latest trading day, has edged up 1.78% during the most recent full trading week, and has edged up 1.91% month-to-date.

Post-Earnings Price Action Review

The stock’s post-earnings price action has shown modest gains in the short term, with a 1.58% rise on the latest trading day and 1.78% weekly. Month-to-date, shares have gained 1.91%, indicating positive sentiment. However, the Zacks Rank #4 (Sell) suggests potential underperformance ahead, driven by unfavorable earnings estimate revisions prior to the report. While the earnings beat may temporarily buoy investor confidence, the lack of explicit guidance and ongoing market pressures could limit upward momentum.

CEO Commentary

MGE Energy’s CEO highlighted that third-quarter 2025 earnings growth was driven by rate base investment expansion and non-utility investment gains, with specific emphasis on the Darien Solar Project and Paris BESS operationalization. The CEO noted that electric segment earnings increased by $1.3 million due to strategic capital investments in renewables, while gas segment performance remained stable. Additionally, non-utility earnings were bolstered by $2.2 million in venture capital gains from early-stage tech and sustainability-focused companies. The leadership outlook is optimistic, underscoring progress in renewable energy deployment and innovation alignment with utility priorities.

Guidance

The company did not provide explicit numerical guidance for future periods but included standard cautionary language in its forward-looking statements, noting inherent uncertainties in market conditions, regulatory environments, and project execution risks. The press release emphasized that actual results could differ materially from expectations due to these factors, as outlined in the “Risk Factors” section of its 2024 10-K filing. No specific earnings, revenue, or operational targets were disclosed for future quarters.

Additional News

MGE Energy announced plans to expand its renewable energy portfolio by seeking approval to add over 85 MW of solar capacity and 18 MW of battery storage. These projects, including the Dawn Break Solar and Storage (180 MW solar + 180 MW battery) and Akron Solar (200 MW), aim to accelerate the company’s net-zero carbon goals by 2050. MGE’s CEO emphasized that geographically diverse utility-scale projects will enhance reliability and manage costs while supporting Wisconsin’s sustainability objectives. The initiatives align with broader strategies to expand renewables, advance energy efficiency, and electrify transportation.

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