WEC Energy 2025 Q1 Earnings Solid Growth as Net Income Climbs 16.5%

WEC Energy (WEC) reported its fiscal 2025 Q1 earnings on May 06th, 2025. The company exceeded expectations with a robust 16.5% increase in net income, reflecting strong operational performance. Additionally, WEC reaffirmed its full-year earnings guidance of $5.17 to $5.27 per share, indicating confidence in its ability to maintain strong performance. Analysts had projected a diluted EPS of $2.20 for Q1, but the company reported an EPS of $2.28, surpassing expectations and reinforcing its growth narrative. The steady rise in earnings underscores WEC's strategic execution and market resilience.

Revenue

The total revenue of WEC Energy increased by 17.5% to $3.15 billion in 2025 Q1, up from $2.68 billion in 2024 Q1.

Earnings/Net Income

WEC Energy's EPS rose 15.7% to $2.28 in 2025 Q1 from $1.97 in 2024 Q1, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $725.50 million in 2025 Q1, marking 16.5% growth from $622.60 million in 2024 Q1. Remarkably, the company has sustained profitability for more than 20 years over the corresponding fiscal quarter, underscoring strong operational resilience. The EPS increase reflects a strong financial performance.

Price Action

The stock price of WEC Energy has edged up 0.30% during the latest trading day, has edged up 0.56% during the most recent full trading week, and has edged up 1.13% month-to-date.

Post-Earnings Price Action Review

The strategy of purchasing WEC Energy shares after a quarter-over-quarter revenue decline and holding for 30 days yielded a 15.43% return over the past five years, significantly lagging behind the benchmark's 83.12% return. This strategy demonstrated poor risk-adjusted returns, evidenced by its low Sharpe ratio of 0.25. Additionally, the strategy faced a maximum drawdown of -19.77%, highlighting its high risk and underscoring the importance of effective risk management. Investors should exercise caution with this approach, given its historical underperformance and elevated risk profile.

CEO Commentary

“Our positive first-quarter results were driven by continued economic growth in our region and a strong focus on operating excellence,” said Scott Lauber, President and CEO. He emphasized the company’s commitment to executing on fundamentals such as customer satisfaction, financial performance, and steady execution of their capital plan. Natural gas deliveries in Wisconsin increased by 15.5% year-over-year, while retail electricity deliveries rose by 2.9%. Residential electricity use showed a significant increase of 5.5%, reflecting a robust demand environment amid seasonal variations.

Guidance

The company is reaffirming its 2025 earnings guidance of $5.17 to $5.27 per share, contingent upon normal weather conditions for the remainder of the year. This outlook indicates confidence in maintaining strong performance driven by operational effectiveness and market stability.

Additional News

In recent developments, WEC Energy has seen notable activity in its stock holdings with Beck Bode LLC increasing its stake, reflecting investor confidence in the company's growth strategy. Meanwhile, Comerica Bank reduced its holdings, indicating a potential shift in investment priorities. Additionally, the company declared a quarterly cash dividend of 89.25 cents per share on January 16, 2025, marking a 6.9% increase over the previous dividend rate. This dividend hike reinforces WEC's commitment to providing shareholder value and underscores its financial stability and robust cash flow generation.